Xero VS QuickBooks Comparison 2023

Xero and QuickBooks Online are two popular accounting software options for small business owners. To help you choose, we’re putting these two accounting solutions head-to-head in this Xero vs. QuickBooks comparison.

We’ve done the research and tested the software. We’ll compare Xero and QuickBooks Online, looking at factors such as features, pricing, and customer reviews. Keep reading to find the right accounting software solution for your business.

Xero VS QuickBooks Comparison Summary

Xero and QuickBooks Online are both cloud-based software with accounting features you’d expect like invoicing and inventory management. However, Xero stands out for its strong security and supported users, while QBO is easier to use and has better mobile apps.

Xero Quick Overview

Xero is strong cloud-based accounting software that supports cash-basis and accrual accounting. It also utilizes double-entry accounting. Xero has hundreds of integrations, mobile apps for Android and iPhone users, and accounting features that make it easy to track the financials of your business and keep your books balanced. Xero supports unlimited users and grows with your business, making it a more suitable choice for mid-to-large-sized businesses. Some small businesses may also benefit from using Xero but may find that the learning curve of the software and the limitations of Xero’s lowest-cost plan may not be worth the time and expense.

QuickBooks Quick Overview

QuickBooks Online is very similar to Xero in that it is cloud-based software that uses double-entry accounting and supports cash-basis and accrual accounting methods. QBO also has a strong feature set, solid mobile apps, and hundreds of integrations. QuickBooks Online is easy to use, so it’s a good choice for beginners. This software is best suited for small businesses, although its Advanced Plan that supports up to 25 users does make it a viable option for larger businesses.

What’s The Difference Between Xero & QuickBooks Online?

Both QuickBooks and Xero are cloud-based programs that boast robust accounting features. However, QuickBooks Online stands out for its ease of use and mobility, while Xero has stronger security and supports unlimited users at no additional cost.

Both Xero & QuickBooks Online Offer…

Only Xero Offers…

Only QuickBooks Online Offers…

Xero VS QuickBooks Pricing

Xero offers three pricing plans that range from $12/month to $65/month. All plans support unlimited users. Unfortunately, the lowest-priced Xero plan is quite limited, allowing users to enter only five bills and send 20 invoices per month. While this may be suitable for independent contractors or self-employed individuals, most users will need to upgrade to one of the more expensive plans, which include unlimited invoices and additional features. A 30-day free trial is available to test out the software. Discounts are available for nonprofits and users that own multiple businesses.

QuickBooks Online has four pricing plans ranging from $30/month to $200/month. The more expensive QuickBooks plans include additional features and users. QBO frequently runs discounts for new users. A 30-day trial is available. However, if you take advantage of this trial, you will not be able to receive a new user discount, so choose wisely.

Xero VS QuickBooks Features

Neither Xero nor QuickBooks Online is lacking when it comes to features. Both have basic accounting features, including invoices, estimates, bank reconciliation, expense tracking, and journal entries. With both programs, advanced features like time tracking and inventory management are available on select plans. Both also have robust reporting capabilities.

There are a handful of differences between the features of QuickBooks Online and Xero. Xero has a more impressive contact management feature with smart lists for targeting specific customers. However, QuickBooks Online offers features you won’t find with Xero, such as mileage tracking and built-in lending. QBO also has stronger invoicing. Be sure to check out our comprehensive reviews of Xero and QuickBooks Online for more details on available features.

Which Accounting Software Do Users Like Better: Xero Or QuickBooks?

Both QuickBooks Online and Xero have online reviews from current and past users. However, QBO has a significantly higher number of reviews. For example, QuickBooks Online has 2,800+ reviews on G2 versus Xero’s 470+ reviews. Despite having more reviews, QBO’s overall ratings from users are on-par with (and in some cases, even exceed) Xero’s ratings.

While reviews for both programs are mainly positive, there are a number of serious issues that multiple users cited in their complaints. For Xero, the unintuitive UI was mentioned numerous times, and some users warned that beginners with no prior accounting experience may struggle with the clunky interface. Several users also complained about Xero removing features (such as built-in payroll) yet continuing to increase monthly subscription costs.

The biggest issue with QBO, according to reviewers, is customer support — or the lack thereof. Numerous reviews claim that customer support is unhelpful, with multiple users spending hours talking to representatives only to receive no resolution to seemingly minor issues.

Which Is Best For My Business Needs: QuickBooks Or Xero?

When choosing between QuickBooks Online or Xero, keep in mind the size of your business, your experience with accounting software, and the number of users your business will have.

Choose QuickBooks Online If…

Choose Xero If…

Xero VS QuickBooks Comparison: The Final Verdict

Both QuickBooks Online and Xero are good accounting solutions, but the right software is going to depend on your company’s budget and feature needs.

QuickBooks Online is full-featured accounting software that is easy to use, even if you’re new to accounting. In addition to the standard accounting features you’d expect, QuickBooks Online also has advanced features, exceptional invoicing automatizations and customizations, and built-in lending. It also has mobile apps that, according to users, outperform other popular accounting software apps. QuickBooks Online has always been a great option for small businesses. With the addition of the Advanced plan, QBO is a good choice for larger businesses, as well. Check out our review of QuickBooks Online to learn more about this popular accounting software.

On the other hand, Xero may be the better choice for your business. Xero is strong accounting software that has everything you need to track the financials of your business. Some of its features really stand out, such as its customer management system. However, there is a steep learning curve with this software. If you don’t have the time to devote to learning the software, QuickBooks Online may be the better fit. Check out our full Xero review to determine if this software is a good fit.

Or, you may find that neither company meets your needs entirely. In that case, you may be better off with one of our top accounting software picks for small businesses.

Regardless of what route you choose, make sure to do your research and get hands-on with free trials to find the accounting software that’s right for your business. Good luck!

Xero VS QuickBooks FAQs