Xero vs QuickBooks: which is right for you?
Comparing accounting software? Here's what sets Xero apart. Unlike QuickBooks, every Xero plan includes unlimited users at no extra cost. You also get 1000+ app integrations, automated bank reconciliation, invoicing, and expense tracking all in one place. See how Xero stacks up.
| Xero | QBO | |
|---|---|---|
| Subscription plan | Early Growing Established | Simple Start Essentials Plus Advanced |
| Unlimited Users | Unlimited | △ Each subscription has a restriction on the number of users. |
| Bank connections/bank feeds | ||
| Bank reconciliation | ||
| Auto bank reconcile | Supported in Growing & Established subscriptions via JAX. | Supported in Plus & Advanced subscriptions via Intuit Assist Agents. |
| Invoicing & quotes | Early limits to 20 invoices. All other subscriptions offer unlimited invoicing. | |
| Bill management | Early limits to 5 bills. All other subscriptions offer unlimited bills. | Supported in Essentials, Plus & Advanced subscriptions. |
| Online payments | ||
| Cloud based | ||
| Works on mobile | ||
| W-9 + E-File directly from platform | Optional add-on and E-Filing available for a fee. | |
| Payroll | Optional add-on via Gusto. | Optional add-on. |
| Sales Tax | ||
| Data capture | Free with Hubdoc. | |
| PDF statement import | △ | |
| Basic Inventory & tracking | Supported in Plus & Advanced subscriptions. | |
| Advanced inventory | Optional add-on via Inventory Plus in Growing & Established subscription plans. | Supported in Plus & Advanced subscriptions. |
| Manage fixed assets | Supported in Advanced subscription only. | |
| Foreign Currency | Supported in Established subscription only. | Supported in Essentials, Plus & Advanced subscriptions. |
| Expense and mileage tracking | Supported in Established subscription only. | Supported in Advanced subscription only. |
| Project tracking & profitability | Supported in Established subscription only. | Supported in Plus & Advanced subscriptions. |
| Advanced Business Intelligence & Financial Insights | All features powered by Syft are exclusive to the Established subscription; some are available in the Early and Growing subscriptions. | All features are exclusive to the Advanced subscription; some are available in the Essentials and Plus subscriptions. |
| Quick Online Bill Pay | Powered by Melio (ACH 3 Days: Pay vendors via CC) | QuickBooks Bill Pay (ACH 5 Days; CC not supported) |
| Onboarding & Migration | Xero Coaches (1st 90 Days) | Beta (1st 30 Days) |
| AI Agent (automate tasks and surface real-time insights) | JAX | Intuit Intelligence |
Note: (✓) indicates a strong capability, (✗) indicates a significant limitation, and (△) indicates a partial or conditional capability
Why small businesses choose Xero as a QuickBooks alternative
Every Xero plan includes unlimited users at no extra cost. Here's what makes Xero a smart switch from QuickBooks.
Connect to 1000+ app integrations
Xero's platform connects to 1000+ certified apps. Work with the tools you already use, all from one flexible platform.
Unlimited users on every plan
All Xero plans include unlimited users at no extra cost. Invite your team or advisor without worrying about fees.
Spend 50% less time chasing payments
Make it easier for customers to pay on time with convenient online payments and automated invoice reminders.
“Xero is a great tool for smaller entities to prepare their day to day accounting. After using Xero for a period of time, I now prefer it over QuickBooks”
Your finances, clear from day one
Xero's dashboard gives you a real-time view of your cash flow, outstanding invoices, and bank balances, all in one place. No digging, no guesswork. Whether you're new to accounting software or switching from Quickbooks, Xero makes financial reporting simple and actionable from day one.
- 88% of customers agree Xero helps improve financial visibility. (Xero survey, 2024)
- Customize the dashboard to track your most important metrics
- See a clear view of your cash flow to make easier decisions on your spending
Get paid faster with smarter invoicing
Xero helps you customize professional invoices and quotes. Get paid quickly with more ways for your customers to pay, and spend less time chasing payments with automated reminders. For freelancers, contractors, and self-employed professionals, Xero's invoicing tools are built to keep cash flowing.
- 81% of customers agree Xero's online invoice payments help them get paid on time.
- Send customized quotes and invoices, set up automated reminders, and accept payments via ACH debit or Klarna.
- Accept bank transfers or Tap to Pay on your phone, and use SMS invoicing to bill clients when a job is done.
Ready to switch from QuickBooks? We're here.
Moving your accounting software doesn't have to be complicated. Xero makes the switch from QuickBooks straightforward. With hands-on set-up help, easy steps, and clear answers, you can get up and running fast and use Xero with confidence.
Switch from QuickBooks
Features that set Xero apart from QuickBooks
Xero is built for small business accounting, whether you're a sole trader, freelancer, contractor, or a growing team. From unlimited users and open app integrations to automated bank reconciliation, here's a closer look at features that make Xero a compelling QuickBooks alternative.
1000+ app integrations to customize your workflow
Connect to 1000+ certified apps across payments, payroll, inventory, and more. Xero's open platform means you choose the partners you want.
Save time with automated bank reconciliation
Cut hours off your bookkeeping with automated bank feeds and easy document uploads. That's time back in your day.
Automated invoicing with more ways to get paid
Send invoices, automate payment reminders, and accept direct debit, bank transfer, or Tap to Pay, all from Xero. Less chasing, more doing.
Gusto payroll software that works with Xero
Run payroll with Gusto and manage 1099 contractor reports. Xero also covers 13,000 tax jurisdictions via Avalara for sales tax on invoicing.
Your Xero data can now connect to Claude
Xero’s live integration with Claude brings AI-powered financial insight directly to your small business. Ask Claude questions about revenue, cash flow, overdue invoices, and performance, and get clear, conversational answers based on your live Xero data. No spreadsheets, no switching tools.
- Available to all Xero subscribers on any business pricing plan
- Get insights on revenue and profit, contacts and receivables, and your overall financial and cash position
- Financial data shared between Xero and Claude is used solely for your session, not to train AI models
Our business is more complicated than you’d think. There’s a lot of moving parts and Xero has streamlined our business a ton. Having software that supports the tracking accounting process gives us a lot of confidence.
Hannah and Mollie, Must Love
FAQs: Xero vs QuickBooks for small businesses
The best accounting solutions for small businesses cover the essentials, like invoicing, bank reconciliation, expense tracking, cash flow management, and reporting, while being easy enough to use without an accounting degree. Xero ticks all of those boxes, and then some.
Every plan includes unlimited users at no extra cost, a real-time dashboard for financial visibility, and access to 1000+ app integrations so you can tailor the platform to your industry. Customized invoices and fast, simple bank reconciliation help reduce admin, and financial reports help you make smart business decisions.
Whether you're comparing Xero vs QuickBooks or evaluating accounting software for the first time, look for a platform that grows with you and doesn't charge you more as your team does.
The best accounting solutions for small businesses cover the essentials, like invoicing, bank reconciliation, expense tracking, cash flow management, and reporting, while being easy enough to use without an accounting degree. Xero ticks all of those boxes, and then some.
Every plan includes unlimited users at no extra cost, a real-time dashboard for financial visibility, and access to 1000+ app integrations so you can tailor the platform to your industry. Customized invoices and fast, simple bank reconciliation help reduce admin, and financial reports help you make smart business decisions.
Whether you're comparing Xero vs QuickBooks or evaluating accounting software for the first time, look for a platform that grows with you and doesn't charge you more as your team does.
Yes. Xero connects to 1000+ certified apps, covering payments, expense tracking, inventory, project management, e-commerce, and more. Everything syncs back to Xero, so your data stays accurate and up to date. Xero's flexible platform lets you connect the tools you already use, or the option to build your own connection. It's a great alternative to QuickBooks.
Yes. Xero connects to 1000+ certified apps, covering payments, expense tracking, inventory, project management, e-commerce, and more. Everything syncs back to Xero, so your data stays accurate and up to date. Xero's flexible platform lets you connect the tools you already use, or the option to build your own connection. It's a great alternative to QuickBooks.
Yes. Xero provides hands-on set-up help, easy steps, and clear answers to help you get up and running fast and use Xero with confidence. Beyond onboarding, support is available whenever you need it, plus a library of articles and resources from our Customer Experience team. If you're looking for ongoing expert advice, the Xero Advisor Directory connects you with certified accountants and bookkeepers who know Xero inside out.
Yes. Xero provides hands-on set-up help, easy steps, and clear answers to help you get up and running fast and use Xero with confidence. Beyond onboarding, support is available whenever you need it, plus a library of articles and resources from our Customer Experience team. If you're looking for ongoing expert advice, the Xero Advisor Directory connects you with certified accountants and bookkeepers who know Xero inside out.
Yes. Xero integrates with Gusto. Through the Gusto integration, you can calculate pay and deductions, manage 1099 contractor information reporting, and stay IRS-compliant — all connected to your Xero account.
Yes. Xero integrates with Gusto. Through the Gusto integration, you can calculate pay and deductions, manage 1099 contractor information reporting, and stay IRS-compliant — all connected to your Xero account.
Yes. Xero's reporting and analytics tools are designed to make tax preparation straightforward.
You can run customizable financial reports in Xero, including the Profit and Loss report, to get a clear view of your income, expenses, and profit. For sales tax compliance, Xero covers 13,000 US tax jurisdictions via Avalara, so the right rates are automatically applied to your invoices. Xero supports 1099 contractor information reporting, helping you stay on top of contractor obligations.
For more information on IRS requirements for businesses, visit the IRS business tax information page.
Yes. Xero's reporting and analytics tools are designed to make tax preparation straightforward.
You can run customizable financial reports in Xero, including the Profit and Loss report, to get a clear view of your income, expenses, and profit. For sales tax compliance, Xero covers 13,000 US tax jurisdictions via Avalara, so the right rates are automatically applied to your invoices. Xero supports 1099 contractor information reporting, helping you stay on top of contractor obligations.
For more information on IRS requirements for businesses, visit the IRS business tax information page.
Many users find Xero’s clean, intuitive interface simpler and faster to navigate than QuickBooks. From a quick setup process to streamlined workflows—like bank reconciliation you can approve with a single click—the platform is designed to minimize admin time and get you started with confidence. Backed by expert onboarding support, Xero is consistently rated highly by small business owners prioritizing day-to-day ease of use.
Many users find Xero’s clean, intuitive interface simpler and faster to navigate than QuickBooks. From a quick setup process to streamlined workflows—like bank reconciliation you can approve with a single click—the platform is designed to minimize admin time and get you started with confidence. Backed by expert onboarding support, Xero is consistently rated highly by small business owners prioritizing day-to-day ease of use.
Yes — all Xero plans include unlimited users at no extra cost. That means you can invite your whole team, your accountant, your bookkeeper, and any other collaborators without worrying about per-user fees. For small businesses that value collaboration and transparency, Xero's unlimited users is one of its most practical advantages.
Yes — all Xero plans include unlimited users at no extra cost. That means you can invite your whole team, your accountant, your bookkeeper, and any other collaborators without worrying about per-user fees. For small businesses that value collaboration and transparency, Xero's unlimited users is one of its most practical advantages.
Absolutely. Xero is an all-in-one platform that's easy to use, with tools purpose-built for freelancers and contractors. Send professional quotes and invoices, automate payment reminders, and accept multiple payment methods including ACH debit, Klarna, and bank transfers.
Expense tracking keeps your costs organized, and 1099 contractor reporting is supported through the Gusto payroll integration. Sales tax compliance across 13,000 US jurisdictions via Avalara means you're covered at tax time. And with the free Xero Accounting app, you can manage your essential business finances from anywhere — making Xero a strong QuickBooks alternative for the self-employed.
Absolutely. Xero is an all-in-one platform that's easy to use, with tools purpose-built for freelancers and contractors. Send professional quotes and invoices, automate payment reminders, and accept multiple payment methods including ACH debit, Klarna, and bank transfers.
Expense tracking keeps your costs organized, and 1099 contractor reporting is supported through the Gusto payroll integration. Sales tax compliance across 13,000 US jurisdictions via Avalara means you're covered at tax time. And with the free Xero Accounting app, you can manage your essential business finances from anywhere — making Xero a strong QuickBooks alternative for the self-employed.
Xero offers three business plans — Early, Growing, and Established. Every plan includes bank reconciliation, Hubdoc for paperless record keeping, financial reports, analytics, a real-time homepage dashboard, access to 1000+ app integrations, and unlimited users at no extra cost. QuickBooks Online structures its pricing differently, with user limits applied across all plans — meaning costs can increase as your team or advisory network grows. When comparing Xero vs QuickBooks pricing, it's worth factoring in the total cost of the users you need, not just the base plan price.
See Xero's pricing plans to find the right fit for your business.
Xero offers three business plans — Early, Growing, and Established. Every plan includes bank reconciliation, Hubdoc for paperless record keeping, financial reports, analytics, a real-time homepage dashboard, access to 1000+ app integrations, and unlimited users at no extra cost. QuickBooks Online structures its pricing differently, with user limits applied across all plans — meaning costs can increase as your team or advisory network grows. When comparing Xero vs QuickBooks pricing, it's worth factoring in the total cost of the users you need, not just the base plan price.
See Xero's pricing plans to find the right fit for your business.
Built for contractors, and the self-employed
When you work for yourself, every hour counts. Xero gives freelancers and contractors a powerful and easy-to-use toolkit, and a great Quickbooks alternative built around your way of working. Send professional invoices, track expenses, and manage 1099s with ease.
- Sales tax compliance across 13,000 US jurisdictions via Avalara means you're covered at tax time.
- With the free Xero mobile app, manage your finances on the go, wherever the job takes you.
Why accountants and bookkeepers choose Xero vs QuickBooks Online
Simplify your workflow and grow your practice with Xero. Every plan includes unlimited users so your team and clients can collaborate without extra cost. With intuitive tools, in-depth financial reports, and helpful support, Xero gives accountants and bookkeepers the power to scale their operations.
- Join over 250,000 accountants and bookkeepers using Xero Analytics Plus and our dedicated partner program.
- Experience a meaningful difference for your practice with tools completely designed for collaboration.
Pay your bills at no extra cost
Free standard ACH bill payments are now included in Xero business plans.*
Early
for the first 6 months
Then $25 per month
An easy financial foundation - track cash flow with the essentials.
- Send quotes and 20 invoices†
- Accept online invoice payments^
- 5 bills
- Reconcile bank transactions
- Smart Document Capture
- View real-time reports
- W-9 + 1099 management
- Sales tax
- Visualize performance with basic graphs
- 30 day cash flow forecast
- Make online bill payments†† (Free ACH)
Growing
for the first 6 months
Then $55 per month
Go beyond the basics - automate tasks and access performance dashboards.
- Send invoices and quotes
- Accept online invoice payments^
- Automate bill entry and track bills
- Auto-reconcile bank transactions (Beta)
- Smart Document Capture
- View real-time reports
- W-9 + 1099 management
- Sales tax
- Visualize performance with graphs
- 60 day cash flow forecast
- Make online bill payments†† (Free ACH)
- Customize performance dashboards
- Tailored financial health scorecards
Forecast with clarity
Forecast with clarity
Established
for the first 6 months
Then $90 per month
Future proof your scaling business - with advanced tools and analytics.
- Send invoices and quotes
- Accept online invoice payments^
- Automate bill entry and track bills
- Auto-reconcile bank transactions (Beta)
- Smart Document Capture
- View real-time reports
- W-9 + 1099 management
- Sales tax
- Visualize performance with graphs
- 180 day cash flow forecast
- Make online bill payments†† (Free ACH)
- Customize performance dashboards
- Tailored financial health scorecards
- Analyze KPIs and ratios
- Use multiple currencies
- Track time and costs for projects
- Employee expense and mileage claims
- Benchmark against the industry
Get one month free
Sign up to any Xero plan, and we will give you the first month free.
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See all Xero’s features
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*Fees apply for other payment methods.