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Note: As of May 31, 2024, Intuit has revamped its QuickBooks pricing and product structure. Support has ended for QuickBooks Desktop, QuickBooks Desktop Pro and QuickBooks Desktop Premier. New customers can still sign on for a yearly subscription to QuickBooks Desktop Enterprise.
Xero and QuickBooks are two the of most popular accounting software solutions for small businesses looking to keep track of finances. While the two both offer similar features, such as tax management, financial reports, integrated payroll, inventory and file storage, the two are not without their differences. Forbes Advisor compared Xero vs. QuickBooks when it comes to the key features, pricing, customer service and reviews to help you decide which is right for your business.
Featured Partners
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1
Sage Intacct
Cloud Financial Management
Yes
Multi-entity financial visibility
Yes
CRM, Payroll, POS Integrations
Yes
2
Xero
Starting price
Special Offer: 75% off for 6 months
Unlimited Users On All Plans
Yes
Free Trial
30 days
3
QuickBooks
Starting price
$15 per month (for the first 3-months, then $30 per month)
Free Trial
30 days
Key Features
Expert help, Invoicing, maximize tax deductions, track mileage
Xero vs. QuickBooks: At a Glance
QuickBooks is available both online and via desktop and is ideal for businesses that outsource their accounting tasks to a bookkeeper or accountant. This is because QuickBooks only allows up to 40 users for its highest-tiered plan, and even then, some plans require every user to pay for their own account. Meanwhile, Xero supports unlimited users. Xero is ideal for businesses that keep a team of bookkeepers or accountants in-house.
QuickBooks offers a more intuitive interface than Xero. This is because QuickBooks was designed for small businesses that might not have an accounting background, whereas Xero was designed with accountants and bookkeepers in mind. QuickBooks is also better for businesses that need to track inventory, as it has built-in inventory management features. Xero also has inventory management, but it’s not one of its core functions.
Xero is a better option for businesses that need to track project profitability. This is because Xero allows you to see how much each project is costing you in real time and compare that to your estimated profits. Xero is also a better option for businesses that are expanding internationally as it offers multicurrency support.
Xero
4.4
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Starting Price
$15 per month
(75 percent off for the first three months during current promotion)
Integrated Payroll
Yes (for an extra $40 per month)
Sales Tax Returns
Yes
On Xero's Website
$15 per month
(75 percent off for the first three months during current promotion)
Yes (for an extra $40 per month)
Yes
Editor's Take
Xero accounting software is a cloud-based system that helps small businesses manage their finances. This means it can be accessed from any internet-connected device. The software offers a variety of features, including invoicing, tracking expenses and creating financial reports. Xero also integrates with other business applications, such as payroll and inventory management systems. This makes it a versatile tool for small businesses that need to streamline their operations.
One of the advantages of using Xero is that it can save businesses time and money. With Xero, businesses can eliminate the need for paper records and reduce accounting fees. The software is also updated automatically, so businesses always have the latest features and security patches. Overall, Xero is an efficient and cost-effective way for small businesses to manage finances.
Plans start at $15 per month for up to 20 invoices, five bills, bank account reconciliation, receipt capture and short-term cash flow snapshots. For $42 per month, get unlimited invoices and bills. Its $78-per-month plan also includes multiple currencies, project tracking, in-depth analytics and employee expense claims. Starting at $40 per month, add payroll to any plan using Gusto.
Pros & Cons
- More affordable than QuickBooks
- Includes contact management
- Online file storage
- No long-term contract
- 24/7 online support
- Max. of 20 quotes and invoices per month with its lowest-tiered plan
- Payroll costs $40 per month extra
QuickBooks
4.3
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Starting Price
$35 per month
(50 percent off for the first three months during current promotion)
Integrated Payroll
Yes (for an extra $85 to $184 per month)
Sales Tax Returns
Yes
On QuickBooks' Website
$35 per month
(50 percent off for the first three months during current promotion)
Yes (for an extra $85 to $184 per month)
Yes
Editor's Take
QuickBooks is a popular accounting software used by small businesses, solopreneurs and freelancers. The software helps users to keep track of their finances, customers and vendors. It also allows users to create invoices and reports.
QuickBooks is available in both desktop and online versions. The desktop version is installed on a computer, while the online version is accessed through a web browser. QuickBooks Online includes all the components of the desktop version, plus additional features such as more app integrations, a fully functional mobile app and more attractive pricing. The Online plans start at $35 per month while the only current Desktop version, Enterprise, must be paid annually and start at $1,922 per year.
QuickBooks also offers Payroll, but this service is an additional fee starting at $45 to $125 per month.
Pros & Cons
- No contracts
- It’s popular, so your accountant probably uses it
- See cash flow up to 90 days ahead
- Instant deposits for no extra fee if using QuickBooks Checking
- It’s more expensive than Xero
- Limited users, and some plans require the users to pay for their own accounts
- Payroll costs $45 to $125 per month extra
How the Products Stack Up
Xero | QuickBooks | |
---|---|---|
Prices Start At | $15 per month (75 percent off for the first three months during current promotion) | $35 per month (50 percent off for the first three months during current promotion) |
Payroll Integration | $40 per month | $85 to $184 per month |
Capture and Organize Receipts | Yes | Yes |
Track Mileage | Yes | Yes |
Invoicing | Yes | Yes |
At-a-Glance Cash Flow Snapshot | Yes | Yes |
Maximum Users | Unlimited | Up to 40 |
Read Xero Review | Read QuickBooks Review |
Xero and QuickBooks have similar pricing, except when it comes to QuickBooks Desktop. Xero doesn’t have a desktop version. The Enterprise Desktop plan offered by QuickBooks starts at $1,922 per year.
With both companies, capture and organize receipts. Xero offers this through Hubdoc so you can access your documents online. QuickBooks offers receipt and document organization with its mobile app as well as the online version.
Track mileage, send invoices and get a snapshot of your business cash flow with both Xero and QuickBooks. While Xero’s lowest-tiered plan allows you to send and approve up to 20 invoices, partner apps that initiate transactions can automatically contribute to your limit. Its higher-tiered plans have no limits for invoices.
Another key difference between the two companies is the maximum number of users it allows. Xero has no limit to how many users can access data, whereas QuickBooks limits this to 40 with its Enterprise plan. Its lower-tiered plans require users to pay for their own plan.
Alternative Accounting Software Options
If you’re in the market for accounting software, you might be feeling overwhelmed by all the options out there. While Xero and QuickBooks are wildly popular, they’re not the only options available. There are a number of alternative accounting software programs that can offer powerful features and a user-friendly interface.
FreshBooks is one such option that has gained popularity in recent years. It’s designed specifically for small businesses and offers invoicing, time tracking and expense management.
Another option is Wave, which is a free accounting software program that includes invoicing, payroll, double-entry and sales tax tracking. Whatever your needs, there’s sure to be an accounting software program that’s a perfect fit.
Check out our list of the best accounting software.
Featured Partners
Advertisem*nt
1
Sage Intacct
Cloud Financial Management
Yes
Multi-entity financial visibility
Yes
CRM, Payroll, POS Integrations
Yes
2
Xero
Starting price
Special Offer: 75% off for 6 months
Unlimited Users On All Plans
Yes
Free Trial
30 days
3
QuickBooks
Starting price
$15 per month (for the first 3-months, then $30 per month)
Free Trial
30 days
Key Features
Expert help, Invoicing, maximize tax deductions, track mileage
Bottom Line
Xero and QuickBooks are both great accounting software options for small businesses. They both offer a wide range of features, an easy-to-use interface and competitive pricing. However, QuickBooks is best for businesses that outsource their accounting tasks to a bookkeeper or accountant while Xero is a better fit for businesses that need online accounting software and unlimited users.