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Xero vs QuickBooks is a common debate for small business owners in Australia and for good reason. Both offer cloud-based accounting, automated reporting, and ATO-compliant features. But when it comes to local support, integrations, and pricing, the better choice depends on how your business runs.
This guide breaks down the key differences to help you choose the right fit for your business needs.
What is Xero?
Founded in 2006 in New Zealand, Xero has earned a strong reputation as one of the leading cloud-based accounting platforms. Designed for small businesses, sole traders, and startups, Xero combines ease of use with powerful functionality.
Xero helps users manage cash flow, automate bookkeeping, and generate real-time reports. Some of its key features include:
- Online invoicing
- Bank reconciliation
- BAS lodgement
- Payroll integration
- Inventory tracking
All of the above are required to stay compliant with Australian tax requirements.
Xero is known for its robust ecosystem of over 1,000 integrations, seamless collaboration with accountants, and unlimited user access on most plans. With its modern interface and emphasis on usability, Xero continues to be a go-to option for tech-savvy business owners and accountants alike.
What is Quickbooks?
QuickBooks Online is a market-leading cloud accounting software developed by Intuit, trusted by millions of businesses globally. Built for freelancers, sole traders, and small to medium-sized enterprises, it simplifies day-to-day finance tasks like invoicing, bill payments, project tracking, and even mileage logging, all from a single platform.
With flexible monthly and annual plans, QuickBooks adapts to your business size and needs. It also integrates with a wide range of third-party tools such as:
- Time tracking
- Inventory
- Scheduling
- Payments
- Document management
- Automating workflows
- Centralising financial operations.
Backed by a strong brand, user-friendly design, and real-time reporting features, QuickBooks remains a popular choice for business owners looking to manage finances efficiently and stay ATO-compliant without the complexity.
Xero vs quickbooks: At a glance
3 quick reasons why Xero is better:
- Cost-effective solution
- Supports unlimited users
- Easier learning curve, faster onboarding
3 quick reasons why Quickbooks is better:
- Widely adopted by accountants
- Detailed transaction tracking
- Suitable for business owners with accounting knowledge
Summary comparison table below –
Feature | Xero | Quickbooks |
Pricing | $3.50/month (Ignite) | $3/month (Simple Start) |
Free trial | 30 days | 30 days |
Invoicing | Unlimited | Unlimited |
Payroll integration | Yes (via Xero Payroll or STP add-ons) | Yes (via QuickBooks Payroll powered by Employment Hero) |
Bank reconciliation | Yes | Yes |
Inventory management | Included in all plans | Included only in high-tier plans |
Multi-currency | Comprehensive plan onwards | Only with Essentials & Plus plans onwards |
Support | 24/7 online, no phone support | Phone & chat support (limited hours) |
Best suited for | SME’s, accountants | Accountants, solopreneurs, freelancers |
Quickbooks vs Xero: Head to head detailed comparison
Feature | Xero | Quickbooks |
Pricing plans |
|
|
Key features |
|
|
Free onboarding | Not mentioned | Yes |
Ease of use | Offers automated reconciliation tools, global search function, and a customisable dashboard, all within a clean, intuitive layout. | Includes automated reconciliation, global search, and dashboard customisation but may take some time to get familiar with. |
Scalability | Can support larger small businesses with a large number of employees; all plans include an unlimited number of users. | Suitable for larger teams, the top-tier plan allows up to 25 users. |
Integrations | Integrates with more than 1000 apps | Integrates with more than 750 apps with live and in-house bookkeeping add-ons |
Customer support | No live chat support. A representative will reach out if necessary | 24/7 live chat with phone support is available, all 5 days a week from 9am to 6pm |
Advanced features |
|
|
Ease of sharing with accountants | Includes audit trails and accountant-friendly features, though it’s less widely used than some alternatives. | Includes audit trails and is widely used, so most accountants will be familiar with the platform. |
Where Xero stands out
Unlimited users at low cost
QuickBooks online’s user limits can be restrictive, with only one user on Simple Start, three on Essentials, and five on the Plus plan. While its Advanced plan allows up to 25 users, that plan isn’t yet available in the Australian market.
In contrast, Xero offers unlimited users on all plans from Standard upwards, making it a better fit for growing teams or businesses that collaborate with external accountants or advisors. This flexibility comes at a competitive price point compared to QuickBooks’ tiered user caps.
Ease of use
Xero is known for its clean, intuitive interface, making it approachable for business owners who may not have a financial background. Navigation is streamlined, and the dashboard provides a clear view of your business at a glance.
QuickBooks online, while powerful, can feel overwhelming to new users. The platform offers extensive features and granular settings, which may require more time to learn and configure effectively.
Inventory tracking included from the basic plan
For businesses that need inventory tracking, such as online retailers or product-based businesses, Xero includes basic inventory tools in all plans. You can monitor stock levels, track sales, and manage product listings without needing a premium upgrade.
On the other hand, QuickBooks online only includes inventory management in the Plus plan. Lower-tier plans like Simple Start and Essentials don’t offer this feature at all.
That said, Xero’s built-in inventory tools are more basic. Features like reorder points or low-stock alerts require the Inventory Plus add-on, which comes at an extra cost. QuickBooks’ Plus plan offers more advanced inventory features out of the box, but at a higher monthly price.
Where Quickbooks stand out
No invoice limits on any plan
QuickBooks online supports unlimited invoices across all plans, including the entry-level Simple Start. This can be especially valuable for service-based businesses or freelancers who invoice frequently.
By comparison, Xero’s Starter plan limits users to 20 invoices per month. While that plan is affordable, businesses with regular invoicing needs will need to upgrade to access unlimited invoicing, or consider QuickBooks from the outset.
Expense claim
QuickBooks Online includes expense tracking and receipt matching in every plan, allowing you to snap and upload receipts directly via the mobile app.
Xero requires a separate tool, Xero Expenses, which is only bundled with the Premium plan or available as a paid add-on. For businesses that rely on quick, mobile expense capture, QuickBooks provides a more streamlined out-of-the-box solution.
Transparent reconciliation process
QuickBooks online offers a more detailed view during bank reconciliation. You can see the account each transaction is coded to directly from the reconciliation screen, making it easier to identify and fix misclassifications.
Xero’s reconciliation process is clean but less detailed, you need to click into individual transactions to view or change their assigned accounts. This adds extra steps for users who frequently adjust categorisation.
Widely recognized by accountants
QuickBooks has long been an industry standard, with millions of users globally. Its widespread use means most accountants and bookkeepers are already familiar with its interface, reporting tools, and reconciliation workflows.
While Xero is also popular, particularly in Australia and New Zealand, QuickBooks’ larger global user base can make onboarding external advisors or switching accountants more seamless.
Xero vs quickbooks: Alternatives
Platform | Starting price | Key features | Limitations |
Freshbooks | $12/month |
| May require setup time |
MYOB | $12/month |
| Limited integrations |
Wave | $0/month |
| Limited support on compliance |
Zoho | $0/month |
| May require setup time, not widely used by AU accountants |
Xero pros and cons
Pros | Cons |
Unlimited users on all plans:
From the Grow plan upwards, Xero allows unlimited users, making it ideal for collaborative teams and growing businesses. | No direct phone support: Xero provides 24/7 online support but does not offer a direct phone support line. Users can request a callback by submitting a support case through Xero Central. |
Extensive third-party integrations:
Xero integrates with over 1,000 third-party apps, including tools for inventory management, CRM, and ecommerce, enhancing its functionality. | Entry-level plan limitations: The Ignite plan restricts users to 20 invoices and 5 bills per month, which may not suffice for businesses with higher transaction volumes. |
User-friendly interface:
Known for its clean and intuitive layout, Xero simplifies navigation and reduces the learning curve for new users. | Additional costs for advanced features: Features like multi-currency support, project tracking, and advanced analytics are only available in higher-tier plans, increasing overall costs. |
Comprehensive mobile app: Xero’s mobile app offers robust features, allowing users to manage finances, reconcile transactions, and capture receipts on the go. | Basic inventory management:
While Xero includes inventory tracking, it lacks advanced features such as automatic reorder points, which are either available through third-party integrations or higher-tier plans. |
Quickbooks pros and cons
Pros | Cons |
Easy collaboration with accountants QuickBooks online allows seamless sharing of financial data with your accountant, and its widespread adoption means many professionals are already familiar with the platform. | Higher pricing compared to competitors
QuickBooks online’s plans are generally more expensive than some alternatives, which may be a consideration for budget-conscious businesses. |
Extensive app integrations With over 750 third-party app integrations, including tools for live bookkeeping, inventory management, and time tracking, QuickBooks online enhances its functionality to suit diverse business needs. | User limits on plans Each plan has a cap on the number of users: Simple Start allows 1 user, Essentials up to 3, Plus up to 5, and Advanced up to 25 users. |
Comprehensive feature set QuickBooks online offers robust record-keeping, detailed reporting, efficient invoicing, and inventory management, complemented by a capable mobile app for on-the-go access. | Additional costs for advanced features
Features like advanced reporting, workflow automation, and custom user permissions are only available in the higher-tier Advanced plan, which comes at a premium price. |
Accessible customer support All plans include daily phone support and 24/7 chat support, ensuring assistance is readily available when needed. | Learning curve for new users While feature-rich, QuickBooks online can be complex for newcomers, potentially requiring time to fully grasp its functionalities. |
Still not sure?
Whether you’re weighing up Xero vs QuickBooks or thinking about switching, the right answer depends on how your business runs, and where it’s heading.
At Sleek, we include free accounting software in our plans, with no extra to pay on top. Schedule a consultation call today with our accounting team and get clarity before you commit.
FAQs on quickbooks vs xero
Both Xero and QuickBooks Online are fully ATO-compliant and support GST, BAS lodgement, and Single Touch Payroll (STP). Xero is often favoured by accountants for its deeper local integrations and audit trails, while QuickBooks is popular for its simplified BAS tools. Either can meet your compliance needs, the key is proper setup and accurate data entry.
Using cloud accounting software can simplify your finances, but it doesn’t replace expert advice. Many small business owners still work with an accountant to handle tax strategy, payroll compliance, and BAS reviews, even if the day-to-day bookkeeping is done in Xero or QuickBooks. The software helps you do more, but it doesn’t make compliance automatic.
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