QuickBooks vs. Xero Comparison

QuickBooks vs. Xero Highlights 

QuickBooks and Xero offer popular software to maintain your business’s books, send invoices and perform other accounting functions. Here is a look at the key differences between the two providers. 

Who Is Xero For? 

Xero is currently the second-most popular accounting software program in the U.S. and enjoys market-leading status in various countries such as Australia. Similar to its competitors, Xero provides double-entry accounting and comprehensive reporting functionalities. What sets Xero apart is its emphasis on simplifying accounting concepts for individuals who may be unfamiliar with financial jargon. Moreover, Xero’s tiered pricing incorporates a range of features that make it particularly suitable for growing businesses. Learn more in our full review of Xero.

Who Is QuickBooks For?

For more than two decades, QuickBooks has maintained its position as the leading provider of small business accounting software. With a market share of over 80 percent in the United States, QuickBooks’s functionalities are well-known to most accountants and bookkeepers. Like its competitors, QuickBooks delivers comprehensive double-entry accounting and reporting features. Additionally, the software comes equipped with diverse tools and invoicing capabilities that have proven valuable to business owners. These attributes combine to make QuickBooks a reliable and versatile choice that suits the needs of many small businesses. Learn more in our full review of QuickBooks.

QuickBooks offers a feature-rich dashboard. Source: Intuit 

QuickBooks vs. Xero Comparison

In this section, we go more in-depth into the differences between QuickBooks and Xero, including how they compare on pricing, invoicing capability, customer service, mobile app features and third-party integrations. 

Pricing and Plans

Xero Pricing

Xero offers three paid plans based on the typical life cycle of a small business. 

• The base Early plan costs $13 per month, which makes it slightly less expensive than QuickBooks’ entry-level plan and many competing accounting software plans. 
• Like QuickBooks, Xero offers a 30-day free trial. 

Through Xero, you can integrate with HR software provider Gusto for $40 per month plus $6 per employee. Xero allows unlimited users on all tiers, whereas QuickBooks starts out with one billable user and maxes out at 25 users on its most expensive plan. 

Here is a breakdown of each plan:

QuickBooks Pricing 

QuickBooks offers five paid plans geared toward small and midsize businesses, as well as independent contractors. Like Xero, it does not offer a free tier. 

• The basic Self-Employed plan costs $15 per month; more advanced tax preparations features are only included in the $30 Simple Start plan. 
• Like Xero, QuickBooks also offers a 30-day free trial. 

While most business applications (including Xero) have transitioned entirely to cloud-based software, QuickBooks is unique in that it still sells an old-fashioned desktop version. Desktop Pro Plus and Desktop Premiere Plus go for $549 and $799 per year, respectively. Xero does not offer a desktop version of its software. 

Additionally, QuickBooks Online offers various bundle deals with other Intuit software products such as QuickBooks Payroll. Business owners interested in both products can likely save money by leveraging a bundle discount. [Read more in our full review of QuickBooks Payroll.]

Here is a breakdown of each plan:

Invoicing 

Xero Invoicing Capabilities 

Like several of its competitors, Xero provides tools to customize your invoices with branding elements such as logos. Here are some of its other features: 

• Like QuickBooks, you can convert quotes to invoices on-the-spot. 
• You can sync Xero with a PayPal, Stripe or Square account to accept payments online from your emailed invoices. 
• The Xero mobile app can also be used to generate invoices on the go. 

Xero’s invoices are saved in the cloud, which allows you to make changes without resending. Source: Xero 

QuickBooks Invoicing Capabilities 

QuickBooks’ invoicing features rank high among the accounting and invoice software that we reviewed:

• You can create and send invoices from either a desktop browser or the QuickBooks mobile app. Invoices are designed for a mobile-first experience. 
• You can accept online payments through the QuickBooks Payments system or a third-party processor like PayPal or Square.
• Like Xero, estimates can be converted into invoices quickly and easily. 
• You can create recurring invoices and schedule automatic payment reminders.
• Billable hours can be synced with your invoice through the QuickBooks Time add-on. 

QuickBooks allows you to invoice customers for partial payments. Source: Intuit

Customer Support 

Xero Customer Service 

• Although Xero offers phone service, you must first contact the company through email or live chat. 
• Xero’s website includes videos, blog posts and other learning material to help users navigate the software. 
• Xero boasts an impressive 4.3 out of 5 for customer support on Trustpilot. 

QuickBooks Customer Service 

• QuickBooks provides email, live chat and direct phone support for customers.
• An active community forum provides guidance from other QuickBooks users and company representatives. 
• Webinars, video tutorials, blog posts and training classes are available on QuickBooks’ website. 
• Certified QuickBooks ProAdvisors can give you one-on-one help using the software.
• QuickBooks’ parent company Intuit scores a 1.2 out of 5 for customer service on Trustpilot. 

Mobile App

Xero Mobile App Features 

• The Xero Accounting and Invoices mobile app is available for iOS and Android. 
• The app lets you track cash flow, review customer and vendor contracts, reconcile bank transactions, and create invoices on the go. 
• Xero also offers a basic app for the Apple Watch that lets you view account balances and new transactions. 
• Xero’s mobile app is rated 4.6 out of 5 on the Apple App Store and a 4.2 out of 5 on the Google Play store. 

Xero also offers two stand-alone apps — Xero Expenses and Xero Projects — for users on its Established plan. These apps allow you to capture photos for receipts, submit expense reports, track time, and attach billable expenses and time to individual projects. 

QuickBooks Mobile App Features 

• The QuickBooks mobile app is available for iOS and Android. 
• Critical features include dashboard data, invoicing, payments, receipt capture, expense tracking, transaction reconciliation and a customer messaging system. 
• The QuickBooks Accounting app is rated 4.7 out of 5 on the Apple App Store and 4.1 out of 5 on the Google Play Store.

QuickBooks also offers two stand-alone apps — QuickBooks Time and QuickBooks Projects. The Time app is available on the Essentials plan and above, while the Projects app is available for Plus users. 

QuickBooks’ feature-packed mobile app allows you to track your business’s finances from a smartphone. Source: Intuit

Third-Party Integrations

Xero Integrations

Xero integrates with over 1,000 third-party business applications, including many apps that are popular with small business owners: 

• Square
• Stripe
• PayPal
• Gusto
• Cin7 Core (formerly DEAR Inventory)
• Expensify
• Microsoft Office
• Rippling
• Google GSuite
• Zapier
• HubSpot
• Constant Contact
• WooCommerce

QuickBooks Integrations

QuickBooks integrates with more than 750 third-party business applications, including many well-known productivity apps and e-commerce platforms:

• Amazon
• PayPal
• Square
• Etsy
• Shopify
• eBay
• SOS Inventory
• Gusto
• Expensify
• BILL
• Microsoft Excel
• WooCommerce
• Zenefits
• Zapier

QuickBooks vs. Xero Summary

• Xero is best for growing businesses and brick-and-mortar establishments, thanks to its pricing plans that don’t charge on a per-user basis. It also enjoys a greater market share in Australia and some countries outside the U.S. 
• Xero includes more third-party integrations and boasts better customer service than QuickBooks.
• QuickBooks is best overall for most small businesses and brick-and-mortar establishments, thanks to its well-known brand name and widespread usage among U.S. accountants. 
• QuickBooks includes top-of-the-line invoicing and payment capabilities, as well as a feature-packed mobile app. 

FAQs

Can you invite your accountant into your QuickBooks account?

Yes, all QuickBooks plans allow you to invite an accountant. 

What is QuickBooks’ Smart Reporting feature?

Smart Reporting, powered by Fathom, provides tools to analyze your business metrics. This feature is included on the Advanced subscription plan. 

What is Xero’s Hubdoc feature?

Hubdoc is included with all Xero plans. This service lets you capture, extract and store data from documents scanned using your smartphone.