What users are saying about
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Top Rated
526 Ratings
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Top Rated
336 Ratings

Avalara

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Score 8.8 out of 100

Xero

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Score 8.6 out of 100

Likelihood to Recommend

Avalara

Avatax is well suited to how we process orders. Our website goes to Avatax to calculate an initial sales tax amount right when an order is placed on our website. Once the order has been picked and packed it is fulfilled and then finalized the sales tax amount through Avatax. This is exactly what we need it to do!
Bruce Griffith | TrustRadius Reviewer

Xero

Xero is perfect for new business owner[s] and people without [an] accounting background. While having the same functions as QuickBooks, Xero has [an] intuitive, user-friendly interface, clean design, and everything can be done within two buttons. Since Xero is still relatively new in the U.S., traditional bookkeeper[s] and accountant[ing] firms are not as [familiar] with the program, so it requires some time for them to learn the new system.
Anonymous | TrustRadius Reviewer

Feature Rating Comparison

Type of tax

Avalara
8.5
Xero
Sales and Use Taxes
Avalara
9.2
Xero
Cross-border Taxes
Avalara
8.7
Xero
VAT / GST Taxes
Avalara
7.7
Xero
Energy and Fuel Taxes
Avalara
8.2
Xero

Tax Reporting & Compliance

Avalara
8.4
Xero
Geolocation for Tax Assessment
Avalara
8.8
Xero
3rd-Party Software Integrations
Avalara
8.1
Xero
Tax Data Reporting
Avalara
8.6
Xero
Compliance Administration Management
Avalara
8.5
Xero
Tax Exemption Processing
Avalara
8.5
Xero
Tax Document Management
Avalara
8.7
Xero
Complex Tax Scenario Management
Avalara
8.0
Xero

Payroll Management

Avalara
Xero
8.1
Pay calculation
Avalara
Xero
8.9
Benefit plan administration
Avalara
Xero
8.1
Direct deposit files
Avalara
Xero
8.0
Salary revision and increment management
Avalara
Xero
7.6
Reimbursement management
Avalara
Xero
7.9

Customization

Avalara
Xero
7.7
API for custom integration
Avalara
Xero
7.5
Plug-ins
Avalara
Xero
7.9

Security

Avalara
Xero
8.4
Single sign-on capability
Avalara
Xero
8.1
Role-based user permissions
Avalara
Xero
8.6

Reporting & Analytics

Avalara
Xero
8.3
Dashboards
Avalara
Xero
8.4
Standard reports
Avalara
Xero
8.5
Custom reports
Avalara
Xero
8.0

General Ledger and Configurable Accounting

Avalara
Xero
8.1
Accounts payable
Avalara
Xero
8.7
Accounts receivable
Avalara
Xero
8.7
Cash management
Avalara
Xero
8.3
Bank reconciliation
Avalara
Xero
8.7
Expense management
Avalara
Xero
8.4
Time tracking
Avalara
Xero
7.3
Fixed asset management
Avalara
Xero
7.8
Multi-currency support
Avalara
Xero
8.2
Multi-division support
Avalara
Xero
7.2
Regulations compliance
Avalara
Xero
8.1
Electronic tax filing
Avalara
Xero
8.3
Self-service portal
Avalara
Xero
8.4
Global Financial Support
Avalara
Xero
7.2
Primary and Secondary Ledgers
Avalara
Xero
8.2
Intercompany Accounting
Avalara
Xero
8.2
Localizations
Avalara
Xero
7.1
Journals and Reconciliations
Avalara
Xero
8.9
Enterprise Accounting
Avalara
Xero
7.6
Configurable Accounting
Avalara
Xero
8.7
Centralized Rules Framework
Avalara
Xero
7.6
Standardized Processes
Avalara
Xero
8.0

Inventory Management

Avalara
Xero
6.2
Inventory tracking
Avalara
Xero
6.6
Automatic reordering
Avalara
Xero
5.8
Location management
Avalara
Xero
6.8
Manufacturing module
Avalara
Xero
5.6

Order Management

Avalara
Xero
7.9
Pricing
Avalara
Xero
7.7
Order entry
Avalara
Xero
8.3
Credit card processing
Avalara
Xero
8.8
Cost of goods sold
Avalara
Xero
8.5
Order Orchestration
Avalara
Xero
7.3
End-to-end order visibility
Avalara
Xero
7.4
Order exception Resolution
Avalara
Xero
7.1

Pros

Avalara

  • Avatax stays current with all the changes in rates and does an excellent job of calculating the correct sales tax to charge.
  • The reporting interface for sales tax reports is easy to use and once you set up a report you can save it as a favorite and rerun it any time with one click. Their UI on the reporting is simple and provides a minimum number of clicks to get the data you want and export it to Excel where every number lives whether it belongs there or not!
Tom Berkompas | TrustRadius Reviewer

Xero

  • Sales invoices - can be customized, default due dates set up and reminders sent to facilitate payment
  • Integrates well with other applications (Dext/Receiptbank) - makes expense reconciliation very efficient and accurate.
  • Excellent reports - can be customized and valuable for simple or detailed reporting and analysis
  • Easy to use for those with no accounting background (also suitable for those with advanced accounting knowledge)
Nicola (Nicki) Morris | TrustRadius Reviewer

Cons

Avalara

  • CertCapture can take many days to validate a certificate, and/or does not provide explanation as to why a certificate was not validated.
  • Submitting cases to Avalara is not helpful. Once an answer has been provided, the case is immediately closed and no helpful dialogue is allowed.
  • When a mistake on return filing occurs, whether customer or Avalara's, correction of the error takes far too long.
Anonymous | TrustRadius Reviewer

Xero

  • Overall it is a great platform and quite comprehensive for US based users.
  • However, if we focus on multinational companies that want to integrate the information of different companies in several countries within the same solution, we find the need to carry out reports outside the platform to provide the accounting structure and compliance necessary in countries outside the US.
Anonymous | TrustRadius Reviewer

Likelihood to Renew

Avalara

Avalara 9.5
Based on 18 answers
Nothing is perfect, so I suppose I would not give it a 10, but it has earned a high rating because it really does work well. Also, if any issues have arose, avalara has many ways to be contacted for assistance and has always helped in a timely manner
Matt Farmer, CPA, CGMA | TrustRadius Reviewer

Xero

Xero 3.5
Based on 26 answers
In addition to the matters covered in this review, my reason for renewing this product is that Xero's functionality and the constant updates that the company provides, makes the software even more business friendly. The software therefore builds a brand loyalty among customers.
Sarang Mandke | TrustRadius Reviewer

Usability

Avalara

Avalara 8.8
Based on 286 answers
Once integrated and properly set up, the software does most of the work for you. There are occasional hiccups, but that is true of all software. A lot of the ease depends on to what extent you let the platform do for you versus what you take on. For us, it decides which transaction to tax, assesses the tax rate based on the specific jurisdiction (and any changes in the tax rate), stores the exemption certificates and files the returns. Mostly what we are responsible for is reconciling the ledgers to the tax liability worksheets. It turns a complex and long set of tasks into a fairly simple and quick process
Jere Allen | TrustRadius Reviewer

Xero

Xero 8.8
Based on 34 answers
There are not many faults with Xero's overall usability. It is a very simple yet effective financial system to use which serves many benefits. It is very easy to navigate through and the split between different organizations (entities) makes using the system even easier. It is definitely a system which can be learned very quickly.
Anonymous | TrustRadius Reviewer

Reliability and Availability

Avalara

Avalara 8.7
Based on 13 answers
I have been using Avalara for years and do not remember ever having an outage during working hours. The service is accurate and dependable.
Elaine Ware | TrustRadius Reviewer

Xero

Xero 9.0
Based on 10 answers
We have been actively using and 100% Xero based for our ecommerce accounting practice for over 4 years. There has on been one real outage for more than 5 minutes. Xero was open and transparent about the outage, what they were doing to resolve the issue, and provided 15 minute updates. Showing how they care about their customers and partners. Plus, showing that their customers care too, were understanding, and went surfing or in our case took a nap. Couldn't run our business without Xero as a partner.
Scott Scharf | TrustRadius Reviewer

Performance

Avalara

Avalara 8.9
Based on 13 answers
For the most part don't have a problem with Avalara performance. On the few occasions I've had a issue isn't has been resolved quickly and usually without having to contact support.
Kathleen Gage | TrustRadius Reviewer

Xero

Xero 10.0
Based on 8 answers
Pages generally load quickly, but it's a fairly common occurrence to have pages taking a bit longer than I'd like to load (as in, 4+ seconds). Occasionally I have to refresh a page to get it to work. Bank feed and integrations tend to be slow in general, but that could easily be due to API latency on the side of the other parties. Most of the time, though, the bank feeds refresh before I login so it's not a huge problem. Not necessarily good performance compared to a local app like QuickBooks desktop, but definitely good performance for a cloud application. Room for growth? yes.
Anonymous | TrustRadius Reviewer

Support Rating

Avalara

Avalara 7.4
Based on 20 answers
Avalara is not consistent in giving us information timely. For instance, right now, we have a help desk ticket with them that's been open since October. They are still trying to figure it out and we haven't gotten any feedback on where they are at or what is going on. That seems to me a very excessive amount of time to be working on a problem. Was it forgotten? Is there something bigger going on? Do they need something from us? An update would be helpful.
Also, many times when we call with an issue or concern (wrong tax rate for instance) we generally feel like the help desk assumes it's of our doing instead of theirs and doesn't truely listen when we explain the problem because we end up repeating it over and over as well as sending examples. We expect more respect on our end.
Anonymous | TrustRadius Reviewer

Xero

Xero 4.1
Based on 19 answers
Support has always been responsive and quickly resolved any questions I have. The only reason I don't give full points is because there's no way to call for immediate help. I'm fine with this because I don't need it badly enough to pay for it
Dave Olsen | TrustRadius Reviewer

In-Person Training

Avalara

Avalara 8.0
Based on 2 answers
not applicable
Michelle Chow | TrustRadius Reviewer

Xero

No score
No answers yet
No answers on this topic

Online Training

Avalara

Avalara 7.3
Based on 3 answers
The videos go too fast; I kept having to pause them and go back. They don't allow for any practice transactions or provide training materials.
Kathleen Gage | TrustRadius Reviewer

Xero

Xero 10.0
Based on 5 answers
All of Xero's training is online and available for anyone (business owner or accountants) to learn and become experts in their system. There is a range of content from product training to real world webinars from their partners. Xero is beautiful accounting software and their training is the same.
Scott Scharf | TrustRadius Reviewer

Implementation Rating

Avalara

Avalara 8.0
Based on 363 answers
The implementation team from Avalara was very knowledgable and did a good job of passing along information so that we could maintain the system and be able to make future changes ourselves. We had asked for some custom tax setup and they worked with us to get additional taxes set up that they didn't previously have. They worked with us to pull our documentation on tax rules and make sure those were included. I had hoped more scenarios would be there out of the box to cut down on the configuration time.
Anonymous | TrustRadius Reviewer

Xero

Xero 9.7
Based on 10 answers
If it can be done, time the implementation near a new fiscal year so you can start clean. Otherwise, you have to go back and do historical data from the beginning of the fiscal year, which can be brain draining.
Andre Yeu | TrustRadius Reviewer

Alternatives Considered

Avalara

We have looked at TaxJar as an alternative to Avalara. TaxJar is significantly less expensive than Avalara, but what we ran into during our evaluation was TaxJar did not have the needed connectors with NetSuite/SuiteCommerce. Also since Shopify is natively connected to Avalara, TaxJar was not able to connect with Shopify, but would have to have orders exported to NetSuite to be run by TaxJar after the customer had been charged tax in Shopify based on the Avalara calculations.
Marcus Warolin | TrustRadius Reviewer

Xero

Used FreshBooks when the business was first starting out because they had a free plan. Quickly needed more features, and switched to QBO. QBO worked well for many years, but they continually increased their fees and the interface got more and more difficult to use. Also, it had limited support for Mac and their app was always crashing. QBO had great reporting & complex features, but didn't integrate well with time tracking solutions.We evaluated Zoho Books when searching for a QBO replacement. It also had built-in time tracking & project management, with support for other Zoho-based integrations. But its user management was very cumbersome (new users had to be manually added to every single project on the account if you wanted them to track their time). And there was some overlap between Zoho integrations, which seemed difficult to use.Ultimately ended up with Xero on a recommendation from a colleague in a similar business. She liked the simplicity and automated solutions, which I also make use of. I liked the automated invoicing & billing solutions, and the integration with my existing time tracking system. The reporting limitations are still a concern, but so far, I have been able to get all the info I need.
Jennifer Hess | TrustRadius Reviewer

Scalability

Avalara

Avalara 9.1
Based on 6 answers
There is no change that has to happen as your company grows, Avalara continues to do it's job for any size company
Anonymous | TrustRadius Reviewer

Xero

Xero 10.0
Based on 6 answers
Over 600 plus apps available for integration and easy to create standard charts of account and report templates to implement across multiple entities. Same pricing regardless of number of transactions or users. Real benefit is variety of integrated apps that allow you to automate processes and have functionality that 10 years ago was only available in ERP systems costing hundreds of thousands.
Anonymous | TrustRadius Reviewer

Return on Investment

Avalara

  • The ability to stay up to date with the myriad of taxing locals saves a great deal.
  • Avalara's experience in getting a new user up to speed and set up is substantially faster than trying to do it yourself. And beyond faster, it will be more correct, causing less issues to solve down the road.
Jeff Hinrichs | TrustRadius Reviewer

Xero

  • The streamlining of invoices through the Xero system helped quite a bit.
  • Implementing the departments, chart of accounts and COGS in Xero for one of our clients, really helped to show where the opportunities for the business were.
  • The reporting in Xero that we were able to produce mid-month really helped to show where we needed to focus to close the month in the positive.
Anonymous | TrustRadius Reviewer

Screenshots

Pricing Details

Avalara

General

Free Trial
Yes
Free/Freemium Version
Premium Consulting/Integration Services
Yes
Entry-level set up fee?
No

Avalara Editions & Modules

Additional Pricing Details

Xero

General

Free Trial
Yes
Free/Freemium Version
Premium Consulting/Integration Services
Entry-level set up fee?
No

Xero Editions & Modules

Edition
Early$111
Growing$321
Established$621
  1. per month
Additional Pricing Details

Rating Summary

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