Xero vs QuickBooks: Accounting Software Comparison 2025 

When it comes to managing small business finances, Xero and QuickBooks consistently top the list of the best accounting software solutions. Both are widely trusted by small and medium-sized businesses (SMBs) for tasks like tracking income and expenses, managing payroll, filing taxes, generating reports, and overseeing inventory.

While the two platforms offer many similar core features, they also have important differences that can significantly impact your decision depending on your business needs. In this guide, we’ll break down the key similarities and distinctions between Xero and QuickBooks to help you confidently choose the right software for your business in 2025.

Xero vs QuickBooks: Quick Overview at a Glance

Both Xero and QuickBooks are cloud-based accounting software solutions trusted by small and medium-sized businesses (SMBs) globally. While they offer a wide range of similar core features such as invoicing, reporting, and bank reconciliation, they are different in pricing, user access, and automation capabilities.The comparison table below provides a high-level summary to help you quickly grasp how these platforms stack up in 2025.

Check out the list of 8 Best Accounting Software in 2024 

Xero Vs. QuickBooks Overview Comparison

Feature Comparison: Xero vs QuickBooks in 2025

Choosing between Xero and QuickBooks can be tricky, as both platforms deliver strong core features tailored for SMBs. Here’s a deep dive into how they stack up across essential accounting functionalities.

1. Accounting, Invoicing & Expense Management

Shared features: Both Xero and QuickBooks support essential accounting functions such as invoicing, expense tracking, tax management, and bill payment, enabling SMBs to maintain healthy cash flow and compliance.

Xero’s advantage: Integrates with Gusto for full-service payroll processing, ideal for businesses already using Gusto or seeking external payroll partners.

QuickBooks’ advantage: Offers native payroll options directly within the software for businesses preferring built-in features.

2. Bank Connectivity & Automation

Shared features: Automatic bank feeds and real-time reconciliation capabilities simplify bookkeeping. Both platforms help reduce manual entry and accounting errors.

Xero: Connects with over 21,000+ financial institutions globally. Average time saved: 5.5 hours/week.

QuickBooks: Supports banks in 33 countries. Average time saved: 10 hours/week, making it slightly more efficient for businesses with frequent transactions.

3. Reporting & Dashboard Comparison

Xero: Provides customizable dashboards and standard financial reports such as P&L, cash flow, and tax summaries. However, the UI lacks polish and is more functional than visually refined.

QuickBooks: Offers cleaner, more intuitive dashboards, with drag-and-drop widgets and deeper customization, making it easier to navigate and monitor finances at a glance.

4. Integrations & Automation

Xero: Connects with over 600+ third-party apps, including Hubdoc, Stripe, and Fathom. Automation includes recurring transactions and basic workflow rules.

QuickBooks: Offers 750+ integrations, including popular tools like Expensify, BILL, and PayPal. The automation builder is more intuitive, with premade workflow templates that simplify setup.

5. File Storage & Document Management

Xero: Excels in document organization with a centralized file library. Users can attach files to transactions and upload receipts via mobile with ease.

QuickBooks: Allows file uploads per transaction, but lacks a central file manager, making document retrieval slightly less streamlined.

6. Mobile App Features & Usability

Both platforms support invoicing, receipt scanning, and transaction reconciliation on the go via iOS and Android apps.

Xero: Offers a clean interface and strong mobile functionality but lacks advanced mileage tracking.

QuickBooks: Stands out with GPS mileage tracking, automatic trip logging, and detailed mileage reports, an edge for businesses with frequent travel needs.

Pricing & Plan Comparison: Xero vs QuickBooks in 2025

Pricing is one of the most critical factors for small and medium-sized businesses (SMBs) choosing accounting software. Both Xero and QuickBooks offer tiered plans but the difference in user limits, add-on costs, and value per dollar can heavily influence your decision.

Xero Pricing Plans (All include unlimited users)

• Early – $20/month
  (Best for freelancers or microbusinesses. Includes basic invoicing and bank reconciling.)
  
• Growing – $47/month
  (Ideal for growing businesses needing bulk invoice sending, bill tracking, and multiple bank accounts.)
  
• Established – $80/month
  (Great for mature businesses needing multi-currency support, expense claims, and project tracking.)

QuickBooks Online Pricing Plans (User limits apply)

• Simple Start – $35/month
  (1 user + accountant. Best for solo entrepreneurs.)
  
• Essentials – $65/month
  (3 users + accountant. Includes time tracking and bill management.)
  
• Plus – $99/month
  (5 users + accountant. Adds inventory tracking and project profitability.)
  
• Advanced – $235/month
  (25 users. Includes analytics, custom workflows, and advanced reporting.)
  

Additional Costs to Consider

Which Plan Fits Your Business Best?

Who Should Choose Xero?

Xero is the smart choice for businesses that require collaborative accounting tools without breaking the bank. With unlimited users on all plans, it’s particularly well-suited for SMBs that have internal finance teams or multiple team members involved in bookkeeping.

Xero is best for:

• Contractors managing multiple projects and client billing
• Retailers needing inventory and payment integrations
• Marketing and creative teams handling client expenses and invoices
• SMBs with in-house accounting staff that need multi-user access

 Xero’s key strengths

• Lower cost compared to QuickBooks at each tier
• Unlimited user access across all plans
• Robust project tracking and time billing tools
• Superior file/document management with centralized storage
• Seamless Gusto payroll integration

For growing businesses that collaborate on accounting tasks or require strong documentation features, Xero delivers powerful tools at a competitive price.

Who Should Choose QuickBooks?

QuickBooks Online is ideal for businesses seeking an intuitive, out-of-the-box experience with a polished user interface and mobile-first functionality. While it comes at a higher cost and user limits per plan, it shines in areas like built-in payroll and advanced mobile tracking.

QuickBooks is best for:

• Solo entrepreneurs and solopreneurs managing their own books
• Small professional service teams, such as legal or consulting firms
• Restaurants and food service businesses tracking inventory and tips
• Field service teams needing GPS-enabled mileage tracking and mobile invoicing

QuickBooks’ key strengths:

• User-friendly interface and aesthetically clean dashboards
• Native payroll support with multiple tiers
• Top-rated mobile app with mileage tracking and real-time updates
• Extensive app integrations (750+)

For businesses with fewer users and a preference for an all-in-one platform that works well on the go, QuickBooks provides the edge in convenience and mobile usability.

Final Recommendations 

When comparing Xero vs QuickBooks in 2025, it’s clear that both are powerful cloud accounting platforms but the right choice depends on your specific business needs.

Choose Xero if:

• You have an in-house accounting team or multiple users needing access.
• You want to keep costs low without sacrificing functionality.
• You need robust document management, project tracking, and scalable features.
• You prefer Gusto payroll integration rather than native payroll options.

Choose QuickBooks if:

• You’re a solo entrepreneur or operate a small team.
• You want built-in payroll options and an intuitive interface.
• You rely on a mobile-first accounting experience and mileage tracking.
• You prefer a dashboard that’s visually polished and highly customizable.

There’s no one-size-fits-all solution—your best accounting software depends on how your business works. So, consider the following factors when choosing the right accounting software for you. 

• Team size and collaboration needs
• Preferred UI/UX and automation flexibility
• Mobile usage and third-party integration demands
• Budget constraints and pricing structure

Both Xero and QuickBooks offer 30-day free trials, so we highly recommend testing both platforms with your real workflows before committing.

Check out the list of 8 Best Accounting Software in 2024

Conclusion

In conclusion, both Xero and QuickBooks offer robust features tailored for small and medium-sized businesses, but the best choice depends on your specific needs—Xero is ideal for teams seeking unlimited users and cost-effective project tracking, while QuickBooks excels for solo entrepreneurs and small teams needing built-in payroll and a polished mobile experience. To make an informed decision, we recommend trying both platforms through their free 30-day trials. 

Need help setting up or migrating toX Xero accounting software?

Our team of experts can help you with the whole process. Talk to FastLane’s Xero-certified experts today and streamline your business finances with confidence. Contact us for a consultation! 

Frequently Asked Questions (FAQs)

1. Can I switch from Xero to QuickBooks or vice versa?

Yes, both Xero and QuickBooks allow data migration between platforms. You can export and import key data such as contacts, invoices, and reports. However, some data may need to be transferred manually or with third-party tools. It’s best to consult an accounting software expert to ensure a smooth transition.

2. Is Xero better suited for startups?

Xero is an excellent choice for startups, especially those planning to scale quickly or work with internal accounting teams. With affordable entry pricing, unlimited users, and robust project tracking and document management features, Xero offers high value for cost-conscious early-stage businesses.

3. Do both platforms support e-invoicing and tax compliance?

Yes, both Xero and QuickBooks support e-invoicing, digital receipt capture, and compliance with local tax regulations. Xero integrates well with platforms like Peppol and Invoici (especially relevant in Malaysia), while QuickBooks offers built-in tools to manage VAT, GST, and sales tax depending on your country.

4. Which software offers better payroll and tax reporting features?

QuickBooks has the edge here with its native payroll system, offering tiered payroll plans and automatic tax calculations. Xero integrates with Gusto for payroll, which is reliable but may involve extra costs and setup. For businesses needing in-house payroll management, QuickBooks is often the better choice.

5. Can I use these platforms without an accountant?

Yes, both Xero and QuickBooks are designed to be user-friendly for non-accountants. That said, some accounting tasks—like year-end reporting, tax filing, or setup—may still benefit from a professional’s guidance. If you want peace of mind, consider outsourcing to a certified advisor.