Xero vs Quickbooks: Which is better? (2023)

Xero and Quickbooks are some of the most popular accounting softwares on the market. Both have scalable plans and fit businesses of all sizes. Yet, there are some key differences. In this guide, we point out the main differentiators.

Xero vs Quickbooks

You’ve set up your business and sold your first items. Now it’s time to create an invoice to record the sale or the expense.

Quickbooks and Xero are both popular invoicing and accounting software for small and medium-sized businesses. Xero has 3,5 million subscribers worldwide, whilst Quickbooks Online has more than 5 million users.

If you’re short on time, the following table provides you with an overview of what distinguishes the systems’ most popular plans and which is the most affordable. In this example, we compare Quickbooks Essentials and Xero Growing.

	Quickbooks	Xero	Conta
Monthly fee	$55	$37	$0
Type of software	Accounting and invoicing	Accounting and invoicing	Invoicing
Email and PDF invoicing	Yes	Yes	Yes
Recurring billing	Yes	Yes	Coming soon!
Automated payment follow ups	Yes	Yes	Coming soon!

If you’re looking for an easy-to-use invoicing solution, you should consider using Conta. Conta is a free online invoicing software for small and medium-size businesses.

Sign up for Conta – it’s free!

QuickBooks

What functionality does QuickBooks have?

Launched in 2001, Quickbooks was one of the first online accounting softwares on the market.

Quickbooks is a powerful accounting software with all the functionality you need to run a business. The software has no usage limits or other hidden costs. Furthermore, Quickbooks has several plans, allowing you to scale the software to your needs.

On PC and Mac, you will access Quickbooks through your browser. The software also has its own mobile app for Android and iOS.

Quickbooks pros and cons

Reasons to choose Quickbooks:

• No usage limits
• Great online help resources
• Files VAT returns directly to HMRC
• Connect to your business bank account and track payments in real-time
• Visualize data, key metrics and KPIs on your dashboard

Disadvantages of Quickbooks:

• Creating invoices is not as intuitive as in other software
• Expensive payroll module: Starting at $45/month

Quickbooks pricing

Quickbooks starts at $30/month. In Quickbooks’ most basic plan, Simple Start, you get access to powerful accounting tools and invoicing functionality, but you’re limited to one user.

If you need to connect the software to more than one third-party software, include more users, connect the software to your bank account or use QuickBooks time tracking module, you will have to upgrade to the Essentials plan, which costs $55/month.

Quickbooks also has more advanced plans for larger companies. With the Plus plan, which costs $85/month, you will get access to inventory and project modules. The most complex plan, Advanced, includes features such as employee expenses and data restoration.

How to use Quickbooks

This video gives you an overview of Quickbooks, its functionality, look and feel:

Other people’s experience with Quickbooks

In GetApp, Quickbooks Online gets 4,3 of 5 stars.

Among the most positive reviews, Quickbooks’ good customer support is often highlighted. Their interface also gets a lot of compliments.

Negative reviews tend to point out that Quickbooks increase its price every sixth month and that email invoices sent via Quickbooks tend to end up in the recipient’s spam folder.

See also: The Best Quickbooks Alternatives (free and paid)

Xero

What functionality does Xero have?

Xero is a cloud-based accounting software which launched in 2006 in New Zealand. Today, Xero has 3,5 million users in over 180 countries.

Xero is easy to set up and has a simple interface. Invoicing is quick and easy and can either be done in the browser or in Xero’s mobile app for iOS and Android.

Managing expenses and bills is also easy. Note that you need at minimum the Growing plan to create an unlimited number of invoices. Furthermore, you need an Established plan to scan receipts with your phone.

Xero pros and cons

Reasons to choose Xero:

• Easy and affordable accounting software for small and medium businesses
• Simple and intuitive invoicing interface
• Manage expenses effortlessly
• The most advanced plan costs $70, which is significantly cheaper than Quickbooks
• Payroll for $5/month for up to five people

Disadvantages:

• Multi-currency support is only included in the most expensive plan
• Scanning receipts is limited to the most expensive plan

Xero pricing

The average plan in Xero is significantly cheaper than in Quickbooks. Yet, you’re more likely to end up paying more in Xero because the most popular plan (Growing) has less functionality than Quickbooks’ most popular plan (Plus).

Xero’s Early plan starts at $13/month. With this plan, you’re limited to 20 invoices and 5 bills per month. To get access to an unlimited number of transactions and bulk reconciliation, you have got to pick the growing plan, which costs $37/month.

The growth plan does not support multiple currencies, project accounting or employee expense claims, which means that you will have to choose the Established plan, currently $70/month, if this is something you need.

How to use Xero

In this video, Accounting Stuff shows you how to use Xero:

Other people’s experience with Xero

Xero has 4,4 out of 5 stars in GetApp.

The software gets a lot of positive feedback for its automation functionality. For instance, every day the software automatically matches bank transactions with transactions in your ledger. It also guides you through creating new transactions in Xero when they are missing. Xero also has a big portfolio of integrations, which gets a lot of positive feedback.

A downside that’s often mentioned in reviews, is that you can’t send invoices from your email address, which is possible in Quickbooks. The customer service department also gets some negative feedback for its response time.

Conclusion: Is Xero better than Quickbooks?

If you’re in need of accounting functionality, Xero and Quickbooks are good options.

Both softwares have satisfied customers and a score above 4,3 in GetApp. Quickbooks tends to include more functionality in their cheaper plans, such as multi-currency support and receipt scanning, whilst Xero’s most advanced plan is cheaper than Quickbooks’ most feature-rich plan.

We recommend that you create a list of all your needs and choose the software than can deliver the features you need at the lowest cost.