Build my stackQuickBooks Online vs Xero
Evaluating QuickBooks Online and Xero requires comparing two popular options in the accounting & invoicing space. While QuickBooks Online is widely recognized for its ability to help small businesses that need full, accountant ready books, Xero is optimized for teams that need to focus on beautiful cloud accounting loved by small businesses.. In this hands-on evaluation, we look at their pricing structures, feature sets, user reviews, and performance to help you decide which tool fits your daily workflow best.
Based on our comprehensive evaluation metrics, Xero emerges as the stronger overall choice for most teams, earning a score of 4.4 compared to 4.2 for QuickBooks Online. A key factor in this recommendation is that Xero provides well established product with an active user base, which helps streamline workflows. However, QuickBooks Online remains an excellent alternative if your team is specifically looking for a tool optimized for small businesses that need full, accountant ready books and you value comprehensive, accountant ready features. Weigh the cost differences and feature limits carefully before making a commitment.
QuickBooks Online vs Xero at a glance
| QuickBooks Online | Xero | |
|---|---|---|
| Category | Accounting & Invoicing | Accounting & Invoicing |
| Our rating | 4.2 / 5 | 4.4 / 5 |
| Starts at | $35/mo | $15/mo |
| Free tier | No | No |
| Best for | Small businesses that need full, accountant ready books | Beautiful cloud accounting loved by small businesses. |
How they scored, dimension by dimension
In our testing, Xero has the clear advantage on ease of use with a rating of 4.5 versus 3.9 for QuickBooks Online. This difference reflects Xero's more robust implementation of these features, which helps teams execute work with less friction. While QuickBooks Online is capable, it does not match the ease of use or feature depth offered by the winning platform in this category.
In our testing, QuickBooks Online comes out on top for features with a rating of 4.6 versus 4.4 for Xero. This difference reflects QuickBooks Online's more robust implementation of these features, which helps teams execute work with less friction. While Xero is capable, it does not match the ease of use or feature depth offered by the winning platform in this category.
In our testing, Xero is the stronger option for value with a rating of 4.3 versus 4.0 for QuickBooks Online. This difference reflects Xero's more robust implementation of these features, which helps teams execute work with less friction. While QuickBooks Online is capable, it does not match the ease of use or feature depth offered by the winning platform in this category.
In our testing, Xero edges ahead on support with a rating of 4.4 versus 4.1 for QuickBooks Online. This difference reflects Xero's more robust implementation of these features, which helps teams execute work with less friction. While QuickBooks Online is capable, it does not match the ease of use or feature depth offered by the winning platform in this category.
Where QuickBooks Online shines
- Comprehensive, accountant ready features
- Universally supported by bookkeepers
- Strong reporting and payroll add ons
- Overkill for simple invoicing needs
- Interface is dense for beginners
Where Xero shines
- Well established product with an active user base
- Regular updates and clear roadmap
- Solid documentation and onboarding
- Our full hands-on testing is still in progress
- Pricing can climb on higher tiers
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So which should you pick?
Choose QuickBooks Online if
- Built for small businesses that need full, accountant ready books
- features matter most to you
- Comprehensive, accountant ready features
Choose Xero if
- Built for beautiful cloud accounting loved by small businesses.
- ease of use and value matter most to you
- Budget is tight (from $15/mo)
- Well established product with an active user base
Xero is the cheaper place to start
Xero is the cheaper entry point at $15/mo, versus $35/mo for QuickBooks Online.
QuickBooks Online plans at a glance
Simple Start
Sole traders
- Income & expenses
- Invoicing
- Basic reports
Essentials
Small businesses
- Bill management
- 3 users
- Time tracking
Plus
Established businesses
- Inventory
- Project profitability
- 5 users
Pricing is indicative and shown per month at the time of writing. Plans, limits, and prices change often, so check QuickBooks Online’s site for the latest before you buy.
Common questions
Affiliate disclosure: We may earn a commission if you buy QuickBooks Online or Xero through the links on this page, at no extra cost to you. We only compare tools we have tested, and commissions never change our scores or which tool we recommend. We currently track 218+ tools.