# Finaloop vs. Xero

## Which platform is best for ecommerce and multichannel accounting?

## Bottom line: Choose Xero if you want DIY software and already have a bookkeeper. Choose Finaloop if you want done-for-you ecommerce accounting with real-time inventory and COGS included.

## Finaloop vs. Xero, a quick breakdown

While Xero gives you a tool to do your own bookkeeping or to hire a bookkeeper to do it for you, Finaloop does it all for you — combining expert ecommerce accountants with powerful tech that automates your books, real-time financials, inventory, and COGS. No spreadsheets. No manual work. Just accurate, up-to-date numbers handled by pros who know your business.

Finaloop is a real-time accounting service and software purpose-built for ecommerce, DTC, wholesale, retail, or multichannel brands, offering native integrations, real-time COGS tracking, and tax-ready books with minimal manual input. Xero is a widely used, general-purpose accounting software for small businesses that requires manual upkeep or a bookkeeper for ecommerce/multichannel use cases.

While Xero is flexible and customizable, it wasn't built for ecommerce, resulting in extra work, disconnected systems, and frequent reliance on third-party integration tools (for basic connectivity, like Xero Amazon integrations, or Xero and Shopify integrations).

With Finaloop’s team of ecommerce accounting experts and their ecommerce-tailored platform, they combine software and services in one package, making it ideal for DTC, multichannel, and wholesale brands who want accurate, real-time financials.

## Core differences

#### Full Service vs DIY Software

Finaloop provides full accounting services; Xero is a do-it-yourself software requiring manual work or a separate bookkeeper to manage.

#### Setup & Support

Finaloop's proprietary platform was engineered from the ground up for online retail and multichannel, with the app integrations seamlessly syncing into the overall accounting software. Xero, on the other hand, uses third-party integrations which are not native to Quickbooks, often creating syncing and reconciliation issues.

#### Industry Focus

Finaloop is purpose-built for ecommerce and multichannel; Xero is a more generic software serving all industries.

#### Real-Time Financials

Finaloop’s financials are updated in real-time and synced with your sources of truth giving you 24/7 financial visibility; Xero updates will depend on your manual inputs or your bookkeeper. Typically, bookkeepers update books monthly and not earlier than 15 days after the month is over.

#### Ecommerce Integration

Finaloop has built-in integrations; Xero requires third-party tools.

## Why leading brands choose Finaloop

|  | | |
| --- | --- | --- |
| Exclusively built for DTC | ✔️ | ✔️ |
| Integrations with third parties | ✔️ | ✔️ |
| Industry focus — built for ecom | ✔️ | ❌ |
| Full suite of Accounting | ✔️ | ❌ |
| Real-time Inventory tracking | ✔️ | ❌ |
| Real-time data syncing | ✔️ | ❌ |
| Ecommerce specific automation | ✔️ | ❌ |

## Pricing

Finaloop offers flexible, growth-aligned pricing with features explicitly designed for today's ecommerce and multichannel brands that includes both accounting services and the accounting software.

### Finaloop

Finaloop's starter plan starts at $245/month for brands with annual revenue of up to $1M. All other brands receive a customized scope and fee based on their specific needs.

### Xero

Xero offers different plans for various accounting costs. The Starter plan ($29/month) is very basic. After that, they offer different plans ranging from Standard at $46/month or Premium at $69/month. Ecommerce brands typically use Standard or Premium, and will also need third party integration tools and a bookkeeper or accountant.

## What you get with Finaloop

Books with 100% accuracy,
available 24/7

A dedicated bookkeeping
team, 7 days a week

KPIs + ecommerce
accounting in one dashboard

Automated inventory and
COGS tracking

Tax returns with no
deductions left behind

## FAQs

**When should I hire an accountant for my eCommerce business?**  
It's time to hire an accountant when you’re managing multiple sales channels, selling in various tax jurisdictions, or struggling with accounting software.

**What are the key features to look for in ecommerce accounting services?**  
The best ecommerce accounting services offer integrated inventory management, multi-channel sales integration, real-time financial reporting, and a user-friendly interface.

**What benefits does real-time financial reporting provide for ecommerce businesses?**  
Real-time financial reporting offers instant insights into your ecommerce business's performance.

**How can Finaloop’s ecommerce accounting software boost profitability?** 
Finaloop connects directly to your sales channels, banks, and payment gateways, delivering 24/7 accurate books, and showing real-time margins by SKU.

**What are the main differences between Finaloop and Xero for ecommerce businesses?**  
**Finaloop Pros:**
- Ecommerce-Specific Focus
- Full-Service Solution

**Xero Pros:**
- Affordable Software
- Customizable Platform

**Finaloop Cons:**
- Not for Non-ecommerce Brands

**Xero Cons:**
- Manual Work Required
- Limited ecommerce Features

### Which is more cost-effective for growing ecommerce businesses: Finaloop or Xero?**  
**Finaloop Pros:**  
- Flexible, Growth-Aligned Pricing  
- All-in-One Service

**Xero Pros:**
- Affordable Entry-Level Plans
- Flexible for Various Industries

**Finaloop Cons:**  
- Not for Non-ecommerce Brands

**Xero Cons:**  
- Additional Costs for ecommerce Features  
- Manual Setup