Xero vs Harvest (2024 Comparison)
Xero offers a comprehensive suite of accounting features, making it ideal for businesses needing detailed financial management. Its scalability and strong financial reporting are standout features.
- Comprehensive accounting features
- Scalable for growing businesses
- Strong financial reporting
- Steep learning curve
- Higher cost for small teams
Free plan?
YesStarting price
$2.90 per month
Harvest excels in time tracking and project management, offering a user-friendly interface and strong project management features, making it ideal for project-focused teams.
- Excellent time tracking
- User-friendly interface
- Strong project management
- Limited accounting features
- Less comprehensive reporting
Free plan?
YesStarting price
$11 per seat/monthWhat is Xero?
Xero is a cloud-based accounting software designed to simplify financial management for small to medium-sized businesses. It offers features like invoicing, bank reconciliation, and financial reporting, making it easier for businesses to keep track of their finances. With Xero, you can access your financial data from anywhere, collaborate with your accountant, and automate repetitive tasks, saving you time and effort. Its user-friendly interface and robust integrations with other business tools make it a popular choice for businesses looking to streamline their accounting processes.
What is Harvest?
Harvest is a time tracking and invoicing software that helps businesses manage their projects and finances efficiently. It allows users to track time spent on tasks, generate invoices, and monitor project budgets in real-time. With Harvest, you can gain insights into your team's productivity, ensure accurate billing, and make informed decisions based on detailed reports. Its intuitive interface and seamless integrations with popular project management tools make it an ideal choice for businesses looking to optimize their workflow and improve financial transparency.
Pros and Cons of Xero vs Harvest
Pros & Cons of Xero
- Xero offers a wide range of accounting features, including invoicing, payroll, and financial reporting, making it a one-stop solution for businesses looking to manage their finances efficiently.
- Xero is designed to grow with your business, offering features that can scale as your business expands, making it a great choice for businesses planning for future growth.
- Xero provides detailed financial reporting tools that allow businesses to gain insights into their financial health, helping them make informed decisions and plan for the future.
- Xero's extensive features may require a learning curve for new users, making it less suitable for those looking for a quick and easy setup.
- Xero's pricing may be higher for small teams or businesses with limited budgets, making it less accessible for those looking for a cost-effective solution.
Pros & Cons of Harvest
- Harvest excels in time tracking, offering a user-friendly interface that makes it easy for teams to log hours and track project progress accurately.
- Harvest's intuitive interface makes it easy for users to navigate and use the software, reducing the time needed for training and setup.
- Harvest offers robust project management features, allowing teams to manage budgets, track progress, and collaborate effectively, making it ideal for project-focused businesses.
- Harvest's focus on time tracking and project management means it lacks the comprehensive accounting features offered by other tools, making it less suitable for businesses needing full accounting capabilities.
- Harvest's reporting features are not as comprehensive as those offered by other tools, making it less suitable for businesses needing detailed financial analysis.
Xero vs Harvest: At A Glance
Xero vs Harvest: A Detailed Breakdown of Key Features
Invoicing
Xero offers a robust invoicing feature that allows you to create and send professional invoices with ease. You can customize templates, set up recurring invoices, and track payments efficiently. Harvest also provides invoicing capabilities, but its strength lies in time tracking and project management. If invoicing is a critical aspect of your business, Xero's comprehensive features make it the better choice. However, if you need a tool that integrates invoicing with time tracking, Harvest is a solid option.
Time Tracking
Harvest excels in time tracking, offering a user-friendly interface that makes it easy for teams to log hours and track project progress. Xero, while offering time tracking, is not as specialized in this area. If your business relies heavily on accurate time tracking for billing and project management, Harvest is the superior choice. However, if time tracking is a secondary need, Xero's other features may outweigh this consideration.
Financial Reporting
Xero provides comprehensive financial reporting tools that allow you to generate detailed reports on your business's financial health. These reports are customizable and can be shared with stakeholders easily. Harvest, while offering basic reporting, does not match Xero's depth in financial analysis. If in-depth financial reporting is crucial for your business, Xero is the clear winner. For simpler reporting needs, Harvest may suffice.
Project Management
Harvest offers strong project management features, allowing you to track project progress, manage budgets, and collaborate with team members effectively. Xero, while offering some project management capabilities, is more focused on accounting. If project management is a key requirement for your business, Harvest is the better choice. However, if accounting is your primary focus, Xero's features may be more beneficial.
Payroll
Xero offers a comprehensive payroll feature that simplifies employee payment processes, tax calculations, and compliance. Harvest, on the other hand, does not focus on payroll, making Xero the better choice for businesses with payroll needs. If payroll management is a significant aspect of your business operations, Xero's capabilities make it the preferred option. For businesses without payroll needs, Harvest's other features may be more relevant.
Expense Tracking
Both Xero and Harvest offer expense tracking features, allowing you to monitor and manage business expenses efficiently. Xero's expense tracking is integrated with its accounting features, providing a seamless experience. Harvest also offers expense tracking, particularly useful for project-based expenses. If you need a tool that integrates expense tracking with accounting, Xero is the better choice. For project-specific expense tracking, Harvest is a strong contender.
Pricing Comparison of Xero and Harvest
We’ve compiled the pricing tables and highlighted the key features of both Xero and Harvest to aid in your decision-making process. Let’s explore what each platform has to offer.
Xero Pricing Plans
- Enter up to 5 bills for efficient tracking.
- Reconcile bank transactions with ease.
- Capture bills and receipts using Hubdoc integration.
- Access short-term cash flow and business snapshot.
- Enter unlimited bills for comprehensive tracking.
- Bulk reconcile transactions for efficiency.
- Advanced reporting and analytics for insights.
- Enhanced security features for data protection.
- Advanced project tracking and management tools.
- Priority customer support for quick resolutions.
- Comprehensive expense management features.
- Customizable dashboards for personalized insights.
Harvest Pricing Plans
- Allows tracking time for up to 2 projects.
- Basic reporting features for time and expenses.
- Invoicing capabilities for tracked time and expenses.
- Access to web, desktop, and mobile apps.
- Unlimited projects for comprehensive tracking.
- Advanced team reporting and capacity tracking.
- Integration with Quickbooks Online, Xero, and Deel.
- Scheduled phone support for assistance.
- Timesheet approvals for accurate time tracking.
- Activity log to review all time entries and changes.
- Custom reports and exports for detailed analysis.
- SAML-based SSO for secure login.
Our Rating Methodology
We thoroughly test each accounting and time tracking tool, evaluating key features like functionality, scalability, and ease of use. We also analyze user reviews to ensure our recommendations fit your needs. Each of the seven evaluation factors is weighted by importance to provide an accurate final rating, helping you avoid poor-quality tools and make informed decisions.
Xero or Harvest: Which One Matches Your Business Needs?
Choose Xero If You Need ...
- Comprehensive accounting solution
If you need a comprehensive accounting solution with robust financial reporting, Xero is the better choice. Its extensive features make it ideal for businesses requiring detailed financial management and scalability.
- Scalable for growth
If your business is planning for growth and needs a scalable accounting tool, Xero is the preferred option. Its features are designed to grow with your business, making it suitable for expanding operations.
Choose Harvest If You Need ...
- Focus on time tracking
If your business relies heavily on time tracking and project management, Harvest is the superior choice. Its user-friendly interface and strong project management features make it ideal for project-focused teams.
- User-friendly interface
If you prioritize a user-friendly interface and ease of use, Harvest is the better option. Its intuitive design makes it easy for teams to navigate and use the software effectively.
Frequently Asked Questions
Which tool is better for comprehensive accounting?
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Martin Lunendonk
Martin Lunendonk is a senior tech writer specializing in website builders, web hosting, and ecommerce platforms. With a background in finance, accounting, and philosophy, he has founded multiple tech startups and worked in medium to large tech companies and investment banking, bringing deep expertise and reliable insights to his software reviews.
