What is accounting software?
Accounting software is a computer program that helps businesses track their financial transactions. Accounting software can be used to track income and expenses, create invoices and bills, and generate financial reports.
What are the benefits of using accounting software?
There are many benefits to using accounting software, including:
- Accuracy: Accounting software can help businesses track their financial transactions accurately. This can help businesses to identify and correct any errors in their financial records.
- Efficiency: Accounting software can help businesses to streamline their accounting processes. This can save businesses time and money.
- Compliance: Accounting software can help businesses to comply with tax laws and regulations. This can help businesses to avoid penalties and fines.
- Insights: Accounting software can provide businesses with insights into their financial performance. This information can help businesses to make better decisions about their business.
Xero vs. QuickBooks Online: Features and pricing
Xero and QuickBooks Online are two of the most popular accounting software programs. Both programs offer a variety of features, including:
- Income and expense tracking: Track income and expenses from a variety of sources, including bank accounts, credit cards, and PayPal.
- Invoicing and billing: Create and send invoices to customers, and track payments received.
- Financial reporting: Generate a variety of financial reports, such as balance sheets, income statements, and cash flow statements.
In addition to these core features, Xero and QuickBooks Online also offer a variety of additional features, such as:
- Payroll processing: Process payroll for employees, including calculating taxes and deductions.
- Inventory tracking: Track inventory levels and costs.
- Time tracking: Track employee time and billable hours.
- Project management: Track project costs and progress.
Xero features
Xero offers the following additional features:
- Multi-currency support: Track income and expenses in multiple currencies.
- Global tax compliance: Xero is compliant with tax laws and regulations in over 180 countries.
- Bank reconciliation: Automatically reconcile bank accounts with Xero transactions.
- Expense management: Track and approve employee expenses.
QuickBooks Online features
QuickBooks Online offers the following additional features:
- Customizable reporting: Create custom financial reports to meet your specific needs.
- Integrations: QuickBooks Online integrates with a variety of other business software applications, such as CRM and e-commerce software.
- Mobile app: Access QuickBooks Online on your mobile device.
- Customer support: QuickBooks Online offers 24/7 customer support.
Xero pricing
Xero offers the following pricing plans:
- Early: $13 per month
- Growing: $34 per month
- Established: $65 per month
QuickBooks Online pricing
QuickBooks Online offers the following pricing plans:
- Simple Start: $30 per month
- Essentials: $50 per month
- Plus: $80 per month
- Advanced: $190 per month
Which accounting software is right for your business?
Factors to consider when choosing accounting software
When choosing accounting software, it is important to consider the following factors:
- The size of your business: Xero and QuickBooks Online are both good options for small businesses. However, QuickBooks Online also offers plans for larger businesses.
- Your budget: Xero and QuickBooks Online are both affordable accounting software programs. However, QuickBooks Online is slightly more expensive than Xero.
- Your needs: Consider the features that are important to you. For example, if you need to track inventory or manage payroll, you will need to choose an accounting software program that offers these features.
- Ease of use: Consider how easy the accounting software program is to use. If you are not familiar with accounting, you may want to choose a program that is easy to learn and use.
Xero vs. QuickBooks Online: Pros and cons
Xero
Pros:
- Easy to use
- Affordable
- Multi-currency support
- Global tax compliance
Cons:
- Fewer features than QuickBooks Online
- Limited customer support
QuickBooks Online
Pros:
- More features than Xero
- 24/7 customer support
- Integrations with other business software applications
Cons:
- More expensive than Xero
- Can be complex to use for beginners
Conclusion
Xero and QuickBooks Online are both good accounting software programs for small businesses. The best program for you will depend on your specific needs and budget. If you are looking for an easy-to-use and affordable accounting software program, then Xero is a good option. If you need more features or 24/7 customer support, then QuickBooks Online is a better choice.