Xero vs. QuickBooks Online: A Comparison

“Beautiful” Xero is increasingly becoming the preferred cloud-based accounting software, inching toward the throne held by longtime household name Quickbooks.

Both Xero and Quickbooks Online are cloud-based and include mobile versions. While both programs offer top-notch software and match each other’s functionality in many areas, there are a few key features that Xero has managed to outperform in, to the great delight of its users. Katherine Miller gives a detailed explanation of all the ways the two can be compared. Here is a brief summary of her findings.

1. Users and Permissions

Xero offers unlimited number of users and permissions with a single subscription. Quickbooks, on the other hand, charges progressively more for additional users, up to a maximum of 5 users, and up to 2 accountants beyond that.

2. Price

If you just want the bare minimum plan, Quickbooks Online offers an entry level plan for $12.95 a month that provides more features than Xero’s basic plan for $9 a month. But if you are in the market for one of the higher end plans, you’ll save money by going with Xero. Miller says that for all plans other than the basic level, “Xero tends to offer more bang for the buck. Nearly all its features are included in its Standard Plan, whereas with QuickBooks you’ll need to upgrade to Plus for job costing, purchase orders, or 1099s.”

3. Usability

Xero is not only just easy to use, it is also enjoyable to use. “The layout makes sense, navigation is generally efficient, and the knowledge base is comprehensive and well-organized,” Miller continues. Unfortunately Quickbooks Online, which also is intuitively laid out, underwent a redesign last year resulting in some loss of efficiency, as well as a few new bugs popping up.

While Quickbooks users are generally satisfied, Xero users tend to be more vocal online, praising the product profusely, she adds.

4. Features

Quickbooks has a slight advantage in this area. Among the dozens of features that both have, Quickbooks edges ahead, Miller says. Depending on your type of business, these features may or may not make a difference to your company.

5. Integration

Xero integrates with 280 add-on apps, while Quickbooks only integrates with 100.

6. Customer Service, Overall Satisfaction and Positive Reviews

Xero is the leader in each of these categories. The customer service runs 24/7 and is known for being prompt and responsive. While Quickbooks users are generally satisfied, Xero users tend to be more vocal online, praising the product profusely. Xero also receives proportionally less negative feedback from users.

7. Security

Both programs are equivalent in this area, and do a great job of keeping your information safe.

Miller’s final verdict is that they are both excellent cloud-based accounting systems, but overall Xero seems to be a more attractive choice. However, discovering which is the right solution for you will depend on your individual needs, so take a look at the details before choosing for yourself.

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