Generally higher, tiered by features & users. Basic inventory tracking; relies on app integrations for advanced needs. Unlimited users on all plans. Both are powerful, cloud-based platforms designed to help you manage your income, expenses, and overall financial health.
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.
Integrations and Automation
Xero’ connects to over 21,000 financial institutions worldwide, automatically importing transactions and highlighting discrepancies. This reduces manual data entry and improves accuracy over time. QuickBooks offers more granular control over the chart of accounts setup, with industry-specific templates and complex account structures, especially in QuickBooks Desktop. It comes with basic templates, but users can adjust them to match the needs of their specific industry.
What is the “QuickBooks” Accounting Software?
These features appeal to growing businesses that need detailed financial intelligence. It offers advanced workflow automation, detailed custom reporting templates, and the ability to modify transaction categories and classification rules to match business requirements. QuickBooks delivers more sophisticated reporting and customization options compared to Xero, particularly for businesses with complex accounting needs.
- Use for Accounting, bookkeeping, payroll, invoice, expense tracking.
- The interface is well-designed and easy to navigate, and QuickBooks tools are also more intuitive.
- It also helps users identify discrepancies quickly through the reconciliation discrepancy report, the missing checks report, and the transaction detail report.
- Advanced features require apps.
At the time of writing, Xero offers 90% off for the first three months, while QuickBooks provides 50% off for the first three months. I like that Xero offers a centralized file management location, which makes file management much easier. QuickBooks offers more software integrations, and its automation builder is more intuitive. Still, both platforms allow you to reduce manual data entry, create rules to handle recurring charges and auto-calculate taxes. QuickBooks offers over 750 integrations, including platforms such as Dext, BILL, Expensify, Mailchimp and PayPal. No business software is complete without integrations and support for automated workflows, and Xero and QuickBooks offer both.
QuickBooks vs Xero: Which accounting software is better for your small business in 2025?
For businesses, financial agility and operational transparency are important when it comes to getting a competitive advantage. A cloud-based accounting tool for freelancers and small businesses. Its integrations and reporting facilitate compliance in dozens of countries, making it the clear choice for businesses with cross-border clients, suppliers, or offices. These make it suitable for retail, manufacturing, or distribution businesses that need detailed inventory control and accurate cost accounting throughout their supply chain operations. QuickBooks is specifically designed for US-based businesses, offering alignment with Generally Accepted Accounting Principles and direct integration with US tax-filing systems.
Final Verdict: Which Platform Wins in 2025?
Xero is a cost-effective accounting solution that would be ideal for contractors, marketing and sales teams, what is the traditional 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.
open-source apps I’d easily pay money for because they’re that good
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. Powerful, intuitive accounting software for small businesses. Its proposal-writing tools outperform many dedicated proposal platforms, letting you create project pitches right within your accounting software.
Which Accounts Payable Automation Software is Good for Streamline Payments?
QuickBooks generates sharable mileage reports with a breakdown of miles and potential deductions. 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.
Its international capabilities are limited, and businesses outside the US may encounter hurdles in workflow and compliance. While this works well for small businesses with limited staff, companies anticipating rapid growth or needing multiple accountant or bookkeeper seats may find the cost of scaling a drawback. Its clean dashboard and helpful prompts streamline core tasks like invoicing, bank reconciliation, and expense tracking. Meanwhile, Xero excels in international operations, team collaboration, and businesses prioritizing cost-effective scalability. It’s an essential feature for construction companies, professional services firms, and project-based businesses that need to understand the true cost and profitability of individual engagements. The job costing functionality allows businesses to track profitability at the project or client level, providing detailed insights into which services or products generate the highest margins.
The best small business accounting software depends on your unique needs. QuickBooks suits those needing advanced reporting, payroll tools, and a robust app ecosystem, especially in North American countries like Canada and more. It offers basic invoicing, expense tracking, and financial reporting completely free of cost.
- That’s why several D2C companies and consumer brands in 2025 prefer hiring accounting outsourcing companies like Atidiv.
- Xero is a cost-effective accounting solution that would be ideal for contractors, marketing and sales teams, retailers, transportation firms and others.
- While it comes at a higher cost and user limits per plan, it shines in areas like built-in payroll and advanced mobile tracking.
- Try to choose software that matches your size, workload, and future plans.
- Advanced reporting, job costing, automation in higher plans
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. After using Xero for a period of time, I now prefer it over QuickBooks”
The platform provides detailed tax categorization, supports multiple tax 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. It works well for subscription businesses and also offers clear reports on recurring income. 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.
QuickBooks supports scaling through detailed features, advanced reporting, what are the three types of accounts and stronger workflows. QuickBooks is stronger for businesses that handle stock, variants or detailed tracking. Whereas, you may go after QuickBooks if you need more advanced tools and expect your business to grow into a more complex operation. It offers deeper features, more customization, and stronger reporting. Additionally, it covers the core tasks most small businesses need, such as invoicing, tracking money in and out, and managing basic records.
It’s best to consult an accounting software expert to ensure a smooth transition. Need help setting up or migrating toX Xero accounting software? So, consider the following factors when choosing the right accounting software for you. When comparing Xero vs QuickBooks in 2025, it’s clear that both are powerful cloud accounting platforms but the right choice depends on your specific business needs. For businesses with fewer users and a preference for an what you need to know about the 4 types of income all-in-one platform that works well on the go, QuickBooks provides the edge in convenience and mobile usability.
For businesses needing in-house payroll management, QuickBooks is often the better choice. Xero integrates well with platforms like Peppol and Invoici (especially relevant in Malaysia), while QuickBooks offers built-in tools to manage VAT, GST, and sales tax depending on your country. 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.
In practice, this means you can maintain your current tech 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. The platform automatically handles exchange rate fluctuations and provides clear reporting in your base currency. Project tracking and analytics in higher tiers