Choose software that matches your business model and volume (QuickBooks Online for US service/retail businesses, Xero for strong bank integrations and international needs, and specialized tools like Shopware/POS integrations for high-volume merchants). Prioritize bank/processor feeds, ease of use, reporting, payroll integration, and cost.
On the go? Listen on The Deep Dive — where we dig deeper into this topic: ‘Small Business Bookkeeping Showdown_ QuickBooks vs. Xero vs. FreshBooks—Your Essential Selection Checklist’. Listen or download.
Why choosing the right software matters
The bookkeeping platform you choose shapes workflows, reporting quality, and how easily you can automate reconciliations and payroll. Picking the wrong tool increases manual work, slows month-end close, and may force costly migrations later. Choose with a 2‑3 year growth plan in mind.
Real-world story
A boutique retailer started on a simple invoicing app but grew into multiple sales channels (online, in-store, wholesale). Reconciliations were manual and inventory was tracked in a spreadsheet. After migrating to QuickBooks Online with a POS integration and inventory app, the owner saved 8 hours per week and gained accurate margins per channel.
Top platforms at a glance
Quick summary of common choices and when they fit best:
| Platform | Best for | Strengths | Considerations |
| QuickBooks Online | US small-medium businesses, service & retail | Large app ecosystem, payroll integrations, widely used by CPAs | Can get pricey with many apps; learning curve for some features |
| Xero | Small businesses with international banking, accountants who prefer Xero | Strong bank feeds, clean UI, unlimited users | Payroll availability varies by country; US payroll options evolving |
| FreshBooks | Freelancers and small service businesses | Simple invoicing, time tracking | Limited inventory and advanced accounting features |
| Wave | Very small businesses, free option | Low-cost, easy invoicing | Limited features for scale; paid payroll in some regions |
| Accounting + Inventory stacks (e.g., QBO + TradeGecko/DEAR) | E-commerce/retail with inventory | Powerful inventory, multi-channel sales mapping | Requires integrations and extra cost |
Key criteria to evaluate (apply to any software)
- Bank & payment processor feeds — Does it connect to your bank, Stripe, Square, PayPal? Are payout reports easy to import?
- Payroll integration — Built-in payroll or smooth integration with providers (Gusto, ADP, Rippling).
- Inventory & COGS — Can it track inventory and cost of goods sold accurately?
- App ecosystem & integrations — Does it integrate with your POS, ecommerce platform, expense apps, and tax apps?
- Reporting & dashboards — Can you get monthly P&L, gross margin by channel, and cash flow easily?
- Multi-user & permissions — Can you set roles and provide accountant access?
- Pricing & total cost — Consider subscription + app fees + data migration cost.
- Ease of use & onboarding — How steep is the learning curve for you and your staff?
- Data export & portability — Can you export full data if you migrate later?
Decision worksheet — pick the best fit
Score each option 1–5 (1 = poor, 5 = excellent) for each criterion, then total. Example columns: Platform, Bank Feeds, Payroll, Inventory, Integrations, Reporting, Price, Ease, Total Score.
| Platform | Bank Feeds | Payroll | Inventory | Integrations | Reporting | Price | Ease | Total Score |
| QuickBooks Online | ||||||||
| Xero | ||||||||
| FreshBooks |
Migration & implementation notes
If you decide to switch, plan for: data export (Chart of Accounts, customers, vendors, balances), mapping historical transactions, reconnecting bank feeds, re-establishing opening balances, and a verification period where you run parallel reports. Budget time and cost for migration and training.
Sample cost considerations
List monthly subscription + payroll + apps. Example rough estimate for a small retailer: QBO $60 + Inventory app $50 + POS $49 + payroll $80 = $239/month. Always calculate total platform cost, not just base price.
CSV copy (paste into a sheet)
Platform,Bank Feeds,Payroll,Inventory,Integrations,Reporting,Price,Ease,Total Score
QuickBooks Online,,,,,,,,
Xero,,,,,,,,
FreshBooks,,,,,,,,
Wave,,,,,,,,
Here’s a ready-to-use CSV you can open in Google Sheets or Excel.
Download the CSV — Choose Bookkeeping Softward Worksheet
FAQs
Q: Which platform do most bookkeepers prefer?
A: Many US bookkeepers use QuickBooks Online due to its ecosystem and accountant familiarity, but Xero is favored by some firms for bank feeds and partner features.
Q: Can I use multiple platforms?
A: Some businesses use a combination (e.g., POS/native system for retail and QBO for accounting) and connect them via integrations or middleware. That’s fine but increases complexity and cost.
Q: How long does migration take?
A: Depends on data cleanliness and volume—small businesses can be migrated in days to weeks; complex e-commerce setups may take longer.
It’s a jungle out there — pick tools that tame it. QuickBooks is the industry leader for a reason: strong integrations, accountant support, and a huge app ecosystem that scales as you grow. Ready to pick the right stack for your business?
CTA (text): Schedule a free 30-min Software Selection Call.
Giesler-Tran Bookkeeping • gieslertranbookkeeping.com • 971-200-5158