Xero vs QuickBooks: Which Accounting Software Wins in 2025?

Are you stressed about keeping track of your business money?

It can be tough!

Choosing the right software can feel like a big decision.

Two popular choices are Xero and QuickBooks.

This article will break down the key differences in a simple way.

We’ll examine each offering and help you determine which one is best, Xero vs QuickBooks.

Overview

We’ve put both Xero and QuickBooks through their paces.

Exploring their features and ease of use.

Our hands-on testing focused on real-world small business scenarios to bring you a clear.

What is Xero?

So, let’s chat about Xero.

It’s accounting software designed to make things simpler for small businesses.

Think of it as your financial hub online.

In one place, you can handle invoices, track bills, and see how your business is doing.

Also, explore our favorite Xero alternatives…

Key Benefits

• Automatically imports daily bank transactions.
• Send professional invoices and get paid faster.
• Run over 50 types of financial reports.
• Connect with over 1000 other business apps.

Pricing

• Starter: $2.90
• Standard: $4.60
• Premium: $6.90

What is QuickBooks?

Okay, let’s talk about QuickBooks now.

It’s another popular accounting software, especially in the US.

Many small businesses like it because it’s been around for a while.

Also, explore our favorite QuickBooks alternatives…

Key Benefits

QuickBooks really shines with its broad set of tools for everyday tasks. It offers:

• Manages over $1 trillion in invoices annually for its users.
• Connects to over 700 different apps for smoother workflows.
• Helps businesses save up to 42% of their time on bookkeeping tasks.
• Provides over 50 standard reports to understand your business better.

Pricing

• Simple Start: $9.50
• Essential: $14
• Plus: $20
• Advanced: $38

Feature Comparison

Both Xero and QuickBooks are strong accounting tools, but they have different strengths.

Choosing between QuickBooks and Xero depends on your specific business needs.

Let’s compare some key features.

1. Bank Feeds

• Xero: Xero excels at automating bank reconciliation with direct bank feeds. Using Xero, transactions are automatically imported. This streamlines the process for business owners using Xero.
• QuickBooks: QuickBooks also offers bank feeds to import transactions. QuickBooks online and QuickBooks desktop both connect to many banks, though the setup can vary.

2. Invoicing

• Xero: Xero provides customizable invoice templates. Using Xero, you can automate recurring invoices and online payments.
• QuickBooks: QuickBooks also offers strong invoicing. QuickBooks online, QuickBooks online essentials, and QuickBooks online plus all support unlimited invoices. QuickBooks also provides more customization options.

3. Expense Tracking

• Xero: Xero Expenses helps track and manage expenses. Xero Expenses is included in the Established pricing plan.
• QuickBooks: All QuickBooks online pricing plans include expense tracking. You can capture receipts and categorize expenses.

4. Payroll

• Xero: Xero integrates with payroll services like Gusto. This handles payroll processing, but it’s often an additional cost.
• QuickBooks: QuickBooks offers deeply integrated payroll solutions. It also handles payroll taxes and filings, but this comes at an additional cost.

5. Reporting

• Xero: Xero offers various financial reports. These help business owners monitor performance. Compared to QuickBooks, some users find Xero’s reporting customization less flexible.
• QuickBooks: QuickBooks provides comprehensive reporting. QuickBooks Online Advanced offers advanced reporting tools.

6. Integrations

• Xero: Xero integrates with many third-party apps. Xero has a large app marketplace.
• QuickBooks: QuickBooks also integrates with many apps. QuickBooks Online integrates with many industry-specific tools.

7. User Interface

• Xero: Xero is known for its clean and user-friendly interface. Many small business owners, especially those new to accounting software, find it intuitive.
• QuickBooks: QuickBooks has a more traditional interface. While powerful, some find QuickBooks desktop and even QuickBooks online a bit less modern compared to Xero.

What to Look For When Choosing Accounting Software?

Here are some extra things to think about:

• Consider your budget and each accounting solution’s pricing plan.
• Think about whether you need multi-currency support.
• Check if the software integrates with other tools you use.
• See if online support and training resources are available.
• If you work with an accountant, ensure the software is compatible with their workflow.
• Consider if you need features like project management or inventory.
• Evaluate the mobile app’s functionality for on-the-go access.

Final Verdict

We’ve compared Xero vs QuickBooks Online.

Both are good business accounting software.

Xero is easy to use and connects well with other online tools, making it a solid QuickBooks alternative. 

Deciding between Xero or QuickBooks depends on your business needs.

We tested both to help you choose the best cloud accounting solution for you.

The right fit is what matters most!

More of Xero

• Xero vs Puzzle IO: Puzzle IO offers advanced financial planning and analysis beyond standard Xero features.
• Xero vs Dext: Dext excels in automated data extraction and receipt scanning, streamlining expense management better than standard Xero.
• Xero vs Synder: Synder specializes in e-commerce accounting, offering deeper integration for online sales compared to Xero.
• Xero vs Easy Month End: Easy Month End focuses on simplifying and automating the month-end closing process, a more niche feature than Xero’s broad scope.
• Xero vs Docyt: Docyt uses AI to automate bookkeeping tasks, offering a different level of automation compared to Xero.
• Xero vs RefreshMe: RefreshMe provides real-time cash flow forecasting, potentially more advanced than Xero’s built-in tools.
• Xero vs Sage: Sage offers a wider range of solutions, including options for larger enterprises that Xero might not fully cater to.
• Xero vs Zoho Books: Zoho Books is part of a larger business software suite, offering tighter integration with CRM and other tools compared to Xero.
• Xero vs Wave: Wave offers free accounting for very small businesses, a key difference from Xero’s paid plans.
• Xero vs Quicken: Quicken is primarily designed for personal finance, lacking the business focus of Xero.
• Xero vs Hubdoc: Hubdoc focuses on document management and automated data capture, a feature Xero has but isn’t its sole focus.
• Xero vs Expensify: Expensify specializes in expense reports and management, offering more detailed features than Xero’s expense tracking.
• Xero vs AutoEntry: AutoEntry automates data entry from invoices and receipts, similar to Dext and potentially more focused than Xero.
• Xero vs FreshBooks: FreshBooks is tailored towards service-based businesses with strong invoicing and project management, a specific focus compared to Xero.
• Xero vs NetSuite: NetSuite is a comprehensive ERP system for larger businesses, offering far more features than Xero’s accounting focus.

More of QuickBooks

• QuickBooks vs Puzzle IO: Puzzle IO provides advanced financial planning and analysis, going beyond QuickBooks’ core accounting features.
• QuickBooks vs Dext: Dext specializes in efficient receipt and invoice data extraction, which can be more streamlined than QuickBooks’ built-in tools.
• QuickBooks vs Synder: Synder offers robust e-commerce accounting integrations, providing deeper connections for online sales than QuickBooks.
• QuickBooks vs Easy Month End: Easy Month End focuses specifically on automating and simplifying the month-end closing process, a niche not central to QuickBooks.
• QuickBooks vs Docyt: Docyt uses AI to automate bookkeeping tasks, offering a different approach to automation compared to QuickBooks.
• QuickBooks vs RefreshMe: RefreshMe provides real-time cash flow forecasting, potentially offering more advanced insights than QuickBooks’ standard reports.
• QuickBooks vs Sage: Sage offers scalable solutions for businesses of all sizes, including enterprise-level features that exceed QuickBooks’ focus.
• QuickBooks vs Zoho Books: Zoho Books integrates seamlessly with Zoho’s suite of business applications, offering a broader ecosystem than QuickBooks.
• QuickBooks vs Wave: Wave provides free accounting software for small businesses, a significant difference from QuickBooks’ subscription model.
• QuickBooks vs Quicken: Quicken is primarily for personal finance management, lacking the comprehensive business features of QuickBooks.
• QuickBooks vs Hubdoc: Hubdoc focuses on automated document collection and data entry, a feature QuickBooks offers but isn’t its primary strength.
• QuickBooks vs Expensify: Expensify offers advanced expense report management with detailed tracking and policy enforcement, potentially more robust than QuickBooks.
• QuickBooks vs AutoEntry: AutoEntry automates data entry from invoices and receipts, similar to Dext and a focused alternative to QuickBooks’ data input.
• QuickBooks vs FreshBooks: FreshBooks is tailored for service-based businesses with strong emphasis on invoicing and project management, a specific focus compared to QuickBooks.
• QuickBooks vs NetSuite: NetSuite is a comprehensive ERP system with extensive features beyond accounting, suitable for larger enterprises, unlike QuickBooks.

Frequently Asked Questions