QuickBooks offers a time-tracking app called QuickBooks Time for employers to create schedules, track projects, and manage time-offs. Xero’s time-tracking feature is included in its project management tool. QuickBooks is advanced accounting software that can manage a company’s fixed assets.
Xero vs. QuickBooks Online: Features Comparison, Pros, Cons
QuickBooks provides report templates for different categories, such as business overview, sales, expenses, employees, payroll, and more, to cater to various use cases. It also syncs with the QuickBooks Workforce app to track time for payroll. QuickBooks also accurately calculates, files, and pays payroll taxes with tax penalty protection. Users can run payroll anytime, and the teams will get paid on time or the same day through direct deposit. Xero allows seamless mileage tracking by letting its users enter the start and destination locations on the map. Xero has no built-in proposal feature but can integrate with third-party proposal software.
Both platforms dominate the small-to-medium business accounting space, but each has distinct advantages that could make or break your financial workflow. Bill.com enhances financial efficiency for small and midsized businesses by facilitating invoice sending, bill payments, and expense management. Xero is not an alternative to project management software, but it has some useful project management features for companies involved in various projects.
Time Tracking
Need help setting up or migrating toX Xero accounting software? So, consider the following factors when choosing the right accounting software for you. 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. 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.
Xero vs. QuickBooks: Which accounting platform is better?
Robust invoicing, expenses, bank feeds (often praised for reconciliation). Clean interface, often preferred by business owners. Varies by plan (1 to 25 users). So, which platform is the right fit for your specific business needs and budget in 2025? Let your financial system do more than track performance. For process-oriented, scaling companies, QuickBooks offers mature tooling.
And to serve these additional duties, you need advanced accounting software. We’ve chosen Gusto because it’s regarded as one of the best payroll solutions for small businesses using Xero in the US. We have apps for payments, payroll, reporting, project management, and more. Ditch the stress of moving your accounting software and let Xero do the heavy lifting.
These features appeal to growing businesses rule of consistency law and legal definition that need detailed financial intelligence. For businesses operating in time-sensitive environments or those with limited internal accounting expertise, this provides peace of mind and operational continuity. With over 1,000 third-party app integrations, Xero offers one of the most extensive ecosystems in the accounting software market. Xero’s unlimited user access across all plans makes it an exceptional choice for businesses with large teams or multiple departments that need accounting system access.
Xero: a QuickBooks alternative to supercharge your business
It is like deciding which way you want to run your business. Get the latest perspectives on Microsoft Dynamics ERP software selection process from industry experts. Microsoft Dynamics Partners providing comparisons and opinions for the Dynamics ERP software selection process.
If you want basic accounting that your team can pick up quickly, Xero is the easier option. That’s why several D2C companies and consumer brands in 2025 prefer hiring accounting outsourcing companies like Atidiv. You can assign user roles, such as Limited, Standard, or Administrator, and control what each person in your business can view or handle.
Which software offers better payroll and tax reporting features?
- It syncs with QuickBooks Payroll and allows employees to enter their time manually or through the QuickBooks Workforce app.
- Still, both platforms allow you to reduce manual data entry, create rules to handle recurring charges and auto-calculate taxes.
- These features appeal to growing businesses that need detailed financial intelligence.
- QuickBooks provides report templates for different categories, such as business overview, sales, expenses, employees, payroll, and more, to cater to various use cases.
- Neither Atomic Invest nor Atomic Brokerage, nor any of their affiliates is a bank.
QuickBooks automatically calculates tax from invoices using date, location, product or service type, and customer as the base for sales tax rate. Users can also generate sales tax summaries, edit tax rates whenever needed, and prepare tax reports for return. Xero allows companies to set up sales tax rates to calculate sales tax automatically. It also lets users keep a mileage log according to the IRS’s requirements. QuickBooks supports mileage tracking with its mobile app, which enables automatic GPS tracking from mobile phone locations.
Feature Comparison: Xero vs QuickBooks in 2025
- Varies by plan (1 to 25 users).
- The two undisputed heavyweights in the small business accounting ring are QuickBooks Online (from Intuit) and Xero.
- QuickBooks also accurately calculates, files, and pays payroll taxes with tax penalty protection.
- Learn more about Xero and other accounting software providers to make an informed decision for your business.
- Bill.com enhances financial efficiency for small and midsized businesses by facilitating invoice sending, bill payments, and expense management.
- Selecting accounting software for the first time can feel confusing!
Talk to FastLane’s Xero-certified experts today and streamline your business finances with confidence. To make an informed decision, we recommend trying both platforms through their free 30-day trials. Both Xero and QuickBooks offer 30-day free trials, so we highly recommend testing both platforms with your real workflows before committing. Both Xero what is purchase price variance and QuickBooks offer tiered plans but the difference in user limits, add-on costs, and value per dollar can heavily influence your decision. Both platforms support invoicing, receipt scanning, and transaction reconciliation on the go via iOS and Android apps.
QuickBooks is a popular all-in-one accounting software for small to medium business. However, its cost could drive away many SMBs despite its strong accounting tools, inventory and project tracking tools and excellent mobile application. Xero’s robust accounting tools and ability to help track projects, manage contacts, receive payments, and capture and sort business documents make it ideal for many SMBs. Xero allows unlimited users on all plans, but has fewer advanced tools.
Xero and QuickBooks Online alternatives
Both promise to simplify your financial work, but they serve different needs.
Which software is better for inventory-heavy businesses?
These integrations streamline tasks like inventory management, time tracking, and accounting, enhancing users’ financial management capabilities. Xero simplifies end-year tax returns by allowing users to import bank transactions into their accounting software securely and automatically. Xero is suitable for small businesses that want simple accounting software without too many advanced functions. Choosing accounting software is a long-term decision that can be confusing, particularly when both tools claim to support small businesses. Powerful, intuitive accounting software for small businesses. 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.
Its integrations and reporting facilitate compliance in dozens of countries, making it the clear choice for businesses with cross-border clients, suppliers, or offices. While this works well for small businesses with limited staff, companies anticipating rapid growth or needing multiple accountant or bookkeeper seats may find the cost of scaling a drawback. Its clean dashboard and helpful prompts streamline core tasks like invoicing, bank reconciliation, and expense tracking. Meanwhile, Xero excels in international operations, team collaboration, and businesses prioritizing cost-effective scalability.
Xero zelle integrates with Gusto for payroll, which is reliable but may involve extra costs and setup. Yes, both Xero and QuickBooks support e-invoicing, digital receipt capture, and compliance with local tax regulations. Xero is an excellent choice for startups, especially those planning to scale quickly or work with internal accounting teams. However, some data may need to be transferred manually or with third-party tools. Yes, both Xero and QuickBooks allow data migration between platforms.