The QuickBooks Simple Start plan costs $30 per month and supports one user, making it best for very tiny businesses or for a single freelancer. Features include expense tracking, contact management, and unlimited invoices and estimates. Reporting abilities are limited, though a raft of third-party integrations are available (many cost a little extra, but some are free). QuickBooks Online and Xero are well-known cloud-based business accounting software solutions that are a favorite of growing companies due to their affordable pricing and installment sales accounting method scalability. These systems provide accounting features such as invoicing, accounts payable and receivable, and inventory management to help your business stay organized and profitable.

Startups & Small Businesses

These are the two highest scores our research team gave any accounting solutions. While both are very similar, these two products have exclusive benefits that set them apart. This guide will explore the key differences and declare our respective winners in each category.

The Established plan also supports a multi-currency function, which converts 160 different foreign currencies into your business’s local currency. We consider both QuickBooks and Xero to be among the best invoicing software for small business., with both services earning a 5/5 point score overall in our research’s bookkeeping category. Xero best suits medium to large businesses but works for all businesses. In addition, Xero has a far more user-friendly interface than QuickBooks, so its ease of use makes it the perfect choice for the self-employed and those with less accounting experience. When comparing accounting software solutions, QuickBooks Online is a highly recognized name that likely comes to mind.

For those moving their small business’ accounting over from another application, you can import data into QuickBooks Online using the Import Data function. Xero’s main entry screen uses a menu bar at the top of the screen for access to system functions. This pared-down menu makes it easy for new users to find their way around the application without too much trouble. You’ll rarely be asking yourself how to use QuickBooks Online as they offer plenty of guidance throughout the application; users can click on the question mark anytime they need assistance. Xero and QuickBooks Online both offer a ton of features all designed for small business owners. QuickBooks Online, an offshoot of the popular QuickBooks Desktop application, is a good fit for small and growing businesses.

You can cancel anytime, you’ll get 24/7 support during your trial, and your prices don’t change based on whether you pursue the trial. We like this level of accommodation — it’s rare 6 benefits of becoming an accountant and highly beneficial among the many free trial offers we’ve encountered while reviewing business software. QuickBooks and Xero are among the best accounting software platforms for small businesses. Both Xero and QuickBooks Online have their own versions of transaction tracking tags, but QuickBooks Online is the winner in this arena. Xero lets users create two active tracking categories, while QuickBooks Online allows users to create 40 in the Simple Start, Essentials and Plus plans.

Expense Tracking

Has robust reporting tools and report customization options, basic inventory tracking in all plans and a capable mobile app; Early plan limits the number of invoices and bills. QuickBooks offers a more integrated suite of features compared to Xero. With features like automatic expense tracking, a user-friendly interface, and extensive reporting options, QuickBooks aims to streamline financial management for small businesses.

Even though Xero offers a tempting $9/month plan, the reality is that it’s too restrictive for anything but the smallest side hustles that need less than five invoices and bills per month. With Quickbooks, expenses functionality is built into all plans rather than offered as an add-on (or gated behind higher plans) as with Xero. This can mean some small cost savings and extra simplicity if you have a small business.

1. User preference can play a role in which style you prefer, but generally, the more self-explanatory a central navigation screen is, the easier it is for new users to find their way around.
2. A Live Bookkeeper cannot begin cleaning up your past books until they receive the required supporting documentation, which your bookkeeper will request from you after your first meeting.
3. If snapping photos of receipts to claim expenses on the go is a key mobile feature you’d like to have, regardless of plan level, QuickBooks Online might be a better fit.
4. If you count QuickBooks Desktop users, that number rises to 8 million.
5. Live bookkeeping services for additional help with your books start at $50/month.

Online and Phone Call Support

With QuickBooks, you can record the purchase of a fixed asset, but with Xero, you can track fixed assets, calculate and track their depreciation, and much more. Xero also offers stronger tools for tracking project profitability, giving you access to real-time reports. Additionally, Xero is a better choice for international businesses needing multicurrency support.

Most bookkeepers are familiar with QuickBooks software, so finding someone to assist with your accounting needs is easy. QuickBooks also offers Payroll, but this service is an additional fee starting at $45 to $125 per month. I have learned never to underestimate the importance of live product support, particularly when it comes to managing my money. Another benefit is that QuickBooks Online is better how to get the most money back on your tax return for small businesses, as you’re able to scale with your growing company. QuickBooks Online’s accounting software has a looser setup structure, allowing you to enter the bare minimum and add the rest as you go along.

Its $78-per-month plan also includes multiple currencies, project tracking, in-depth analytics and employee expense claims. Xero is cloud-based accounting software that supports cash-basis and accrual accounting. Xero has a robust set of features, an impressive number of integrations, and strong mobile apps for accounting on the go. QuickBooks includes standard invoicing features and advanced tools. Its standard features include creating invoices from the mobile app and customizing invoices with your company logo and branding.