As with QuickBooks, you can use Xero to generate custom branded invoices, send client payment reminders, and view invoice payment status. Other shared features include recurring invoices, one-click client payments and mobile invoicing. We found all these features to be user-friendly in Xero, and we were happy purchase discounts returns and allowances that they are available to all users. However, Xero provides the unique ability to reimburse employee expenses, including mileage reimbursement.
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- This way, you can access these reports near-instantly upon logging into Xero.
- To compare QuickBooks vs. Xero accounting, we consulted product documentation and user reviews.
- As part of that, we recommend products and services for their success.
The QuickBooks Simple Start plan costs $30 per month and supports one user, making it best for very tiny businesses or for a single freelancer. Features include expense tracking, contact management, and unlimited invoices and estimates. Reporting abilities are limited, though a raft of third-party integrations are available (many cost a little extra, but some are free). Xero is cloud-based accounting software designed for small-to-medium-sized businesses. Its features include invoicing, bank reconciliation, expense tracking, and reporting.
Inventory Management: Tie
We also like that you can use Xero to set recurring bills, generate billing reports, and store and organize all your bills. This makes the tool as great for payment as for understanding 13 things bookkeepers do for small businesses your cash outflows. Plus, you get bill pay tools no matter which package you choose, although you can only pay five bills per month with the Early plan.
Our editorial team independently evaluates products based on thousands of hours of research. Learn more about our full process and see who our partners are here. Can support larger small businesses with dozens of employees; highest-tier plan includes 25 users. We believe everyone should be able to make financial decisions with confidence. QuickBooks has an online portal that users with common problems can check to resolve any issues without involving customer support.
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Xero lets users create two active tracking categories, while QuickBooks Online allows users to create 40 in the Simple Start, Essentials and Plus plans. The more categories you create, the more reports you can run to get a better idea of how your business functions and where there’s room to grow. Xero and QuickBooks are two of our best-rated accounting tools, but Wave is undoubtedly the safest bet for businesses watching the bottom line. Unlike Xero and QuickBooks, businesses can get started on Wave for completely free and the software is also available to an unlimited number of users — extending its use even further. It has all the features of Growing, plus support for multi-currency claims and expense claims, as well as a function for tracking time and costs on a per-project basis.
Along with essential invoicing features, you get access to the vast QuickBooks network — if your clients use QuickBooks, transactions are especially easy. QuickBooks also includes over two dozen prebuilt reports; custom report functionality is available in the highest tier. We like how much do insurance payouts have to be counted as income power QuickBooks gives you over your monetary data. QuickBooks is an accounting industry leader, so its app integrations are exceptionally diverse and high-quality.
Compared to QuickBooks, Xero’s time tracking features are easy to use. You can simply download the free Xero Projects app on iOS and Android, using it to record time and costs, as well as seamlessly and automatically feed the data into invoices and reports. Xero also lets you send quotes and estimates that can quickly pull up data on contacts, inventory, and pricing. Additional automation abilities let you select inventory items from a preset list, quickly duplicate a previous invoice, or set up automatic invoices for repeat orders. Plus, read receipts let you know when customers have seen an invoice and if it’s been paid.
Higher-tier plans include unique features, like workflow rules, on top of tools that help you measure project profitability. Phone support and live chat support are available 24/5 to all paying customers, but third-party integrations are limited compared to QuickBooks Online and Xero. Service or project-based businesses should choose accounting software that can track project costs, revenues, and profits. The software must have tools to track time, record billable hours or expenses, send invoices for progress billings, or monitor project progress and performance. All of the QuickBooks plans allow you to create unlimited invoices and quotes and customize them to reflect your company branding.