Starting a business can be challenging, and choosing the right accounting software is crucial for your success. Two popular accounting software options for startups are Xero and QuickBooks. Both platforms offer similar services and tools, but each has its unique features and strengths.
In this article, we will explore the deciding factors between Xero and QuickBooks to help you make the best choice for your startup.
The first factor to consider when choosing between Xero and QuickBooks is pricing.
Xero offers three pricing plans: Starter, Standard, and Premium.
> The Starter plan starts at $20 per month and allows you to send five invoices and quotes, enter five bills, and reconcile 20 bank transactions.
> The Standard plan costs $30 per month and includes unlimited invoicing, bills, and reconciliations.
> The Premium plan costs $40 per month and includes advanced features like project management, expenses, and multi-currency support.
QuickBooks offers four pricing plans: Simple Start, Essentials, Plus, and Advanced.
> The Simple Start plan costs $25 per month and includes basic features like invoicing, expense tracking, and sales tax.
> The Essentials plan costs $40 per month and includes additional features like bill management, time tracking, and multiple users.
> The Plus plan costs $70 per month and includes inventory tracking, purchase orders, and budgeting.
> The Advanced plan starts at $150 per month and includes advanced reporting, custom permissions, and enhanced customer support.
Both platforms offer a 30-day free trial to test their features and capabilities before making a final decision.
The second factor to consider when choosing between Xero and QuickBooks is ease of use. Xero has a user-friendly interface that allows you to navigate through the platform effortlessly. Its dashboard provides a real-time overview of your business finances, making it easy to monitor your cash flow and outstanding invoices. Xero's mobile app is also user-friendly and allows you to access your financial data on the go.
QuickBooks also has an intuitive interface that is easy to navigate. Its dashboard provides a snapshot of your business performance, including revenue, expenses, and profit. QuickBooks also offers a mobile app that allows you to manage your finances and stay connected with your team.
The third factor to consider when choosing between Xero and QuickBooks is integration and add-ons. Xero offers over 800 integrations with popular business tools like Shopify, PayPal, and HubSpot. Xero's app marketplace allows you to add functionalities like project management, inventory management, and time tracking.
QuickBooks also offers a wide range of integrations with popular business tools like PayPal, Square, and Shopify. QuickBooks' app marketplace offers add-ons for inventory management, payroll, and CRM.
The fourth factor to consider when choosing between Xero and QuickBooks is customer support. Xero offers email and phone support from Monday to Friday, from 8:30 am to 5:30 pm EST. Xero's support center also offers a range of resources, including video tutorials, webinars, and online forums.
QuickBooks offers email, phone, and chat support from Monday to Friday, from 9 am to 8 pm EST. QuickBooks' support center offers a range of resources, including video tutorials, webinars, and online forums.
Choosing between Xero and QuickBooks for your startup depends on your business needs, preferences, and budget. Xero is an excellent option for startups that prioritize user-friendly interfaces, mobile apps, and add-ons. QuickBooks is a great option for startups that prioritize advanced features like inventory tracking, purchase orders, and budgeting. Ultimately, both platforms offer similar services, and your choice will depend on your specific business needs.
If you're still unsure about which accounting software is right for your startup or need further guidance on setting up your financial systems, consider consulting with Launch Control.
