For small to medium-sized businesses (SMEs), accounting software is more than a tool, it’s the foundation of financial management. Among the leading cloud-based options, Xero and QuickBooks stand out for their robust features and accessibility. Choosing between the two can feel overwhelming but we’re here to break it down for you with a comparison to help you make the right decision for your business.
Content Outline
Key Takeaways
Ease of Use
Xero’s clean and intuitive interface is ideal for non-accountants, while QuickBooks offers guided workflows but can feel cluttered for some users.
Pricing
Xero provides cost-effective plans with unlimited user access, making it scalable for growing teams. QuickBooks charges extra for additional users, potentially increasing costs as your team expands.
Invoicing
Xero’s fully customizable invoices and automated reminders cater to businesses with specific branding needs, whereas QuickBooks offers more basic invoicing templates.
Bank Reconciliation
Xero excels with automatic daily transaction imports and smart matching, simplifying reconciliation for businesses with high transaction volumes. QuickBooks requires more manual intervention.
Reporting and Analytics
Xero offers highly customizable reports across all plans, while QuickBooks reserves advanced reporting features for higher-tier plans.
App Integrations
Xero integrates with over 1,000 third-party apps, offering greater flexibility for businesses using multiple systems. QuickBooks has fewer integration options but covers essential apps.
Mobile Features
Xero’s mobile app delivers a streamlined experience for invoicing and expense tracking, while QuickBooks adds unique features like mileage tracking, making it useful for frequent travellers.
Customer Support
Xero provides 24/7 email support and a robust knowledge base, making it convenient for global businesses. QuickBooks offers phone and chat support but lacks 24/7 availability.
Overall Recommendation
Choose Xero if you value ease of use, cost-effective scalability, and extensive app integrations.
Choose QuickBooks if you prioritize features like mileage tracking or need step-by-step guidance for accounting tasks.
FastLane Can Help
As a certified Xero advisor, FastLane can help you set up, configure, and optimize your accounting software to suit your business needs.
Why Choosing the Right Accounting Software Matters
SMEs often operate with lean teams and budgets, so having reliable, user-friendly accounting software can make a world of difference. The right platform simplifies invoicing, tracks cash flow, ensures compliance, and even integrates with tools you already use.
Let’s dive into how Xero and QuickBooks stack up against each other.
Feature Comparison
For a detailed comparison, make sure to check the information below the table.
| Feature | Xero | QuickBooks |
| Ease of Use | Clean, intuitive interface designed for non-accountants. | Beginner-friendly but can feel cluttered; steeper learning curve for advanced features. |
| Pricing | Competitive plans with unlimited user access in all plans. | Extra fees for adding users; pricing varies by plan. |
| Invoicing | Highly customizable, branded invoices with automated reminders and payment gateway options. | Strong tools with automation but limited customization options. |
| Bank Reconciliation | Daily bank transaction imports with smart matching for quick reconciliation. | Reliable but requires more manual adjustments. |
| Reporting & Analytics | 50+ pre-built reports with easy customization. | Advanced customization is only available in higher-tier plans. |
| App Integrations | Over 1,000 third-party app integrations for CRM, inventory, and e-commerce platforms. | Wide range of integrations but fewer options than Xero. |
| Mobile Experience | Clean and simple mobile app for invoicing, expense tracking, and bank reconciliation. | Includes features like expense tracking and mileage recording for business trips. |
| Customer Support | 24/7 support via email and an online knowledge base. | Phone and chat support, but not available 24/7. |
Related article The Best Accounting Software in Hong Kong 2024
1. Ease of Use
Xero
Xero’s interface is designed for business owners who don’t have an accounting background. The dashboard is visually rich and shows key financial metrics such as bank balances, unpaid invoices and upcoming bills. Navigation is simple, most features are just a few clicks away.
QuickBooks
QuickBooks is also beginner-friendly with guided workflows for tasks like invoicing and bank reconciliation. However, some users find the interface a bit cluttered and the learning curve for advanced features is steeper.
Verdict
Both are user friendly but Xero’s cleaner interface is easier for new users to navigate.
2. Pricing and Scalability
Xero
Xero’s pricing starts competitive and has options for businesses at different growth stages. Notably, Xero includes unlimited user access in all plans so great for teams that need multiple logins.
Xero Offers three main pricing plans (Starter, Standard, and Premium), all of which include unlimited users. This makes it a cost-effective choice for businesses with growing teams. Xero’s pricing starts at $2.90/month for the first three months, with plans scaling to suit businesses of various sizes.
1. Starter Plan
- Price: $2.90/month (for the first 3 months; usually $29).
- Savings: Save $78.30 over 3 months.
- Features:
- Send quotes and up to 20 invoices.
- Enter up to 5 bills.
- Reconcile bank transactions.
- Capture bills and receipts using Hubdoc.
2. Standard Plan
- Price: $4.60/month (for the first 3 months; usually $46).
- Savings: Save $124.20 over 3 months.
- Features:
- Send unlimited quotes and invoices.
- Enter unlimited bills.
- Reconcile bank transactions.
- Capture bills and receipts using Hubdoc.
- Access a short-term cash flow and business snapshot.
3. Premium Plan
- Price: $6.90/month (for the first 3 months; usually $69).
- Savings: Save $186.30 over 3 months.
- Features:
- All features of the Standard Plan.
- Bulk reconcile transactions.
- Use multiple currencies.
Which Plan Should You Choose?
- Starter Plan: Ideal for small businesses or freelancers just starting out with minimal invoicing and bill entry needs.
- Standard Plan: Perfect for growing SMEs that require unlimited invoicing and bill entry, along with better financial insights.
- Premium Plan: Best for businesses with international transactions or those needing advanced features like bulk reconciliation and multi-currency support.
This promotional pricing is valid until December 20, making it a great time to try Xero at a discounted rate!
QuickBooks
QuickBooks has multiple pricing tiers but adding extra users incurs extra fees. For businesses with growing teams, these costs can add up.
QuickBooks features four plans (Simple Start, Essentials, Plus, and Advanced), each with tiered pricing based on features and user limits. However, adding extra users incurs additional fees, making it less scalable for growing teams. Pricing starts at $5.70/month for the first three months.
1. Simple Start Plan
- Price: $5.70/month (for the first 3 months; usually $19).
- Savings: Save $14/month for 3 months.
- Features:
- Track income and expenses.
- Send unlimited custom invoices and quotes.
- Connect your bank for seamless tracking.
- Track GST and VAT.
- Generate insights and reports.
- Includes progress invoicing.
- Designed for one user, plus your accountant.
2. Essentials Plan
- Price: $8.40/month (for the first 3 months; usually $28).
- Savings: Save $20/month for 3 months.
- Features:
- All Simple Start features.
- Manage bills and payments.
- Track employee time.
- Multi-currency functionality.
- Includes three users, plus your accountant.
3. Plus Plan
- Price: $12/month (for the first 3 months; usually $40).
- Savings: Save $28/month for 3 months.
- Features:
- All Essentials features.
- Recurring transactions and bills.
- Track inventory.
- Monitor project profitability.
- Manage budgets.
- Includes five users, plus your accountant.
4. Advanced Plan
- Price: $22.80/month (for the first 3 months; usually $76).
- Savings: Save $54/month for 3 months.
- Features:
- All Plus features.
- Manage up to 25 users.
- Automate workflows.
- Custom reporting fields.
Which Plan Fits Your Business Needs?
- Simple Start: Perfect for sole proprietors or freelancers needing basic accounting tools.
- Essentials: Great for small businesses requiring bill management and multi-user access.
- Plus: Ideal for businesses managing inventory or projects.
- Advanced: Best suited for larger teams needing advanced reporting and user management.
QuickBooks’s introductory offers make it an excellent choice to explore their features at reduced costs!
Verdict
Xero is often more cost-effective for SMEs with multiple users or plans for growth.
3. Invoicing
Xero
Xero’s invoicing is flexible and fully customisable. You can create branded invoices, send them to clients and even set up automated reminders for overdue payments. The platform also integrates with payment gateways to speed up collections.
QuickBooks
QuickBooks also has strong invoicing tools with automation and basic templates. However, customization options are limited compared to Xero.
Verdict
Xero’s flexibility in invoicing gives it the edge for SMEs with specific branding needs.
4. Bank Reconciliation
Xero
Bank reconciliation is where Xero excels. The platform imports bank transactions daily and matches them with your records. With smart suggestions reconciling your accounts takes just a few minutes.
QuickBooks
QuickBooks has a reliable bank reconciliation feature but requires more manual adjustments than Xero.
Verdict
Xero is faster and more intuitive for high transaction volume SMEs.
5. Reporting and Analytics
Xero
Xero has over 50 pre-built financial reports including cash flow, profit and loss and balance sheets. Customising reports is easy so you can tailor insights to your needs.
QuickBooks
QuickBooks has reports but advanced customisation is only available on higher tier plans.
Verdict
If customisable reporting is important Xero is the better option.
6. App Integrations
Xero
Xero integrates with over 1,000 third-party apps covering inventory management, CRM and e-commerce platforms. So it’s a great tool for businesses using multiple systems.
QuickBooks
QuickBooks also has a wide range of integrations but fewer options than Xero.
Verdict
Xero’s app ecosystem is more adaptable for SMEs.
7. Mobile Experience
Xero
The Xero mobile app lets you invoice, track expenses and bank reconcile on the go. It’s easy to use and mirrors the desktop version’s clean design.
QuickBooks
QuickBooks’s mobile app has features like expense tracking and even mileage recording for business trips.
Verdict
QuickBooks’s app has extra features for users who travel frequently, while Xero is a simpler more clean experience.
8. Customer Support
Xero
24/7 customer support via email and online knowledge base.
QuickBooks
Phone and chat support but not 24/7.
Verdict
Xero’s 24/7 support is more convenient for SMEs in multiple time zones.
Which One Is Best for SMEs?
Ultimately, the best choice depends on your business priorities:
Choose Xero if:
You value user-friendly design, need unlimited user access, and want a platform that integrates with a wide range of apps.
Choose QuickBooks if:
You need features like mileage tracking or prefer a platform with step-by-step guidance for accounting tasks.
How Can FastLane Help?
FastLane helps SMEs get the most out of their accounting software. As a platinum partner and Xero Certified Advisor, we can:
- Set up and configure the software Xero.
- Train your team.
- Support and troubleshooting.
FastLane will be with you every step of the way into the Xero journey. Get in touch today to get started!
