If you’re looking to start your own small business in the next 5-10 years, it’s worth researching what options are available to you when it comes to accounting software. These days, there are two major contenders: Xero and QuickBooks. We want to help you understand some of the key differences between these platforms, so you can make an informed decision about which one will be best for your business 5 years from now.
-Easy and intuitive to use
-Continual improvement as it adjusts to meet ever-changing industry demands and tax laws
-Variety of accounting services, from invoicing to payroll
-Flexible for both new and established companies -In-depth reporting -Built-in support system with 24/7 phone, chat, or email QuickBooks Cons: -Lack of advanced features that larger businesses would find useful
-Limited customer service hours when compared to other software providers Conclusion: It all comes down to what you need your software to do. For those looking for an easy solution with a lot of variety, Quickbooks is a great choice.
As with all systems, QuickBooks has some drawbacks. Notably, it can be difficult to do things that are not included in QuickKnows standard features, like creating a profit and loss statement or using it for multiple organizations. These limitations make QuickBooks inadequate for many businesses.
Xero’s free and paid options allow you to track and analyze your revenue, cost of goods sold, inventory, payroll, and your profit margins over time. It also boasts a complete report feature that lets you easily export all the data from your account into other programs like Google Drive and Microsoft Office.
It is not possible to purchase individual licenses for multiple users like you can with QuickBooks, and it doesn’t offer integration with third-party applications. You also don’t have the offline capability when doing transactions on your phone or tablet, as transactions need to go through their servers for validation, which means there is a delay when transacting offline; it’s not possible to do inventory management on your phone either.
Which One is Right for Your Business?
The answer to this question is not as clear-cut as you may think, as there are several key factors to consider before making your decision. The biggest difference between the two companies is that QuickBooks is designed for SMBs with up to 100 employees and 250K in annual sales, while Xero is designed for businesses that have fewer than 25 employees and less than 5M in annual sales.
The Bottom Line
Xero is a cloud-based accounting and bookkeeping software that aims to simplify financial management by providing real-time visibility and reporting, on any device, at any time. It’s touted as an alternative to more traditional accounting software like QuickBooks which is not web-based.