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One-way phone support

1. Then again, QuickBooks requires user limits for each plan while Xero doesn’t.
2. Xero wins out over the competition as far as price, scalability, and integrations go.
3. Xero recommends that readers always obtain specific and detailed professional advice about any business decision.

Xero makes it easy to create estimates by breaking down jobs into billable chunks and attaching written details, images, or documents (such as legal agreements) to the quote. You can turn the sample dashboard on to get an idea of how your dashboard could look once it’s populated with your business’s why do companies use cost flow assumptions data. Reports also are customizable, with adjustable formatting and the option to add your own formulas and groupings. For instance, you can drag and drop certain expense categories into a single subgroup — an “office expenses” subgroup could include office equipment, supplies and utilities.

Inventory apps

Xero often offers promotional pricing, making its plans even cheaper for business owners who take advantage of its deals. Xero helps transform the data you enter into actionable information at every subscription level. A dashboard provides a summary of your business’s financial health, including total cash in activity based budgeting and out, outstanding invoices and overdue bills. Another page dedicated to short-term cash flow charts out how future bills and invoices can affect your bank balance over the next week or month. Each month, Xero sends you a link to your subscription invoice with easy ways to pay for your accounting software.

See cash flow at a glance

Higher-tier plans include unique features, like workflow rules, on top of tools that help you measure project profitability. Phone support and live chat support are available 24/5 to all paying customers, but third-party integrations are limited compared to QuickBooks Online and Xero. Xero offers a 30-day free trial (no credit card required) for new users and affordable plans for small businesses of all sizes. Businesses that are just getting started or sole proprietors can sign up for the Early plan starting at just $15/month, and then upgrade to its Growing or Established plans as they scale. Xero lets new customers sign up for a 30-day free trial to test out its features.

Customizable reports and dashboards

Review and match bank transactions over your morning coffee or in any free moment using the accounting app so your bookkeeping is always up to date. Use the accounting app to keep track of due and overdue invoices and whether they’ve been paid. Xero provides multiple layers of protection for the personal and financial information you entrust to Xero accounting software. Security is a priority for Xero, as we know it is for you, so it’s also important you also take steps to safeguard your data.

See how Xero works for your business

The software makes it easy to pay bills, claim expenses, accept payments, track projects, manage contracts, store files and more. If you need to give accounting access to more than five people, Xero could be the better option for you. QuickBooks Online’s most popular Plus plan tops out at five users; its highest-tier Advanced plan allows up to 25 users, but that plan is expensive at $200 per month. In contrast, all Xero plans offer unlimited users and its highest-tier Established plan is a more affordable $78 per month.

Kimberly is a career writer and editor with more than 30 years’ experience. She’s a bankruptcy survivor, small business owner, and homeschool parent. In addition to writing for The Motley Fool, she offers content strategy to financial technology startups, owns and manages a 350-writer content agency, and offers pro-bono financial counseling.

Use the demo company to try things out, or enter your own business details and data to try it out for real. Anything you enter will be retained when you transfer from a free trial to a subscription. Both Xero and QuickBooks Online have their own versions of transaction tracking tags, but QuickBooks Online is the winner in this arena. Xero lets users create two active tracking categories, while QuickBooks Online allows users to create 40 in the Simple Start, Essentials and Plus plans. QuickBooks Online’s Advanced plan allows for unlimited tag groups.

Xero is a great option for large teams and small- to medium-sized businesses that need high-level accounting systems. It’s also a good fit if you want to integrate Gusto Payroll to your accounting platform. Xero’s invoicing capabilities allow you to create and customize an invoice for clients and then accept credit card, debit card or present value of $1 annuity table bank transfer payments within the invoice itself. Account holders are able to customize online invoices to add a logo, accept payments instantly through the invoice, set automatic reminders for clients to pay and invoice directly from the Xero app. Xero processes payment through a payment gateway like Stripe, GoCardless and others.

The app is particularly useful for the self-employed and small business owners who often find themselves away from their desk but need to stay up to date with the bookkeeping and business performance. While Xero’s plans start at a cheaper price, QuickBooks offers more features across its plans. Then again, QuickBooks requires user limits for each plan while Xero doesn’t. We compared the two options in terms of their key features, pricing and customer service to help you decide which is right for your business. It allows three users for its Essentials plan ($55 per month) and 25 users for its top plan, the Advanced ($200 per month).

Zoho Books’ paid plans all come with free live chat and phone support. Create, edit and send invoices as soon as the job is done directly from the mobile app. Today’s leading accounting platforms offer standard security features like data encryption, secure credential tokenization and more. While human error will always play some role in security breaches, you can be confident in your accounting platform when it comes to keeping your information safe. After a 30-day trial period, Xero will bill a monthly charge of $13 per month for the Early plan, $37 per month for the Growing plan and $70 per month for the Established plan. For free invoicing platforms, consider Zoho Invoice, Square Invoices or PayPal Invoicing, although these platforms provide fewer capabilities.

Xero Central provides users with access to articles, courses, community discussions, and more. With Inventory Plus businesses can reconcile payouts, integrate with eCommerce platforms, and fulfill up to 1,500 orders per month from multiple sales channels. For businesses that have larger amounts of stock, do business via an eCommerce channel, or operate with negative inventory, Xero offers Inventory Plus –a full-service inventory management system. Impact on your credit may vary, as credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.

Xero is accounting software for small business owners who need an affordable, easy-to-use online accounting solution that includes invoicing, data capture and storage, and bill payment. Xero integrates with Gusto, a full-service payroll provider, for businesses that want to add on a payroll service. The Xero Accounting mobile app works in tandem with the Xero accounting software so you can run your small business online from anywhere. Keep track of your unpaid and overdue invoices, bank account balances, profit and loss, cash flow and bills to pay – plus reconcile bank accounts and convert quotes to invoices.

Xero is a powerful online accounting software solution for small businesses. Run things smoothly, keep tidy online bookkeeping records, and make compliance a breeze. †Xero customers who use online invoice payments get paid up to twice as fast than those who don’t use online invoice payments. Businesses that need full-service payroll can add payroll via Xero’s partner Gusto. Gusto’s payroll plans for small businesses start at $40/month, plus $6/month per person. Xero enables you to easily view the payment status of your invoices to see who has paid and what is overdue.

There were constructive signs for small businesses at the start of the year, including February being the first positive month for sales since January 2023. A shrinking in sales declines indicates improvement may be on the horizon. All in all, Xero’s essential features, user-friendliness, and affordability make it a great choice for sole proprietors and small businesses that are just starting out or that are looking to scale. To get started using Xero, you can sign up for its 30-day free trial by providing your name, email address, phone number, and location.