Picture this: Your business is growing, sales are picking up, and things are looking good — until you sit down to check on your finances. It’s a mess of invoices and reports that don’t add up to the numbers on your balance sheet.
You know you need accounting software to keep things in check, but with so many options out there, how do you choose one?
Trying to choose between Xero vs. QuickBooks Online to be your new business accounting tool is tough. Both platforms offer premium features. In the end, the right choice depends on how you handle your finances, the level of automation you want, and the complexity of your accounting tasks.
Let’s break down the key differences to help you decide the best fit for your business. And don’t worry — Fishbowl integrates seamlessly with both, so no matter which you choose, inventory management will be a breeze.
Understanding Xero
Xero is a cloud-based accounting solution designed to help small businesses, freelancers, and accountants manage finances with ease. From invoice and expense tracking to payroll and bank reconciliation, Xero automates time-consuming tasks so you can focus on growing your business.
What can Xero do for you?
If you’re looking for accounting software that saves time and simplifies financial management, Xero delivers in these key areas:
- Bank reconciliation: Link your bank account, and Xero will automatically import and categorize bank transactions for effortless tracking.
- Invoicing: Create, send, and track invoices in real time. Plus, Xero sends automatic reminders to customers to help you get paid faster.
- Expense tracking: Upload receipts through Hubdoc, and Xero will sort them for you.
- Inventory tracking: Keep tabs on stock levels so you know when to reorder.
- Payroll management: Handle employee payments and tax filings without extra hassle.
- Seamless integrations: Xero connects with hundreds of apps, including Fishbowl, making it a great option for manufacturing inventory management.
- Automated daily tasks: No more manual data entry for bank transactions and expenses.
- Scalability: Different pricing plans cater to freelancers, startups, and established enterprises, meaning you can find a solution that fits both your budget and business needs.
- Real-time insights: Track cash flow, expenses, and financial reports on the go with the Xero app.
- Easy to use: The intuitive dashboard makes navigating Xero a breeze, even for people without accounting backgrounds.
- Global functionality: Xero offers multi-currency support to simplify international transactions.
Who should use Xero?
Xero is perfect for small business owners who want a QuickBooks alternative that’s easy to navigate. It’s also great for freelancers looking for simple tools to send invoices and track expenses without complexity.
Accountants and bookkeepers managing several clients will find Xero’s features helpful in organizing everything. Plus, if your business deals with inventory management, Xero offers basic features — and with its powerful Fishbowl integration, you can enhance inventory tracking and order management.
QuickBooks Online explained
QuickBooks Online (QBO) helps businesses manage their finances without the hassle of manual bookkeeping. It’s cloud-based, meaning you can access it from anywhere, whether you need to track expenses, send invoices, or run payroll on the go. Unlike QuickBooks Desktop, which requires app installation, QBO keeps everything online, making it easier to collaborate with accountants or bookkeepers in real time.
What can QuickBooks Online do for you?
QBO connects to bank accounts, organizes transactions, and automates key accounting tasks so you can focus on running your business. Here’s more about what it offers:
- Updated records: Sync with bank accounts to automatically track transactions and payments for up-to-date information.
- Invoicing: Create and send invoices to clients in seconds.
- Expense tracking: Upload receipts, categorize expenses, and monitor spending.
- Payroll management: Handle employee payments and payroll taxes in one platform. Plus, automated payroll tax calculations help keep you compliant with government regulations.
- Inventory tracking: Keep an eye on stock levels with built-in inventory tracking tools or integrations with powerful platforms like Fishbowl.
- On-the-go access: The mobile app lets you check on finances from anywhere.
- Simple collaboration: Granting access to your accountants or bookkeepers is easy for smooth financial management.
- Live updates: See your cash flow and other updates as they happen with QBO.
Who should use QuickBooks Online?
QBO is ideal for small business owners, freelancers, and self-employed professionals who need an easy-to-use solution to organize their finances. If you run a business with increasingly complex inventory management needs, QuickBooks integrates seamlessly with Fishbowl, providing advanced features while syncing inventory and financial data.
For anyone searching for an intuitive, cloud-based accounting solution with flexible pricing plans, strong customer support, and built-in tracking tools, QBO offers a user-friendly experience that grows with your business.
Comparing Xero and QuickBooks Online: Which one is right for your business?
Choosing the right accounting software can be tricky, especially when Xero and QBO are both are powerful tools. The best choice depends on your business size, budget, and needs.
Xero vs. QuickBooks Online: Ease of use
Xero
Xero is designed to be simple and intuitive, making it a great choice for non-accountants. The dashboard is clean and well-organized, showing cash flow, bank balances, and invoices at a glance. One of Xero’s standout features is its drag-and-drop bank reconciliation, which automatically matches transactions, saving you time.
That said, while Xero is easy to navigate, some users find that it lacks the depth and structure that accountants prefer.
QuickBooks Online
QBO has more features than Xero, which means there’s a steeper learning curve. But, once you get used to it, QBO provides more automation and customization options that make bookkeeping easier in the long run. The dashboard is robust, offering quick insights into expenses, income, and tax summaries. It’s a better choice for companies with complex accounting needs.
Xero vs. QuickBooks Online: Pricing plans
Xero
Xero offers three pricing plans. The best part? All plans allow unlimited users, which is a huge plus for growing businesses.
- Early ($20/month): Good for freelancers, but limited to 20 invoices and 5 bills per month.
- Growing ($47/month): Removes invoice limits, allowing unlimited transactions.
- Established ($80/month): Adds multi-currency support, project tracking, and advanced analytics.
QuickBooks Online pricing comparison
QBO pricing is higher and depends on the number of users you need:
- Simple Start ($35/month): 1 user, good for freelancers or small businesses.
- Essentials ($65/month): 3 users, plus bill management.
- Plus ($99/month): 5 users, including inventory tracking and project profitability.
- Advanced ($235/month): 25 users, with premium features like batch invoicing and analytics.
Xero vs. QuickBooks Online: Integrations and API flexibility
Xero
Xero is known for its extensive app marketplace, with over 1,000 integrations available. It connects seamlessly with payment processors, CRMs, payroll software, and ecommerce platforms like Shopify and WooCommerce.
Xero also has a developer-friendly API, making it easier to customize field mapping and automate workflows. If you’re running a business that needs custom solutions, Xero offers more flexibility.
QuickBooks Online
QBO has fewer integrations than Xero but still connects with hundreds of third-party apps. However, if you’re using other QuickBooks products like QuickBooks Payroll or QuickBooks Payments, the built-in integrations make it a smooth experience.
Xero vs. QuickBooks Online: Reporting and analytics
Xero
Xero has real-time reporting, but customization options for reports are limited. It provides the essentials, like profit and loss statements, balance sheets, and cash flow reports, though advanced analytics require third-party add-ons.
QuickBooks Online
QBO offers more detailed financial reporting right away. You can generate 50+ reports, including budget tracking, sales forecasting, and tax summaries. The Advanced plan includes custom report-building tools and KPI tracking.
Xero vs. QuickBooks Online: Mobile accessibility
Xero
Xero’s mobile app lets you send invoices, reconcile transactions, and capture receipts, but some desktop features (particularly complex reports) aren’t available on mobile.
QuickBooks Online
QBO’s mobile app is more feature-rich, allowing you to run reports, manage expenses, track mileage, and even process payroll on the go.
Xero vs. QuickBooks Online: Payroll management
Xero
Xero offers built-in payroll only in select countries, like Australia, New Zealand, and the UK. If you’re in the U.S., you’ll need to integrate with a third-party service like Gusto or ADP.
QuickBooks Online
QBO has a full-service payroll with automatic tax calculations, direct deposit, and compliance tools. It’s available in all 50 U.S. states, making it a better option for businesses with employees.
Xero vs. QuickBooks Online: Invoicing and billing
Xero
Xero simplifies invoicing, offering custom templates, automated reminders, and easy payment links. However, it lacks built-in payment processing, so you’ll need to integrate Stripe or PayPal.
QuickBooks Online
QBO’s invoicing tools are strong, and QuickBooks Payments allows customers to pay directly via credit card, ACH transfer, or Apple Pay, speeding up cash flow.
Xero vs. QuickBooks Online: Multi-currency support
Xero
Multi-currency support is included in Xero’s Established plan ($80/month) and allows automatic currency conversions.
QuickBooks Online
QBO also supports multi-currency transactions, but you can’t change the base currency after the initial setup, which can be a hassle.
Xero vs. QuickBooks Online: Customer support
Xero
Xero provides 24/7 email and chatbot support, but there’s no phone support, which can be frustrating.
QuickBooks Online
QBO offers phone and chat support, so you can speak with a representative if needed.
Xero vs. QuickBooks Online: Scalability
Xero
Xero is great for freelancers, startups, and small businesses. While it can handle growth, larger businesses may find its reporting and automation tools limiting.
QuickBooks Online
QBO is designed to scale with businesses, offering advanced accounting, payroll, and analytics tools to support mid-sized and growing companies.
Xero vs. QuickBooks Online: Who comes out on top?
When comparing QBO features with Xero, there’s no clear winner. The good news is that both of these accounting solutions integrate with Fishbowl to help you with your inventory management needs. And Fishbowl’s expert team can help you decide which platform which tool will best suit your needs.
But, in summary: Xero is perfect for small businesses and freelancers who want a simple, cost-effective accounting solution with the essentials. QBO offers more advanced tools, including in-depth reporting and scalability, making it a better fit for businesses looking to grow and needing more robust features. If you’re looking for a more robust, feature-rich platform overall, QBO would be the stronger option.
How Fishbowl integration can streamline your business
When paired with Xero or QBO, Fishbowl offers game-changing tools to help manage your business efficiently:
- Real-time inventory updates: Get live data about your stock levels, ensuring you’re always on top of your inventory.
- Multi-location management: Easily manage inventory across different locations, whether that’s within or across warehouses, all in one place.
- Automated order processing: Save time by automatically syncing orders between Fishbowl and your accounting software.
- Accurate financial data: Keep expenses and revenue up to date by syncing data across platforms. That includes when invoices are sent or paid and purchase orders are issued.
- Order accuracy: Eliminate errors by automatically syncing orders with inventory levels.
- Room to grow: As your business expands, Fishbowl continues to scale with you, offering the flexibility your business needs.
Take control of your operation with Fishbowl’s powerful solutions
No matter which accounting platform you choose — Xero or QBO — Fishbowl helps you sync your financial and inventory data, automate processes, and streamline operations effortlessly.
For businesses that need even more advanced functionality, Fishbowl Advanced also integrates with QuickBooks Desktop, providing robust tools for businesses at any stage.
Don’t let tedious accounting tasks or pesky stockouts hold your business back. Book a demo of Fishbowl today.
