Finaloop vs. Xero
Which platform is best for ecommerce and multichannel accounting?
Trusted by thousands of consumer brands
What’s the real difference? Xero is software. Finaloop is a full service.
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. It is commonly compared to Quickbooks and/or to Freshbooks, given its similar functionality and 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 | | |
| Exclusively built for DTC | Industry focus — built for ecom |  Generic accounting software |
| Full suite of Accounting | Full accounting service + accounting software and integrations | Accounting software only |
| Real-time Inventory tracking | Real time COGS tracking with deep platform integrations | Requires manual entries or external inventory management systems |
| Real-time data syncing | Data sync frequency real time | Depends on manual inputs or external help |
| Ecommerce specific automation | Includes ecom specific logic and chart of accounts | Basic rules engine; requires setup and oversight |
Pricing
Alternatively, if you are looking for white-glove, fully-managed service, you can try the Premium service which includes the full Core bookkeeping service plus customized financial operations, data-entry, and controllership for $955 per month.
Finaloop also offers tax filing and Fractional CFO services as add-ons.
Finaloop is the only accounting solution tailored for ecommerce.
Accurate ecommerce books, done for you.
Slash your bookkeeping costs by 60% and get better and faster financials
What you get with Finaloop
available 24/7
team, 7 days a week
accounting in one dashboard
COGS tracking
deductions left behind
FAQs
It's time to hire an accountant when you’re managing multiple sales channels, selling in various tax jurisdictions, or struggling with accounting software. An experienced accountant can streamline your bookkeeping, ensure tax compliance, and help with financial reporting to make better business decisions, especially as your eCommerce business grows.
The best eCommerce accounting services offer integrated inventory management, multi-channel sales integration, real-time financial reporting, and a user-friendly interface. These features help eCommerce businesses manage their financial data across various platforms, track profitability, and make data-driven decisions to fuel growth.
Real-time financial reporting offers instant insights into your ecommerce business's performance. By continuously updating your financial data, it helps you make informed decisions, manage cash flow effectively, and adjust strategies based on up-to-date metrics like revenue, profit margins, and inventory turnover.
Finaloop connects directly to your sales channels, banks, and payment gateways, delivers 24/7 accurate books, and shows real-time margins by SKU—freeing you from manual spreadsheets so you can focus on scaling your brand.
Finaloop Pros:
- Ecommerce-Specific Focus: Tailored specifically for DTC, multichannel, and ecommerce brands, offering native integrations for real-time inventory and COGS tracking.
- Full-Service Solution: Combines software with expert accounting services, ensuring that your books are always accurate and up-to-date.
Finaloop Cons:
- Not for Non-ecommerce Brands: Finaloop’s software and services are designed for ecommerce, multichannel, and wholesale brands, so it may not be the best fit for other types of businesses (e.g., SaaS).
Xero Pros:
- Affordable Software: Xero’s subscription plans are more affordable for small businesses, with pricing starting at $29/month.
- Customizable Platform: Offers flexibility and a wide range of features that can be adapted to different industries.
Xero Cons:
- Manual Work Required: Xero requires manual input or third-party integrations for ecommerce businesses, which can result in syncing issues and extra work.
- Limited ecommerce Features: Does not offer built-in tools for real-time inventory or COGS tracking, which can be cumbersome for growing ecommerce brands.
Finaloop Pros:
- Flexible, Growth-Aligned Pricing: Pricing scales with your business and includes comprehensive features designed for ecommerce brands, such as real-time COGS and inventory tracking.
- All-in-One Service: Provides both accounting software and services, offering a more comprehensive solution for growing ecommerce businesses.
Finaloop Cons:
- Not for Non-ecommerce Brands: Finaloop’s software and services are built for ecommerce, multichannel, and wholesale brands, so it may not be the best fit for other types of businesses (e.g., SaaS).
Xero Pros:
- Affordable Entry-Level Plans: Xero’s pricing is lower at the start, making it more affordable for smaller businesses with simpler needs.
- Flexible for Various Industries: Suitable for a broad range of industries, with options to add integrations and adapt the software as needed.
Xero Cons:
- Additional Costs for ecommerce Features: Xero requires third-party integrations for ecommerce functionality, which can add extra costs for inventory tracking and other key features.
- Manual Setup: Requires manual work or external bookkeeping support, which may not be cost-effective for fast-growing ecommerce businesses.