XERO vs QuickBooks

Xero is a New Zealand-based software company that developed the game-changing cloud-based accounting software for small and medium-sized businesses.

Through cloud hosting, both business owners can access their Xero files anywhere, anytime and on any device, as long as they have an Internet connection. Xero also open doors for online collaboration between accountants and their small business clients as they can now make real-time adjustments, prepare and log tax returns without the need of physically sending data back and forth.

Xero also boasts one significant winning function over other accounting software such as MYOB with its ‘Direct Bank Feed’ with United Overseas Bank (UOB). This highly efficient function allows UOB account holders to receive forwarded transaction information securely to Xero on a daily basis, requiring only minimal input from the user. Although Quickbooks also offer the same function with UOB, it has been reported to be relatively buggy, with many of its users still unable to link it to their bank accounts.

Other notable features Xero offers are impressive contact management and inventory features, robust payroll capabilities and many automation functions.

Quickbooks is an accounting software developed by Intuit Inc that combines a myriad of accounting processes into a single user-friendly system. Designed to cater to the needs of small and medium-sized businesses, Quickbooks utilises multiple tables, spreadsheets and tracking spreads to help manage sales, expenses, payroll, inventory and other day-to-day business transactions.

Used by millions of businesses across the globe, Quickbooks also provides a wide array of marketing tools, merchant services and training solutions that are customisable to suit the needs of the company.

While Xero and Quickbooks are both neck to neck in terms of ratings and there is no clear winner, there are a few aspects where Xero leads by a hair.

With their USP of ‘Beautiful Accounting Software’, Xero has set up expectations and lived up to it. Accounting software may sound as dry and dull as Excel, but the company has changed the stigma with their stunning layout and unparalleled usability. New users can quickly make sense of the navigation without drowning in frustration. In the case of any confusion, you can most likely find a solution in their comprehensive and well-organised knowledge base. Quickbooks on the other hand is laid out rather intuitively but lags behind with its knowledge base and unnecessary navigation steps.

Both Xero and Quickbooks Online are leading the pack for cloud hosted accounting software designed for small businesses. Although both offers amazing functions, Xero includes most of its features in any versions, compared to Quickbooks, which only provides them in its Plus version (the pricier plan). Xero also offers additional features such as expense reporting, multiple currencies and quote acceptation, which are not supported in Quickbooks Online.

The nature of your business and invoice volume are often the determining factor on which software plan you might want to go for.

If you have very low invoice volume per month, Quickbooks definitely wins on the lower end of the spectrum. However, if you need to process a higher volume of invoices, Xero is more value for money on the higher end and allows access for unlimited users. Furthermore, if your business requires clients to pay for the invoices online, Xero charges a lower credit card processing fees across the board.