Finding the right accounting software can be a headache. You want to make sure you are choosing the best one for your small business to keep track of your finances. Here at Lance CPA Group, we use Xero and Quickbooks Online. But what is the difference and which one is the best for your business?
Both Xero and Quickbooks have what most businesses need to run day-to-day operations. They both offer a wide range of features, easy to use interface and competitive pricing. Both work the best for small to mid sized businesses and are priced very similarly. They also capture and organize receipts, track mileage, send invoices and get a good snapshot of your cash flows.
Their approaches, however, are a bit different and as in all things they each have their own pros and cons.
Xero was founded in New Zealand in 2006. It manages to make accounting easy! It is super user friendly and pretty simple yet powerful. The founders designed it to help business owners to do better in their own businesses through their accounting tools. Xero supports unlimited users and is ideal for businesses that keep a team of bookkeepers in house. The interface for Xero is not as intuitive, but that is because it was created with accountants and bookkeepers in mind. Xero is a better option for businesses that need to track project profitability. This is because Xero allows you to see how much each project is costing you in real time and compare that to your estimated profits. Xero is a better option if you are not in the US as it offers multi-currency support. Xero also has 24/7 online support and no long term contracts.
Quickbooks Online is a cloud based accounting software that gives small business owners the ease and security of doing their books from the comfort of their home or business or both. It is the leading software from Inuit. The system streamlines many tasks and processes by managing bills and invoices, tracking projects, and even tracking miles automatically with a smartphone. There are instant deposits for no extra fee if using Quickbooks Checking. They do limit their users and some plans require the users to pay for their own accounts.
The bottomline is that Xero and QuickBooks Online are both great accounting software options for small businesses. As a business owner, you need to figure out which system meets the needs of your business. If you have any questions, need more information, or want to switch to one of these softwares, connect with a team member at Lance CPA Group.