Editor | 17 September 2019
Cloud Accounting Software: Xero Vs Quickbooks

Cloud Accounting Software: Xero Vs Quickbooks

Business owners need to make sure they have the right tools to manage their finances. When it comes to bookkeeping and accounting, more and more firms are choosing online software platforms over spreadsheets and desktop-based software.

This low-priced software gives business owners the ability to manage their finances from anywhere, with data stored securely in the cloud. But how do you choose which software is right for you.

While FreeAgent is perfect for freelancers and other micro businesses, larger firms will often have to choose between two premium choices - Xero and Quickbooks.

In this blog post, we spell out some of the key differences between the two platforms and highlight the relative advantages and disadvantages of each.

Pricing

Xero and Quickbooks are similarly priced. Xero offers an introductory offer for four months, but after this the prices are £10 per month for the Starter package, £24 per month for their Standard package and £30 per month for their Premium package.

Quickbooks also has an introductory offer which lasts for six months.  After this their basic Simple Start package costs £12 per month, Essentials costs £18 per month and the premium Plus package costs £27 per month.

This means that Xero is slightly cheaper for the basic package, but the standard and premium packages are slightly more expensive.

While price is important, most business owners would rather have the right tool for the job. So let’s look at the differences in features.

Users and permissions

If you want multiple people to have access to your financial information, then Xero is the clear winner. Xero offers unlimited users across all three of its tiered packages and user permissions are easy to set up and edit so you can control who has access to what.

Quickbooks is more strict. With a Quickbooks subscription you can only have one, three, five or ten users depending on your plan. Although Quickbooks also allows you to edit user permissions, the system is not as simple as with Xero.

Integrations

One of the key advantages that sets Xero apart from other cloud accounting software packages is the huge range of integrations available on the platform. Xero has more than 700 add ons that allow users to track time, store receipts and much more. While Quickbooks has its own range of integrations, users can’t access nearly as many as with Xero.

The full range of integrations means that Xero is the perfect choice for online sellers. A full range of apps including A2X, which links Xero seamlessly to Amazon, and DEAR Inventory, which makes inventory management simple, means that online selling is a breeze with Xero.

Customer support

Each software comes with customer support which allows you to raise queries about the product. Xero provides email support with relatively quick response times. And although Quickbooks allows users to phone up about problems as well as send emails, response times are not as fast.

Quickbooks is also the subject of numerous user complaints regarding poor customer service, bugs and limited mobile apps. While Xero users still have complaints, there are not as many as with Quickbooks.

Remember, if you use Xero or Quickbooks in conjunction with an accountant, they will be able to offer a higher level of email and telephone support to help solve problems faster. 

Security

Both accounting software packages have strong security protocols with high level data encryption, redundancy and physical security measures in place at their data centres. But Xero sets itself apart with one of the strongest reputations in the cloud world when it comes to data security. 

Xero also boasts a 99.97% uptime, which means you will almost never be left in the dark by system outages.

Aesthetics and usability

While not every business owner will care about aesthetics, the layout of apps can have a significant impact on how easy the software is to use. Compared to Quickbooks, Xero uses a very modern user interface that makes managing your accounts simple.

The reports produced by Xero are also much easier to read and understand when compared with the scrunched up reports produced by Quickbooks.

For more information about Xero and other cloud accounting software packages, speak to a member of the team today. Call: 0808 281 0303.