Xero vs. QuickBooks: Which is the right choice for your business?

Choosing the right accounting solution is an important decision that can directly impact your business’s financial health and bookkeeping accuracy. Given the wide range of choices available, finding the best fit for your business can be challenging. 

The best accounting software platform is one that meets your needs, whether you’re looking for a solution that’s easy to use, offers advanced features, or is cost-effective. Xero and QuickBooks by Intuit are two top accounting software platforms popular with small business owners and finance managers, and each has its advantages. 

QuickBooks combines an intuitive interface with powerful features, making it a go-to for small businesses that need detailed reporting, advanced inventory management tools, and access to bookkeeping support. On the other hand, Xero stands out for its affordability, unlimited users, and strong multi-currency support, which make it ideal for growing teams and international collaboration. Xero also integrates easily with third-party apps.

In this article, we’ll compare Xero vs. QuickBooks to help you find the right accounting software for your business. Discover features, ease of use, key differences, and more.

What is Xero?

Founded in 2006, Xero is a cloud-based accounting software solution tailored for small to mid-sized businesses (SMBs) operating globally. In addition to multi-currency accounting, Xero’s invoicing feature integrates with global payment processors like Stripe and payroll platforms like Gusto. A centralized accounting dashboard gives your team an overall view of your company’s financial performance. 

Xero key features 

Bank feeds

Xero’s bank feed feature provides a secure, automated connection between your company’s bank accounts and the platform. The feature ensures bank account activity is automatically transferred to Xero daily, eliminating the hassle of manual data entry and time-consuming uploads. 

Bank reconciliation

Xero’s real-time data imports simplify bookkeeping and reconciliation, giving you accurate, up-to-date financial information for your business.

Sales tax management

Xero’s sales tax management calculates, tracks, reports, and files sales tax on your transactions, using the latest rates across multiple jurisdictions. This allows you to automatically determine the correct tax rate based on where goods or services are sold, generate comprehensive sales tax reports, and take advantage of e-filing (where available), significantly reducing manual effort and the risk of errors.

Multi-currency accounting (on some plans)

Xero’s multi-currency accounting feature, available on select plans, lets you invoice, pay, and accept payments in over 160 currencies with real-time exchange rate updates and automatic conversions. Xero tracks currency gains/losses, offers real-time reports in local and foreign currencies, and simplifies international invoicing and other transactions for US businesses with global clients and suppliers.

Xero use cases

Xero is a good fit for US-based small businesses that need accounting tools, basic inventory management and tracking tools, low costs, and unlimited user access. Companies that want to manage finances, control cash flow, and collaborate online with accountants or bookkeepers, without worrying about per-user fees, will find Xero’s cloud-based platform a helpful option.

What is QuickBooks?

Introduced back in 1992, QuickBooks by Intuit became one of the most popular accounting software options for small businesses due to its ease of use and robust accounting features. Over the years, it has evolved into a comprehensive suite of tools that includes payroll, tax prep, business payments, and expense tracking and reporting. 

QuickBooks offers cloud-based and desktop solutions to help businesses simplify bookkeeping, automate accounting workflows, and access real-time insights into financial performance. QuickBooks is a capable software solution for small businesses and entrepreneurs who want to keep their finances organized without requiring deep accounting knowledge.

QuickBooks key features

Transaction tracking tags

QuickBooks lets users create customizable transaction tags, such as invoices and expenses. These tags let businesses track specific projects, campaigns, or departments, providing insights into how money is earned and spent. The tags don’t affect the actual accounting records but help give a clearer picture of company finances. 

Inventory management and tracking

Intuit’s QuickBooks tracks inventory in real time, giving businesses that sell physical products real-time insights on stock levels and cost of goods sold. Inventory management tools help companies avoid low stock, over-ordering and other inventory management challenges. 

Payroll integrations 

QuickBooks integrates with popular payroll platforms, enabling organizations to automate employee payments, tax withholdings, and payroll reporting. This integration ensures payroll data flows directly into accounting records, saving time and reducing errors. For an additional fee, QuickBooks offers its own payroll solution.

Expense management and receipt capture

QuickBooks expense management enables employees to submit expense claims digitally. Users can upload receipts from their phone or computer, sort expenses into categories, and keep track of reimbursements. 

Automated bank feeds and reconciliation

QuickBooks links directly to business bank accounts and credit cards, automatically importing transaction details. It then categorizes and matches these activities, reducing manual data entry and simplifying bank reconciliation and bookkeeping. 

QuickBooks use cases

QuickBooks is an effective accounting software solution for businesses looking for a user-friendly platform with dependable telephone support, something not every competitor offers. Small businesses needing a straightforward way to claim expenses will find QuickBooks' digital expense management tools helpful, as they simplify the process of submitting, approving, and tracking expenses for both employees and managers.

QuickBooks vs. Xero at a glance

QuickBooks and Xero each offer a mix of essential features and scalability. Here’s how the accounting software solutions compare:

QuickBooks vs. Xero: 6 differences 

Choosing between Xero vs. QuickBooks can impact how your small business manages its finances. While both accounting software platforms offer similar tools, they differ in several key areas. Here’s a closer look at the differences between Xero and QuickBooks features. 

Support

QuickBooks stands out for its comprehensive customer support, offering 24/7 live chat and scheduled phone support across all plans. In contrast, Xero does not provide direct phone, email, or live chat support. Instead, users submit a request and wait for a callback, which can slow down issue resolution. 

Integration capabilities

Xero leads in integration flexibility, supporting over 1,000 third-party app integrations, including popular tools like HubSpot, Stripe, and Shopify. QuickBooks, while strong in this area, offers around 750 integrations. This broader ecosystem makes Xero a better choice if your business depends on various tech tools or plans to grow by adding new ones.

Customization

QuickBooks offers more advanced customization, especially in areas like reporting and workflow automation. You can customize transaction categories, generate detailed reports, and automate more bookkeeping tasks. Xero offers some customization but is generally less flexible, which could be a limitation for businesses with unique or complex needs.

Ease of use

QuickBooks is built with small business owners in mind, offering a modern interface and easy navigation. Xero’s interface is similarly minimalist, but some users find its advanced features harder to learn, especially those using accounting software for the first time. 

User access and permissions

Xero allows unlimited users on all its plans, making it a good fit for organizations with larger teams or multiple accountants. QuickBooks, on the other hand, restricts user numbers based on your subscription tier. If collaboration is a priority for your business, Xero provides greater flexibility. 

International features and compliance

Xero is a good choice for global businesses, offering built-in multi-currency support and International Financial Reporting Standards (IFRS) compliance. QuickBooks is a good fit for US-based businesses as it aligns with Generally Accepted Accounting Principles (GAAP) and offers integrations for US tax filing. QuickBooks’ US compliance is helpful for companies operating only in the United States, while Xero’s cross-border features benefit organizations with global clients or plans to expand internationally. 

QuickBooks vs. Xero: Pros and cons

Deciding which accounting software platform is best for your company can be overwhelming. However, stepping back and looking at the pros and cons of each solution can help you make the right decision. Let’s explore the benefits and limitations of Xero and QuickBooks: 

Xero

Pros

• Supports unlimited users on all plans, making it cost-effective for teams of any size.
• Integrates with over 1,000 third-party apps and services.
• Features a simple, intuitive layout that streamlines navigation and bookkeeping tasks.
• Offers advanced GL (general ledger) controls and simplified invoicing to ease transaction and billing management.
• Ensures strong data protection and reliability. 

Cons

• Limited tax tools, lacking features needed for some businesses with complex tax requirements.
• Limited time tracking, available only on the highest-tier plan.
• Limited customer support, with no direct phone access and request-based service, leading to potential delays.

QuickBooks

Pros

• Diverse plan options to meet the needs of businesses, from solo entrepreneurs to growing companies.
• 24/7 phone support offering immediate assistance for urgent issues.
• Time tracking included in all plans to support businesses monitoring billable hours or employee time.
• Industry-standard status recognized by accountants and financial professionals.
• Advanced reporting and automation features provide real-time financial insights and efficient bookkeeping.

Cons

• Limitations on entry-level plans, such as fewer users and restricted features, may not suit scaling companies.
• Limited customer support, with users reporting slow or unhelpful responses despite 24/7 availability.
• File size and transaction number limits, which can hinder scalability for businesses with high transaction volumes.

Xero vs. QuickBooks: Which is better?

Considering the needs and goals of your business will help you determine which software platform is the best fit. Both options have their benefits and drawbacks. 

QuickBooks Online (QBO) offers task automation, detailed reporting, and advanced payroll features. Its tools support complex accounting requirements, customization, and collaboration with accountants and finance experts. QuickBooks is a good choice for US-based businesses that require a more comprehensive accounting and financial management solution. 

Xero focuses on simplicity and teamwork, offering unlimited users and integration with a variety of business applications. Xero features intuitive invoicing, simple bank reconciliation, and flexible third-party payroll options that make it a good fit for businesses looking for an easy-to-use platform. Both platforms handle core accounting and bookkeeping tasks easily, but QuickBooks leans toward advanced features, while Xero emphasizes user-friendliness and scalability.

Streamline your business finances with Rippling

Xero and QuickBooks offer solid bookkeeping and accounting features and add-ons to help small businesses manage their finances. But if you’re looking for a truly end-to-end spend solution, one that easily syncs finance, HR, and IT, look no further than Rippling.

Rippling's spend management software gathers all of your company spend—expense reimbursements alongside vendor bills, payroll, and corporate cards—under the same roof, giving you unprecedented control over every finance stream. With Rippling Spend, you can create customizable reports, approval chains, and policy enforcements—all in an intuitive platform.

Because Rippling uses employee data to link finance with the rest of your employee management processes—across HR and IT—company spend policies will automatically apply to new employees as soon as they onboard and automatically adjust if they ever change roles. Rippling can also automatically assign and send a corporate card and pre-configured laptop to new employees once they sign an offer letter. 

In addition to more automations, Rippling’s unified hub of employee data gives companies vast control over their spend. You can customize hyper-granular policies based on an employee’s role, department, and other attributes and authorize purchases based on vendor, type of transaction, and amount. 

For businesses looking for a scalable and centralized solution, Rippling is a powerful upgrade in accounting software. It’s ideal for accountants and finance managers who want real-time visibility into spending and headcount, without having to juggle multiple platforms.

Xero vs. QuickBooks FAQs

Can I switch from QuickBooks to Xero?

Yes. Xero simplifies the process by offering a free conversion tool for businesses using QuickBooks 2007 or later (single currency, file size under 1GB). The process involves preparing your QuickBooks data, signing up for Xero, and uploading your QuickBooks file. After the conversion, you’ll have access to your transactions in Xero. Be sure to review and reconcile your data to ensure accuracy.

What’s the main difference between Xero and QuickBooks?

The main difference is that Xero allows unlimited users on all plans, while QuickBooks by Intuit limits the number of users depending on the plan. 

Do Xero and QuickBooks offer mobile apps?

Both Xero and Intuit’s QuickBooks accounting solutions offer mobile apps for Android and iOS. These apps let you send invoices, track expenses, view financial reports, reconcile transactions, manage bills, and more. Both apps sync with their respective web platforms, allowing you to stay on top of your business finances from anywhere. Most of QuickBooks and Xero’s competitors offer mobile apps as well. 

How do Xero and QuickBooks accounting software solutions help small businesses and bookkeepers manage invoices, cash flow, and bank reconciliation?

Xero and QuickBooks are user friendly, cloud-based accounting software solutions that make it easy for small businesses and bookkeepers to handle invoices and track cash flow. Both platforms support fast bank reconciliation, helping your bookkeeper keep records accurate and up-to-date. Whether your business needs simple invoicing or advanced cash flow management, these user friendly tools adapt to your business needs and streamline bank reconciliation.

This blog is based on information available to Rippling as of May 15, 2025.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.