Disclaimer: Please note this article is not financial advice. The purpose of our blog is purely educational, so please consult a professional accountant or financial advisor before making any financial decision.
With countless accounting software options in the market, choosing the right one that suits your business needs can be daunting. Xero has long been a popular choice for many entrepreneurs. But if it’s not the right fit for your business, it’s time to find a Xero alternative.
In this blog post, let’s dive in and discover why QuickBooks has emerged as the best alternative to Xero in 2023. We’ll also explore other accounting solution options for your business.
Xero is a popular cloud-based accounting software that simplifies how you manage your business finances. It suits small- and medium-sized businesses. Xero accounting software makes it easy for businesses to pay bills, accept payments, track projects, and more.
Here are the benefits and drawbacks of using the Xero accounting solution:
|Unlimited users on all plans
|Project and time tracking
|One organization per account
|Multi-currency is available only on the highest-tier plan
|Limited customer support
While Xero offers a range of useful features, it has certain limitations that make some businesses switch to other accounting software:
Now that you’ve read the general overview of Xero accounting software, let’s get to know its best alternative, QuickBooks.
|💡QuickBooks is an accounting software developed in 1998 by Intuit, and it was a big hit to business owners who didn't have a background in accounting.
The software’s useful functions, like the readiness for auditing and data security (via cloud accounting), all happened because of the demands of professional accountants.
Today, QuickBooks accounting software is one of the most trusted accounting tools. If you are thinking about Xero accounting software, both are equally as popular, but QuickBooks is more patronized in the US.
There are also slight differences between the two, so if you’ve tried a Xero subscription and need an alternative—QuickBooks is the best choice.
|More intuitive interface
|Involves a learning curve
|Suits small businesses
|Suits small businesses
|Minimal difference in plan upgrades
|Limited to 20 invoices per month on certain plans
|Live telephone support
|No live telephone support
Here are the advantages of QuickBooks over Xero accounting software:
QuickBooks has a reputation for providing a user-friendly interface that can benefit you when managing your accounting tasks. Its intuitive design makes navigating and performing actions such as creating invoices or processing transactions easier.
Another reason for QuickBooks’s intuitive interface is its focus on catering to small business owners without an accounting background, while Xero was specifically designed with accountants and bookkeepers in mind, making it more suited for their needs.
Xero is also a good accounting solution for startups as they offer competitive pricing for their plans starting at $13 per month. However, Xero compensates for its lower pricing with limited features.
If you’re a small business and keep your costs low, you might spend more as you upgrade to a higher plan with advanced features. On the other hand, QuickBooks might cost a bit higher than Xero’s tiered plans but offers stronger features on its plans.
For example, in QuickBooks Online, users can claim expenses and match them to photos of receipts across all plans. Meanwhile, Xero requires using “Xero Expenses,” an additional feature available in the Established plan, to enjoy the same capability.
Aside from invoicing, QuickBooks also offers other financial management capabilities such as bank reconciliation, income and expense tracking, and more.
QuickBooks can scale better than Xero as you grow your business. Its offers with every plan increase, and the differences are apparent. In software like Xero, the costs you need to pay increase with minimal differences in plan offers.
Some key differences and additions you will notice with each plan are the following:
With every dollar you add as you upgrade your plan, your growing business's accounting needs will be well-assisted.
Unlike Xero, you are not limited in the number of invoices you can issue using QuickBooks. This flexibility helps you stay on top of your billing, regardless of the volume of transactions your business handles.
This feature also enables you to adapt to fluctuations in demand without worrying about hitting an invoicing limit.
QuickBooks is known for its excellent customer support, including offering users live phone and chat support. Quickbooks also offers 24/7 customer support for its Advanced plan users. On the other hand, Xero doesn’t offer telephone support but will call you if you provide your contact number.
Live phone and chat support makes a significant difference for business owners, especially when they need software assistance.
Should you switch to QuickBooks? Switching to an accounting solution requires you to be updated with the accounting software market. If you haven’t decided yet, here are more accounting software alternatives to Xero:
Zoho Books has basic accounting features like invoicing, expense tracking, estimates, online payments, automated workflows, and advanced reporting. This software is better than Xero as it comes with a free plan, unlike Xero, which only offers a 30-day trial.
Here are more reasons Zoho Books stands out as a better alternative to Xero:
Wave Accounting is a free accounting software designed for small businesses. With its easy-to-use interface, Wave simplifies tracking income and expenses, generating reports, and managing receipts.
Like Xero, Wave also has a mobile app dedicated to invoicing, allowing you to manage your finances while on the go. This free accounting software also offers unlimited invoicing compared to Xero’s lowest-tiered plan, which offers only 20 invoices per month.
However, Wave lacks advanced accounting features such as inventory management, third-party integrations, and more.
FreshBooks is another popular alternative to Xero. It suits freelancers and independent contractors but also fits small businesses’ needs.
FreshBooks offers comprehensive accounting features such as invoicing, client and project management, billable time tracking, and more. It also provides accounting tools like balance sheets, accounts receivable and payable, among others.
However, FreshBooks doesn’t offer access to unlimited users. You have to pay extra costs if you’re adding more team members. It also has fewer customization options compared to other accounting software.
If you are a Xero user and well-versed in how to use Xero for small business accounting, you must have seen the software’s strengths and areas for improvement. But if you are still searching for an alternative, you can try QuickBooks.
This software is worth a free trial or an initial investment because of all the features you can enjoy. What’s perfect about QuickBooks is that its offers increase drastically as you grow your business.
If you want to learn more about the software or need assistance in your business accounting, Unloop can help you. QuickBooks is the leading accounting software we use, and we have a team of expert bookkeepers to assist you with the accounting software. Book a call with us, and let’s discuss your bookkeeping and accounting needs today!
Unloop is the first and only accounting firm exclusively servicing ecommerce and inventory businesses in the US and Canada. With the power of people and technology, our team dives deep into COGS and inventory accounting. You are paired with a dedicated bookkeeping team that prepares accurate financial statements, financial forecasts, and can also pay bills or run payroll for you. Come tax time, everything is organized and ready to go, so you don't need to worry. Book a call with an ecommerce accountant today to learn more.