QuickBooks vs Xero for Crypto: Best Choice Guide

Looking to manage crypto in your accounting software? Here’s how QuickBooks and Xero stack up:

QuickBooks: No built-in crypto features. Requires manual entry or third-party add-ons.
Xero: No built-in crypto features. In-app store to integrate digital asset sub-ledgers for crypto accounting.

Key differences:

Crypto transactions: Both, QuickBooks and Xero need manual entry.
Wallet support: QuickBooks has none, Xero doesn’t support blockchain wallets natively.
Currency coverage: QuickBooks limited, Xero handles 160 different fiat currencies, available only in a premium subscription plan.
Tax reporting: QuickBooks needs add-ons, Xero offers automated calculations
Pricing: Similar, but Xero offers unlimited users

Quick Comparison:

Feature	QuickBooks	Xero
Built-in crypto features	No (only via apps)	No (only via apps)
Crypto transaction handling	Paid Add-ons	Paid Add-ons
Wallet support	None	None
Cryptocurrencies supported	None	None
Tax reporting	Manual/Add-ons	Automated
Pricing	Tiered, user limits	Flat-rate, unlimited users

Bottom line: For crypto-heavy businesses, both general systems needs the subscription of a third-party web3 subledger to ingest blockchain data.

→ Click here to learn How to Choose the Right Cryptocurrency Accounting Software for Your Business

Built-in Crypto Features

QuickBooks and Xero handle crypto transactions differently. Let’s look at what each platform can do out of the box.

QuickBooks Crypto Features

QuickBooks

QuickBooks used to have Bitcoin features, but they’re gone now. As of October 30, 2024, you can’t do crypto transactions directly in QuickBooks anymore. This has left many users scrambling for other options.

If you’re still using QuickBooks, here’s what you need to know:

You couldn’t buy Bitcoin through QuickBooks after August 14, 2023.
You couldn’t sell Bitcoin through QuickBooks after October 30, 2023.
You can still access your Bitcoin tax forms and account history in QuickBooks Online until October 30, 2024.

But don’t worry, QuickBooks users aren’t totally out of luck. You can still handle crypto transactions manually using journal entries. Here’s how:

Go to the Company menu and click “Make General Journal Entries.”
Fill in the details: date, journal number, entry type, accounts, debits and credits, and a memo.
Save the entry and you’re done.

This works fine if you don’t do many crypto transactions. But if you’re dealing with digital assets a lot, it can get pretty tedious.

Xero Crypto Features

Xero

Xero’s taken a different route. They’ve teamed up with specialized crypto accounting tools. While Xero doesn’t have built-in crypto features, they’ve partnered with Cryptoworth to help web3 companies.

This partnership lets you:

Sync cryptocurrency and digital asset data both ways
Make accounting and reporting for digital assets easier
Keep accurate financial records in the fast-moving web3 world

Xero’s is now able to manage crypto-specific accounting software. It’s got some cool features:

Syncs crypto transaction data into Xero automatically
Automates the whole crypto accounting process
Works with all known cryptocurrencies (that’s over 12,000)

Richard Pasquin from Cryptoworth says:

“Web3 companies want efficiency. At Cryptoworth, we’re all about making accounting easier and faster. Teaming up with Xero helps us do that even better.”

Platform Limits

Both QuickBooks and Xero have their weak spots when it comes to crypto:

QuickBooks:

No built-in support for crypto transactions
You need to enter stuff manually or use add-ons
Not great at handling the quirks of crypto transactions

Xero:

No built-in crypto features
Relies on other tools for full crypto accounting
Might cost extra for crypto-specific tools

Xero’s partnerships give it a slight edge in the crypto game. But you should think about what your business needs and how many crypto transactions you do when choosing between them.

If you’re doing a ton of crypto transactions, you might want to invest in specialized software like Cryptoworth, no matter which accounting platform you use.

→ Continue reading How should accountants choose the best crypto accounting software?

Add-on Options

QuickBooks and Xero might not have built-in crypto features, but don’t worry – there’s a bunch of add-ons that can boost your crypto accounting game. Let’s check out some top tools that work well with these platforms.

QuickBooks Add-ons

QuickBooks users, you’ve got options:

This tool plays nice with QuickBooks and helps you keep tabs on transactions from wallets, exchanges, and custodians. It’s got some cool features:

Tracks crypto-to-fiat value over time
Figures out cost basis
IDs counterparties
Labels transactions

If you’re dealing with loads of crypto transactions, Cryptio’s got your back for accounting and taxes.

Big players like OpenSea use this one. It syncs your crypto data with QuickBooks automatically, making reconciliation a breeze.

Xero with Cryptoworth

Cryptoworth works with both QuickBooks and Xero. It’s built for businesses and accounting firms dealing with crypto. Here’s what makes it stand out:

Connects to 1000+ data sources, including wallets and exchanges
Handles DeFi and NFT accounting
Shows your crypto finances in real-time
Automates data reconciliation
Sticks to GAAP, IAS, and IFRS standards

Want to try Cryptoworth accounting software? Here’s how:

1. Sign up (there’s a 30-day free trial upon request)

2. Connect your Xero organization

3. Sync your crypto wallets

4. Start automating your crypto accounting

Cryptoworth’s pricing:

Plan	Price	Transaction Lines	Key Features
Basic	$99/month	2,000	Invoices & Bill Management
Business Tier 1	$300/month	50,000	DeFi & NFT Accounting, ERP Support
Business Tier 2	$600/month	150,000	SAFT Tracking & Management
Business Tier 3	$1000/month	300,000	Multi-entity License

More Tax-specific Integration Tools

Other tools can level up your crypto accounting:

CoinTracker: Many call it the best overall crypto tax software. It works with 10,000+ cryptocurrencies and 300+ exchanges. You can track your portfolio and do tax-loss harvesting.

Koinly: This one’s for the crypto collectors. It supports a whopping 17,000+ cryptocurrencies and 400+ exchanges and wallets.

When picking an add-on, think about how many transactions you handle, what types of cryptocurrencies you use, and your budget. The best tool is the one that fits YOUR needs.

→ Get an in-depth review on Evaluating Koinly and Crypto Accounting Solutions: What You Need to Know

Feature Comparison

QuickBooks and Xero both have their pros and cons for crypto accounting. Let’s break down how they stack up:

Recording Transactions

QuickBooks ditched its built-in crypto features. Now, you’re stuck with manual entry or third-party tools. Not ideal if you’re swimming in crypto transactions.

Xero? They’ve got Cryptoworth in their corner. Their add-on syncs data from over 190 blockchain and hundred more wallets, exchanges and sources. Makes keeping tabs on your crypto a whole lot easier.

Cost Tracking

With QuickBooks, you’re back to manual input or third-party tools to track your crypto’s ups and downs.

Xero’s Cryptoworth integration does the heavy lifting. It tracks crypto-to-fiat value over time and calculates cost basis automatically. Less headache, more accuracy.

Tax Reports

QuickBooks has solid general tax reporting, but for crypto? You’ll need to pay extra tools or some manual number-crunching.

Live Updates

QuickBooks and Xero falls short without third-party help. Real-time crypto updates? Not really their thing.

Currency Support

QuickBooks handles multiple fiat currencies just fine. But cryptocurrencies? Not so much.

Xero’s multicurrency feature support up to 160 currencies, but it is only available in a premium business plan.

Bottom line? Xero’s partnerships give it the edge in crypto features. But your choice for crypto accounting between QuickBooks and Xero should come down to selecting the digital asset subledger that your business needs, depending on how much you’re dealing in crypto.

Setup and Tech Details

Getting crypto features up and running in QuickBooks and Xero isn’t rocket science, but it does take a bit of tech savvy. Let’s break it down for each platform.

QuickBooks: Third-Party Apps to the Rescue

QuickBooks doesn’t have built-in crypto features, so you’ll need to buddy up with some third-party apps. Here’s the game plan:

Head to the Apps menu in QuickBooks
Type in crypto-related keywords like “sync crypto wallet” or “cryptocurrency”
Pick an app that fits the bill
Follow the app’s setup instructions to link it to your QuickBooks account
If you want to look outside the box, Cryptoworth syncs seamlessly to QuickBooks and its app is pending approval (to be released soon)

Xero: Cryptoworth Partnership Makes Life Easier

Xero users have it a bit smoother thanks to their team-up with Cryptoworth. To get it rolling:

Sign up for Cryptoworth (they offer a 30-day free trial)
Link your Xero organization
Sync up your crypto wallets
Let the crypto accounting automation begin!

API Setup: It Depends on Your Choice

For QuickBooks, API setup is all about which third-party app you go with. Most apps will walk you through connecting to your crypto data sources.

Xero’s Cryptoworth integration is more straightforward. It hooks up to over 1000 data sources, including wallets and exchanges. The setup is usually quick – anywhere from a few hours to a few days.

Data Transfer: Flexibility is Key

QuickBooks users will need to import crypto transactions into the general ledger monthly using their chosen add-on tool.

Xero, through Cryptoworth, gives you more options. By default, it syncs data every 24 hours. But you can tweak the sync frequency:

Real-time updates via webhooks
Daily, monthly, or quarterly syncs

This lets you balance fresh data with system performance.

Security: Don’t Sleep on It

When it comes to crypto data, security is non-negotiable. Here’s how each platform handles it:

QuickBooks:

Leans on the security measures of the third-party apps you use
Make sure you pick reputable apps with solid security protocols

Xero (via Cryptoworth):

Uses AES-256 encryption for data in-transit and at rest
Stores data on AWS, with options for EU, APAC, and U.S. regions
Manages Xero’s rate limits by storing data in its database

→ Continue reading Are Free Crypto Accounting Software Any Good?

Pricing Details

Let’s break down the costs for QuickBooks and Xero, including their crypto-friendly add-ons.

Platform Costs

QuickBooks Online and Xero offer tiered plans for different business needs.

QuickBooks Online:

Simple Start: $35/month (1 user)
Essentials: $65/month (3 users)
Plus: $99/month (5 users)
Advanced: $235/month (25 users)

Xero:

Early plan: $15/month
Growing plan: $42/month
Established plan: $78/month

Xero’s flat-rate pricing with unlimited users is great for larger teams. QuickBooks, on the other hand, offers more options for smaller businesses.

Add-on Prices

Here’s the kicker: you’ll need add-ons for crypto features.

For QuickBooks: A crypto add-on starts at $1990/month. Ouch.

For Xero: Integrating with Cryptoworth you can choose this tiered pricing:

Basic: $99/month (2,000 transaction lines)
Business Tier 1: $300/month (50,000 transaction lines)
Business Tier 2: $600/month (150,000 transaction lines)
Business Tier 3: $1000/month (300,000 transaction lines)

Real-World Example

Let’s look at CryptoTrader Inc., processing 40,000 transactions monthly:

QuickBooks Plus ($99/month) + Gilded is Bitwave ($2000/month) + Implementation Cost = $2099/month

Xero Growing plan ($42/month) + Cryptoworth Business Tier 1 ($300/month) = $342/month

Xero + Cryptoworth saves them $1757 per month. Enough to make you re-evaluate it.

Long-term Costs

Over a year for CryptoTrader Inc.:

QuickBooks + Gilded / Bitwave: $2,099/month * 12 = $25,188/year

Xero + Cryptoworth: $342/month * 12 = $4,104/year

The significant annual savings of $21,084 with Xero and Cryptoworth go beyond just cost. As CryptoTrader Inc. grows, Xero’s unlimited user access becomes even more valuable, allowing the team to expand without facing costly upgrades just to add new members.

Plus, Cryptoworth’s tiered pricing allows for smoother scaling as transactions increase. With QuickBooks and Bitwave, they might face a bigger price jump when outgrowing their current plan.

“We use Cryptoworth as our crypto subledger with millions of dollars in crypto over 50,000 historical transactions . We are project that transacts in our native token as well as many other chains.” – Scott Hewitson, Akash Network

When choosing between QuickBooks and Xero for crypto accounting, think beyond upfront costs. Consider how each platform can grow with your business. Your future self (and your accountant) will thank you.

Choosing an Accounting System

Picking between QuickBooks and Xero for crypto accounting isn’t straightforward. Let’s look at the key factors:

Company Size Factors

Your business size matters.

Xero works well for bigger teams. All plans offer unlimited users, making it great for growing companies. Richard Pasquin from Cryptoworth says:

“Web3 companies want efficiency. At Cryptoworth, we’re all about making accounting easier and faster. Teaming up with Xero helps us do that even better.”

QuickBooks limits users based on your plan. It’s often better for smaller businesses or solo entrepreneurs.

Transaction Needs

Consider your crypto transaction volume and complexity.

Xero, with Cryptoworth, handles over 20,000 cryptocurrencies. It’s great for businesses dealing with many digital assets.

QuickBooks needs add-ons for crypto transactions. This works but can be tricky for high-volume traders.

Here’s a real-world example:

CryptoTrader Inc. processes 40,000 transactions monthly. They found:

Xero + Cryptoworth: $342/month
QuickBooks + Gilded: $2049/month

Xero is significantly cheaper in this case.

Help Resources

Both offer support, but differently:

Xero uses Cryptoworth’s crypto accounting expertise. This helps with complex crypto issues.

QuickBooks has great general accounting support. But for crypto problems, you’ll often rely on add-on support teams.

Summary

QuickBooks and Xero both have pros and cons in crypto accounting. Let’s break it down:

QuickBooks is a powerhouse with tons of features and apps. It’s great for small businesses or crypto newbies. But here’s the catch: it doesn’t have built-in crypto tools. You’ll need to add those on separately.

Xero teamed up with Cryptoworth, giving it a leg up in the crypto game. Plus, it’s cheaper and lets you add as many users as you want. Growing businesses dealing with crypto might love this.

Here’s how they stack up:

Crypto Stuff: Xero + Cryptoworth = smooth sailing. QuickBooks needs extra apps.
Price: Xero won’t break the bank, especially for bigger teams.
Users: Xero says “the more, the merrier” on all plans. QuickBooks puts a cap on it.
User-Friendly: Xero keeps it simple. QuickBooks might take some getting used to.

If crypto is your bread and butter, Xero and Cryptoworth are a match made in heaven. They handle over 20,000 cryptocurrencies and do a lot of the heavy lifting for you.

But don’t count QuickBooks out. If you need hardcore accounting features beyond crypto, it’s still a top dog. Its reporting and inventory tools are no joke.

So, what’s the verdict? If crypto is your main squeeze, go for Xero with Cryptoworth. Need a solid all-around accounting system with the option to add crypto later? QuickBooks might be your jam.

Comparing QuickBooks vs Xero: What is the best for Crypto?