At a glance
| Feature | Xero | QuickBooks Online |
|---|---|---|
| Company | Xero (founded in New Zealand) | Intuit (US) |
| Strongest markets | UK, AU, NZ | US, CA, UK, AU |
| Bank feeds | Yes | Yes |
| Payroll | Varies by country/plan | Varies by country/plan |
| UK MTD for VAT | Supported | Supported |
| Price | Check current price | Check current price |
Ease of use
Both have modern dashboards and mobile apps. Users often describe Xero as clean and accountant-friendly, and QuickBooks as feature-rich with a lot of automation. The best test is a free trial with your own transactions: try raising an invoice, reconciling a week of bank data and running a profit and loss report in each.
Accountant ecosystem
Ask your accountant first. In the UK, Australia and New Zealand many practices specialize in Xero; in the US, QuickBooks is extremely widespread among accountants and bookkeepers. Using what your accountant knows can reduce fees and mistakes.
Integrations and add-ons
Both connect to large app marketplaces covering payments, e-commerce, inventory, CRM and payroll. If you rely on a particular tool — for example an e-commerce platform or point-of-sale system — check that it integrates well with your chosen package in your country.
Working with an accountant
Even with good software, many small businesses benefit from an accountant or bookkeeper, especially at year-end. Most cloud packages let you invite your accountant as a user, so they can review records, fix categorization and prepare returns without emailing spreadsheets back and forth. Ask your accountant which software they prefer — familiarity can save you money on their fees.
Invoicing and getting paid
Both packages let you create branded invoices, send automatic reminders and accept online payments through connected payment providers. Look at how each handles repeating invoices, quotes that convert into invoices, and customer statements. If you invoice in more than one currency, compare multi-currency support carefully, as it may depend on plan.
Reporting
Both offer standard reports such as profit and loss, balance sheet, aged receivables and cash summaries, with options to customize. If you need management reporting — budgets versus actuals, tracking by department or location — check which plan includes those features, and look at add-ons in each marketplace for more advanced dashboards.
Migration between the two
Moving between Xero and QuickBooks is a well-trodden path, and both ecosystems include conversion services and partners. The cleanest time to switch is at a year-end or quarter-end, after reconciling the old system. Expect to bring across opening balances, contacts, open invoices and bills; full transaction history may need a conversion tool or an accountant.
Who should choose which
- Xero if you are in the UK, Australia or NZ and your accountant uses it, or you value a clean interface and unlimited-user style collaboration (check current plan terms).
- QuickBooks Online if you are in the US or Canada, want deep feature coverage or your bookkeeper prefers it.
- Neither if you are a UK freelancer who might prefer FreeAgent — see FreeAgent vs Xero.
Find your best match in 60 seconds
Take our free chooser quiz, then estimate yearly costs with your own quotes in the cost calculator.
Take the quizFrequently asked questions
Is Xero or QuickBooks better?
Neither is universally better; it depends on your country, accountant and needs. Trial both.
Which is cheaper, Xero or QuickBooks?
Prices and promotions change often. Check both official pricing pages and use our cost calculator.
Can I switch from QuickBooks to Xero?
Yes; both offer conversion tools or partner services. Plan the switch at a period end.
Do both support Making Tax Digital?
Both support MTD for VAT in the UK; confirm current status on HMRC’s list.
Which do accountants prefer?
It varies by country and practice — ask yours.
Last reviewed: October 2026. General information only — check providers' official sites for current features and pricing.