Are you looking for great accounting software to manage your small business finances?
If so, you’ve likely come across Xero and Quickbooks as your two main options for great business accounting software. But in the battle of Xero vs Quickbooks, which is the better option?
This short guide will help you understand these two online accounting software options so you can decide for yourself.
Here’s what you need to know:
The Basic Overview
When looking for the best small business accounting software you want to first understand what each software specializes in.
If you’re on a budget, Xero is a better choice as it starts at $11 per month. Quickbooks starts at $25 per month. Xero is a better option for smaller startups and freelancers. Quickbooks is ideal if you’re looking to scale your business.
Xero lets you share your records with your accountant to give them access. Quickbooks does the same but doesn’t have the same limitations that Xero has with sharing settings.
Xero is a much easier software for anyone to pick up. Quickbooks does require a bit of technical expertise and is better suited for professional accountants.
Both software programs work on desktops as well as through the cloud. Both are also among the most popular options for sole proprietors and limited companies.
Why Choose Xero?
So why should you consider using Xero for your small business?
If you’re just starting in business, you need to consider that you won’t have a steady cash flow. As such, you’ll need to keep your costs as low as possible.
It also allows an unlimited number of users with all packages. It also includes inventory management and fixed asset management features in all packages.
This is the perfect choice for any business in the early stages. If you don’t predict the need to scale any time soon, then you should opt for Xero.
Why Choose Quickbooks?
If your business is growing, then you might prefer the advanced features of Quickbooks.
If you hire a professional accountant, then it’s likely they’ll have extensive experience working with Quickbooks. The Quickbooks interface is a lot more complex but most professional accountants can handle these complexities.
You can also calculate mileage, reimbursements, and garnishments using Quickbooks. It also allows time tracking for employees and contractors working for your company.
You can also produce unlimited invoices through Quickbooks. You also have access to high-quality customer service available 24/7. It’s great for assessing the financial health of your company as well.
Xero vs Quickbooks: Who Wins?
Now that you know the pros and cons of Xero vs Quickbooks, you can decide who’s the winner for your needs!
If you have a small business or work as a freelancer, Xero is an easier choice than Quickbooks. If you have a professional accountant on hand, you might want to opt for Quickbooks.
Xero is a great option if you’re on a budget and can make do with a few features. Quickbooks requires a larger budget but comes with more advanced features.
You can find more tips on running your small business on our website!