QuickBooks vs Xero: Which Accounting Software is Right for Your Business?

Choosing the right accounting software can dramatically improve how efficiently you manage your finances. For small to mid-sized businesses, QuickBooks and Xero are two of the most popular cloud-based options.

But which one is better suited for your needs? This comparison breaks down their key features, pricing, ease of use, integrations, and support—so you can make a confident decision.

Introduction to QuickBooks and Xero

QuickBooks, developed by Intuit, offers powerful accounting tools and has been a trusted name among professionals for decades. It’s available in two main formats:

• QuickBooks Online (QBO) – A cloud-based platform ideal for remote access and automation.

• QuickBooks Desktop – Feature-rich software often used by accountants and growing businesses.

Xero is a modern, fully cloud-based platform that emphasizes automation, collaboration, and ease of use, especially for non-accountants.

Why Businesses Choose QuickBooks

• Robust features for payroll, tax, invoicing, and reporting

• Trusted by accounting firms worldwide

• 650+ app integrations

• Backed by a network of certified QuickBooks ProAdvisors

Potential drawbacks:

• Can be overwhelming for beginners

• Advanced features often require premium plans

• Limited mobile app capabilities

Why Businesses Prefer Xero

• Intuitive, beginner-friendly interface

• Unlimited users on every plan

• 1,000+ third-party integrations

• Strong bank reconciliation and automation

• Supports multi-currency operations

Potential drawbacks:

• Reporting is less comprehensive than QuickBooks

• No built-in payroll in some regions

• Lacks phone-based customer support

Pricing Comparison

QuickBooks Online Plans:

• Simple Start – $30/month (1 user)

• Essentials – $60/month (3 users)

• Plus – $90/month (5 users)

• Advanced – $200/month (up to 25 users)

Xero Plans:

• Starter – $15/month (limited invoicing and bills)

• Standard – $42/month (unlimited invoicing)

• Premium – $54/month (adds multi-currency support)

Xero includes unlimited users across all plans, while QuickBooks charges for additional users.

Which Offers Better Value?

• For solo entrepreneurs or small teams, Xero provides excellent affordability.

• For companies needing advanced features like built-in payroll, project tracking, and inventory, QuickBooks justifies its higher pricing.

Ease of Use

QuickBooks offers a comprehensive dashboard suitable for experienced users, though it may require a learning curve for first-timers.

Xero is well-known for its clean, modern design. It’s ideal for business owners with little to no accounting background.

Feature-by-Feature Comparison

Best For:

• QuickBooks: Payroll-heavy businesses, financial reporting, inventory management

• Xero: E-commerce, automation, international businesses, unlimited users

Integrations and Compatibility

QuickBooks integrates with hundreds of popular tools including PayPal, Shopify, Stripe, and HubSpot, making it a solid option for traditional businesses and service firms.

Xero supports more than 1,000 integrations and is ideal for businesses that rely on automation, tech stacks, or operate in e-commerce.

Customer Support Comparison

• For faster response and phone-based help, QuickBooks has the edge.

• For always-available online support, Xero wins.

Final Recommendation

Choose QuickBooks if:

• You need comprehensive payroll, inventory, and reporting tools

• Your business is growing and needs scalable financial management

• You want access to certified advisors and phone-based support

Choose Xero if:

• You want a cost-effective platform with unlimited users

• Your business is international or e-commerce-based

• You value automation and simplicity over deep reporting

Not sure yet?
Both platforms offer free trials, allowing you to test the interface and features before committing.