Choosing the Right Accounting Software: A Complete Guide for Growing Businesses

Selecting the right accounting software is a crucial business decision that extends far beyond your finance department. Your accounting processes provide vital information that your CEO, sales team, and marketing leaders need to make strategic decisions. The right solution should support your entire business ecosystem, not just your finance team.

Making the Right Choice for Your Business Stage

When you’re just starting out, there’s no need to invest heavily in complex accounting software. Start with straightforward solutions and scale up as your business grows. For businesses managing accounts receivable, consider how your accounting software will integrate with specialized AR solutions like ÉquiSettle to maximize efficiency.

Xero vs. QuickBooks: The Market Leaders

The two dominant accounting solutions for growing businesses are QuickBooks (by Intuit) and Xero. Both offer essential accounting functions with the ability to add functionality through integrations as your business expands.

Geographic Considerations: The Main Differentiator

The primary factor in choosing between Xero and QuickBooks often comes down to geography. Each platform is designed to comply with different regional accounting standards and regulations.

• Xero: Best for companies based in:
• United Kingdom
• Australia
• New Zealand
• APAC region
• QuickBooks: Optimal for businesses in:
• United States
• Canada

Standards and Compliance

QuickBooks

• Supports GAAP (Generally Accepted Accounting Principles)
• Integrates with ASPE (Accounting Standards for Private Enterprises)
• Designed for U.S. and Canadian regulatory requirements

Xero

• Supports IFRS (International Financial Reporting Standards)
• Can produce GAAP-compliant reports
• Built for international business needs

Feature Comparison

Xero’s Standout Features

• Advanced multi-currency support
• Automatic bank transaction syncing
• Refined bank reconciliation
• Integration with international tax software (Avalara)
• Most features included in standard subscriptions

QuickBooks’ Key Offerings

• Basic bookkeeping services
• 650+ business tool integrations
• U.S. tax service integration (TurboTax)
• Mileage and GPS tracking
• Add-on options for expanded functionality

Pricing Breakdown

Xero Pricing Tiers

1. Early Plan ($11/month)

• Perfect for freelancers and new businesses
• Up to 20 invoices monthly
• Basic AR/AP functionality

1. Growing Plan ($32/month)

• Suited for growing businesses
• Unlimited invoicing and bills
• Enhanced features

1. Established Plan ($62/month)

• Multiple currency support
• Project tracking
• Advanced analytics
• Expense claims

Optional: Gusto Payroll integration ($39/month additional)

QuickBooks Pricing Tiers

1. Self-Employed ($15/month)

• Invoicing and expense tracking
• Quarterly tax estimation
• Basic reporting

1. Simple Start ($25/month)

• Invoice and estimate creation
• Sales and revenue tracking
• Cash flow monitoring
• Sales tax management

1. Plus ($70/month)

• Time tracking
• Inventory management
• Bill pay
• Up to 5 users

1. Advanced ($150/month)

• Up to 25 users
• Personalized support
• Advanced reporting

QuickBooks Payroll Add-ons

• Core: $45 + $4/employee/month
• Premium: $75 + $8/employee/month
• Elite: $125 + $12/employee/month

Integration with ÉquiSettle

Both Xero and QuickBooks integrate seamlessly with ÉquiSettle’s accounts receivable management platform, allowing you to:

• Automate AR workflows
• Track payments in real-time
• Generate comprehensive reports
• Streamline collections processes
• Maintain accurate financial records

Making Your Decision

Choose Xero if:

• Your business operates primarily in the UK, Australia, or APAC region
• You need robust multi-currency support
• International tax compliance is a priority
• You prefer most features included in standard pricing

Choose QuickBooks if:

• Your business operates in the US or Canada
• You need strong U.S. tax integration
• Basic accounting features meet your needs
• You want access to a large marketplace of integrations

Future-Proofing Your Choice

As your business grows, particularly with international expansion, you may need to transition to more robust solutions. Both Xero and QuickBooks provide clear upgrade paths and integrate well with advanced financial management tools like ÉquiSettle for specialized AR management.

Next Steps

1. Assess your current business location and future expansion plans
2. Consider your specific accounting needs and budget
3. Evaluate integration requirements with your existing systems
4. Book a demo with ÉquiSettle to see how we can enhance your chosen accounting software with advanced AR management

Ready to optimize your accounts receivable process? Contact ÉquiSettle today to learn how we can integrate with your accounting software for better financial management.