QuickBooks vs Xero

TL;DR
  • QuickBooks Online suits stores that need native Shopify, Amazon and Square connectors.
  • Xero suits owners who want a lower paid price and reconciliation everywhere.
  • QuickBooks Online scores higher overall, and Xero's paid plans start lower.
  • Both need a separate paid subscription for each additional company.
  • Inventory sits on QuickBooks Plus and is an add-on on Xero.

Side by side

Xero 52
Price for one business
Level 5 of 5
Level 4 of 5
Cost of a second business
Level 1 of 5
Level 1 of 5
Bank feeds and reconciliation
Level 3 of 5
Level 3 of 5
Invoicing
Level 3 of 5
Level 2 of 5
Receipt capture
Level 4 of 5
Level 2 of 5
Financial reports
Level 4 of 5
Level 2 of 5
Price transparency
Level 3 of 5
Level 3 of 5
Customer sentiment
Level 3 of 5
Level 3 of 5

QuickBooks Online and Xero are both priced by the month and cover the same ground, so the choice comes down to connections against price. QuickBooks lists native store connectors and strong receipt and report levels, while Xero’s paid plans cost less at the start. Each plan is laid out in QuickBooks Online’s plan-by-plan scores and Xero’s score, and both sit inside ranked picks for keeping the books.

Ratings come from different review sites: Capterra for QuickBooks at 4.3 and Trustpilot for Xero at 4.1. The two numbers are not comparable, so the table above sets criteria side by side.

Where the prices and plans split

The price steps are listed under the differences below. People weighing a third option can read about QuickBooks rivals, and an invoicing-first alternative is covered in QuickBooks against FreshBooks. The QuickBooks help topics sit under QuickBooks topics.

Who should pick which

Pick QuickBooks Online if the business sells through Shopify, Amazon or Square and wants native connectors, or if reports with class and location tracking matter. Pick Xero if the entry price matters, if the books start from the bank feed, or if a partner app already feeds the stores. Other head-to-heads are collected under tool-versus-tool pages.

Prices decide many of these choices, so the monthly QuickBooks bill and how Xero charges lay out each plan step.

Before you choose

Both ledgers charge for a second company, which matters for anyone running more than one business. If neither price fits, free ledgers are the other route. And if the question is who should read the numbers, the line between the two separates a bookkeeper from an accountant.

Where they differ

Entry price

QuickBooks Online

Simple Start is $38 a month, and the four plans climb to $340 for Advanced.

quickbooks.intuit.com/pricing
Xero

Early is $27 a month, and the three plans top out at $97 for Established.

xero.com/us/pricing-plans

Shopify, Amazon and Square

QuickBooks Online

QuickBooks lists a native connector for each of the three.

Xero

Xero reaches all three through partner apps.

Receipts and reports

QuickBooks Online

Receipt capture earns a level where receipts are read and matched to bank transactions, and reports include class and location tracking.

Xero

Receipt capture earns a level where receipts are photographed or uploaded, and reports stop at profit and loss, balance sheet and cash flow.

Inventory

QuickBooks Online

Inventory is listed on Plus, at $140 a month, and on Advanced.

quickbooks.intuit.com/pricing
Xero

Inventory is an optional add-on called Inventory Plus on Growing and Established.

Multiple currencies

QuickBooks Online

Multicurrency is listed from Essentials, at $85 a month.

quickbooks.intuit.com/pricing
Xero

Multiple currencies are listed on Established, at $97 a month.

xero.com/us/pricing-plans

Verdict

QuickBooks Online scores higher overall and fits a store that sells through Shopify, Amazon and Square. Xero's paid plans start cheaper and list reconciliation on every plan, so it fits an owner who works from the bank feed.

Common questions

Which is cheaper, QuickBooks or Xero?

Xero’s paid plans start lower: Early is $27 a month against $38 for QuickBooks Simple Start.

Which is better for a Shopify store?

QuickBooks Online lists a native Shopify connector. Xero reaches Shopify through partner apps, so a store on Xero usually adds one.

Do both offer a free trial?

Yes. QuickBooks lists a 30-day trial and Xero lists a 30-day trial.

Can one subscription cover two companies?

No. QuickBooks says each company requires its own separate paid subscription, and Xero says additional businesses sign up for additional subscriptions.

Some vendors pay us to be included on Clean Books Report. That payment never affects the rankings or the review itself.