Xero is the current leader in ecommerce accounting, but Quickbooks is catching up fast
November 25, 2021

Xero is the current leader in ecommerce accounting, but Quickbooks is catching up fast

Stephen Steinberg | TrustRadius Reviewer
Score 10 out of 10
Vetted Review
Verified User
Review Source

Overall Satisfaction with Xero

We use Xero for our accounting and bookkeeping, making it our single source of truth for all things financial within the entire company.
  • Integrations with other platforms
  • Quick & easy reconciliation process
  • Particularly good for ecommerce accounting & bookkeeping
  • Affordable & great value
  • Improve the Xero community (Facebook groups, Linkedin Groups, etc) for more robust community support
  • Faster product improvements and new feature releases
  • Better inventory management and COGS calculations
  • Because it's the market leader, it's easy to find good experienced talent to manage
  • Reconciliation process is easy, keeping manual errors to a minimum
  • Basic financial reports are real-time which is great, but custom reports are difficult to build so additional software is necessary at this time
Xero was the first cloud-based accounting software, so we've always stuck with them. Quickbooks seems to be the only real competitor at least for eCommerce-based companies. The other options - Freshbooks, Wave, Zoho - seem to only be good for very, very basic service-based businesses. But it's been a while since I reviewed the options. I know Quickbooks and Xero are both acquiring a lot of complimentary software so I expect features to grow fast and impressively from here.
It makes everything very easy to use without too much prior accounting knowledge. The learning curve will be easier with prior accounting knowledge though, but from my experience with Quickbooks years and years ago, Xero seems more accessible.
Yes. Historically they haven't had robust native integrations with their API but it seems to be opening up recently, so they'll be better able to take advantage of the fact that they are cloud-based.
For a cloud-based platform, it should be better than it is. It should also have more options, but I think the list is growing.

Do you think Xero delivers good value for the price?

Yes

Are you happy with Xero's feature set?

Yes

Did Xero live up to sales and marketing promises?

Yes

Did implementation of Xero go as expected?

Yes

Would you buy Xero again?

Yes

I love Xero - they were the leader in cloud-based accounting and still hold that spot in my opinion. At the time of this writing, Quickbooks is making big moves to challenge them through acquisitions and new product features - we'll see who ultimately comes out on top. The one problem area for all eCommerce companies at this time is COGS calculations - in my opinion, whichever platform streamlines that process the best will win the race. If you have an eCommerce company, Xero is the choice. Unsure how service-based businesses would fare.

Xero Feature Ratings

Accounts payable
9
Accounts receivable
9
Cash management
8
Bank reconciliation
9
Expense management
8
Time tracking
Not Rated
Fixed asset management
7
Multi-currency support
7
Multi-division support
7
Regulations compliance
Not Rated
Electronic tax filing
Not Rated
Self-service portal
Not Rated
Global Financial Support
Not Rated
Primary and Secondary Ledgers
Not Rated
Intercompany Accounting
Not Rated
Localizations
Not Rated
Journals and Reconciliations
Not Rated
Enterprise Accounting
Not Rated
Configurable Accounting
Not Rated
Centralized Rules Framework
Not Rated
Standardized Processes
Not Rated
Inventory tracking
5
Automatic reordering
Not Rated
Location management
Not Rated
Manufacturing module
Not Rated
Pricing
5
Order entry
Not Rated
Credit card processing
Not Rated
Cost of goods sold
4
Order Orchestration
Not Rated
End-to-end order visibility
Not Rated
Order exception Resolution
Not Rated
Pay calculation
Not Rated
Benefit plan administration
Not Rated
Direct deposit files
Not Rated
Salary revision and increment management
Not Rated
Reimbursement management
Not Rated
Dashboards
5
Standard reports
6
Custom reports
4
API for custom integration
Not Rated
Plug-ins
7
Role-based user permissions
7
Single sign-on capability
Not Rated