Xero vs QuickBooks Online (2025): Which Bookkeeping Software Is Best for Small Business?

Written By Olena Phillips

Choosing bookkeeping software may not sound thrilling, but it can make or break how smoothly your business runs. And with so many options, it’s easy to feel stuck. Let’s simplify things with a comparison of two crowd favorites: Xero and QuickBooks Online (QBO).

Both are cloud-based, trusted, and packed with features. But which one fits your small business best?

Quick Overview: Xero vs. QuickBooks Online

Pricing

  • Xero starts at $15/month with its Early plan.

  • QBO begins at $30/month with Simple Start.

Ease of Use

  • Xero offers a clean, minimalist layout that's easy to learn.

  • QBO feels familiar, with plenty of customization options.

Bank Reconciliation

  • Both platforms provide smart bank feeds with rule automation to keep your books clean and up to date.

Payroll Integration

  • Xero works with Gusto (or other providers) as a separate add-on.

  • QBO includes built-in payroll tools (additional cost) tailored for U.S. compliance.

Support

  • Xero sticks with email and community-based help.

  • QBO adds live chat and phone support on higher-tier plans.

Third-Party Integrations

  • Xero connects with over 1,000 apps like Stripe, Gusto, and Hubdoc.

  • QBO links up with 750+ apps such as PayPal, Mailchimp, and Expensify.

Best Fit

  • Xero works beautifully for startups, global teams, creatives, and freelancers.

  • QBO is ideal for U.S.-based businesses and service pros who want solid reports and built-in payroll.

Why U.S. Business Owners Often Choose QuickBooks Online

QuickBooks Online is everywhere in the U.S.—and it’s easy to see why.

Made for Small Businesses

  • Designed for business owners, not accountants.

  • Everything from invoicing to bills and bank feeds lives in one place.

Strong Reporting Tools

  • Profit & Loss, cash flow statements, and industry-standard reports.

  • Easy for CPAs, bookkeepers, and tax professionals to work with.

Payroll and Tax Integration

  • Payroll features are built into the platform (extra fee).

  • Sales tax tracking plays nicely with U.S. regulations.

Widespread Adoption

  • Tons of certified QuickBooks ProAdvisors are out there to lend a hand when needed.

Why Xero Is a Favorite Among Startups, Creatives & Global Teams

Xero brings a fresh, modern twist to bookkeeping—and it's catching on quickly.

Beautiful, Easy-to-Use Interface

  • Clean layouts that make numbers feel less intimidating.

  • Great for visual learners and anyone who appreciates simplicity.

Unlimited Users

  • Even the cheapest plan includes unlimited user access—no surprise fees.

  • Collaborate with your team, accountant, and advisor seamlessly.

Global Friendly

  • Supports multiple currencies and works with VAT/GST compliance.

  • Perfect for international teams or businesses with global clients.

Expansive App Ecosystem

  • Integrates with hundreds of business tools including Gusto, Stripe, and Hubdoc.

Which Software Is Right for You?

Choose QuickBooks Online if...

  • You're based in the U.S.

  • Your CPA or bookkeeper uses QBO.

  • You want powerful reports and built-in payroll tools.

  • You value access to live support and wide industry adoption.

Choose Xero if...

  • You prefer a minimalist interface with unlimited users.

  • You're a startup, creative, or freelancer seeking simplicity.

  • You operate globally or need multi-currency support.

  • You like transparent pricing that scales with your growth.

Final Thoughts: It’s About Fit, Not Flash

Both Xero and QuickBooks Online are solid choices. The best pick depends on how you work, where your business is based, and which features matter most—like international compatibility, payroll integration, or ease of use.

As a bookkeeper, I use both and help clients find the one that fits their workflow, industry, and goals. No pressure, no jargon—just the kind of clarity that makes your financial life easier.

📩 Ready to choose your perfect-fit bookkeeping software? I specialize in helping service providers set up QBO or Xero with confidence. Book a free consultation and let’s make your numbers work smarter, not harder.

Want help turning this into an Instagram carousel, caption, or email teaser next? I’m all in!

Olena Phillips
Next

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