We all live in a time where almost all business entities involve a large number of transactions nearly every day. Manual Accounting no longer seems to be a viable choice for any Accounting Firm. Even in Outsourcing Accounting Firms, there is an increased reliance on Accounting Software Systems. The modern accounting software systems have the capabilities of instant recording and processing of any transaction. Computerized Accounting has opened the doors for various new opportunities for the Accounting world with online accounting software like Xero and QuickBooks.
For most business firms, mainly accounting concerns in the UK or the USA, advanced accounting software is like the basic necessity for survival. In the last few years, numerous accounting application systems have entered the market. However, Xero and QuickBooks have emerged as a top choice for a large chunk of the Accountants Populace. Both the software have exceptional performance records. Some are Xero Accountants, while others desire to be QuickBooks Accountants. Many Firms remain in a dilemma between the two software systems- Xero vs. QuickBooks Online.
Today, let us solve this dilemma with a face-off- Xero vs. QuickBooks Online. We will base the judgment of the best option on the various performance parameters.
First, let us delve into a brief about these two accounting software.
Introduction to Xero
Xero is one of the leading accounting tools in the market. The company started in 2006 in New Zealand. In the span of the last 14 years, its usage has extended to 180 countries. The software is a cloud-based accounting system that caters mainly to small and mid-size firms. All Xero products use the SaaS model to function.
Introduction to QuickBooks
QuickBooks has piqued interest among the Accounting Populace with both its cloud-based and on-premise applications. The release of QuickBooks goes way back into the 1980s. Its Company, Intuit, was founded in California, USA. QuickBooks offers a large number of products for diverse accounting needs. Over the years, QuickBooks went through various updates to gel with the different operating systems and internet technologies. The QuickBooks Online version delivers cloud-based services for accounting.
Comparison- Xero vs. QuickBooks Online
- Integration Ability
One should consider Integration as a critical aspect in the decision-making for the ideal software. Any Accounting Tool can never function in isolation. It needs to interact with other software results for optimal utility.
Both Xero and QuickBooks have an impressive number of integrations with many tools like CRM systems, time tracking Applications, and reporting tools. However, Xero offers some additional integrations.
Verdict: Xero leads in this arena with some extra integration ability.
- Cost Structure
Cost is a primary factor when choosing the desirable option.
Xero Online is available with three pricing plans. You have to choose between the Early, Growing, and Established Plans. The basic plan Early, costs $9 per month and has very few features. The mid-range plan, Growing, which can cater to small enterprises, is offered at $30 per month. The last plan, Established, is available for $60 per month.
QuickBooks Online offers different plans as per customer needs. The basic plan is available for $20 per month but has much higher capabilities than Xero. Its Essential Plan comes at $35 per month while the top plan costs $60 per month.
When it comes to the pricing aspect, both Xero and QuickBooks have similar models. When seen with the number of features available for the price, it narrows down to a tie between the two options.
Verdict: It’s a Tie in this parameter of Xero vs. QuickBooks Online.
- Available Features
In this race of Xero vs. QuickBooks Online, both have quite identical features. You will find features like invoicing, project management, budgeting, time tracking, and inventory in both the options. Xero, however, does not provide Lending and Tax Support Features. The additional features may act as an edge for QuickBooks as it also has a better quality invoicing feature.
Verdict: QuickBooks Online takes the winning point.
- Available Features
Another influential factor in judging between Xero and QuickBooks Online is its customer support performance. QuickBooks has a history of negative ratings in terms of its customer support service. Customers face issues like long waiting times and lack of email support.
Xero had adequate customer support. However, over the years, there has been a downfall in its service level. Even with Xero, the response time is long, and there is no mail and phone support availability.
Verdict: It’s a tie between Xero and QuickBooks. Both take a point in this aspect of Xero vs. QuickBooks Online.
- Professional Accountants Opinion
Xero and QuickBooks Online are like two peas in a pod. They are almost equally popular among the Accountants on a global scale. The preferences may vary from country to country. In the UK, Australia, and New Zealand, Xero has more demand. While in the North American Continent, the Accounting Firms in the USA and Canada are more inclined towards QuickBooks.
Verdict: It’s a draw in this parameter of Xero vs. QuickBooks Online.
- Mobile App Performance
In this age of Mobile Apps, every company has developed its smartphone application. With the increased anytime availability, apps are in high demand. Xero and QuickBooks both have useful mobile apps for their customers. However, when we see their functionalities and rating on App Stores, QuickBooks seems to take the lead.
There are frequent criticisms about the app utility of Xero. It is deprived of some key features and needs some bug-fixing.
QuickBooks has lesser complaints from its App Users and better capabilities.
Verdict: QuickBooks stands as the winner in this area of Xero vs. QuickBooks Online.
- Level of Security
Security is undoubtedly the biggest concern for Accounting Firms. There is a need for handling confidential business data with utmost care. Xero and QuickBooks use techniques like data encryption and physical security measures for better security.
Notably, Xero provides about 99.97 percent uptime and has the top ranking in terms of Security in Cloud-based accounting services. QuickBooks has reported outages and downtime issues from time to time.
Verdict: Xero scores better with higher security standards available with its software system.
Both Xero and QuickBooks stand at a draw with equal points in this tussle of Xero vs.QuickBooks Online. There are some aspects where QuickBooks takes the lead while in others, Xero scores the winning point. In terms of Customer Support and Pricing, both stand at an equivalent level.
All in all, if you are a small business, Xero might be a better option. While in the case of retailers and established companies, QuickBooks might prove more desirable.
Hire the techno-expert and skilled accountants of Initor Global!
At Initor Global, you can find an accounting team well versed in both the software systems- Xero and QuickBooks. We provide multiple accounting services via Xero Online as well as QuickBooks Online. Firms in nations like the UK, U.S, and Australia must make use of the incredible Outsourcing Accounting Services at Initor Global. Reach out to us now!