Xero v QuickBooks Online: Which Is the Best Cloud Accounting Tool for Your Business?

As a UK small business owner, have you considered which Cloud accounting software is best to manage your finances?

Have you researched Xero accounting to balance your books? Or Quickbooks Online to keep track of your VAT receipts?

This article asks which is the best Cloud accounting tool for UK businesses: Xero or Quickbooks?

We examine the main features of both applications. Then discover how much they cost and see if one outshines the other. 

Read on to find out who provides the best service. And which works best with your Cloud accountants.

Xero Accounting

Xero, which is a specialist cloud accounting Software, started to change the game for small buisnesses in 2006 and it helps "connects people with the right numbers anytime, anywhere, on any device." 

Their Cloud-based apps give small business owners access to their financial data from any Internet device. With a subscriber list of 2 million+, Xero is one of the fastest-growing SaaS firms in the world.

With Xero accounting, you get real-time access to your account information.

Their 3,000 strong team is there to support you. And everything's kept secure using two-step authentication.

QuickBooks Online

Quickbooks Online aims to save you 8 hours every month by using their online software.

Over 4.5 million businesses use this Cloud-based application to handle their finances. You can see where your money is going with the cashflow snapshot. And create invoices directly from your mobile phone.

The dedicated Quickbooks App enables you to track your expenses all from one place. Simply scan your receipts using your mobile's camera and the app does the rest!

Features Comparison

On the surface, both services offer similar features. Those include:

  • Invoice processing
  • Quote creation
  • Fast reconciling
  • Inventory management
  • Sending purchase orders

Both softwares also have their own apps to track receipts and invoices.

Xero's Hubdoc captures and stores the data. Then it automatically matches it with your bank transactions. The Quickbooks App does the same.

Quickbooks Online and Xero offer online support and the services are easy to use. Depending on what you're used to will determine how you'll find working with each system.

Quickbooks Online Pricing vs Xero Pricing

Quickbooks Online comes in two flavours depending on if you're VAT registered.

For self-assessment-only users, the Self Employed option is currently £4 per month. You even get a 50% discount for the first six months. Everything's covered, from mileage tracking to free chat messaging support.

For larger businesses, Quickbooks has a Simple Start plan at £6 p/m. Upgrade to Essentials and you can handle multiple currencies. Plus offers stock management and payroll costs £4 per month plus a pound per employee.

You can try the system for free but the savings kick in only if you sign-up at the start.

Xero's least expensive plan is £10 a month. That limits you to sending five invoices and quotes and reconcile twenty bank transactions.

To really use the app, choose the Standard option at £24 p/m. Or if you need multi-currency, go for Premium at £30.

Xero Accounting and Quickbooks Online with The Numbersmith

We've examined both QuickBooks Online and Xero Accounting but which is better for your Cloud accounting needs?

With its ease of use and lower prices, Quickbooks Online manages to come out on top. Yet the choice is yours to make. And whatever you choose, we can manage both applications.

The Numbersmith is a Chartered Accountant that specialises in Cloud accounting for businesses in the UK.

We offer services in payroll, VAT returns, compliance, and management. As platnnium partners to both Xero and QuickBooks, we can help your small business which ever cloud accounting software you wish to choose. 

Get in touch today to find out how we can help transform your business accounting using the Cloud.

For more information on our services call
01604 434722

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