When it comes to choosing the ideal online accounting solution, two names are quite likely to appear as possible candidates: Xero and QuickBooks. Xero is rightfully the No. 1 choice of many sole proprietors and small businesses, while QuickBooks is trying to rebrand itself by aggressively promoting its completely cloud-based product, QuickBooks Online. Even though they have differences, which you will find out soon, these software are very similar, as both of them know the essential accounting features, have a similarly structured pricing policy, developed outstanding mobile applications and offer a 30-day trial for newcomers.
|Free Trial||Free Trial||Free Trial|
|# Users||Up to 25||Unlimited|
|Time Sheet Sharing|
|Multiple Tax Rates|
|Windows Mobile App|
|Integrations & Extra Services|
|Paper Invoice Service|
|Credit Card Payments|
|1 Month Plan||$12.95/mo||$9/mo|
|3 Months Plan||n/a||n/a|
|6 Months Plan||n/a||n/a|
|1 Year Plan||$11.49/mo ($137.95)||n/a|
|Free Trial||30 days||30 days|
|Money-Back Guarantee||60 days|
|Languages||EN, FR, DE, IT, ES, CH||EN|
QuickBooks is an old competitor on the accounting solution market as its owner, Intuit Inc. was founded back in 1983. The company is one of the few that still sells offline desktop accounting software, but as of lately Intuit started promoting its fully cloud-based accounting solution, QuickBooks Online, intended not just for small businesses, but for bigger ones and sole-proprietors too. The software, which is available in 6 languages, has all major features you need to smoothly run your business: invoicing, managing your expenses and an unlimited amount of clients, see the 20 automatically built reports, and printing checks. Furthermore, if you choose the top product, you can file your 1099s as well. There is also the pay-as-you-go online payment service which allows your clients to quickly pay their invoices with other forms than credit/debit card and wire transfer.
QuickBooks Online can be accessed by stellar Android or iOS applications without any restrictions and the company supports and offers an API, thus it is not surprising that over 300 third party services can be integrated into the software. The free trial period of this accounting solution is 30 days, but you also have a 60-day money back guarantee if you have purchased the software and you are not satisfied with its services. QuickBooks Online has three pricing packages, costing $12.95 per month, $26.95 per month, and $39.95 per month respectively. However, you can save up to 20% of your monthly price for a limited time if you skip the trial period.
New-Zealand-based online accounting solution Xero is known for being the most preferred choice of over 600k sole proprietors and small businesses. The completely cloud-based software, which allows unlimited users to access its services, has all the basic features such as invoicing, billing, expenses, but it also includes extras like quoting, estimating and filing your 1099s. Furthermore, you can create multi-currency invoices, if you have the top product, and with the addition of a quite clever feature you can see the exact moment your client opens and pays your invoice. Speaking of payments, Xero allows your clients to pay instantly with the online payment option. If they are unwilling to pay, however, you can send them automated reminders as well.
This accounting solution is the best choice if you want to connect a wide variety of third party services and applications to your account, because not only 400 of them are listed on Xero, but it also offers and supports an API. With the outstanding iOS and Android applications you can easily capture your receipts and immediately attach them to invoices and projects. The company provides a 24/7 customer support ready to answer all of your questions. The trial period of Xero is 30-day long, during or after which you can choose from three different products: Starter for $9 per month which limits invoicing, billing, and bank reconciliations; the most popular product, called Standard for $30 per month; and Premium for $70 per month which allows you to create multi-currency documents. However, if you are a new subscriber, the monthly fee of Xero is reduced by 30% for 6 months.
It surely is difficult to see the differences between these two online accounting solutions. Xero, preferred by over 600k customers, is an ideal choice for those who want to grant access to an unlimited number of users. The neat software provides all the essential accounting features, such as multi-currency invoicing, quoting, billing etc., but it is also equipped with clever extras such as an online payment option, creating and filing of 1099s, integration with over 400 third party solutions and a perfect mobile app developed for iOS and Android platforms. QuickBooks online is especially a good choice if you owned QuickBooks Desktop before, but you will enjoy its many services as a new client as well. Accounting, check printing, 1099s, online payment, over 300 third party software, mobile apps and a 60-day money back guarantee; just to name a few features that come with QuickBooks Online.