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Accounting Software Reviews

Invoicing features of QuickBooks Online & Xero

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In the realm of modern accounting software, the ease and efficiency of generating invoices are pivotal. Both Xero and QuickBooks Online (QBO) have carved out a niche in this area, offering user-friendly solutions to create professional and customized invoices. Here’s a deeper look into how these two platforms manage invoicing and payment processes.

Understanding the Methodology

Creating invoices in both Xero and QBO is a straightforward process, especially if your contact information is already populated and regularly updated in the system. Each platform offers robust customization features, enabling businesses to produce invoices that are not only functional but also aesthetically pleasing and professional in appearance.

QuickBooks Online

QBO takes it a step further by integrating an in-system payment solution. It simplifies the payment process by sending a link along with the invoice. Customers can conveniently click on this link to make payments through the Intuit Merchant system, a seamless integration that enhances the user experience. This feature offers a significant advantage in terms of convenience, as it streamlines the payment process for both the business and its customers.

Screenshot of QBO Invoicing and an Invoice Template


Xero facilitates similar functionalities through integrations with third-party vendors. These vendors often offer competitive rates, which can be a cost-effective solution for businesses. However, while Xero’s integration with third-party vendors is a plus, it may lack the seamless experience provided by QBO’s in-built payment system. The potential drawback with QBO is the reliance on the Intuit Merchant system, which might limit flexibility compared to the varied options available through Xero's third-party integrations.

Screenshot of Xero Invoicing and an Invoice Template

In summary, both Xero and QuickBooks Online offer efficient and user-friendly invoicing capabilities, each with its unique strengths. QBO’s integrated payment system provides convenience and a streamlined process, while Xero’s flexibility with third-party vendor integrations offers potentially lower rates and a broader range of options. The choice between the two may come down to prioritizing either convenience or flexibility, depending on the specific needs and preferences of a business.

Karthikeyan Sundaram