QuickBooks vs Xero: Which Accounting Software Is Right for You?

QuickBooks and Xero are the two most popular cloud accounting platforms for small businesses. Both offer robust features, but they have distinct strengths that make each better suited for different types of businesses.

Quick Verdict

Choose QuickBooks if you’re a US-based business that needs strong payroll integration and works closely with an accountant.

Choose Xero if you want unlimited users, operate internationally, or prioritize a clean, modern interface.

Pricing Comparison

Both platforms offer tiered pricing based on features:

QuickBooks Online:

• Simple Start: $30/month (1 user)
• Essentials: $60/month (3 users)
• Plus: $90/month (5 users)

Xero:

• Early: $15/month (limited invoices)
• Growing: $42/month (unlimited invoices)
• Established: $78/month (multi-currency, projects)

Winner: Xero — Lower entry price and unlimited users on all plans.

Ease of Use

Both platforms are designed for non-accountants, but they take different approaches.

QuickBooks

QuickBooks uses familiar accounting terminology and workflows. If you’ve used accounting software before, you’ll feel at home. The interface is functional but can feel cluttered with features.

Xero

Xero prioritizes a clean, modern design. The dashboard gives you a quick financial snapshot, and navigation is intuitive. Bank reconciliation is particularly smooth.

Winner: Xero — The cleaner interface makes day-to-day tasks faster.

Features

Invoicing

Both platforms offer professional invoicing with customizable templates, automatic payment reminders, and online payment options. QuickBooks has a slight edge with more template customization options.

Bank Reconciliation

This is where Xero shines. Bank feeds are reliable, and the matching algorithm is excellent. QuickBooks’ reconciliation works well but requires more manual intervention.

Reporting

QuickBooks offers more built-in reports out of the box, including industry-specific reports. Xero’s reports are clean and customizable, but you may need add-ons for advanced analytics.

Payroll

QuickBooks has integrated payroll (additional cost) that works seamlessly. Xero requires third-party integrations like Gusto for US payroll, which adds complexity.

Inventory

Both handle basic inventory, but QuickBooks Plus includes more advanced inventory features like FIFO costing.

Integrations

QuickBooks integrates with over 750 apps, with particularly strong connections to other Intuit products and popular US business tools.

Xero connects to over 1,000 apps and has excellent international integrations. Its open API makes it a favorite among developers.

Winner: Xero — More integrations and better API.

Support

QuickBooks offers phone support on higher tiers, plus chat and a large community. Wait times can be long during tax season.

Xero provides 24/7 online support and an extensive help center. No phone support, which some users miss.

Winner: QuickBooks — Phone support is valuable when you have urgent issues.

Who Should Choose QuickBooks?

• US-based businesses needing integrated payroll
• Companies that work closely with accountants
• Businesses needing industry-specific features
• Those who prefer phone support

Who Should Choose Xero?

• Businesses wanting unlimited users
• International or multi-currency operations
• Teams that prioritize user experience
• Growing businesses that need scalable pricing

The Bottom Line

Both QuickBooks and Xero are excellent choices for small business accounting. QuickBooks is the safer choice for US businesses that need payroll integration and accountant collaboration. Xero wins on user experience, pricing flexibility, and international features.

Our recommendation: Take advantage of both platforms’ free trials. The best choice ultimately depends on how the software fits your specific workflow.