Xero Vs. QuickBooks- 2023 Comparison

Xero Vs. QuickBooks- 2023 Comparison [Top integrations using Appy Pie Connect]


Abhinav Girdhar
By Abhinav Girdhar | Last Updated on February 17th, 2024 7:35 am

Introduction

Xero and QuickBooks are two popular cloud-based accounting software solutions designed for small businesses. Xero is a New Zealand-based software company that offers accounting, invoicing, and payroll services to businesses worldwide. It is known for its user-friendly interface, extensive add-on marketplace, and advanced inventory management features.

QuickBooks is developed and marketed by Intuit, a software company based in California. It is one of the most widely used accounting software solutions for small businesses in the United States. QuickBooks offers features such as invoicing, expense tracking, project management, and tax preparation tools.

Both Xero and QuickBooks offer similar features but differ in their pricing plans, ease of use, and specific features offered. Choosing the right software will depend on the unique needs of your business.

Importance of choosing the right accounting software for small businesses

Here is the importance of choosing the right accounting software for small businesses:

  • Financial Management: Proper financial management is the key to running a successful business. Accounting software can help you keep track of your finances, expenses, and cash flow. It can also help you create and send invoices, manage payroll, and generate financial reports.
  • Time-saving: Manually managing finances can be time-consuming and error-prone. Accounting software can automate many of the tasks, freeing up valuable time for small business owners to focus on growing their business.
  • Data Accuracy: Mistakes in financial data can have significant consequences, such as incorrect tax filings, inaccurate financial reporting, or missed opportunities. Accounting software can reduce errors, improve accuracy, and help ensure compliance with regulatory requirements.
  • Decision Making: Accurate financial data is essential for making informed business decisions. With real-time access to financial information, business owners can make better decisions that positively impact their business's bottom line.
  • Scalability: As a business grows, it becomes more complex, and financial management becomes more challenging. Choosing an accounting software that can grow with your business can save you time and money in the long run.

Overview of Xero's pricing structure

Xero offers a flexible pricing structure that allows small businesses to choose a plan that meets their specific needs. Here is an overview of Xero's pricing structure:

  • Early plan: The Early plan costs $13 per month and allows for invoicing, bank connections, and payment acceptance.
  • Growing plan: The Growing plan costs $37 per month and offers unlimited invoicing, bills and expenses management, and multi-currency support.
  • Established plan: The Established plan costs $70 per month and provides additional features such as project tracking, purchase orders, and budgeting.

All Xero plans include free and unlimited users, mobile app access, and 24/7 support. The pricing for Xero's plans is based on the number of features offered and the size of the business.

Xero also offers a 30-day free trial for its software, allowing businesses to test out its features before committing to a subscription.

Overview of QuickBooks' pricing structure

QuickBooks offers several pricing plans for small businesses, each with varying levels of features and services. Here is an overview of QuickBooks' pricing structure:

  • Simple Start: The Simple Start plan costs $30 per month and includes basic features such as invoicing, expense tracking, and bank connections.
  • Essentials: The Essentials plan costs $55 per month and offers additional features such as bill management, time tracking, and payment processing.
  • Plus: The Plus plan costs $85 per month and includes all features of the Essentials plan, plus inventory tracking, project management, and 1099 preparation.
  • Advanced: The Advanced plan costs $200 per month and provides advanced features such as custom user permissions, smart reporting, and dedicated customer support.

All QuickBooks plans offer mobile app access, data backups, and customer support. The pricing of the plans is based on the number of features offered and the size of the business.

QuickBooks also offers a 30-day free trial for its software, allowing businesses to test out its features before committing to a subscription.

Comparison of features between Xero and QuickBooks

Xero and QuickBooks both offer a range of features designed to help small businesses manage their finances. Here's a comparison of some of the key features offered by both platforms:

  • Invoicing: Both Xero and QuickBooks offer customizable invoicing features that allow businesses to create and send invoices to customers. Both platforms also allow businesses to accept online payments and set up automatic invoice reminders.
  • Bank connections: Both Xero and QuickBooks allow businesses to connect their bank accounts and credit cards to the platform, making it easy to import transactions and reconcile accounts.
  • Expense tracking: Xero and QuickBooks both offer expense tracking features that allow businesses to keep track of their expenses and categorize them for tax purposes.
  • Reporting: Both platforms offer a range of financial reports that can help businesses gain insights into their finances, such as profit and loss reports, balance sheets, and cash flow statements.
  • Inventory management: QuickBooks offers more advanced inventory management features than Xero, including the ability to track inventory levels and set up automated reorder points.
  • Payroll: Both platforms offer payroll features that allow businesses to manage employee payroll and tax obligations, but QuickBooks offers more advanced payroll services than Xero.
  • Time tracking: QuickBooks offers more advanced time tracking features than Xero, including the ability to track billable hours and assign time to specific projects.
  • Third-party integrations: Both Xero and QuickBooks offer a range of integrations with other business tools and services, such as payment processors, point-of-sale systems, and CRM software.
  • User interface: Both Xero and QuickBooks offer a clean and modern user interface that is easy to navigate. Xero's interface is simple and intuitive, making it easy for small business owners who are not accounting experts to use the platform. QuickBooks' interface is also user-friendly, but it can be a bit more complex than Xero's.
  • Navigation: Xero has a streamlined and easy-to-use navigation bar, which makes it easy to find and access features quickly. QuickBooks' navigation is also easy to use, but it has more features and options, which can make it a bit more challenging to navigate for new users.
  • Learning curve: Both Xero and QuickBooks have a learning curve for new users, but Xero's platform is generally considered to be easier to learn and use. QuickBooks can be more challenging for beginners, especially if they are not familiar with accounting terminology.
  • Customer support: Both Xero and QuickBooks offer customer support, but QuickBooks has a more extensive support system that includes phone and chat support. Xero's support system is limited to email and online help, which can be a disadvantage for businesses that require more hands-on assistance.

Comparison of integration capabilities between Xero and QuickBooks

Both Xero and QuickBooks offer a range of integrations with third-party apps and services. Here's a comparison of their integration capabilities:

  • Payment processors: Both Xero and QuickBooks integrate with a range of payment processors, including Stripe, PayPal, and Square. This allows businesses to easily accept online payments and reconcile transactions.
  • Point-of-sale (POS) systems: QuickBooks has more advanced integration capabilities with POS systems, including Square, Shopify, and Vend. Xero also integrates with some POS systems, but it offers fewer options than QuickBooks.
  • E-commerce platforms: Xero and QuickBooks both integrate with popular e-commerce platforms like Shopify and WooCommerce, allowing businesses to sync their online sales with their accounting software.
  • CRM software: Both platforms integrate with popular CRM software like HubSpot, Salesforce, and Zoho, allowing businesses to manage their customer data in one place.
  • Time tracking and project management: QuickBooks offers more advanced integrations with time tracking and project management tools, such as TSheets, Asana, and Trello. Xero also integrates with some time tracking and project management tools, but it offers fewer options than QuickBooks.
  • Other integrations: Both platforms offer integrations with a range of other business tools and services, such as inventory management software, marketing automation tools, and document management systems.

Top QuickBooks integrations Using Appy Pie Connect

Here are the top QuickBooks integrations using Appy Pie Connect:

  1. QuickBooks Square Integration
    • Payment processing: Square is a popular payment processing system that can be integrated with QuickBooks. Businesses can accept credit card payments, debit card payments, and mobile payments through Square and have the transaction data automatically synced to QuickBooks.
    • Point-of-sale (POS) systems: Square offers a POS system that can be integrated with QuickBooks. Businesses can track sales data and inventory levels in real-time through the Square POS system and have the data automatically synced to QuickBooks.
    • Invoicing: QuickBooks allows businesses to create and send invoices to customers. Square can be integrated with QuickBooks to enable businesses to accept payments for those invoices directly within QuickBooks.
    • Time tracking: QuickBooks allows businesses to track employee time and expenses. Square can be integrated with QuickBooks to allow employees to clock in and out of shifts using the Square POS system, with the time data automatically synced to QuickBooks.
    • Reporting: QuickBooks offers several reports that can provide insights into a business's financial performance. By integrating Square data into QuickBooks, businesses can generate reports that include sales data from the Square POS system, which can provide a more complete picture of the business's financial performance.

  2. QuickBooks PayPal Integration
    • Payment processing: PayPal is a popular payment processing system that can be integrated with QuickBooks. Businesses can accept credit card payments, debit card payments, and mobile payments through PayPal and have the transaction data automatically synced to QuickBooks.
    • Invoicing: QuickBooks allows businesses to create and send invoices to customers. PayPal can be integrated with QuickBooks to enable businesses to accept payments for those invoices directly within QuickBooks.
    • Expense management: QuickBooks allows businesses to track expenses and categorize them for accounting purposes. PayPal transactions can be automatically imported into QuickBooks, making it easier to track and categorize expenses.
    • Multi-currency transactions: PayPal allows businesses to accept payments in different currencies. QuickBooks can be integrated with PayPal to allow businesses to track multi-currency transactions and automatically convert them into the business's base currency.
    • Reporting: QuickBooks offers several reports that can provide insights into a business's financial performance. By integrating PayPal data into QuickBooks, businesses can generate reports that include sales data from PayPal transactions, which can provide a more complete picture of the business's financial performance.

  3. QuickBooks Expensify Integration
    • Expense management: Expensify is an expense management software that helps businesses automate and streamline their expense tracking and reimbursement processes. QuickBooks can be integrated with Expensify to automatically sync expense data, saving businesses time and reducing errors.
    • Receipt tracking: Expensify allows businesses to capture receipts using a mobile app or by forwarding receipts via email. These receipts can be automatically synced to QuickBooks, making it easier to keep track of expenses and reconcile accounts.
    • Custom expense policies: Expensify allows businesses to set up custom expense policies to ensure compliance with internal policies and regulatory requirements. By integrating Expensify with QuickBooks, businesses can ensure that expenses are categorized correctly and that they are in compliance with accounting standards.
    • Reporting: QuickBooks offers several reports that can provide insights into a business's financial performance. By integrating Expensify data into QuickBooks, businesses can generate reports that include expense data from Expensify transactions, providing a more complete picture of the business's financial performance.
    • Reimbursement: Expensify can be used to automatically generate reimbursement requests for employees, based on company policies and approval workflows. These reimbursement requests can be automatically synced to QuickBooks, simplifying the process of reimbursing employees for their expenses.

  4. QuickBooks Trello Integration
    • Project management: Trello is a project management tool that allows businesses to manage their projects and workflows. QuickBooks can be integrated with Trello to track project expenses and billable hours, helping businesses to stay on top of their financials while managing their projects.
    • Expense tracking: Trello allows businesses to track expenses for individual projects, while QuickBooks can provide a more comprehensive view of the company's financials. By integrating Trello data into QuickBooks, businesses can easily track project expenses and ensure that they are properly categorized and accounted for.
    • Time tracking: Trello includes time tracking capabilities, which can be integrated with QuickBooks to automatically generate invoices and payroll entries. This can help businesses to streamline their billing and payroll processes, reducing the time and effort required to manage these tasks manually.
    • Budgeting: QuickBooks allows businesses to create budgets for different departments or projects, while Trello can be used to manage project-specific tasks and expenses. By integrating Trello data into QuickBooks, businesses can get a more complete view of their financial performance and ensure that their expenses are within budget.
    • Reporting: QuickBooks offers several reports that can provide insights into a business's financial performance. By integrating Trello data into QuickBooks, businesses can generate reports that include project-specific data from Trello cards, providing a more complete picture of the business's financial performance.

  5. QuickBooks Asana Integration
    • Project management: Asana is a project management tool that allows businesses to track their projects and workflows. By integrating QuickBooks with Asana, businesses can easily track project expenses and billable hours, and ensure that project-related transactions are accurately reflected in the accounting system.
    • Time tracking: Asana includes time tracking capabilities, which can be integrated with QuickBooks to automatically generate invoices and payroll entries. This can help businesses to streamline their billing and payroll processes, reducing the time and effort required to manage these tasks manually.
    • Expense tracking: Asana allows businesses to track expenses for individual projects, while QuickBooks can provide a more comprehensive view of the company's financials. By integrating Asana data into QuickBooks, businesses can easily track project expenses and ensure that they are properly categorized and accounted for.
    • Budgeting: QuickBooks allows businesses to create budgets for different departments or projects, while Asana can be used to manage project-specific tasks and expenses. By integrating Asana data into QuickBooks, businesses can get a more complete view of their financial performance and ensure that their expenses are within budget.
    • Reporting: QuickBooks offers several reports that can provide insights into a business's financial performance. By integrating Asana data into QuickBooks, businesses can generate reports that include project-specific data from Asana tasks, providing a more complete picture of the business's financial performance.

    Overall, Appy Pie Connect offers a wide range of custom integrations with QuickBooks that can help businesses streamline their workflows and automate their financial processes. When choosing which integrations to use, businesses should consider their specific needs and goals, and choose the apps and services that will provide the most value.

Top Xero integrations using Appy Pie Connect

Here are the top Xero integrations Using Appy Pie Connect:

  1. Xero Stripe integration
    • Payment processing: Stripe is a payment processing platform that allows businesses to accept payments online. By integrating Stripe with Xero, businesses can automatically reconcile their Stripe transactions in Xero and manage their payment processing in one place.
    • Invoicing: Xero allows businesses to create and send invoices to customers, while Stripe can be used to process payments for those invoices. By integrating Stripe with Xero, businesses can automatically reconcile payments made through Stripe with their corresponding invoices in Xero, reducing manual data entry and errors.
    • Subscription management: Stripe provides subscription management capabilities that allow businesses to manage recurring payments and subscriptions. By integrating Stripe with Xero, businesses can automatically record their subscription revenue and expenses in Xero, giving them a complete view of their financial performance.
    • E-commerce: Stripe is commonly used by e-commerce businesses to process payments. By integrating Stripe with Xero, businesses can automatically record their online sales transactions in Xero, making it easier to manage their e-commerce operations and financials.
    • Expense management: Xero allows businesses to track and manage their expenses, while Stripe can be used to process expense payments. By integrating Stripe with Xero, businesses can automatically reconcile their expense payments made through Stripe with their corresponding expenses in Xero, providing a more complete view of their financial performance.

  2. Xero HubSpot integration
    • Sales order management: With Xero and HubSpot integration, businesses can automate their sales order management process. Businesses can generate sales orders in HubSpot, and the integration will automatically create an invoice in Xero, reducing manual data entry and errors.
    • Marketing automation: HubSpot is a powerful marketing automation tool that can be used to manage a range of marketing activities, including email marketing, social media, and SEO. By integrating HubSpot with Xero, businesses can track the revenue generated by their marketing campaigns in Xero, allowing them to understand the return on investment for their marketing activities.
    • Customer relationship management (CRM): HubSpot offers a comprehensive CRM that can be used to manage customer interactions, deals, and lead generation. By integrating HubSpot with Xero, businesses can sync customer and sales data between the two systems, providing a complete view of customer interactions and sales performance.
    • Payment processing: Xero can be used to manage payment processing, while HubSpot can be used to manage customer billing and subscription management. By integrating the two systems, businesses can automate their payment processing and billing processes, reducing manual data entry and errors.
    • Reporting and analytics: Xero provides extensive reporting and analytics capabilities, allowing businesses to gain deep insights into their financial performance. By integrating HubSpot with Xero, businesses can generate reports that combine their sales and marketing data, providing a more complete view of their overall business performance.

  3. Xero Shopify integration
    • Streamlined order management: By integrating Xero and Shopify, businesses can streamline their order management process. Orders placed in Shopify can be automatically transferred to Xero, allowing businesses to manage their orders and invoicing in a single platform.
    • Inventory management: Shopify can be used to manage inventory and stock levels, while Xero can be used for accounting and financial management. By integrating the two systems, businesses can ensure that their inventory levels and financial records are always in sync.
    • Automated invoicing: With the Xero and Shopify integration, businesses can automate their invoicing process.Invoices can be automatically generated in Xero as soon as an order is placed in Shopify, reducing manual data entry and errors.
    • Sales reporting: Xero provides extensive reporting and analytics capabilities, allowing businesses to gain deep insights into their financial performance. By integrating Shopify with Xero, businesses can generate reports that combine their sales and financial data, providing a more complete view of their overall business performance.
    • Tax management: Shopify and Xero can be used to manage tax calculations and returns. By integrating the two systems, businesses can ensure that their tax records are always up-to-date and accurate.

  4. Xero Google Sheets integration
    • Financial reporting: By integrating Xero and Google Sheets, businesses can create custom financial reports in Google Sheets that automatically update with the latest financial data from Xero. This allows businesses to customize their financial reporting and gain deeper insights into their financial performance.
    • Data analysis: Google Sheets provides powerful data analysis capabilities that can be used to analyze financial data from Xero. By integrating the two systems, businesses can easily import data from Xero into Google Sheets and use its advanced data analysis tools to identify trends, patterns, and opportunities.
    • Budgeting and forecasting: Google Sheets can be used for budgeting and forecasting, while Xero can be used for financial management. By integrating the two systems, businesses can ensure that their budgeting and forecasting data is always up-to-date and accurate, and can be used to inform financial decision-making.
    • Invoice tracking: By integrating Xero and Google Sheets, businesses can track their invoices in Google Sheets. This allows businesses to have a centralized location to track all of their invoicing activity, making it easier to manage their cash flow.
    • Expense tracking: Google Sheets can be used to track expenses, while Xero can be used for accounting and financial management. By integrating the two systems, businesses can ensure that their expense data is always up-to-date and accurate, making it easier to manage their finances.

  5. Xero Slack integration
    • Real-time financial alerts: By integrating Xero and Slack, businesses can receive real-time financial alerts and notifications directly in their Slack channels. This can include alerts for overdue invoices, new sales, or other important financial updates.
    • Invoice and payment tracking: With the Xero and Slack integration, businesses can track the status of their invoices and payments directly in Slack. This makes it easier to manage cash flow and stay on top of outstanding invoices and payments.
    • Collaboration and communication: By integrating Xero and Slack, businesses can collaborate and communicate more efficiently with their team members. For example, they can share financial reports, invoices, and other financial data with specific team members or channels.
    • Automated tasks and reminders: The Xero and Slack integration can automate tasks and reminders, such as sending payment reminders to customers or notifying team members when an invoice has been paid.
    • Improved workflow: By integrating Xero and Slack, businesses can improve their overall workflow and streamline their financial processes. This can help reduce errors and save time on manual data entry.

Top Quickbooks and Xero integrations using Appy Pie Connect

  • A new sales invoice will be created in Xero from a new payment in QuickBooks Online
  • A new customer will be created in QuickBooks Online from a new bill in Xero
  • A new bill will be created in Xero from a new payment in QuickBooks Online
  • A new sales receipt will be created in QuickBooks Online from a new bill in Xero

Final Thoughts

Xero is known for its ease of use, extensive integration options, and customer support. It's a good option for small businesses with complex accounting needs or those looking for cloud-based accounting software. However, Xero's pricing plans may be more expensive for some small businesses, especially those with limited budgets.

On the other hand, QuickBooks is a robust accounting software that offers a wide range of features, including inventory management, payroll processing, and project tracking. It also has a large user community, making it easier to find support and training resources. However, it may be more complicated to use than Xero, especially for beginners. QuickBooks also has a desktop version, making it a good option for businesses with limited internet connectivity or those looking for a more traditional software experience.

When choosing between Xero and QuickBooks, businesses should consider their specific accounting needs, budget, and comfort level with technology. Appy Pie Connect offers third party integrations to help you customize the software for your needs.

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Abhinav Girdhar

Founder and CEO of Appy Pie