If your current business operations seamlessly integrate with QuickBooks, but those tools do not support Xero, switching could create compatibility issues. We know that managing your accounts is like juggling a bag of squirrels—tricky, unpredictable, and downright exhausting. But what if we told you there’s a way to tame those squirrels and make your accounting life a whole lot easier?

• MMC Convert is a great option that not only has great reviews, but is budget friendly with conversions starting at $289.
• Before converting all financial data, make a copy of the income statement reports and balance sheet for all dates you want, using accrual and cash methods.
• The journal entries will still be posted, but they will remain unlinked.
• Migrating from an existing accounting system to another is a complicated process.
• QuickBooks Online’s most popular Plus plan tops out at five users; its highest-tier Advanced plan allows up to 25 users, but that plan is expensive at $200 per month.
• This will establish the inventory value in QBO, though one or more journal entries will be needed to offset the resulting opening balance entries when you are done.

How much additional work and cost depends on many factors like the number and variety of transactions, number of accounts with cash transactions, tracking of inventory, payroll, and so on. Only someone with experience in converting the kinds of transactions in a company file can advise about these issues. In addition, verify the detailed AP and AR reports to check if it is matching or not. Assuming that all is well, the conversion process is complete.

How the conversion process works and system requirements

It has all the features of Growing, plus support for multi-currency claims and expense claims, as well as a function for tracking time and costs on a per-project basis. Xero keeps things simpler, with just three plans rather than five. And unlike QuickBooks, Xero’s plans all support unlimited users.

Granted, this doesn’t mean Xero is the most cost-effective option for your business needs. Here’s how each accounting software vendor breaks down their services, so you can see how they compare. Like QuickBooks, Xero has a function to automatically calculate sales taxes for each invoice, as well as state or city taxes.

Software

You can click any data to see a full, detailed breakdown, complete with historical context, and you can set up data tracking to automatically generate specific reports. QuickBooks offers a main dashboard that can be customized with a series of tile-like graphs or lists, which lets you see real-time KPIs at a glance. All QuickBooks plans can let businesses track sales tax and manage 1099 contractors, with the exception of the Self-Employed plan, which instead helps freelancers estimate their quarterly taxes. QuickBooks offers on-premises as well Cloud based versions of Accounting applications that can manage payments, bills, accept business payments, and payroll functions.

Alternative Accounting Software Options

With QuickBooks, you can even take photos of your physical receipts, which the software automatically matches to existing expenses. Transactions can be imported from bank accounts, credit cards, or third-party services like PayPal and Square. Xero also lets you send quotes and estimates that can quickly pull up data on contacts, inventory, and pricing. You can set alerts to ensure no invoice slips through the cracks. Additional automation abilities let you select inventory items from a preset list, quickly duplicate a previous invoice, or set up automatic invoices for repeat orders.

Xero vs. QuickBooks Online at a glance

QuickBooks Online’s most popular Plus plan tops out at five users; its highest-tier Advanced plan allows up to 25 users, but that plan is expensive at $200 per month. In contrast, all Xero plans offer unlimited users and its highest-tier social security benefits Established plan is a more affordable $70 per month. Has robust reporting tools and report customization options, invoicing for an unlimited amount of clients, inventory tracking in higher tier plans, plus a capable mobile app.

Resources include how-tos, explainers, and professional development courses. Both services will allow you to modify your main dashboard to display the stats that matter most to you, but QuickBooks offers a little more flexibility. We’d recommend checking the total features offered by the QuickBooks Essentials and Xero Growing plans against your business’s needs. QuickBooks supports six custom invoice templates, and lets you track the status of the invoice with read receipts. If needed, you can easily send customers reminders, and can match any payments received with the correct invoice for efficient bookkeeping.

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This only complicates things, as any open invoices and bills should be imported later and will create those balances. Both Xero and QuickBooks Online have their own versions of transaction tracking tags, but QuickBooks Online is the winner in this arena. Xero lets users create two active tracking categories, while QuickBooks Online allows users to create 40 in the Simple Start, Essentials and Plus plans. QuickBooks Online’s Advanced plan allows for unlimited tag groups.