Quick Takeaway: Choosing between Xero and QuickBooks comes down to your specific business needs. Xero excels with unlimited users and automation, whilst QuickBooks offers superior customer support and advanced features for growing businesses.

When selecting accounting software for your business, two names consistently rise to the top: Xero and QuickBooks. Both are cloud-based solutions offering robust accounting features, but each has distinct advantages depending on your business requirements. This comprehensive comparison will help you make an informed decision based on the latest 2025 features and pricing.

Overview: Xero vs QuickBooks at a Glance

Xero: The Collaborative Cloud Pioneer

Xero, founded in New Zealand in 2006, has built its reputation around “beautiful business” with a focus on clean, intuitive design and unlimited user access. The platform excels in automation and collaboration, making it particularly popular with growing businesses and accounting professionals.

QuickBooks: The Market Leader

QuickBooks Online is an industry standard with more than 5 million users worldwide, backed by Intuit’s decades of experience in financial software. Known for its user-friendly interface and comprehensive feature set, it’s often the go-to choice for small businesses transitioning from manual bookkeeping.

Pricing Comparison: What You’ll Actually Pay

Xero Pricing Plans 2025

Xero offers three pricing tiers with current promotional pricing:

Early Plan: Usually £20, now £2 per month for 3 months (saving £54)

• 20 invoices per month
• 5 bills per month
• Bank reconciliation
• Receipt capture

Growing Plan: Usually £47, now £4.70 per month for 3 months (saving £126.90)

• Unlimited invoices and bills
• Multi-currency support
• Project tracking
• Purchase orders

Established Plan: Usually £80, now £8 per month for 3 months (saving £216)

• All Growing features
• Advanced analytics
• Multi-currency
• Project profitability tracking

Key Advantage: Xero’s pricing plans aren’t based on user count, so you can add employees without worrying about software costs increasing.

QuickBooks Online Pricing Plans 2025

QuickBooks Online subscription prices have risen significantly, with the Plus plan increasing from £70 in 2020 to £115 in 2025—more than a 64% increase over five years.

Simple Start: £38 per month (1 user)

• Basic invoicing and expense tracking
• Receipt capture
• Basic reporting

Essentials: £65 per month (3 users)

• Time tracking
• Bill management
• Multiple users

Plus: £115 per month (5 users)

• Inventory tracking
• Project profitability
• Advanced reporting

Advanced: £275 per month (25 users)

• Advanced analytics
• Priority support
• Custom user permissions

Cost Winner: Xero

For businesses needing multiple users, Xero’s unlimited user model provides significantly better value than QuickBooks’ per-user pricing structure.

Feature Comparison: Core Accounting Capabilities

Bank Reconciliation

Both platforms offer automatic bank feeds and transaction matching, but with different approaches:

Xero: Bank reconciliation rated 4.4 out of 5 by users, with intelligent matching and automated categorisation rules.

QuickBooks: Bank Feeds helps you match and categorize transactions before you officially reconcile them, with the ability to set custom rules that automatically file transactions under the categories you’ve set.

Invoicing and Payments

Xero: 81% of small business customers say Xero’s online invoice payments help them get paid on time. Offers customisable invoicing with international currency support.

QuickBooks: Offers six customizable invoice templates (compared to just one offered by Xero) with advanced payment tracking and automated reminders.

Reporting and Analytics

Xero: Provides real-time financial reporting with customisable dashboards and strong project tracking capabilities.

QuickBooks: Has an excellent reporting suite, especially with enhanced reports and project profitability analysis.

User Experience: Ease of Use vs Advanced Features

Xero User Experience

Pros:

• Well-designed user interface and layout that makes complex financial data easier to understand
• Unlimited users across all plans
• Strong automation features
• Clean usability with younger brand image, popular in the startup world

Cons:

• Steep learning curve makes it difficult to learn and use for beginners
• The lowest tier has caps on invoicing and bills, which means many businesses will need to upgrade to a more expensive plan

QuickBooks User Experience

Pros:

• User-friendly interface that’s easy for even beginners to learn
• Comprehensive customer support
• Mileage tracking, tax support, and bookkeeping services
• Built-in payroll functionality

Cons:

• Limited users on lower-tier plans
• More expensive, especially for businesses needing advanced features
• User count restrictions can become costly as teams grow

Integrations and Third-Party Apps

Xero Integrations

Xero takes the lead in integrations, offering over 700 integrations compared to QuickBooks’ 590. Popular integrations include:

• Payment processors (Stripe, PayPal)
• Payroll solutions (Gusto partnership)
• Industry-specific applications
• Project management tools

QuickBooks Integrations

QuickBooks offers 550+ integrations with strong connections to:

• Intuit’s ecosystem (QuickBooks Payments, QuickBooks Time)
• Major business applications
• Industry-specific solutions
• Banking and financial services

Customer Support: Getting Help When You Need It

Xero Support

• Email and callback support
• Online help centre and community forums
• Some reviewers wish it were easier to contact Xero support by phone
• No live chat support

QuickBooks Support

• Expert product help from real people 7 days a week
• Phone support available during business hours
• Live chat support
• Priority support for higher-tier plans
• Better overall support compared to Xero

Security and Reliability

Xero Security

Xero stands out with its impressive 99.97% uptime, establishing a robust security reputation. Features include:

• Multi-factor authentication
• 256-bit encryption
• Regular security audits
• GDPR compliance

QuickBooks Security

• Bank-level encryption (256-bit SSL)
• Multi-factor authentication
• Regular backups
• SOC 2 Type II certified
• Advanced user permissions

Industry Preference: Accountants’ Choice

Accountant Preference

QuickBooks is the market leader in the US, so accountants will likely be used to working with that. Xero is more common outside of the US, and UK and New Zealand accountants in particular will likely recommend it.

Xero is better for accountants, while QuickBooks Online is more user-friendly for small business owners. Both QuickBooks and Xero offer the ability to provide accountant access, so professional accountants must be proficient in both tools.

Scalability: Growing with Your Business

Xero Scalability

• Supports unlimited users and grows with your business, making it a more suitable choice for mid-to-large-sized businesses
• Fixed pricing regardless of team size
• Strong multi-currency capabilities
• Robust project tracking

QuickBooks Scalability

• Advanced Plan that supports up to 25 users does make it a viable option for larger businesses
• Per-user pricing can become expensive
• Comprehensive advanced features
• Strong integration ecosystem

Specific Business Scenarios: Which to Choose?

Choose Xero If:

• You need unlimited user access without additional costs
• Your business operates internationally with multi-currency requirements
• You work closely with accountants who prefer Xero
• You value automation and modern interface design
• You’re a growing business with collaborative team needs

Choose QuickBooks If:

• You prefer extensive customer support options
• You need built-in payroll functionality
• You require advanced reporting and customisation
• You’re a beginner who values ease of use
• You want comprehensive tax support features

2025 Outlook: Recent Updates and Changes

Xero 2025 Updates

Early, Growing and Established subscription prices are increasing from October 1, 2025, though current promotional pricing offers significant savings for new customers.

QuickBooks 2025 Updates

QuickBooks price increases for 2025 are attributed to AI-driven features that aim to automate repetitive tasks, improve accuracy, and offer deeper integration with third-party tools.

Final Verdict: Making Your Decision

Bottom Line:

The choice ultimately depends on your business’s specific needs, budget, and desired capabilities.

For Growing Teams:

Xero’s unlimited user model and collaborative features make it ideal for businesses planning to scale their workforce.

For Comprehensive Features:

QuickBooks offers more built-in functionality and superior customer support, making it perfect for businesses wanting an all-in-one solution.

For Budget-Conscious Businesses:

Xero typically offers better value for money, especially for multi-user environments.

Take Action: Ready to Choose Your Accounting Software?

Don’t let accounting software complexity hold your business back. Both Xero and QuickBooks offer 30-day free trials, allowing you to test their features risk-free.

Need Expert Guidance?

FSL Accountancy Ltd specialises in helping businesses choose and implement the right accounting software solution. Our qualified accountants are proficient in both Xero and QuickBooks and can provide personalised recommendations based on your specific business needs.

Contact FSL Accountancy Ltd today for a free consultation on selecting the perfect accounting software for your business. We’ll help you:

• Assess your current accounting needs
• Compare features relevant to your industry
• Implement your chosen solution seamlessly
• Provide ongoing support and training

Don’t let the wrong accounting software choice slow down your business growth. Get expert advice from FSL Accountancy Ltd and make the transition smooth and successful.

This comparison is based on the latest 2025 pricing and features from official Xero and QuickBooks websites. Prices and features may vary based on location and promotional offers. Always verify current pricing before making your final decision.