These next few weeks! 10 of my team are attending 'Xerocon' next week so just waiting for any exciting product news before doing a much bette version of this classic!
I’m stuck between the two as well. Looking forward to newest update when you get a chance. I have three small businesses and am desperate to get them organized online if these two programs. Just not sure which yet.
Note with QBO: If you want a most basic feature - marking an expense as billable and invoicing it back to a client - you must buy a premium plan with Quickbooks that gives you hundreds of features you don't care about. It's like a ruse - such a basic feature "billable expenses" singled out to push you into a higher plan...
Good video, thanks. I'm getting frustrated with QB, all the adding, transferring, matching, not matching, editing, and so on. I thought a year or two in it should be doing this more fluently. Would there be any less of this with Xero, or do i need to get over it?
Honestly.... there is no totally auto solution no matter what the software companies say! Clients find less hassle *overall* with Xero, and generally we find there are less 'steps' to do this. Thing is, like most of these software, there are multiple ways of doing things, so it's understanding if there is a better way than what you are doing currently - you might find it's possible to do less matching etc with a different workflow.
Thanks for the informative video. Which is better for the visually-impaired self-employed person who need lots of large clear headings and an eye-popping range of contrasting colours onscreen? And does either brand have a shares and investments dashboard built in (or accessible via a plug-in)? Finally, is FreeAgent any good as an alternative to Xero and Quickbooks?
Hey, so: *FreeAgent is *ok*, not something we personally advise to use as it has limitations and just some odd functionally (as people that use the alternatives daily). We have some clients on it though, so it's not a *must avoid* type situation! It was attractive for many owners because you got it free with a Natwest business account. If it was between an owner using a spreadsheet or FreeAgent, FreeAgent all day long! *In terms of colours and larger headings, it probably is QuickBooks, but I know Xero do build with sight impairment in mind (many of the reports they've updated had the consideration). *On the shares aspect, not that we are aware of (but given the breath of apps it maybe we haven't seen it /needed to use it yet).
Tough to say! Both are pretty good. If you have just the one ‘channel’ might be worth trying the native first. If multi channel, dext commerce also worth a look.
Thanks for a great video. I have an Etsy and eBay shop and have recently had to go VAT registered. Which would you recommend for this situation, does one integrate better than the other?
It’s a tough question to answer easily in terms of what’s better, as it depends on your aims / needs. QuickBooks is cheaper for sure, but doesn’t mean it’s better.
how do i print payment voucher for direct expenses payment in xero . PV can be printed in Xero if it is a purchase with invoices. also no payment voucher can be printed for expense reimbursement from hubdoc receipts which i find disadvantage in Xero sw.
Hi Diana, Sorry not sure on this one! Not something we've done. Have you tried Xero support via email (they are normally pretty good). We will add this to a list of things to look at for a future vid.
Difficult to say Manik, we have travel agency clients on both of these and both work well! User preference these days, or if cost is an issue, QuickBooks!
Both can do, Xero project module is *probably* better. But many owners use a 3rd party app if their needs are more specific. Have a play around to see if it suits your needs, you can get a free trial.
Which one has better integration with Stripe? I kind of only need QBO or Xero for bookkeeping my business expenses, I already use Stripe for my payments, processes and invoices etc.
You can’t add just the balance without ‘the other side’ sadly. You can manually upload a .csv (spreadsheet file) rather than automatically connect it though. It’s also quicker really if you are to use Xero to capture the expenses, it’s quicker to do it from the bank feed then do another way.(generally)
I need a software that automatically gathers my charges from my bank's business card, but also from other cards I use for my business that are not connected to my bank. Which would you recommend best? Thanks
@@HeelanAssociates Thank you for the prompt response. I use various cards for my business, and my goal is that whichever software I use pull and recognize my purchases automatically from my various cards. Thank you for your input.
@@HeelanAssociates I would also appreciate this! I'm starting a new business and have received a free FreeAgent subscription with my new Natwest Business Account. My accountant uses Sage and has recommended this for their own ease (I'm assuming), but I'm not sure whether to go with Zero or Quickbooks as recommended by yourself. The business will have few employees (
We are a company located in Canada and are looking to transition from Quickbooks 2016 Desktop to QBO or Xero. Was wondering what you recommendation for a import wholesale business that is seasonal (functioning only 6 months out of year) We will need to use an inventory management software such as Cin7 or Fishbowl to manage out inventory and was wondering which one would integrate better overall. Lastly, who do you think is more innovated in the market? Who do you think will be better and preferred 10 years down the line? Thanks!
Hi there. Desktop QB '16 was probably the best thing ever made :- ) (we still internally sometimes!). Your best bet (without knowing the detail) is probably Xero + separate stock management system. As the market leader, most other apps are tending to build integrations with Xero. That said, gut feeling is in 10 years time we will still have the same 2-3 players competing in the space.
Thank you for sharing this comparison. Even if Xero might be more user friendly they are awful in terms of customer feedback. They are also more expensive and no telephone support whereas QB is cheaper and provide good support on the phone. Today I decided to switch away from Xero as they are a liability to my business and force people to download apps that probe into one's privacy
Which one is easier to use. I am just starting out as a massage therapist from a rented room in a shop and have no knowledge of bookkeeping or accounting whatsoever. It's a little daunting when you have a lot of initial outlay for materials used to start up. I have all receipts for everything, in date order, and need the simplest tool to transfer the information across. I also need to know if you can link a website and a bank account (business) to any of them, where it can transfer information automatically. Hope you can help with some advice.
You can link your bank account (to get each statement line in) to either of them. This video needs an update, as either would work well in your situation. QuickBooks has an inbuilt tool for capturing receipts that can help to ua-cam.com/video/EaYPoN31ENM/v-deo.html The website depends on what you are trying to do. You can link things like woocommerce, stripe, paypal and certain other 'back end' stuff to them. Should be said though, if you are a sole trader you could just stick it all in a spreadsheet if you find this too much to soon. Good luck with the new business!
Useful video and I will go and look at the other two for each. My business is largely selling services and products on line in multiple currencies integrating with stripe - do you have any sense if one or the other is better at dealing in multi currency. I can imagine I will be having a few forex reconciliations to do
Stripe works fine with both. In terms of the Forex, we generally feel its easier to understand on Xero, but QuickBooks also does a good job at this if you get the set up right. What are you using at the moment? Both handle forex by adjusting any differences through the profit and loss (shown on its own line).
@@HeelanAssociates i prefer xero in general, however, when it comes to payments allocation and revising invoices to which payments have been allocated, then QB is a big winner. Xero doesn't allow for bulk payment allocation in other than domestic currency and if you need to change the date or item on paid invoice, get ready to delete the payment, make a change and then apply the same payument again. With QB you only change invoice. Secondly, in QB you can have negative stock - it's great feature, especially when your customer needs an invoice asap and you have no time to create a bill. BUT!!! in Xero you can create draft bills!!! that's amazing feature if you want to record future expense and help you with cash flow. And you can oen transactions from the one window to another window just by clicking right button and selecting open in other window - funny QB doesn't have this and it's a pain for a bookkeeper, for me especially. And creating detailed supplier statement in xero is not that straighforward - needs special report to be manuallyt sorted in excel. I can easily do it now, but first 6 months i had a really hard time to find out - and xero forums won't really help you.
forgot to say - QB support is a lot better - just call and get help quickly. With xero - all forum based, no human interactions. But I am still going back to xero, i feel i spend much less time doing accounts than with quickbooks.
@@XAE_A_Xii We agree with all of this! Its why our book-keeping team love/hate certain features - all depends on what you are trying to do and what one you are working on!
Hi, if I making payment for phone, diesel, or some other things from my personal bank account , buy this for company usage , can I still add and business bank account and personal bank account to Xero to control expenses? Thank you
You could, just can get a little messy. Often it’s better to just key in those expenses as ‘bills’ and pay off via your drawings or directors loan account (ltd) inside the software.
Both would work actually! Probably not a preference for this. I guess maybe QBO might be slightly more intuitive / cost effective in this scenario , but honestly both would handle well.
Hi, What about free software or at least partly free (depending on plan)? Do you have any that you would recommend? (I'm just thinking about starting businesses / sole trades or just small turnovers)
The 'best' free software is probably to get a natwest/mettle account and get a free "FreeAgent" licence, but depending on your business Xero/Quickbooks is likely still the best investment.
Holy crap...Quickbooks has raised their pricing 300% since this video was published, leapfrogging Xero's pricing substantially. It no longer looks appealing to me at all. Cloud-based software is really gouging our humble pocketbooks these days! Something has to give.
Very informative, thanks! Two questions: 1. is changing the date etc (as mentioned) really that complicated in Xero? 2. is there a way to bulk accept / reconcile transactions in Xero? We are thinking of moving from QB, but the prospect of going through the transactions one by one (especially at the beginning, when we import lots of historical data) is off-putting.
Yes bulk transactions can be done via 'cash coding'. We will add that to the list of videos! Its quite a cool function, allows you to pick a group of bank transactions, tell it once what they are and applies to all of them. Can't remember exactly what we were referring to, but presume if was: if you make a payment against an invoice and want to change the date of the invoice or payment later, that is currently a pain. Its locked until you un apply the payment...
Client feedback (and our own experience) is that it's not that user friendly in comparison. You will find some die hard fans though, and we still have a few clients on it. Like all these things, the products get better all the time as well.
HI thanks for your great content.. Just wondering if you could do a video on Retentions when invoicing clients in Xero - We have construction company & JCT contracts often have a retention clause of 5% on each valuation payment, then release 2.5% at practical completion followed by the remaining 2.5% 3-12 months later after the defects period has run it allocated time. Many thanks in advance, keep up the good work Steve H - Cardiff
We too are in Construction Industry, and would need the option of entering full or part Invoices from vendors/suppliers to specific jobs, to enable profit & loss reports end of month show where made or lost money, do either of these packages do this? thanks
Its tough, most construction business we with tend to use a 3rd party app to manage their projects, things like ServiceM8. That or spreadsheets for the jobs! Xero for example has a projects module that will handle this to a degree, but it's best to take a trial and play with it. Both Quickbooks and Xero will do a 'class tracking' thing were you can allocate a cost/income to a certain 'class', which allows you to do a profit and loss report on just things entered with that class. Downside is there is a maximum amount of classes so eventually you run out.
Xero is terrible. Do NOT buy! Non-existent technical support. VERY unstable. Input invoices, etc. one day. The next day there not there. Stick with QB people. Trust me.
This video needs an update as it's a bit outdated, but QuickBooks have made many great improvements! In fact these days we are very 50/50 on recommendations, depends on the clients workflow and sector type a lot of the time. Xero is still a great product, although it's had a few outages recently that have frustrated customers.
I'm stuck deciding between the two. Would a 2022 update be on the cards??
These next few weeks! 10 of my team are attending 'Xerocon' next week so just waiting for any exciting product news before doing a much bette version of this classic!
@@HeelanAssociates Woop! :D
good shout laura
I’m stuck between the two as well. Looking forward to newest update when you get a chance. I have three small businesses and am desperate to get them organized online if these two programs. Just not sure which yet.
same here wondering which is best suited for small scale real estate
Note with QBO: If you want a most basic feature - marking an expense as billable and invoicing it back to a client - you must buy a premium plan with Quickbooks that gives you hundreds of features you don't care about. It's like a ruse - such a basic feature "billable expenses" singled out to push you into a higher plan...
Xero is similar in this, their projects module is extra. Thing is most people don’t need it. In our client base for example I think we two.
Good video, thanks. I'm getting frustrated with QB, all the adding, transferring, matching, not matching, editing, and so on. I thought a year or two in it should be doing this more fluently. Would there be any less of this with Xero, or do i need to get over it?
Honestly.... there is no totally auto solution no matter what the software companies say! Clients find less hassle *overall* with Xero, and generally we find there are less 'steps' to do this. Thing is, like most of these software, there are multiple ways of doing things, so it's understanding if there is a better way than what you are doing currently - you might find it's possible to do less matching etc with a different workflow.
Thanks for the informative video. Which is better for the visually-impaired self-employed person who need lots of large clear headings and an eye-popping range of contrasting colours onscreen? And does either brand have a shares and investments dashboard built in (or accessible via a plug-in)? Finally, is FreeAgent any good as an alternative to Xero and Quickbooks?
Hey, so:
*FreeAgent is *ok*, not something we personally advise to use as it has limitations and just some odd functionally (as people that use the alternatives daily). We have some clients on it though, so it's not a *must avoid* type situation! It was attractive for many owners because you got it free with a Natwest business account.
If it was between an owner using a spreadsheet or FreeAgent, FreeAgent all day long!
*In terms of colours and larger headings, it probably is QuickBooks, but I know Xero do build with sight impairment in mind (many of the reports they've updated had the consideration).
*On the shares aspect, not that we are aware of (but given the breath of apps it maybe we haven't seen it /needed to use it yet).
Many thanks for the detailed reply. I did read that Xero can be paired with ShareSight. @@HeelanAssociates
Which Shopify integration is better on Xero, the native Xero Shopify app or the A2X Shopify app?
Tough to say! Both are pretty good. If you have just the one ‘channel’ might be worth trying the native first. If multi channel, dext commerce also worth a look.
very informative! thanks a lot!
Glad it was helpful!
I’m a one man decorating band , and like to send quotes and invoices from my I phone, which one would you recommend for this please
Both will work for you! If you primarily using app for that, at this moment in time quickbooks probably edges it.
Thanks for a great video. I have an Etsy and eBay shop and have recently had to go VAT registered. Which would you recommend for this situation, does one integrate better than the other?
Xero. Then look at ‘link my books’ and or ‘A2X’ to help.
@@HeelanAssociates thank you so much I will check them out 🙏
Thanks for the good video! Do suggest any ePOS like square or Loyverse which works with xero for small business?
We see lots of different ones, the most common being
Zettle
Stripe
GoCardless
which one should i use Xero or QB for my kitchens with branches?
and wich one is cheaper?
It’s a tough question to answer easily in terms of what’s better, as it depends on your aims / needs. QuickBooks is cheaper for sure, but doesn’t mean it’s better.
@@HeelanAssociates isn’t Xero cheaper or what am I missing?
@@therealexquisiteexistentia4743 Currently it looks like Xero is offering lower starting monthly rates compared to QB.
how do i print payment voucher for direct expenses payment in xero . PV can be printed in Xero if it is a purchase with invoices.
also no payment voucher can be printed for expense reimbursement from hubdoc receipts which i find disadvantage in Xero sw.
Hi Diana,
Sorry not sure on this one! Not something we've done.
Have you tried Xero support via email (they are normally pretty good).
We will add this to a list of things to look at for a future vid.
My biz is watching all kind of UA-cam videos, which sw is good for me? Facebook?
So confused by your question :- ) could you elaborate.
Which accounting software best for travel agency
Difficult to say Manik, we have travel agency clients on both of these and both work well! User preference these days, or if cost is an issue, QuickBooks!
Which is best for running projects?
Both can do, Xero project module is *probably* better. But many owners use a 3rd party app if their needs are more specific. Have a play around to see if it suits your needs, you can get a free trial.
Which one has better integration with Stripe? I kind of only need QBO or Xero for bookkeeping my business expenses, I already use Stripe for my payments, processes and invoices etc.
Probably Xero for stripe.
Thank you! I decided on Quickbooks. lol
Great! Have fun
Does Xero have multi location inventory feature? If yes, how many warehouses we can have in Xero?
To our knowledge no, it's just item codes, which have a cap. It's why some bigger businesses will use a separate stock app plug in that talks to Xero.
Many thanks again great insight
Glad you enjoyed! We are doing an update to this one soon
Do i have to connect my bank account with Xero? Can i manually add the balance and account on the basis that this is a backup to my paper records?
You can’t add just the balance without ‘the other side’ sadly. You can manually upload a .csv (spreadsheet file) rather than automatically connect it though. It’s also quicker really if you are to use Xero to capture the expenses, it’s quicker to do it from the bank feed then do another way.(generally)
I need a software that automatically gathers my charges from my bank's business card, but also from other cards I use for my business that are not connected to my bank. Which would you recommend best? Thanks
What sort of cards? Many will send feeds to the software. Barclaycard business credit card for example has a feed.
@@HeelanAssociates Thank you for the prompt response. I use various cards for my business, and my goal is that whichever software I use pull and recognize my purchases automatically from my various cards. Thank you for your input.
Can you do another of these with a review of FreeAgent as well?
Mmmm. Yes possibly! Will have a think
@@HeelanAssociates I would also appreciate this! I'm starting a new business and have received a free FreeAgent subscription with my new Natwest Business Account. My accountant uses Sage and has recommended this for their own ease (I'm assuming), but I'm not sure whether to go with Zero or Quickbooks as recommended by yourself. The business will have few employees (
which is best for uk job accounts....quickbook or peachtree ??
QuickBooks would get our nod.
@@HeelanAssociates thanks
We are a company located in Canada and are looking to transition from Quickbooks 2016 Desktop to QBO or Xero.
Was wondering what you recommendation for a import wholesale business that is seasonal (functioning only 6 months out of year) We will need to use an inventory management software such as Cin7 or Fishbowl to manage out inventory and was wondering which one would integrate better overall.
Lastly, who do you think is more innovated in the market? Who do you think will be better and preferred 10 years down the line?
Thanks!
Hi there. Desktop QB '16 was probably the best thing ever made :- ) (we still internally sometimes!).
Your best bet (without knowing the detail) is probably Xero + separate stock management system. As the market leader, most other apps are tending to build integrations with Xero.
That said, gut feeling is in 10 years time we will still have the same 2-3 players competing in the space.
Thank you for sharing this comparison. Even if Xero might be more user friendly they are awful in terms of customer feedback. They are also more expensive and no telephone support whereas QB is cheaper and provide good support on the phone. Today I decided to switch away from Xero as they are a liability to my business and force people to download apps that probe into one's privacy
The lack of phone support has been a common frustration for sure. Interested, what makes you think QBO has better privacy?
Thank you for this comment. This is a major consideration and may have swayed me over to QB.
Which one is easier to use. I am just starting out as a massage therapist from a rented room in a shop and have no knowledge of bookkeeping or accounting whatsoever. It's a little daunting when you have a lot of initial outlay for materials used to start up. I have all receipts for everything, in date order, and need the simplest tool to transfer the information across. I also need to know if you can link a website and a bank account (business) to any of them, where it can transfer information automatically. Hope you can help with some advice.
You can link your bank account (to get each statement line in) to either of them.
This video needs an update, as either would work well in your situation. QuickBooks has an inbuilt tool for capturing receipts that can help to ua-cam.com/video/EaYPoN31ENM/v-deo.html
The website depends on what you are trying to do. You can link things like woocommerce, stripe, paypal and certain other 'back end' stuff to them.
Should be said though, if you are a sole trader you could just stick it all in a spreadsheet if you find this too much to soon.
Good luck with the new business!
Useful video and I will go and look at the other two for each. My business is largely selling services and products on line in multiple currencies integrating with stripe - do you have any sense if one or the other is better at dealing in multi currency. I can imagine I will be having a few forex reconciliations to do
Stripe works fine with both. In terms of the Forex, we generally feel its easier to understand on Xero, but QuickBooks also does a good job at this if you get the set up right. What are you using at the moment? Both handle forex by adjusting any differences through the profit and loss (shown on its own line).
@@HeelanAssociates i prefer xero in general, however, when it comes to payments allocation and revising invoices to which payments have been allocated, then QB is a big winner. Xero doesn't allow for bulk payment allocation in other than domestic currency and if you need to change the date or item on paid invoice, get ready to delete the payment, make a change and then apply the same payument again. With QB you only change invoice. Secondly, in QB you can have negative stock - it's great feature, especially when your customer needs an invoice asap and you have no time to create a bill. BUT!!! in Xero you can create draft bills!!! that's amazing feature if you want to record future expense and help you with cash flow. And you can oen transactions from the one window to another window just by clicking right button and selecting open in other window - funny QB doesn't have this and it's a pain for a bookkeeper, for me especially. And creating detailed supplier statement in xero is not that straighforward - needs special report to be manuallyt sorted in excel. I can easily do it now, but first 6 months i had a really hard time to find out - and xero forums won't really help you.
forgot to say - QB support is a lot better - just call and get help quickly. With xero - all forum based, no human interactions.
But I am still going back to xero, i feel i spend much less time doing accounts than with quickbooks.
@@XAE_A_Xii Cant disagree there!
@@XAE_A_Xii We agree with all of this! Its why our book-keeping team love/hate certain features - all depends on what you are trying to do and what one you are working on!
What do you think about Nomisma? Thanks
Haven't used it in detail ourselves, but seems a solid system when we looked a few years ago (so presume has only got better).
Enjoyed your video. I think from what I've seen from your video Quickbooks would be better from a bookkeepers viewpoint. Thanks.
Quickbooks is a great product. Since we did this video some time ago, the product has improved greatly! We want to record a newer one soon....
Hi, if I making payment for phone, diesel, or some other things from my personal bank account , buy this for company usage , can I still add and business bank account and personal bank account to Xero to control expenses? Thank you
You could, just can get a little messy.
Often it’s better to just key in those expenses as ‘bills’ and pay off via your drawings or directors loan account (ltd) inside the software.
Greetings, Most of the transactions in my company are Cash, Which one would be more suitable for me, Xero or QB?
Both would work actually! Probably not a preference for this. I guess maybe QBO might be slightly more intuitive / cost effective in this scenario , but honestly both would handle well.
Hi,
What about free software or at least partly free (depending on plan)? Do you have any that you would recommend?
(I'm just thinking about starting businesses / sole trades or just small turnovers)
The 'best' free software is probably to get a natwest/mettle account and get a free "FreeAgent" licence, but depending on your business Xero/Quickbooks is likely still the best investment.
@@HeelanAssociates thanks
Holy crap...Quickbooks has raised their pricing 300% since this video was published, leapfrogging Xero's pricing substantially. It no longer looks appealing to me at all. Cloud-based software is really gouging our humble pocketbooks these days! Something has to give.
Are you sure? At timing of writing QBO in UK are doing insane 1 year deals (like £30 a YEAR) and the following year is still cheaper than Xero.
Very informative, thanks! Two questions: 1. is changing the date etc (as mentioned) really that complicated in Xero? 2. is there a way to bulk accept / reconcile transactions in Xero? We are thinking of moving from QB, but the prospect of going through the transactions one by one (especially at the beginning, when we import lots of historical data) is off-putting.
Yes bulk transactions can be done via 'cash coding'. We will add that to the list of videos! Its quite a cool function, allows you to pick a group of bank transactions, tell it once what they are and applies to all of them.
Can't remember exactly what we were referring to, but presume if was: if you make a payment against an invoice and want to change the date of the invoice or payment later, that is currently a pain. Its locked until you un apply the payment...
@@HeelanAssociates Thanks!
why avoid Sage?
Client feedback (and our own experience) is that it's not that user friendly in comparison. You will find some die hard fans though, and we still have a few clients on it.
Like all these things, the products get better all the time as well.
For my simple needs Quickbooks self Employed is far better.
For many people with super simple in/outs it certainly is a solid option!
HI thanks for your great content.. Just wondering if you could do a video on Retentions when invoicing clients in Xero - We have construction company & JCT contracts often have a retention clause of 5% on each valuation payment, then release 2.5% at practical completion followed by the remaining 2.5% 3-12 months later after the defects period has run it allocated time.
Many thanks in advance, keep up the good work
Steve H - Cardiff
We will add this one to the list! We know it well, having so many construction clients.
We too are in Construction Industry, and would need the option of entering full or part Invoices from vendors/suppliers to specific jobs, to enable profit & loss reports end of month show where made or lost money, do either of these packages do this? thanks
Its tough, most construction business we with tend to use a 3rd party app to manage their projects, things like ServiceM8. That or spreadsheets for the jobs! Xero for example has a projects module that will handle this to a degree, but it's best to take a trial and play with it.
Both Quickbooks and Xero will do a 'class tracking' thing were you can allocate a cost/income to a certain 'class', which allows you to do a profit and loss report on just things entered with that class. Downside is there is a maximum amount of classes so eventually you run out.
Xero is terrible. Do NOT buy! Non-existent technical support. VERY unstable. Input invoices, etc. one day. The next day there not there. Stick with QB people. Trust me.
This video needs an update as it's a bit outdated, but QuickBooks have made many great improvements! In fact these days we are very 50/50 on recommendations, depends on the clients workflow and sector type a lot of the time.
Xero is still a great product, although it's had a few outages recently that have frustrated customers.
TLDR; Which one is better - Accountants? ANSWER in one WORD!
Can you expand?
It's obviously sponsored advertisement that with. Your opinions are nothing worth........ That doesn't help me at all to make a decision
I can assure you there is no paid advertising on this. We operate with roughly a 50/50 split on both products internally.
@@HeelanAssociates Thanks for unbiased opinion.