4 of The Best Accounting Software: Quickbooks vs. Freshbooks vs. Wave vs. Xero

The Battle for Your Accounting Software Budget

Accounting is the backbone of every business. As the world becomes more digitized, the need for quality accounting software is more significant than ever.

In this post, we’ll compare and contrast four of the most popular accounting software programs available: Quickbooks, Freshbooks, Wave, and Xero.

Each of these programs has its own unique feature set, benefits, and drawbacks, so it’s essential to choose the right one that suits your business needs today – and possibly into the future.

Quickbooks: Features and Benefits

Quickbooks is one of the most widely used accounting software programs worldwide, and it’s not difficult to understand why. The software is user-friendly, comes with an impressive range of features, and it’s pretty affordable too.

Some of the standout features of Quickbooks include its invoicing, inventory tracking, and, optionally, payroll functionality. Additionally, the software has a mobile app that makes it easy for users to manage their accounts while on the go.

Freshbooks: A Comprehensive Analysis

Freshbooks is another popular accounting program that’s designed mainly for small business owners. The software is cloud-based, making it easy to access your accounts from anywhere in the world.

Some of the standout features of Freshbooks include its invoicing tools, time-tracking functionality, and expense management. Additionally, Freshbooks has an excellent user interface that’s easy to navigate, making it ideal for beginners.

However, Freshbooks offers neither a payroll or inventory module. If you have even one employee or need to manage inventory, Freshbooks is probably not your solution.

Wave: Pros and Cons for Small Business Owners

Wave is a free accounting software program that’s designed for small business owners. The software is cloud-based, making it easy to access your accounts whenever and wherever you want.

Some of the standout features of Wave include its invoicing tools, expense tracking, and receipt scanning. Additionally, the software is incredibly easy to use, making it ideal for beginners.

Wave does offer a payroll functionality in the USA and some Canadian provinces for USD$40 per month. At the time of writing this post, payroll is not available in any other country.

Wave also lacks teh ability to track even simple inventory so if you carry stock, this would probably be a deal-breaker.

Xero: The Cloud Accounting Solution

Xero is a cloud-based accounting software program that’s designed mainly for small to medium-sized businesses. The software comes with an extensive range of features, including invoicing tools, inventory tracking, and payroll functionality. Like Quickbooks, it’s an accounting software your are unlikely to outgrow. However, unlike Quickbooks, Xero uses a third-party integration for payroll management.

Xero also has an intuitive mobile app that makes it easy for users to access their accounts while on the go.

However, Xero can be expensive, and the user interface can be a bit overwhelming for some users.

Comparison: Pricing and Plans

When it comes to pricing, it’s always hard to argue with ‘free’ so if your needs are relatively simple, Wave is the clear winner.

The base Quickbooks and Freshbooks programs are relatively affordable, with basic plans starting at around $12.50 per month. Expect to pay more if you need inventory management or payroll.

Xero has a very basic package for around $15 per month but if you want comprehensive inventory management and/or payroll, expect to pay well in excess of $100 per month.

Since Quickbooks, Freshbooks and Xero each have unique pricing plans, it’s essential to choose the options that best suit your business needs. Look forward… are you planning to stock products at some stage? Consider starting with accounting software that can handle your future growth.

User Interface: The Good, the Bad, and the Ugly

The user interface (UI) is a critical aspect of any software application, especially accounting software where efficiency and ease of navigation are paramount. Each of the four major accounting programs offers a distinct experience designed to cater to various user needs and preferences.

Quickbooks: The simple design of this program is well-known. For those just starting with accounting software, Quickbooks is a great option because of its simple and instructive dashboard. Clear labels on the menu and toolbar help to lower the learning curve for fresh users. Its design helps daily accounting chores to be much faster by supporting quick access to shared tasks including invoicing, payroll, and expense tracking.

Freshbooks: With their neat and easy-to-use interface, users quickly find what they need. The focus is on automating simple to set up and run chores like time tracking and invoicing. Small business owners and freelancers who give time management and simplicity of use top priority over sophisticated accounting tools will especially enjoy the interface.

Wave: Wave’s understated design appeals to those who like a straightforward approach to accounting. For novices, the interface is reduced to the basics, which lessens intimidation. For more sophisticated users who demand thorough reporting and customizing, this simplicity may be a disadvantage, though. The design emphasizes speed and clarity, so ensuring that users spend more time on actual accounting and less time negotiating menus.

Xero: Xero provides a complete set of capabilities at a more crowded user interface. The sheer number of features and configurations accessible may make first setup and navigation difficult for new users. Once familiar, many, however, find Xero’s comprehensive dashboards and data-rich screens helpful for in-depth financial research. Customizing features of the program let users fit the interface to fit their company operations.

Ultimately, every accounting program’s user interface presents unique opportunities as well as drawbacks. Beginning and small businesses would find Quickbooks and Freshbooks perfect since they emphasize user-friendliness and fast task completion. Wave provides a simple, basic experience fit for consumers with low need. 

Though sophisticated, Xero fits those needing thorough financial management and customizing. The user’s comfort with technology, the complexity of their accounting requirements, and their inclination for detailed rather than minimalist design will determine the appropriate interface.

Customer Support: Who Wins the Race?

Customer support is essential when it comes to accounting software. Each of the accounting software programs covered here has its own unique support channels.

Quickbooks and Xero both offer excellent customer support, with live chat, email, and phone support available.

Freshbooks also offers excellent customer support, although the response times may be a bit slower than the other two.

Wave, on the other hand, only offers email support, which may be a deal-breaker for some users.

Migrating Between Programs

What happens if your needs change and you want to move to a new program? For example, You started with Wave but now need to account for your inventory. Or you’ve been using Freshbooks but now need a full payroll module.

Migration isn’t overly difficult but it is time-consuming. You will need to export your various modules – usually in a .csv format, match the columns between your export and the import function in your new program and then run the import function. It can take time and you need to ensure no data is missed.

What Integrations Do You Need?

The purpose of any software package is to function with efficiency and ease. Being able to integrate the various financial tools you use with your accounting software can save many hours of otherwise tedious work.

Do you invoice your clients via PayPal? Then you will want an accounting software program that can automatically import those transactions.

Do you have an Etsy shop? Then integrating that shop’s transactions will be a massive timesaver.

Are you a building contractor using software like Tradify to manage your jobs? Integrating that app with your accounting software will not only boost efficiency, it will help keep you on top of your cash-flow.

Each of the accounting programs reviewed here offer integrations but those integrations vary. You will need to do your homework to see which accounting software meshes with your priorities.

Final Verdict: Which One is the Best?

Choosing the right accounting software program for your business ultimately comes down to your individual needs and preferences.

Quickbooks is an excellent all-around program with an extensive range of features. Freshbooks is ideal for small business owners as is Wave, and being free to use is perfect for those on a budget. Xero is best for medium-sized businesses but comes at a higher cost.

Since each program has its own unique strengths and weaknesses, it’s essential that you do your ‘homework’ in order to to choose the one that suits your business needs.

Conclusion: Making the Right Choice for Your Business

Accounting software is an essential tool for every business, and choosing the right package can have a significant impact on your bottom line.

In this post, we’ve compared and contrasted some of the most popular accounting software programs available, including Quickbooks, Freshbooks, Wave, and Xero. Each accounting software program has its own unique features, benefits, and drawbacks, so it’s essential to choose the one that suits your business needs.

Whether you’re a small business owner, on a budget, or running a medium-sized business, there’s an accounting software program out there that’s right for you.

And if you’re a small business owner, here are some tips on how to be more productive during your workday…