Xero vs QuickBooks Comparison in 2025

You can also enter and track invoices and expenses, connect bank accounts, receive payments, manage taxes, payroll and inventory and receive detailed reports that can help you track cash flow. The ability to integrate Xero and QuickBooks with many business software platforms pays dividends quickly. QuickBooks offers inventory management as part of two of its plans. Xero offers users a hassle-free file management system.

Spend less time inputting data

• All financial products, shopping products and services are presented without warranty.
• It is popular among small to medium-sized businesses and offers cloud-based and on-premises applications.
• Both platforms boast large app marketplaces connecting to hundreds of tools for CRM, POS, e-commerce, payroll, payments, and more.
• This creates a complete audit trail that’s easily accessible during tax preparation or financial reviews, streamlining the entire bookkeeping workflow from transaction import to final reporting.
• The software also includes strong access controls.

We also have a specialized US onboarding team who are on-hand to help you set up your business. Spend less time chasing payments with professional templates and automated payment reminders and more ways to pay. Choose from over 1000 business apps that seamlessly integrate with Xero, and useful Xero add-ons Tailor Xero to fit your unique business.

Get paid on time

Small to medium-sized businesses, eCommerce businesses that needs foreign transactions. Use for Accounting, bookkeeping, payroll, invoice, expense tracking. QuickBooks is easier to use than Xero and, in my opinion, offers more powerful tools. Starting at $20 per month (billed monthly) and supporting unlimited users, it’s ideal for those who plan to do their accounting in-house.

Xero Pricing Plans (All include unlimited users)

The Xero App Store allows users to filter and customize apps to suit their industry and needs. Xero integrates with various certified apps categorized by industry and function, like CRM, invoicing, inventory, and payroll. Users can access sales tax information from the Sales Tax Liability Report and get assistance from live tax experts for tax filing.

It also generates reports on project profitability, time cost by employee, and unbilled time and expense for individual projects. Users can add invoices, estimates, expenses, time, bills, purchase orders, etc., into a project. QuickBooks allows users to include project details to calculate profitability. It also shows the profitability of a project and allows users to generate reports on project summary, project details, etc.

For growing businesses that collaborate on accounting tasks or require strong documentation features, Xero delivers powerful tools at a competitive price. Xero is the smart choice for businesses that require collaborative accounting tools without breaking the bank. Pricing is one of the most critical factors for small and medium-sized businesses (SMBs) choosing accounting software. Both Xero and QuickBooks are cloud-based accounting software solutions trusted by small and medium-sized businesses (SMBs) globally.

• The interface is well-designed and easy to navigate, and QuickBooks tools are also more intuitive.
• Both Xero and QuickBooks are top accounting solutions, but which one do you choose?
• Xero offers users a hassle-free file management system.

Integrations & connected tools

Free accounting software for freelancers, solopreneurs, and small businesses. Xero is a cloud-based accounting software for small businesses and self-employed Xero offers close to 600 integrations with leading accounting tools, reporting platforms, bills and expense software such as Hubdoc and payment platforms such as Stripe. Small businesses use them to track finances, generate financial reports, manage taxes and payroll and track inventories. Learn more about Xero and other accounting software providers to make an informed decision for your business. Ideally, your software should cover the core finance features you use every day – like invoicing, payroll, expenses, and cash flow management.

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The table below shows how much different plans cost for Xero and QuickBooks and any additional fees you’ll encounter. The Android and iOS applications allow users to send invoices, reconcile transactions, scan and upload receipts, upload documents and images, track payments and monitor cash flow. Xero and QuickBooks users can manage their finances from anywhere with robust mobile applications.

Feature set includes an excellent mobile app and suite of reports, capable invoicing features, plus automated bill and receipt capture through Hubdoc. We believe everyone should be able to make financial decisions with confidence. Both Bill.com and Melio are reliable accounts payable automation software options. Xero has a clean, distraction-free interface where users can find what they want. It also has a performance center section to generate visual charts on expenses, revenue by time, cash flow, net profit, etc.

QuickBooks dominates in North America due to legacy use and advanced tools, while Xero is favored in New Zealand, Australia, and Europe for its real-time collaboration and user-centric design. QuickBooks suits those needing advanced reporting, payroll tools, and a robust app ecosystem, especially in North American countries like Canada and more. Xero is ideal for businesses seeking intuitive design, unlimited users, and seamless multi-currency support. Need a tailored assessment of your accounting software strategy?

Integrations

Another thing that sets Xero apart is its approach to document management within the reconciliation process. Xero’s bank reconciliation capabilities consistently receive high praise, especially for its intelligent transaction matching and automated categorization rules. In practice, this means you can maintain your current tech accounting paper stack while adding powerful new accounting capabilities.

The platform’s open API approach also encourages developers to create specialized tools that extend its functionality. For international accounting needs, Xero’s approach to multicurrency transactions is more intuitive than QuickBooks’ implementation. Advanced reporting, job costing, automation in higher plans Project tracking and analytics in higher tiers The platform excels in international business support with multicurrency capabilities and strong third-party integrations. Neither Atomic Invest nor Atomic Brokerage, nor any of their affiliates is a bank.

Use Gusto payroll, our preferred payroll solution with Xero online accounting to manage your payroll online and 1099’s with Xero. With tools like bank feeds, bank PDF import and Hubdoc included in your Xero plan, getting your documents and data into Xero is easy. Here’s just a few reasons why small business owners use Xero to make managing financial admin simple. Xero simplifies everything from bookkeeping and bank reconciliation, to expense tracking, invoicing and more. That said, some accounting tasks—like year-end reporting, tax filing, or setup—may still benefit from a professional’s guidance.

When it comes to managing small business finances, Xero and QuickBooks consistently top the list of the best accounting software solutions. Choosing the right accounting software is one of the most important decisions you’ll make as a small business owner. QuickBooks is the stronger choice for US-based businesses requiring comprehensive support, advanced customization, and robust compliance features. These are very valuable for businesses that need to maintain strict compliance with US tax regulations without investing in additional software.

Core Advantages of QuickBooks Online

Xero offers a built-in invoicing feature where users can create invoices and customize them using the company logo, custom message, and added fields. We will examine the differences between Xero and QuickBooks in detail and determine the best accounting software. It is popular among small to medium-sized businesses and offers cloud-based and on-premises applications. Use for Accounting, bill payment, pay runs, bank reconciliations, project tracking.

It supports foreign exchange bank accounts and payments in any currency. It provides instant currency conversion, helps manage exchange rates for better cash flow, and allows users to view reports in local or foreign currency. QuickBooks allows users to customize their invoices by selecting templates, adding logos and brand colors, choosing fonts, and editing sections. Xero allows users to connect to payment services with no monthly subscription costs. Users can set the software to send multiple reminders to the clients for due and overdue invoices at their preferred intervals.

QuickBooks allows users to track and manage various expenses, including bills, checks, what is a direct cost purchase orders, etc. With real-time notifications, reports, and insights, companies can get a forecast to manage cash flow. Xero makes expense tracking paperless by scanning receipts and auto-filling claims from the scanned copy. It syncs with QuickBooks Payroll and allows employees to enter their time manually or through the QuickBooks Workforce app. It also provides a staff time overview to monitor individual employee efficiency.

Pre-qualified offers are not binding. All financial products, shopping products and services are presented without pass cpa exam in 3 months warranty. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. Limited account users with each plan. Daily phone support and 24/7 chat support in all plans. Robust feature set includes thorough record-keeping, comprehensive reporting, excellent invoicing and inventory management, plus a capable mobile app.