The most common questions I get asked is Xero vs Quickbooks!
Below is a list of 5 key point when comparing online business software and my summary of each. BUT Lets get one thing straight! If your not on a cloud based accounting program for your business you are already failing! I will also clear up I am a partner with both and assisted in helping hundreds of business with both packages.
Why chose a cloud-based software?
Cloud based software is a great new (or not so new anymore) technology that
- Saves you time
- Creates efficiencies
- Real time information
- Access from anywhere
- Shared with all your important stakeholders!
You may ask why I have narrowed it down to just the two? (I only work with these two and certified in both) I have ruled out MYOB because is a simple software (made for non-accountants) It does the job, a little too simply for my liking, but is costly. Reckon? its just too clunky and no real competitive advantage over the others. SO lets get into this;
1 – SUPPORT – Xero vs Quickbooks online
Xero – Ever tried to phone xero? Good on you if you actually found their phone number, not something they are willing to give out. And if you do email support they reply with the “Help link” that you have probably already tried to navigate your way around! Don’t get me wrong the fact that they don’t have the ability to help business owners easily means that clients call me for help and assistance (YAY for me $$$$) but from a business owners perspective what do you get for your monthly subscription? On a positive they do respond quickly to the emails.
Quickbooks Online – As an advisor or a business owner you have a dedicated phone number for support. (And yes it is answered in this country), and majority of the time they are able to help you with great bookkeeping knowledge. Another advantage is that you don’t need to be a partner to access help videos or training events – a bonus for small business owners trying to learn it themselves.
2 – APP & ADD ONS
The outright winner for the mobile app would be Quickbooks online, check out the list below
|Create Invoices||Create Invoices|
|Upload files & photos||Expenses|
|manage Contacts||Upload receipts, notes|
|Reconcile banking and check balances||Reconcile banking|
|payments = Paypal, Square & Ezidebit||P&L and BS reporting|
|Recent activity from customers and supplier|
|Payments from Paypal, Square|
|(Tablet profiles for invoicing on the go)|
In the world of Adds on Xero is the CLEAR winner
Xero has over 500 apps in their marketplace. If there is an add on out their you can be guaranteed that Xero is compatible.
Quickbooks online has under half of this at 224.
For some business’ it is all about the ability of the use of an add on that becomes the deciding factor between the two. Typical add-ons are ecommerce, timesheets, POS systems and Inventory….. someone say inventory to my next point
3 – Inventory – we have a clear winner!!
Maybe a reason that Quickbooks online has half the apps is that it has double the features of Xero? One of those is that of inventory. In short anyone that phones me and wants to track inventory I will not work with them in XERO. Xero does have an inventory function but it is very limited – if you buy in a box and sell box and only that box with no variations – great use xero. For anything else Quickbooks online is the program for you. A winner for me is the ‘Bundle’ option. It allows you to sell your products by grouping them into a package and then selling it with a discounted amount. I love this feature…stay tuned I am going to do a complete blog on this feature soon.
Imagine running a business like this without the use of Inventory Tracking at your fingertips? – I still call australia home
4 – Reporting
Quickbooks was the winner up until about a month or two ago when Xero had a major overhaul of their reporting features and I must say they are pretty close! But if you want a definitive response to who’s reporting Xero Vs Quickbooks online has the most beneficial features for small business I would go Quickbooks online. If you ask the same questions from an accounting perspective it would be Xero!
The ability to drill down in the reports with unlimited customisations is a real winner for me. If we are looking at job costing you can select it just for that job. Xero you are able to do this also but there is a lot more time needed to get the same desired result.
As a bookkeeping providing my clients with monthly or quarterly reporting packs the ability to have automatic emails or reports sent to clients on my preferred day is a real winner! A downfall of QBO reporting is that you can not add payroll reports to your customisations, there are lots of payroll reports available you just don’t have the ability to have these as your ‘favourites’.
Reporting is so important to business, to find out more check out one of our blogs on Business Reporting.
5 – Last BUT definitely not the least is PRICE
Xero Vs Quickbooks online price comparison!
Xeros starter pack is $25 – you are limited to 5 invoices, 5 bills, 20 bank transactions and 1 payroll per month!! Come on does anyone use this? It goes up from their $50 is the most common but not if you have more than 1 payroll. Up to 5 payroll and multi-currency is $60, $70 for 10 employee etc – full list here
Quickbooks online starter pack ‘Simple Start’ is $15 unlimited invoices, banking and up to 10 payroll but no ability to manage bills. $25 adds on managing bills, multi currency, reoccurring invoices and multiple users. Top package of $35 is project tracking, purchase orders, inventory and budgeting – full list here
Remembering with both of these they will have discounts and promotions and your bookkeeping partner can help you with this.
Quickbooks online is half the cost. Whilst Xero is the most expensive, when comparing the two for your business I think you need to make that decision on product offerings suiting to your business.
In summary when comparing Xero vs Quickbooks Online they both have similar functions I cannot justify such a large difference in price which is accompanied by reduced support.
Its not only important to choose the right software package for you! Having the right bookkeeper for your needs is just as important; Here are some articles that will help;
- How to choose the right bookkeeper for you
- Hazards of DIY Bookkeeping
- 6 signs of a great bookkeeper
- 3 simple signs of bad bookkeeping