In order to help you make an informed choice, this comparison contrasts Xero and QuickBooks Online for business accounting and invoicing, emphasizing their features and user preferences.
Both Xero and QuickBooks Online have pricing structures. Xero has a three-tier model while QuickBooks Online has a four-tier model. Both provide free 30-day trials but lack long-term evaluation plans.
Both Xero and QuickBooks Online are easy-to-use accounting programs with straightforward user interfaces, iOS and Android mobile apps that include essential functions like creating invoices, tracking expenses and capturing receipts.
Similar invoicing features are provided by Xero and QuickBooks Online, such as project-based billing, expense tracking and recurring billing automation. However, QuickBooks Online provides invoice templates that are customizable and align with branding.
With GoCardless for direct debit payments and competitive processing fees, Xero provides excellent integration flexibility and supports popular payment gateways like PayPal and Stripe. QuickBooks Online also integrates natively with Square.
While QuickBooks Online serves freelancers, SMBs and larger businesses through phone, live chat, email and community forums, Xero provides round-the-clock online customer support.
With its user-friendly interface, Xero is appropriate for small businesses but QuickBooks Online is best suited for expanding companies that require sophisticated user management and scalability.
| QuickBooks Online | Xero | |
|---|---|---|
| Core Features | ||
| Custom Templates | Yes – Customizable invoice templates with branding alignment | Yes |
| Send Estimates/Quotations | Yes | Yes |
| Recurring Billing Automation | Yes | Yes |
| Expense Tracking | Yes | Yes |
| Time Tracking | Yes | Yes |
| Mileage Tracking | Yes | Yes |
| Automated Payment Reminders | Yes | Yes |
| Project-Based Billing | Yes | Yes |
| Tax Handling | Yes | Yes |
| User Permissions/Role Management | Yes | Yes |
| File Uploads | Yes | Yes |
| Pricing and Plans | ||
| Free Plan Availability | No | No |
| Pricing Range | Simple Start: $11.40/month Essentials: $22.50/month Plus: $34.50/month Advanced: $82.50/month |
Early: $20/month Growing: $47/month Established: $80/month |
| Trial Period | 30 days | 30 days |
| User Limits | Simple Start: 1 user Essentials: 3 users Plus: 5 users Advanced: 25 users |
Varies by plan – Early plan supports basic users |
| Client Limits | Unlimited clients | Plan-specific limits |
| Storage Limits | No specific limits | No specific limits mentioned |
| Payment Processing Fees | Online: 2.9% + $0.25 Card Reader: 2.4% per swipe, 3.4% + $0.25 keyed ACH: 1% (max $10) |
Standard payment gateway fees apply |
| Ease of Use | ||
| User Interface | Moderate | Simple – very user-friendly |
| Onboarding Experience | Comprehensive resources | Available |
| Mobile App Availability | iOS and Android | iOS and Android |
| Mobile App Functionality | Invoice creation, expense tracking, receipt capture, mileage tracking | Core invoicing and accounting features |
| Integration | ||
| Payment Gateways Supported | QuickBooks Payments, Stripe, PayPal, Square | Stripe, PayPal, GoCardless |
| Accounting Software Compatibility | QuickBooks Desktop, Xero, Sage, FreshBooks | Yes – broader range of integrations |
| CRM Integration | Native CRM, Third-party CRMs, Contact Management | Multiple CRM integrations available |
| API Availability | Yes | Yes |
| Reporting & Analytics | ||
| Bank Connections | Yes | Yes |
| Pre-Built Financial Reports | Yes | Yes |
| Custom Report Creation | Yes | Yes |
| Security & Compliance | ||
| Dashboard Metrics | Yes | Yes |
| Data Encryption | Yes | Yes |
| GDPR Compliance | Yes | Yes |
| Backup Options | Automatic – Cloud-based backup | Automatic – Cloud-based backup |
| Customer Support | ||
| Support Channels | Phone, Live Chat, Email, Forums | 24/7 Online Support |
| Help Center/Knowledge Base | Yes | Yes |
| 24/7 Support | No | Yes |
| Adaptability | ||
| Multi-Currency Support | Yes | Yes |
| Localization | Yes | Yes |
| Industry-Specific Customization | Yes | Yes |
| Scalability | Full scalability across all business sizes | Freelancers to SMBs – small businesses and solopreneurs |
| Read QuickBooks Online Review | Read Xero Review |
