Xero Vs QuickBooks 2025 Comparison

I’ve found that businesses often underestimate the value of reliable support for accounting tools, until they face critical issues during month-end closing or tax season. These are situations where QuickBooks’ responsive support can prevent costly delays. Xero and QuickBooks users can manage their finances from anywhere with robust mobile applications. 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.

How to Choose Between Xero and QuickBooks

At their core they’re both General Ledger (GL) products that will perform the necessary accounting functions well. As much as people like to argue that these products are completely different, we view them as largely similar with the only differences being at the margin. Both apps carry over the most important data from the browser-based versions, including lists of customers, expenses, and invoices.

See details about Atomic, in their Form CRS, Form ADV Part 2A and Privacy Policy. See details about Atomic Brokerage in their Form CRS, General Disclosures, fee schedule, and FINRA’s BrokerCheck. These ratings are meant to provide clarity in the decision-making process, but what’s best for your business will depend on its size, growth trajectory and which features you need most. We encourage you to research and compare multiple accounting software products before choosing one.

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• For example, you might appreciate the extra features that QuickBooks includes in its plans.
• Unlike Xero’s callback system, QuickBooks allows you to connect with support staff instantly through multiple channels.
• QuickBooks restricts the number of users based on the chosen subscription plan, with higher tiers allowing more team members.
• These ratings are meant to provide clarity in the decision-making process, but what’s best for your business will depend on its size, growth trajectory and which features you need most.
• If you want peace of mind, consider outsourcing to a certified advisor.

Instead, go for an easy-to-use solution that meets your current needs and scale up as your business grows. Our editors thoroughly review and fact-check every article to ensure that our content meets the highest standards. If we have made an error or published misleading information, we will correct or clarify the article. If you see inaccuracies in our content, please report the mistake via this form.

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Xero has a simple yet modern interface, making it easy for users to see crucial financial metrics like cash flow, bank accounts, and unpaid invoices right away. Its minimalistic design and logical layout make it easy for non-accountants and small business owners to navigate and understand the financial data. Xero’s mobile accessibility stands out as a superior option for many small businesses due to its user-friendly design, broad device compatibility, and robust offline functionality.

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In addition, the software has fine-tuned control over banking functionality. It’ll do a better job of categorizing your transactions and even put them in an organized spreadsheet. While both tools offer a lot of the same features, the main differentiator is how well each company does these features. Xero is a modern, fully cloud-based platform that emphasizes automation, collaboration, and ease of use, especially for non-accountants. This comparison breaks down their key features, pricing, ease of use, integrations, and support—so you can make a confident decision. QuickBooks has a wide network of banking partners, making it easy to securely import your bank feeds from a variety of banks and credit card companies.

From the ease at which you can find bookkeeping help to making it easier for potential acquirers to diligence your business. Although QuickBooks is by should you choose xero over quickbooks far the largest in the US, Xero has a larger presence internationally (especially in New Zealand where it was founded and Australia and the UK). If you are based in one of these markets, then we would recommend Xero over QuickBooks. Additionally, because of this international focus, Xero has a better VAT module than QuickBooks. Some might be tempted to use the self-employed version of QuickBooks to save money. QuickBooks self-employed is designed for freelancers and won’t be able to scale with your eCommerce business like the regular version of QuickBooks will.

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While Xero and QuickBooks help you manage your accounting, they don’t always provide robust Accounts Receivable and cash collection tools—and that’s where Upflow comes in. Connect your Xero or QuickBooks account to Upflow in just a few clicks and get instant access to your key AR metrics—all with our free Discover plan. The quality and breadth of QuickBooks support extends beyond basic troubleshooting to include guidance on accounting best practices, software optimization, and compliance questions.

The QuickBooks Online apps are more attractive, offer a little more transaction detail, and provide buttons in customer records for quickly calling or emailing contacts. They also allow you to auto-track your vehicle’s mileage as you drive and snap photos of receipts to record and store. Julie Watson loves helping businesses navigate their technology needs by breaking complex concepts into clear, practical solutions.

• One of the useful aspects of Xero for paying bills is the ability to replicate bills and set up recurring bills.
• They gather information about your business by asking questions, which they use to build the foundation for your records and transactions.
• QuickBooks offers a full-service payroll option where it handles all aspects of payroll on your behalf.

Can I use either platform for tax preparation and deductions?

QuickBooks’ home page shows more information than Xero’s, including a list of tasks that need attention and customizable Shortcuts. It also displays your bank accounts and their alliances, along with colorful charts for Cash Flow Trend, Expenses, Invoices, and Profit & Loss. The dashboard supports some customization options, and everything links to the details behind it.

On other hand, Time Tracking is included in every QuickBooks Online Subscription, starting with Essentials. Finally, QuickBooks Online distinguishes itself from Xero by providing time Tracking Capabilities. Although Xero offers Time Tracking, it is only offered as part of their Projects feature set, which is only available with the Established Plan. QuickBooks Online is the small business accounting application to beat thanks to its deep capabilities, superb customizability, and top-notch extensibility. For instance, if you want a cloud-based solution, you can opt for Xero. However, if you prefer QuickBooks Desktop features, you can plan to migrate it to cloud hosting.

They also offer in-person training, in addition to live and on demand sessions. If for whatever reason you imagine yourself needing lots of separate users, then choose Xero. You can also see what your form looks like as an email or PDF and to the payer.