When the ‘cloud’ first came into existence not too long ago, it was clear from the beginning that this was a piece of technology that was here to stay.
Today, cloud-based software and applications can be seen everywhere — from consumer-based apps to business-oriented technology.
Cloud software has proven to be especially helpful for accounting purposes and both Xero and QuickBooks Online are a couple of the premier cloud-based accounting software available on the market today.
But which is right for you?
To help you decide, we’ll be breaking down each software into four different sections (Invoicing, Billing, Reporting, and Features) and then offer suggestions for which is best for you.
First up, invoicing.
Table of Contents
Invoicing
When it comes to invoicing, there isn’t much that separates QuickBooks and Xero. In fact, they’re almost identical in terms of their invoicing capabilities.
Xero and QuickBooks both can:
- Send recurring invoices
- Send payment reminders
- Integrate well with inventory
- Bill for hours worked
- Create customized invoices
Xero and QuickBooks both cannot:
- Automatically add late fees (QuickBooks Online has rolled out beta testing for an automatic late fee feature, but it has yet to be accessible for all accounts. As of January 2019, plans have been made to expand this option to more customers)
So, if invoicing is a high priority on your list, then it really doesn’t matter which software you go with. Both offer a lot of great invoicing functionality to help you stay on top of your accounting. But, if automatic late fees are a high priority, then pay attention to QuickBooks Online this year for that functionality.
Billing
Once again, both QuickBooks and Xero have capable Billing functions. However, Xero is preferred because of its user-friendly interface.
For those who have worked with both software before, they’ll mention that while you can accomplish your billing needs with both, Xero makes it easier to automate your payments. A lot of users tend to prefer their dashboard over QuickBooks as well.
That being said, if you’re keen on finding software that makes billing easy — both will get the job done for you. Xero is just a little more simple to navigate in this area of accounting.
Reporting
What do we want with our reporting features?!
Customization!
When do we want it?!
Now!
Luckily for you, Xero’s and QuickBooks’ reporting functionality both make it easy to customize. Not every business is the same, so it’s important that your accounting software reflects this.
The distinction between the two lies in QuickBooks’ expansive variety and usefulness of the reports it provides. This includes a comparison of estimates for a customer versus sales to that customer, as well as reports detailing profit and loss by customer.
So, for smaller businesses, Xero may be the answer. But for growing businesses, QuickBooks provides more scalability because of their diverse functionality for reporting.
Our Recommendation
Based off of this information, we can conclude that both software applications are reliable options. However, if you’re a smaller business that is growing slower, then Xero might be a better choice for you. Because of the extremely straight-forward and user-friendly interface, you’ll hop in and get your accounting in order right away.
However, if your business is small to medium-sized and growing, then QuickBooks is the better long-term solution.
As noted in the ‘reporting section,’ QuickBooks offers a more comprehensive and diverse range of reporting options which you may not necessarily need now, but will almost certainly come in handy down the road as your business grows.
How We Can Help With Your QuickBooks Needs
At 24hr Bookkeeper, we fully believe in the power of QuickBooks to facilitate growth within an organization. We work with a lot of fantastic small to medium sized construction companies who need assistance with construction software integration.
Our services include:
- Integrating QuickBooks and construction software together to help streamline your workflow — from estimating to bookkeeping and everything in between
- QuickBooks training to help you learn the ins-and-outs of the software so you can feel comfortable using it within your organization.
- Monthly bookkeeping — we manage your financials in both QuickBooks and your construction software. We’ll take care of everything from accounts payable to receivable, reconciliations, payroll, and real-time financials and job costing.
If you’re ready to get your accounting in order and prepare your company for long-term growth, then contact us today to get started!
