Xero vs QuickBooks - 2020 | Accountant Squad

by Accountant Squad Quickbooks assistance to SMEs and Startups

XERO is cloud-based software that is ideal for small to medium-sized businesses. Advanced Banking options, customizable invoicing, effective control on Bills, one-click financial reports, etc. are some of the compelling features of XERO. On the other hand, QuickBooks is a set of solutions designed to manage payroll, sales, inventory with efficient marketing tools, merchant services, product and supplies, training solutions, etc.
QuickBooks and XERO are to excellent accounting solutions, however, they are embedded with individual-specific features and differences. XERO is good and simple software for small businesses while QuickBooks covers everyone in the market. To have a decisive opinion on who is better than the other and in what categories, a proper feature, reputation, customer service, etc. comparison needs to be done.
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By the time we complete this blog, you will be able to make an educated guess on which is the right choice in XERO vs QuickBooks comparison.

XERO vs QuickBooks

Inception
QuickBooks showcased QuickBooks Pro in the year 1992 with multiple user-friendly accounting and bookkeeping advantages and features. Subsequently, in the coming years, QuickBooks introduced QuickBooks Premier, Enterprise, Online, Point of Sale, and Accountant as different versions with each one looking into specific needs of the different businesses.
XERO was launched in the year 2006 with features such as access to unlimited users, complete features apps, etc. It is a cloud-based tool with advanced and robust accounting capabilities.
Common Features
The two software are close competitors, and both look to provide a similar set of features. The tools cover and offer features for all accounting needs starting from Payroll to invoicing. Moreover, the two software have similarities in the below categories:

Cloud-Based - Xero is a cloud-based software providing accounting facilities while QuickBooks Online version is the cloud-based software that helps to streamline accounting processes.
Ease of Use - Both XERO and QuickBooks are customer-friendly with an easy interface and simple operating process.
Available on iPhone/iPad and Android Apps -Both Xero and QuickBooks can be downloaded to the iOS and Android device (such as phone, tabs).
Secure - Stringent security is available for both software and users using these tools have their data completely confidential and protected whether it is a cloud or desktop.
Customizable Chart of Accounts - The COA provides aggregate information into a company’s financial statements. QuickBooks and XERO both have customizable COA, thus providing.
Automated Bank feeds - You have automated back feeds in both the software.
Import/ Export Files - You can export CSV format in XERO and export data from specific areas of XERO. While QuickBooks ensures that you can import or export a list from MS Excel.

Now we know the common features of QuickBooks, the next thing is to understand the features and functionalities and then draw a comparison.

QuickBooks Features and overlook

QuickBooks is a giant in the accounting software arena with a stronghold on the market share for several years now. It has acquired over 80 percent of the small-medium sized businesses in the US as its customers.

Amongst various other features, an exceptional feature is that QuickBooks has its own bank feed service. It allows you to connect to your bank and download transactions while using Online banking services. The bank feed records the transactions for you and allows you time to focus on more critical
As per making invoices, you have choices for automation. Select to send invoices on future dates while setting up automated emails when invoices are sent.
Moreover, make custom forms with the custom fields. This way you can make several different forms to invoice different set of clients.
Quick and presentable report generation is another excellent feature. The reports are not only beautiful to look at the same time are easy to read and understand.

The best and the more advanced features are available in the higher versions. However, if you compare it with Xero’s highest version/ premium version QuickBooks most expensive variant is cheaper.

QuickBooks is ideal for?

QuickBooks with its variety in the different and specific versions for the accounting community covers from small-large scale businesses. QuickBooks Pro is ideal for the SMEs and small business entities while QuickBooks Enterprise is tailor-made for large scale businesses. It is fast, user-friendly, easy to understand and comparatively inexpensive.

XERO Features and Overlook

XERO is a new entrant in the accounting software field and is gaining popularity slowly but surely. It is a platform that is very high-tech and is updating every day. The XERO user gets updated with free updates and reminders in every 3-6 weeks.

The software is easy on the pocket and is budget-friendly. You do not need to have the most expensive version to use the best features. Moreover, it gives you unlimited numbers of users for every plan.
You can get bills and invoices approved within the XERO app, a feature not available in QuickBooks. This dissolves the need for several assisting software or apps in your system.
Additionally, XERO has effective control over Banking Transaction categorization and then laying them in an Organised spreadsheet are well-taken care of.
Customized Invoicing is another shining feature in XERO. You can easily create & assign specific templates to specific people so that email and invoice templates are automatically given for each customer.

XERO is ideal for?

XERO is ideal for companies that provide subscriptions, memberships, or rentals for carrying out tasks set at specific time intervals. It has a Proactive development schedule that ensures your software is always improving and is updated. It has started to give QuickBooks a serious run in the business.

Which is better 'QuickBooks vs Xero'?

XERO vs QuickBooks online line-up head to head when it comes to the Best accounting software for SMBs. Both of them share several features making which one to pick a hard decision. Though, there has to be one winner as per your company’s specific needs and requirements.
QuickBooks is reliable software with a vast market portion under it. It is a tried and tested software with proven results. Its exceptional reporting stands out over XERO. Moreover, QuickBooks has a nicely structured and designed Homepage dashboard that gives you a good insight into your earnings, Profit & Loss and expenditures. It is easy to see critical metrics related to your Online store progress. Moreover, you can hover over items to get more details.
XERO is a fierce competitor to QuickBooks with exceptional features and services for the customers. Though new, XERO provides top-notch features which can be compared with those of any market leaders. Xero dashboard is not as elaborate as that of QuickBooks, though it is easy to use. Accounting attributes such as invoice uploading, bank account reconciliation, etc. are easily viewable on XERO dashboard. Invoice customization is XERO’s most distinctive feature over QuickBooks.

Wrapping up

Finally, it is hard to say which a sure shot winner is. Both the software have their specific qualities and features. Your choice highly depends on what is your requirement. However, if you are looking for a tried and tested solution, then QuickBooks is the right choice.
Hopefully, the article gave you useful insight into QuickBooks and XERO’s capabilities. Before taking the decision, it is essential to analyze and understand your business needs and accordingly make a decision. In case you require additional help in understanding and deciding which is the right choice seek to advise and help from a technical expert at QuickBooks 24/7 Support Phone Number 1.888.502.0363.
Reference URL - https://www.reddit.com/user/Harrystar2019/comments/e4z3rr/xero_vs_quickbooks_2020_accountant_squad/