QuickBooks Online vs. Xero

Overview
ProductRatingMost Used ByProduct SummaryStarting Price
QuickBooks Online
Score 8.0 out of 10
N/A
QuickBooks Online is a SaaS version of the QuickBooks product. It contains all of the features found in the local version. Higher-priced plans include greater automation, payment management, inventory and time tracking, and analytics features.
$15
per month
Xero
Score 8.5 out of 10
N/A
Xero is an online accounting software product for small businesses and personal finance. Its features beyond general ledger and double-bookkeeping include quotable invoicing, bank reconciliation, purchase order and expense management, and tax management. Third party apps can extend its features further.
$13
per month
Pricing
QuickBooks OnlineXero
Editions & Modules
Self-Employed
$15
per month
Simple Start
$25
per month
Plus
$75
per month
Advanced
$150
per month
Early
$13
per month
Growing
$37
per month
Established
$70
per month
Offerings
Pricing Offerings
QuickBooks OnlineXero
Free Trial
YesYes
Free/Freemium Version
NoNo
Premium Consulting/Integration Services
NoNo
Entry-level Setup FeeNo setup feeNo setup fee
Additional DetailsPrices in table are in USD and just apply to the US - other markets & prices are listed below: Canada - Starter $18 CAD/month, Standard $45 CAD/month, Premium 5 $58 CAD/month UK - Starter £14/month, Standard £28/month, Premium £36/month AU - Starter $29 AUD/month, Standard $59 AUD/month, Premium 5 $76 AUD/month NZ - Starter $31 NZD/month, Standard $66 NZD/month, Premium $84 NZD/month
More Pricing Information
Community Pulse
QuickBooks OnlineXero
Considered Both Products
QuickBooks Online
Chose QuickBooks Online
Xero provides similar functionality. It recently added a payroll function for my state. It also has the more robust document management system that QBO needs to move towards.
Chose QuickBooks Online
QuickBooks is the grand daddy of accounting. They cater to the end user. Xero caters to accounting and the cloud. Xero is constantly improving their products and services. QBO seems to be just doing enough to stay ahead.
Chose QuickBooks Online
QuickBooks Online and Xero offer many similar features. I believe QuickBooks Online is easier to use. Xero offers tax features for companies that operate in other companies that you have to turn off in several locations if you are using it for a US company.
Chose QuickBooks Online
They are tough competitors. I believe each has their own strengths and weaknesses. Overall, QBO is slightly less expensive than Xero (at the moment, at least), so that is a plus. The real reason that we went with QBO in the beginning is that it was a more mature product, and it …
Chose QuickBooks Online
We liked the fresh approach and the clean aesthetics of Wave, Xero and ZipBooks. However they all lacked the ability to customize a invoice template, which is sad to say, but that was the #1 feature for us, since we had existing customers that we didn't want to disrupt; i.e., …
Chose QuickBooks Online
No competitor quick stacks up. FreshBooks has a speedy UI, but lacks features for a more complex small business. Xero has a UI that I personally don't like as much and it never felt quite right to me. Not as many accountants are familiar either. Zoho Books came the closest …
Chose QuickBooks Online
While my experience with Xero is limited, QuickBooks Online and Premier versions both seem to be more polished overall. Xero's user interface is a bit more oqaque and clunkier, and Intuit just offers a more seamless experience with its QuickBooks products. However, pricing …
Chose QuickBooks Online
Xero is very comparable to QuickBooks Online, they are both good systems. QuickBooks has more integrations, works better for construction in the U.S., and the price is right. There are thousands of resources online and pro advisors to help if you need anything. Typically any …
Chose QuickBooks Online
We liked the QB interface and also read positive reviews about the product online and from direct referrals
Chose QuickBooks Online
Quick and easy to set up. QuickBooks Online has a full suite of bookkeeping tools and pricing is affordable. QBO is best suited for Small Businesses and it's cloud-based, which is also well suited for the owners who work remotely. It is flexible and integrates well with …
Chose QuickBooks Online
It is a platform that we consider to be mid-range. Where we are below cost and functionality relative to the more robust players like a SAP Business One, but still powerful enough for a medium or large size operation. In addition to being one of the few global solutions that …
Chose QuickBooks Online
Ultimately, QuickBooks/Intuit has the most market share when it comes to accounting software. The benefit of so many people using this software is that there's always an answer to a problem that you may be having when it comes to using the software. Intuit has provided a …
Chose QuickBooks Online
Quickbooks has a very friendly user interface and it also integrates with other softwares. Honestly, I think other software may function just as well and if I wasn't so familiar with QuickBooks I may consider using them.
Chose QuickBooks Online
Tried Xero briefly but did not like it. Seemed less well organized and used too many terms commonly used outside the US. Xero also lacked payroll processing at the time. We looked a couple lower end products but did not like them. You cannot go wrong with QuickBooks in the US. …
Chose QuickBooks Online
We chose QuickBooks online because it was the only option other than QuickBooks Desktop that supports the sub-class functionality that is essential for our business.
Chose QuickBooks Online
My bookkeeper introduce me to QBs, I haven't had a chance to compare to other providers like Xero.
Chose QuickBooks Online
Only used QuickBooks Online because customer had already started with it and didn't want to switch. It provided better integration with Bill.com.
Chose QuickBooks Online
It's similar and each program has its pros and cons. QuickBooks Online is a bit more "familiar" if you are used to QuickBooks.
Chose QuickBooks Online
Xero is good. Very good, however, Intuit does a better job of marketing to me.
Chose QuickBooks Online
I do use Xero and NetSuite for other companies. I started using Xero a few years ago because QuickBooks Online features were very limited and didn't have the ability to convert a QuickBooks desktop file. I have been impressed with QuickBooks Online's advancements. I think it …
Chose QuickBooks Online
Quickbooks was the software I was first introduced to, and have stayed with it for familiarity and ease for my boss.
Specifically for invoicing, I have used Freshbooks Online, and while it does have some features that would be useful in Quickbooks, overall, it is not as …
Chose QuickBooks Online
We use Xero. I prefer working with clients using Xero over QuickBooks Online. Xero is simpler to use. The clients we have using Xero love it.

We also have many clients using QuickBooks Desktop on a hosted environment. However, hosted QuickBooks is much more expensive than …
Xero
Chose Xero
The ease of use is the best function of Xero! I can't believe how easy it is. The guesswork and errors QuickBooks Online causes is ridiculous. Many of us have just learned to live with it, but once you try Xero, it's hard to go back.
Chose Xero
Xero has remained simple yet robust for years. They have a few items that make it difficult (what product doesn't), but I feel very confident in partnering with them. I have used (and still use) QuickBooks Online and I have witnessed Intuit continually pull the bait and …
Chose Xero
I prefer Xero over the other options I have tried because it has a cleaner interface, operates faster on the web, has a strong API relationship with other applications and appears to be gaining ground on Quickbooks in the marketplace. QuickBooks Online is probably the most …
Chose Xero
Xero is easier to navigate and more organized in the way you navigate from module to module than QuickBooks Online. (Quickbooks Desktop was great). The help module and Xero Central are excellent and one of the best help features that I have experienced in any program.
Chose Xero
Xero is really basic and our team can easily adapt with it rather than using other some other non-user friendly apps. We could focus on the work itself rather than having problems with learning its complexity. Xero is very user-friendly and also gives tutorial which is great! …
Chose Xero
I've used a lot of different accounting systems. Many of them so big and powerful, but a hassle to get set up. Xero is light, inexpensive, and easy to use. When I originally selected them they seemed like they were developing new features at a quick rate as well. I was invited …
Chose Xero
Xero is very much a market leader and is at a sensible cost point. It offers a wealth of functionality with all accounting features coming as standard. It's easy to add bolt ons such as payroll at any time.
Chose Xero
For one QB, customer service is terrible! The software is clunky and not as user-friendly as Xero. We have chosen Xero for many reasons: Custom Reports, Cost, support, and perks of being a partner.
Chose Xero
Xero has a more modern user interface, better bank account synchronization, better automations, and an overall more pleasurable user experience. The setup is more simple.

Quickbooks Desktop has easier to use and more robust reporting; however, for my needs that is overkill. What …
Chose Xero
Just simpler and has a cleaner interface. I would say that quickbooks is designed for less savvy business owners, but that makes it slower to use than Xero. I'm not suggesting that Xero is hard to use, it's really simple, but it does assume you have a level of financial …
Chose Xero
Sage at the time we moved to Xero did not really have a suitable Cloud offering and the full SaaS solution it did have was only applicable to very small businesses. Quickbooks was very similar to Xero but during testing, most users preferred Xero for various reasons. Xero's UI …
Chose Xero
Xero is superior to Quickbooks. It is user friendly
Chose Xero
Xero ranks highly among the competitors, however multi-level reporting is better done in QuickBooks. More price sensitive, micro-businesses can find decent cheaper or free alternatives. Those wanting integration with other apps like cashflow management, inventory, reporting …
Chose Xero
Xero is alot more user-friendly and easy to integrate with other solutions
Chose Xero
No product thus far can even compare to Xero.
Pastel is tedious and tiresome with everything that has to be captured manually and if an error is made a new journal needs to be drafted to correct it.
Zoho Reports are horrible and pulls through limited data.
Chose Xero
Xero is more affordable than other solutions, and being cloud-based it's helpful for granting accountant access.

Every other accounting package in existence has late fees and interest options built in.
Chose Xero
Xero is faster, easier to use, has user-friendly layouts, and has attractive text fonts. Xero's VAT return is so easy to understand.
Chose Xero
Better user friendly dashboard, and cost effective.
Chose Xero
Both platforms have their strengths outside of Xero, but ultimately my familiarity and trust of the platform won the day. I believe Quickbooks has improved since the last time I evaluated it, but having deployed Xero in a number of firms, it is harder to make me switch because …
Chose Xero
Xero has enterprise capabilities but can be used for small businesses. Coming from a large enterprise, I had a certain way of looking at the business that I was used to. Xero met that whereas the other products didn't - they appealed directly to small businesses with a …
Chose Xero
Ignoring pricing, Xero is among the best options available. It has the most complete feature set along with Quickbooks. It is more user-friendly compared to most of its competitors. It has well-designed mobile apps that can actually do something in contrast with most …
Chose Xero
Xeros interface and functionality are much superior to QuickBooks for people who aren’t used to or are unfamiliar with accounting.
Chose Xero
The ease of use and feature sets are miles apart from the competition. The alternatives that I have compared Xero with are just years away from dozens of features which makes a user's life much easier. The competition's localizations are still very far apart, and the …
Chose Xero
Xero has a much easier, user-friendly interface for ease of use in comparison to the above software and also saves time with day-to-day processing, payables, visibility on items due or requiring attention and the payroll is far easier to use. You can view previous pay runs and …
Top Pros
Top Cons
Features
QuickBooks OnlineXero
Payroll Management
Comparison of Payroll Management features of Product A and Product B
QuickBooks Online
3.1
78 Ratings
83% below category average
Xero
7.8
73 Ratings
4% above category average
Pay calculation4.269 Ratings7.965 Ratings
Benefit plan administration3.732 Ratings8.123 Ratings
Direct deposit files4.765 Ratings7.949 Ratings
Salary revision and increment management1.744 Ratings7.841 Ratings
Reimbursement management1.446 Ratings7.354 Ratings
Customization
Comparison of Customization features of Product A and Product B
QuickBooks Online
2.6
68 Ratings
92% below category average
Xero
7.5
126 Ratings
6% above category average
API for custom integration1.354 Ratings7.779 Ratings
Plug-ins3.857 Ratings7.3113 Ratings
Security
Comparison of Security features of Product A and Product B
QuickBooks Online
3.7
108 Ratings
72% below category average
Xero
8.1
159 Ratings
3% above category average
Single sign-on capability3.081 Ratings7.572 Ratings
Role-based user permissions4.5102 Ratings8.7157 Ratings
Reporting & Analytics
Comparison of Reporting & Analytics features of Product A and Product B
QuickBooks Online
5.4
132 Ratings
34% below category average
Xero
8.0
180 Ratings
5% above category average
Dashboards4.7124 Ratings7.9176 Ratings
Standard reports5.4128 Ratings8.2179 Ratings
Custom reports6.0116 Ratings7.9159 Ratings
General Ledger and Configurable Accounting
Comparison of General Ledger and Configurable Accounting features of Product A and Product B
QuickBooks Online
3.8
143 Ratings
64% below category average
Xero
7.4
189 Ratings
0% below category average
Accounts payable5.4122 Ratings8.7176 Ratings
Accounts receivable6.0131 Ratings8.9177 Ratings
Cash management6.2120 Ratings8.1161 Ratings
Bank reconciliation6.3137 Ratings9.1184 Ratings
Expense management5.5123 Ratings7.9168 Ratings
Time tracking1.856 Ratings7.660 Ratings
Fixed asset management5.353 Ratings7.7115 Ratings
Multi-currency support1.423 Ratings7.5109 Ratings
Multi-division support1.542 Ratings7.493 Ratings
Regulations compliance1.738 Ratings8.293 Ratings
Electronic tax filing5.266 Ratings9.093 Ratings
Self-service portal2.666 Ratings7.7106 Ratings
Global Financial Support1.416 Ratings6.051 Ratings
Primary and Secondary Ledgers3.535 Ratings7.250 Ratings
Intercompany Accounting4.929 Ratings6.040 Ratings
Localizations4.121 Ratings8.039 Ratings
Journals and Reconciliations5.274 Ratings9.290 Ratings
Enterprise Accounting1.825 Ratings4.433 Ratings
Configurable Accounting2.138 Ratings5.859 Ratings
Centralized Rules Framework2.924 Ratings5.133 Ratings
Standardized Processes4.048 Ratings6.159 Ratings
Inventory Management
Comparison of Inventory Management features of Product A and Product B
QuickBooks Online
1.3
47 Ratings
138% below category average
Xero
6.5
87 Ratings
8% below category average
Inventory tracking1.345 Ratings6.183 Ratings
Automatic reordering1.222 Ratings7.024 Ratings
Location management1.321 Ratings7.029 Ratings
Manufacturing module1.317 Ratings6.316 Ratings
Order Management
Comparison of Order Management features of Product A and Product B
QuickBooks Online
3.7
86 Ratings
67% below category average
Xero
6.9
89 Ratings
7% below category average
Pricing4.755 Ratings6.862 Ratings
Order entry4.753 Ratings6.956 Ratings
Credit card processing2.463 Ratings7.458 Ratings
Cost of goods sold3.968 Ratings7.366 Ratings
Order Orchestration4.621 Ratings6.621 Ratings
End-to-end order visibility4.620 Ratings6.524 Ratings
Order exception Resolution1.218 Ratings6.617 Ratings
Best Alternatives
QuickBooks OnlineXero
Small Businesses
Dext Prepare (with Receipt Bank)
Dext Prepare (with Receipt Bank)
Score 9.1 out of 10
Dext Prepare (with Receipt Bank)
Dext Prepare (with Receipt Bank)
Score 9.1 out of 10
Medium-sized Companies
Accounting Seed
Accounting Seed
Score 8.3 out of 10
Accounting Seed
Accounting Seed
Score 8.3 out of 10
Enterprises
Oracle Fusion Cloud ERP
Oracle Fusion Cloud ERP
Score 8.2 out of 10
Oracle Fusion Cloud ERP
Oracle Fusion Cloud ERP
Score 8.2 out of 10
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User Ratings
QuickBooks OnlineXero
Likelihood to Recommend
4.2
(161 ratings)
8.6
(204 ratings)
Likelihood to Renew
2.5
(24 ratings)
9.9
(32 ratings)
Usability
4.1
(76 ratings)
8.8
(129 ratings)
Availability
2.1
(5 ratings)
9.0
(10 ratings)
Performance
1.1
(4 ratings)
10.0
(8 ratings)
Support Rating
2.2
(68 ratings)
8.9
(36 ratings)
In-Person Training
-
(0 ratings)
9.1
(1 ratings)
Online Training
-
(0 ratings)
10.0
(5 ratings)
Implementation Rating
3.0
(6 ratings)
7.3
(10 ratings)
Configurability
10.0
(1 ratings)
9.0
(1 ratings)
Ease of integration
1.4
(2 ratings)
6.5
(89 ratings)
Product Scalability
1.1
(2 ratings)
10.0
(6 ratings)
Vendor post-sale
1.1
(2 ratings)
9.0
(2 ratings)
Vendor pre-sale
1.1
(2 ratings)
10.0
(2 ratings)
User Testimonials
QuickBooks OnlineXero
Likelihood to Recommend
Intuit
It seems Intuit is more interested in generating revenue than taking care of their customers. After only 28 (working) days using it, I've had to call for Help 23 times, and, in my experience, only spoken to 2 people who had an understanding of basic accounting practices and the ramifications of some of their suggested fixes on the General Ledger.
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Xero
If they are using foreign exchange I always use Xero. If I need reporting to be customized we always use Xero. If the client is already working in a software and it is working for them we will leave them in the software they are in.
Read full review
Pros
Intuit
  • It enables me to do a P&L for each specific program as requested by the county for the grant money that they give us.
  • It enables me to do [an] organizational budget as well as a budget for each specific program
  • It enables the accountant and the auditor access at any time for transparency
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Xero
  • Their method of moving between screens was very logical and intuitive which is not a "given" attribute among software packages.
  • Finding transactions was relatively easy with just common sense.
  • The use of this software was generally well received in that the accountants did not discredit the software as cheap, poorly organized, or timely to learn. No one at Corporate had a vendetta against using Xero.
  • It does a good job of allowing the users to drill down to the final detail of an account balance - which is fundamental to the accounting department's needs.
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Cons
Intuit
  • The budgets feature leaves a lot be desired - difficult and clunky to populate and maintain.
  • Reporting for Budget vs Actual is available but the ability to reforecast based on updated data is not.
  • The rules function to default common types of expenses isn't perfect and will get confused if like amounts or a number of similar items present.
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Xero
  • Occasionally, the price increases and I feel that prices should be fixed for long-term users as there are very few changes in the software from when I started using it 6 years ago.
  • It would be useful to have the emails sent with invoices saved.
  • Visual dashboards are limited.
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Likelihood to Renew
Intuit
It like the product 'right out of the box' and I trust Intuit will continually improve it over the years based on my experience with their desktop products. The large providers of Apps makes customizing the entire package relatively easy and seamless for a wide variety of business types.
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Xero
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.
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Usability
Intuit
While QuickBooks Online is generally easy to navigate, there are some features and functions that often require a Google search in order to find out where they are actually hidden. Additionally, there are some simple customization features that are surprisingly not available for an otherwise advanced program (e.g. only having a pool of 4 fonts to choose from, only having 4 very limited templates for invoicing, not color selection, etc). While I would say that about 75% of users shouldn't have a problem finding their way around with basic functions, there is a learning curve if you want to be able to dive into some of the more useful features, almost to the point that you need to have a dedicated account manager in order to use QuickBooks Online most effectively.
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Xero
Xero has all the features that you need, basically. From chart of accounts, reconciling books, to making annual financial reports. What I'm currently looking for Xero right now is to provide more broader integration with the other apps so we can use it for customer-facing experience also. All in all, everything works well!
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Reliability and Availability
Intuit
We have rarely had outages in the last 10 years. I can only recall 2 times in the last 10 years where we were not able to access our client files.
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Xero
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.
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Performance
Intuit
There are tab issues. When I tab the field doesn't highlight and I have to backspace or delete what is in the field. Happens on the memo field and sometimes other fields. Very time consuming.
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Xero
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.
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Support Rating
Intuit
Support is great, all incidents been resolved. Quickbooks Online forum is very well organized and helpful. I like the fact that they let the community contribute in resolving issues. Most or many of your answers can be found online. You can also get help on YouTube, but the easiest way to get assistance is through their chat system.
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Xero
Always respond and keep issues open until you are satisfied with the result. Generally good responses, in the past, I had some support responses that were really basic and really annoying. They type where "have your tried restarting your computer" style of answers. Well, of course, I went through all the basics before contacting them. Duh, but I suppose not everyone does. Otherwise, it would be a 10. The last year has shown a marked improvement in the support responses however.
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In-Person Training
Intuit
No answers on this topic
Xero
The format was great; someone was there to ask questions or help if you were stuck.
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Online Training
Intuit
No answers on this topic
Xero
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.
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Implementation Rating
Intuit
The person in charge of QB needs to be very accurate with record keeping and is recommended to stay on top of tasks. The biggest issue we have is reconciliation, and those issues occur only when too much time has occurred between reconciliations
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Xero
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.
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Alternatives Considered
Intuit
I have used Wave Accounting for another business. I selected QuickBooks Online over Wave because of the features available from QuickBooks. Wave is great since it is free, but I feel that paying for QuickBooks Online is worth it for the features. In addition there is such a robust support network and training available for QuickBooks.
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Xero
I've used a lot of different accounting systems. Many of them so big and powerful, but a hassle to get set up. Xero is light, inexpensive, and easy to use. When I originally selected them they seemed like they were developing new features at a quick rate as well. I was invited to be part of focus sessions to make the product better. That part has slowed down significantly though.
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Scalability
Intuit
As we have grown along our professional path, we have also expanded our use of QB. The scalability is easy and features seem to be waiting for you until you need them. We have increased profits by over 10x from our first year in business to the current and have yet to find a reason to look elsewhere
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Xero
I have yet to fully stress test the product given the size of the company where I am using it. I am sure as we scale to more customers, more vendors and more reporting requirements, I will have a better understanding of what it is capable of in terms of bandwidth and processing
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Return on Investment
Intuit
  • It has created a lot of cost and in-efficiency whenever we need to talk to support.
  • I spent a lot of time setting up their automatic reminders for past due invoices and it worked for a couple of months and then it stopped. It's currently being worked on by their tech team but it has been months and it is still not working. It would have saved me a lot of time.
  • Their multi-currency saves time in sending invoices abroad but it's limiting when a customer wants an invoice in USD instead of a foreign currency so I have to set up different customer accounts for different currencies.
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Xero
  • Saved many hours through automatic invoices and followups
  • Saved many hours by allowing transactions to start via bank feeds (ie I don't have to input a transaction and mark it against what is in the bank/cc account; rather, the transaction in the account is where you input the transaction into the books.
  • Has the scalability my business requires, and not much more.
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ScreenShots

Xero Screenshots

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