For small businesses to make an informed choice regarding invoicing and accounting, it is essential to comprehend the distinctions between Square Invoices and Xero.
While Xero caters to startups and entrepreneurs on a tight budget with a subscription-only model with three tiers and a 30-day free trial, Square Invoices offers a free plan for $0 per month and a premium plan for $49 per month.
While both Square Invoices and Xero provide basic invoicing functions, Xero is better suited for service-based businesses because it provides extensive accounting, time, expense, and mileage tracking.
Both Square Invoices and Xero are easy-to-use accounting programs that balance usability and functionality while providing simple invoicing without complicated features.
Square Invoices offers more integration options and comprehensive CRM integrations by integrating with a number of payment methods, QuickBooks Online and Xero for accounting software compatibility.
Square Invoices is English-focused and does not support multiple currencies, whereas Xero offers reporting, multi-currency support and advanced functionality. Both offer automated backup systems and cloud-based storage.
While Xero is appropriate for service-based businesses that require extensive accounting features, time tracking, expense management and multi-currency support, Square Invoices is an affordable invoicing solution for independent contractors and small businesses.
While Xero provides extensive accounting features and detailed reporting for sound financial management, Square Invoices is appropriate for independent contractors and small businesses with simple invoicing capabilities.
| Square Invoices | Xero | |
|---|---|---|
| Core Features | ||
| Custom Templates | Yes | Customizable invoice templates with branding alignment |
| Send Estimates/Quotations | Yes | Yes |
| Recurring Billing Automation | Yes | Yes |
| Expense Tracking | Limited | Yes |
| Time Tracking | No | Yes |
| Mileage Tracking | No | Yes |
| Automated Payment Reminders | Yes | Yes |
| Project-Based Billing | Yes | Yes |
| Tax Handling | Yes | Yes |
| User Permissions/Role Management | Yes | Yes |
| File Uploads | Yes | Yes |
| Pricing and Plans | ||
| Free Plan Availability | Yes | No |
| Pricing Range | Free: $0/month Plus: $49/month Premium: $149/month |
Early: $25/month Growing: $55/month Established: $90/month |
| Trial Period | No | 30-day free trial available |
| User Limits | No strict limits | Varies by plan – Early plan supports basic users |
| Client Limits | Unlimited clients | Plan-specific limits |
| Storage Limits | Unlimited cloud storage | No specific limits mentioned |
| Payment Processing Fees | Varies by payment gateway | Standard payment gateway fees apply |
| Ease of Use | ||
| User Interface | Simple | Simple – One of the most user-friendly accounting solutions |
| Onboarding Experience | Yes | Yes |
| Mobile App Availability | Yes | Available for iOS and Android |
| Mobile App Functionality | Create, send invoices, accept payments | Core invoicing and accounting features supported |
| Integration | ||
| Payment Gateways Supported | Credit cards, Apple Pay, Google Pay, Cash App Pay, ACH, Afterpay | Multiple gateways including Stripe, PayPal, GoCardless |
| Accounting Software Compatibility | QuickBooks Online, Xero integration | Yes – Broader range of integration options than many competitors |
| CRM Integration | Customer Directory system built-in | Multiple CRM integrations available |
| API Availability | Yes | Yes |
| Reporting & Analytics | ||
| Bank Connections | Yes | Yes |
| Pre-Built Financial Reports | Yes | Yes |
| Custom Report Creation | Yes | Yes |
| Security & Compliance | ||
| Dashboard Metrics | Yes | Yes |
| Data Encryption | Yes | Yes |
| GDPR Compliance | Yes | Yes |
| Backup Options | Automatic | Automatic – Cloud-based backup system |
| Customer Support | ||
| Support Channels | Phone, Chat, Email | 24/7 online support |
| Help Center/Knowledge Base | Yes | Yes |
| 24/7 Support | Partial – 24/7 for premium users, limited hours for free | Yes |
| Adaptability | ||
| Multi-Currency Support | No | Yes |
| Localization | English | Yes |
| Industry-Specific Customization | Yes | Yes |
| Scalability | Freelancers to Small/Medium Businesses | Freelancers to SMBs – Designed for small businesses and solopreneurs |
| Read Square Invoices Review | Read Xero Review |
