Making a Choice Between QuickBooks and Xero

There is certainly a considerable amount of chit-chat these days comparing and contrasting QuickBooks and Xero. However, if we look at the research reports, Intuit’s QuickBooks has been serving over 29 million businesses with their accounting aspect. Xero, which was launched in 2006, within a few years has reached the pinnacle with its innovative features. Therefore, Xero and QuickBooks accounting software are heating up in the market by upgrading their features consecutively.

Today, every business owner is curious to know, which program is superior, has more potential, and has the most functions, and so on. That’s the reason Cogneesol has interacted with numerous tech startups during the last few years, and for the ones we’ve dealt with, allow us to share what we have experienced as to what they appreciate in an accounting system:

• Automation
• Adaptability
• Collaboration
• Scalability
• Pricing

The things startups give importance to have totally changed in recent times, and the five above are introduced by the new technology-influenced startups that realize the possibility of success in cloud computing. They are seeking to create a big difference in the world by means of software by automating tasks that were previously handled manually and were complicated. So which accounting program suits your tech startup? Check it out below as we assess these five values:

1. Automation

Both Xero and QuickBooks include fairly outstanding automation capabilities, which will go on to improve over a period of time. There are some aspects that we believe set Xero apart from QuickBooks in automation:

Xero performs single step reconciliation in comparison to the conventional 2-step reconciliation in QuickBooks. This helps you to save considerable time every month.

Xero offers an open API that permits for personalized development and a lot more automation since you are able to plug Xero into just about any application or system you are currently making use of. Whereas, QuickBooks doesn’t!

Automation Winner: Xero

2. Adaptability

A tech startup is keen on having the flexibility to access information at any place and at any point in time. Both QuickBooks and Xero contain cloud variations of their software that enables you to gain access from pretty much any sort of device. Apart from the access, you would like to have a simple procedure to file an expenditure report, or document your mileage, and so on. Neither of them offers an incorporated solution to that, nevertheless, add-ons are a good way to automate those procedures.

Xero possesses a way more solid ecosystem of applications to pick from as compared to the QuickBooks online bookkeeping services. You can take a look and check yourself here.

Adaptability Winner: Tie

3. Collaboration

The capacity to collaborate on the same information has turned out to be a valuable aspect for every tech startup. Any new app being released is designed to be accessed by numerous persons and updated in real-time. Both Xero and QuickBooks include collaboration between clients and accounting professionals. QuickBooks makes use of assignment and tasks within the program to carry out processes, whilst Xero does not include an authorized in-built task system. Xero completes the collaboration in a different way by enabling the end users to leave notes and messages on transactions to ensure that other people can read them if desired. These can be utilized afterward for auditing as well as paperwork objectives.

Collaboration Winner: Xero

4. Scalability

Scalability is referred to as the capability of a program, system, or process to manage an increasing volume of work in a proficient way or its capacity to be enhanced to support that growth. Related to accounting, you may ask the question “For how much time can this program remain perfect for my company in the event that we flourish 100% year over year?”

Both Xero and QuickBooks can meet your fundamental accounting requirements at the initial phase, however as you scale up and improve, you need to expand and you will demand extra features to keep your accounting procedures user-friendly and easy for your workforce.

The add-on community encourages competition, and in the in the long term, it creates more advantageous solutions. If you decide to scale up your business swiftly, we would suggest Xero on account of their huge community of add-ons, which permits you to automate procedures that you would fail to do with QuickBooks.

Scalability Winner: Xero

5. Pricing

Xero offers a starter plan at $9 per month, while the standard plan is $30 per month and the premium plan is $70 per month. No matter how many new users you add to your Xero, you’ll be not charged for anything.

On the other hand, the simple version of QuickBooks starts from $12.95, allowing only a single user. More so, the essential plan is available at $26.95 that allows only three users and the plus plan cost around $39.95, enabling fives users at one time.

Pricing Winner: Xero

Overall Winner: Xero

Bottom line

Well, it’s time to take a tough step for the growth of your business. As a startup business owner, you have to be smart enough to evaluate your business’s accounting requirements to make the right choice between QuickBooks and Xero. However, overall if we see Xero is the winner, but everything indeed depends on your business needs. In case you’ve any questions or feedback, feel free to contact us.

Choosing the right accounting software depends on your business needs, but utilizing the same efficiently is the key. Outsource your accounting tasks to Cogneesol as it provides highly trained staff on accounting software that will help manage your processes. Contact now, at +1 646-688-2821 or email us at [email protected].

Read Also: Why Choose QuickBooks Over Other Accounting Software?