If you own your own business, you already know that accounting needs to be a priority. Not only do you need to have the right numbers when it comes time for tax planning, but throughout the year, as well.
Accurate bookkeeping is vital for running a successful business.
That’s why you may be considering using QuickBooks Online or Xero to help with your accounting needs.
QuickBooks Online vs. Xero: 3 Factors to Consider
Keep in mind, too, that most of the differences between the two will come down to how much you’re willing to pay for different packages they offer.
That said, let’s see how the two stack up.
1. Bank Compatibility
QuickBooks Online definitely has an edge over Xero for U.S. companies. That’s because it comes with a proprietary bank feed service. Xero relies on Yodlee for the most part, though it does have some direct connections to various banks.
That being said, Xero gets points for organizing imported transactions. While both platforms offer options for automated control, Xero offers greater flexibility.
Again, it’s a tight race in this category, too, but Xero might be the better option for most small businesses.
Both will give you everything required to invoice customers and track vendors’ bills. Xero even recently added billable expenses, something that QuickBooks Online had over that platform in the past.
However, if you need to regularly charge customers from memberships, subscriptions, or other reoccurring charges, Xero is probably the superior choice as it will allow you to send off one invoice after the next with the same line-item details. Send them out in batches of 100 if you like.
On the other hand, QuickBooks Online lets you decide when to send the invoice for unbilled charges to a customer, so you can get it to them early. You can automatically charge a customer’s credit card, too.
Xero supports repeat transactions but not with these same capabilities. Still, because you can use it to assign a specific template to a group of customers so that the right template and invoice is emailed to them, it’s probably the more efficient option.
3. Payment Processing
This is a tough call to make, but QuickBooks Online may be the winner.
Xero offers more options for payment processing, but most customers are probably fine with QuickBooks/Intuit, which is extremely user-friendly. Their rate is only $00.50 a transaction for ACH processing, too. It’s tough not to appreciate that.
The Final Verdict
Ultimately, this is a personal decision. If you have reoccurring charges, Xero might win out, but you also need to think about other unique features of your business and anywhere you specifically need help with accounting. It’s probably best to take advantage of free trials to really test out both of these.
Securing the Help of an Experienced Professional
Although both are great platforms, you may still feel better about simply hiring a professional to handle your bookkeeping and accounting needs. At Marshall, Wazcheka and Patrick, CPA, we would be more than happy to lend a hand. We can also help you with tax planning, as well. Just Contact Us to set up an appointment to talk about your business’ unique needs.