Xero vs QuickBooks: Accounting Software Comparison 2025

QuickBooks supports mileage tracking with its mobile app, which enables automatic GPS tracking from mobile phone locations. It also sends notifications, accepts receipt photos, and offers analytics data to monitor employee spending. QuickBooks is not designed for proposal writing, but users can turn estimates into proposals by attaching files or adding messages. Xero has no built-in proposal feature but can integrate with third-party proposal software. Xero does not offer an estimation feature, but users can fill out the form on its website to download a free estimate template in editable PDF format. Users can add invoices, estimates, expenses, time, bills, purchase orders, etc., into a project.

• Xero serves two million users worldwide, with leading cloud accounting market share in New Zealand, Australia, and the U.K.
• After all the comparisons, features, pricing tiers, and debates, it’s given that both Xero and QuickBooks are excellent pieces of accounting and bookkeeping software.
• But over time, Xero improved its product and expanded its features.
• Need help setting up or migrating toX Xero accounting software?

Keeping track of receipts and expenses is one of the most tedious parts of bookkeeping, and both platforms have worked hard to simplify this task. Several Reddit users have flagged this as an ongoing frustration when dealing with international clients. Xero’s invoicing workflow feels more streamlined for small business owners who want quick setup, recurring invoices, and automated payment reminders without too much configuration. For reporting, QuickBooks clearly offers more customization. But how they handle these features can feel quite different once you’re inside the system. It’s grown by keeping things simple like unlimited users, clean design, easy collaboration, and flexible app integrations.

Xero offers a clean and simple chart of accounts interface with a straightforward setup process. By automating bookkeeping, users gain back about 20+ hours each month. It provides QuickBooks Online, Desktop, and Enterprise options to meet various business requirements. Xero helps handle bookkeeping, invoicing, and reporting, making it ideal for startups and merchants aiming to improve financial processes and work with accountants. The platform primarily focuses on automation, real-time collaboration, and unlimited user access across all price plans. In this article, we’ll discuss the key differences between QuickBooks and Xero based on their features and pricing, and discover which platform is the ideal fit for whom.

Mileage Tracking

• We will examine the differences between Xero and QuickBooks in detail and determine the best accounting software.
• Xero offers more affordable plans with unlimited users, making it ideal for growing teams, while QuickBooks limits users and has higher-tier pricing.
• It also supports making custom dashboards, reports, and KPIs.
• Use for Accounting, bill payment, pay runs, bank reconciliations, project tracking.

Overall, both platforms have many similarities and can help SMBs get their finances in order, but there are also some differences that can’t be glossed over.

Users can set the software to send multiple reminders to the clients for due and overdue invoices at their preferred intervals. Users can run custom reports related to the tags to get an instant picture through the insights. QuickBooks allows users to tag things while working to track projects, locations, events, and more.

Who Should Choose Xero?

Xero can connect with over 21,000 global financial institutions and reports that users save roughly 5½ hours weekly. Both platforms offer a robust suite of accounting tools. Xero and QuickBooks also offer mileage tracking, inventory management (Xero requires an additional inventory plan) and project tracking. Xero can integrate with Gusto for payroll accounting, and QuickBooks users can manage payroll with an additional plan.

And to learn more about how we test accounting software, check out our accounting software ratings methodology. In this comparison, I’ll explain how Xero and QuickBooks are similar and point out key differences so you can pick the right accounting software for your SMB. Xero and QuickBooks are two of the biggest names in the accounting software space, and they are highly ranked in our roundup of the best accounting software.

Platform

It provides users with a complete picture of their finances on a single screen with up-to-date data Companies that deal with multiple currencies and need to add employee time in the invoice. Both Xero and QuickBooks are top accounting solutions, but which one do you choose? Xero is a cost-effective accounting solution that would be ideal for contractors, marketing and sales teams, retailers, transportation firms and others. The interface is well-designed and easy to navigate, and QuickBooks tools are also more intuitive. If you opt for QuickBooks, you must pay extra to process payroll.

Time Tracking

Xero offers built-in payroll in what is gross salary the UK, Australia, and New Zealand. Its biggest advantages are its unlimited users on all plans, its clean and intuitive user interface, and its excellent bank reconciliation workflow.42 More comprehensive features (inventory, projects) included in mid-tiers. It focuses on core accounting excellence and encourages users to connect specialized third-party apps for niche needs via its extensive app store. QBO aims to cover almost every accounting need within its own software, scaling from simple sole trader needs (“Simple Start”) up to complex small enterprises (“Advanced”).

Journal Entries and Chart of Accounts

The platform provides detailed tax categorization, supports multiple tax liquidity vs solvency jurisdictions, and offers industry-specific tax reporting features. QuickBooks brings more advanced tax reporting tools, such as its connection to TaxCloud, Avalara, TaxCalc, and many more. Xero provides clean, accurate tax reports that integrate well with popular tax software and accountant workflows. Both platforms manage tax reports, but with different approaches. The platform provides detailed financial reports, management reports, and industry-specific analysis. QuickBooks offers robust bank reconciliation features across all versions, with robust capabilities in QuickBooks Desktop and Online.

What is the “QuickBooks” Accounting Software?

Remember, this rivalry isn’t just about features, it’s about tailored workflows matching your unique business needs. That said, some accounting tasks—like year-end reporting, tax filing, or setup—may still benefit from a professional’s guidance. QuickBooks has the edge here with its native payroll system, offering tiered payroll plans and automatic tax calculations. QuickBooks Online is ideal for businesses seeking an intuitive, out-of-the-box experience with a polished user interface and mobile-first functionality. Both platforms help reduce manual entry and accounting errors. Choosing between Xero and QuickBooks can be tricky, as both platforms deliver strong core features tailored for SMBs.

It lets users view transactions, invoices, or bills in a foreign currency. It supports foreign exchange bank accounts and payments in any currency. QuickBooks allows users to customize their invoices by selecting templates, adding logos and brand colors, choosing fonts, and editing sections. It supports online payments using debit cards, credit cards, direct debit using GoCardless, and Apple Pay or Google Pay using Stripe. Xero allows users to connect to payment services with no monthly subscription costs. They can include an invoice PDF link and a button to online invoice in the reminder email.

Recurring billing features

There’s no one-size-fits-all solution—your best accounting software depends on how your business works. When it comes to managing small business finances, Xero and QuickBooks consistently top the list of the best accounting software solutions. If you need advanced features like payroll and inventory, QuickBooks wins.

Xero uses third-party add-on connections allowing users to accept payments online. QuickBooks Online provides real-time data, reports, and dashboards. Xero serves two million users worldwide, with leading cloud accounting market share in New Zealand, Australia, and the U.K. Both Xero and QuickBooks Online integrate with many third-party add-on apps that supplement the basic accounting features, adding more tax considerations for college students 2020 capabilities and efficiency. There comes a time in every business when you have to find better ways of doing things.

Additionally, it covers the core tasks most small businesses need, such as invoicing, tracking money in and out, and managing basic records. Both Xero and QuickBooks offer strong tools, but each is built for different types of businesses. They built it because many small business owners struggled to handle accounting without the tools that large companies use. Xero is cloud-based accounting software created in New Zealand by Rod Drury and Hamish Edwards. The system also supports time tracking and offers access to bookkeeping services if you need outside support. QuickBooks is accounting software created by Intuit, a company started in the early 1980s by Scott Cook and Tom Proulx.