In today’s competitive environment, the right business accounting solution defines a company’s success.
The accounting software you choose should not be used only to maintain books but must also be able to integrate well with other business functions, automate workflows, provide valuable insights, and reduce errors.
In this blog, we will discuss the two most preferred accounting solutions available in the market: QuickBooks Desktop and Xero.
Overview
QuickBooks
QuickBooks is a premier accounting solution offered by Intuit. Since its inception in 1992, QuickBooks has evolved into an advanced business platform integrating critical business functions, such as sales order tracking, inventory management, budget forecasting, billing, invoicing, and more.
QuickBooks primarily offers both desktop and cloud-based versions – QuickBooks Desktop and QuickBooks Online. QB Desktop is further available in three versions – Pro, Premier, and Enterprise.
Where QuickBooks Online is primarily used by small businesses to enhance their accounting process, desktop versions like QuickBooks Enterprise offer a complete ERP solution.
Xero
Xero is a cloud-based accounting platform that primarily serves small and medium businesses. It was founded in 2006 by Rod Drury and Hamish Edwards. Xero offers subscription-based pricing, allowing businesses to choose features according to their requirements.
You can give Xero access to an unlimited number of users who can collaborate easily on the cloud platform without additional costs.
Comparison: QuickBooks vs. Xero
Pricing Plans
Let’s start with pricing plans of both, and the first one is:
QuickBooks Enterprise
QB Enterprise offers four pricing plans. You can also contact them to get customized pricing as per your requirements.
- Silver – $114/user/month
- Gold – $155/user/month
- Platinum – $185/user/month
- Diamond – $311/user/month
Being an Intuit Partner Program, we offer genuine QuickBooks Enterprise licenses at the best prices.
Xero
Xero also offers 3 pricing plans to customers.
- Starter – $14.5/month
- Platinum – $ 23/month
- Diamond – $ 31/month
It is recommended that you review all the features included in these plans to choose the one most suited to your business process.
Features Comparison
Inventory Management
The premium version of QuickBooks, QuickBooks Enterprise, offers a wide range of inventory management features. It enables businesses to track inventory from multiple locations efficiently. Other features include FIFO costing, barcode scanning, and serial and lot number tracking.
Xero offers inventory management features for businesses, but they are very basic ones. If your requirement is only tracking inventory and monitoring stock levels, you can go for Xero. To get all the features included in QuickBooks Enterprise, you would need to integrate third-party apps with Xero.
Reporting
QuickBooks Enterprise offers over 200 pre-defined reports for businesses. You can customize these reports as per your business needs. Moreover, with the Advanced Reporting feature, you can create new reports related to inventory, sales, profitability, and customers.
Xero also offers various pre-defined reports, such as cash flow, income statements, or balance sheets. However, these are not as complex as those offered by QuickBooks Enterprise. Also, the level of customization is less granular than QB.
Payroll
QuickBooks Enterprise integrates with Advanced Payroll to offer a robust payroll management function. It has features like direct deposit, tax filing, and compliance management.
The payroll features offered by Xero are not as comprehensive as those offered by QuickBooks Enterprise. Businesses with an external payroll software solution can integrate it with Xero to accomplish all payroll tasks.
Integrations and Add-ons
Businesses require multiple apps to sync seamlessly with each other to create an error-free business solution.
QuickBooks Enterprise
QB Enterprise Desktop integrates with over 200 applications catering to diverse functions, such as CRM, accounts payable, billing, eCommerce, data sync, and more. However, in contrast to Xero, being a desktop software, it takes a bit more effort to integrate these apps with QuickBooks Enterprise.
Xero
Xero integrates with multiple applications, such as HubSpot, Capsule, SIMPRO, Fishbowl, Hubdoc, and more. You can choose the apps according to your industry and business functions.
Data Security
Data Security is a critical factor for businesses when selecting an accounting solution due to the increasing volume and versatility of data threats in the current business scenario.
QuickBooks Enterprise
QuickBooks Enterprise Desktop offers built-in security features to ensure data safety. It offers granular user permissions with pre-defined roles that can be customized as per business requirements. It also offers an audit trail to track every user activity. Moreover, the latest version QuickBooks Desktop 24.0 offers 256-bit data encryption to all users. Intuit also offers an online backup feature for QB Enterprise at no additional charges.
However, since QuickBooks Enterprise is a desktop software, its security majorly depends on the IT infrastructure it is hosted on. For instance, hosting QuickBooks Enterprise on the cloud of a competent provider can offer you an advanced security infrastructure.
Xero
Since Xero offers a cloud accounting solution, where all your data is stored on remote servers, it is responsible for end-to-end data security. Xero complies with regulations, such as ISO 270001, SOC 2, and PCI DSS. Other security measures include multi-factor authentication and data encryption.
Customer Reviews and Industry Opinions
Let’s check out customer reviews from some leading platforms.
| G2 | GetApp | Gartner |
|---|---|---|
| QuickBooks Desktop Enterprise – 4.2/5 | QuickBooks Desktop Enterprise – 4.5/5 | QuickBooks – 4.2/5 |
| Xero – 4.3/5 | Xero – 4.4/5 | Xero – 3.7/5 |
Pros and Cons
Now, it’s time to see the both software’s advantages and disadvantages.
QuickBooks
| Pros | Cons |
|---|---|
| QuickBooks offers an intuitive user interface for an ERP solution. For instance, in QB Enterprise, you get different sections of all the major business domains, such as sales, customers, and vendors on one dashboard. Navigation between these sections is very convenient. | QuickBooks Desktop poses the same limitations as any desktop software solution. It needs to be installed on a local system, where the local support team needs to take care of the IT upgrade and maintenance. Moreover, accessing it remotely also has its challenges. |
| QuickBooks Desktop offers the most extensive features of any accounting solution in the market. For instance, QuickBooks Enterprise offers features like Advanced Inventory, Advanced Reporting, and Advanced Pricing, providing you with an all-in-one business solution. With solutions such as Xero, you would need to integrate other third-party apps. | As a desktop solution, QuickBooks Desktop needs to be installed on a single system. Therefore, migrating it to another location can pose challenges, such as data errors and compatibility. |
| Intuit offers exceptional customer support for QuickBooks Desktop. The Pro and Premier versions are available through call, chat, or email from Monday to Friday (6 a.m. to 6 p.m.). For the Enterprise version, support is available 24/7. |
Xero
| Pros | Cons |
|---|---|
| Since Xero is a cloud solution, it can be accessed from anywhere Using a web browser with a stable internet connection. This gives the accounting team added flexibility. | Xero is an efficient accounting solution for small businesses. However, to provide a complete business solution, Xero must be integrated with other apps like ERP, CRM, etc. |
| Xero is designed to be scalable, with pricing plans that grow with your business. The ability to add users and integrate with a vast array of third-party apps allows it to adapt to changing business needs. | If you opt for the most basic Xero plan, it allows you to approve a maximum of 20 invoices. There is no such limit in QuickBooks. |
| Xero primarily offers online support and does not have any phone number. You can get in touch with the team online and they will get back to you if needed. |
QuickBooks vs. Xero: Which is Best for Your Business?
Xero is best suited for small businesses and startups. Whereas, QuickBooks Enterprise Desktop is best suited for medium-sized businesses and startups. If you are looking for only an efficient accounting solution, Xero might be the right choice. However, if you want an all-in-one ERP solution with advanced features to handle your business process, you can opt for QuickBooks Desktop.
Another important consideration is the price. Since QB Enterprise is an ERP solution, it costs more than Xero. However, with Xero, you might need to integrate a third-party ERP solution to manage functions, such as sales, inventory, customers, and vendors.
If you want a cloud-based platform to improve accessibility and operational flexibility, you can go for Xero. However, if you want QB Enterprise features with cloud functionalities, you can opt for QuickBooks Enterprise cloud hosting.
Conclusion
All the parameters mentioned above will help you choose between QuickBooks and Xero. Both QuickBooks and Xero are quite efficient in handling accounting functions for your business. Therefore, before comparing both, you must first analyze your current and future business requirements.
For instance, if you want a cloud-based solution, you can opt for Xero. However, if you prefer QuickBooks Desktop features, you can plan to migrate it to cloud hosting.
ACE offers industry-specific QuickBooks hosting services that let you leverage QB features with cloud advantages, such as remote access, on-demand scalability, advanced security, disaster recovery, and more.
Want to try QuickBooks on the cloud? Connect with our Solutions Consultant @ +1-855-223-4887 to get a 7-day free trial.
FAQs – QuickBooks Vs. Xero
Is QuickBooks Enterprise available for specific industries?
Yes, QuickBooks Enterprise offers industry-specific editions to businesses with niche features. Some industry-specific editions available include construction, manufacturing, retail, and nonprofit.
What are the minimum system requirements for QuickBooks Desktop Enterprise?
The minimum system requirements for QuickBooks Enterprise are –
1) Windows 10 (64-bit), or Windows 11, update/version supported by Microsoft.
2) Windows 8.1 and Linux are not supported.
3) Server: Windows Server 2012 (or R2), 2016, 2019, or 2022 (Regular or Small Business Server)
4) 2.4 GHz processor
5) Client RAM: 8 GB RAM; 16 GB recommended
6) Server RAM (for multi-user support): 8 GB (5 users); 12 GB (10 users); 16 GB (15 users); 20 GB (20+ users)
7) 2.5 GB disk space recommended (additional space required for data files); Solid State Drive (SSD) recommended for optimal performance
8) Enterprise subscriptions, payroll, and online features require Internet access
9) Optimized for 1280×1024 screen resolution or higher. Supports one Workstation 10) Monitor, plus up to 2 extended monitors. Optimized for Default DPI settings
Which versions of QuickBooks Desktop are discontinued?
Intuit discontinued QuickBooks Desktop Pro after the 2021 edition. Starting May 31, 2024, all versions of QuickBooks Desktop 2021, including QuickBooks Desktop Premier, QuickBooks Desktop for Mac, and QuickBooks Enterprise Solutions v21, will no longer be supported.
What Level of Customer Support is Provided for QuickBooks Hosting Services?
The level of customer support depends on the QuickBooks cloud hosting services you choose. The best QB cloud hosting providers offer 24/7/365 support with a maximum limit of response and resolution time. They offer support via multiple platforms, be it phone, chat, email, or chatbot.
Does Xero offer a free trial?
Yes, Xero offers a 30-day free trial for all customers. This allows you to experience Xero with all its features on the cloud before choosing it.
What are the minimum system requirements required for Xero?
Being a cloud solution, Xero only requires a stable internet connection to function. You can access Xero from compatible web browsers like Safari, Mozilla Firefox, and Google Chrome.
Can Xero work offline?
No, you need an internet connection to work on Xero. You access Xero with your smartphone, tablet, or laptop with a stable internet connection.
Can I add multiple companies to Xero?
Yes, you can add as many companies to Xero as required without any additional charges.
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