Xero

Xero is a leading cloud-based accounting platform known for its beautiful design, real-time collaboration, and strong bank reconciliation tools. Its invoicing features are built directly into its accounting core, offering features like repeating invoices, online payment options (via Stripe, GoCardless, etc.), and automated invoice reminders. Xero shines with its 'Beautiful Business' philosophy, focusing on an intuitive user experience and excellent mobile apps. It provides robust inventory management, making it a strong contender for product-based small businesses.

Historically, Xero emerged as a primary competitor to QuickBooks Online, particularly strong in the UK, Australia, and New Zealand. It boasts over 1,000 app integrations in its marketplace. Compared to QuickBooks, some users find Xero's interface more modern and its bank reconciliation superior. However, its reporting, while solid, can be less customizable than QuickBooks.

It's ideal for small businesses that value design, real-time collaboration with their bookkeeper or accountant, and need solid inventory features alongside invoicing.