Quickbooks vs Xero which is better for eCommerce? 2025

Xero and QuickBooks have some differences that make each platform unique and suitable for different applications. To learn more about each platform, hit the link to each provider review in the table above. And to learn more about how we test accounting software, check out our accounting software ratings methodology.

Xero vs QuickBooks: Which Accounting Software Is Right for Your Business?

When it comes to the number of apps, Xero wins with over 1,000 apps available to download. While this isn’t necessarily indicative of a better experience for customers, more choice of apps does inevitably mean more flexibility when it comes to running your business. Xero enables you to reconcile transactions in bulk, in addition to applying rules to different, or groups of, transactions.

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For example, rather than using the debit and credit terminology they use “spent” for credit and “received” for debit. In their dashboard, instead of accounts receivable, they use “invoices owed to you” (the Chart of Accounts and Balance Sheet still use accounts receivable). This language is more intuitive for non-accountants (although accountants might complain about this and prefer the accounting specific terms). If ease of use for beginners is your number one selection criteria, then we recommend Xero. Two column reconciliation is also probably faster in the Xero format than in QuickBooks.

In addition, the software has fine-tuned control over banking functionality. It’ll do a better job of categorizing your transactions and even put them in an organized spreadsheet. While both tools offer a lot of the same features, the main differentiator is how well each company does these features. Xero is a modern, fully cloud-based platform that emphasizes automation, collaboration, and ease of use, especially for non-accountants. This comparison breaks down their key features, pricing, ease of use, integrations, and support—so you can make a confident decision. QuickBooks has a wide network of banking partners, making it easy to securely import your bank feeds from a variety of banks and credit card companies.

User experience and interface

I like that Xero offers a centralized file management location, which makes file management much easier. While it certainly has a more professional feel about it with its range of features and tools, it’s simply not as enjoyable to use. It’s also a good choice if you’re an accountant or bookkeeper, or, an accounting firm. Being user-friendly, it’s the preferential option for those with little-to-no experience with accounting software. Third party applications can add functionality to your accounting system. Take Xero and QuickBooks integrations into account when you’re weighing up the pros and cons of each.

Quickbooks vs Xero: which is the best for your business?

Both applications have effective (though very different) navigation systems and user experiences. Some pages display an almost dizzying amount of content, which makes them slightly slow to load. Xero’s navigation tools have changed little over the years, and they make sense once you learn where everything is. All the parameters mentioned above will help you choose between QuickBooks and Xero.

• If you are looking for only an efficient accounting solution, Xero might be the right choice.
• QuickBooks’ user-friendly interface makes navigating your finances a breeze, even if you’re not an accounting expert.
• Xero offers email support around the clock and provides a lot of helpful resources like tutorials, a knowledge base, and forums where users can connect.

Plans & pricing

The best accounting solution doesn’t just work for your finance team—it supports your whole business. For small businesses, accounting software is a must-have for managing financial data efficiently. Two of the go-to accounting software solutions for small enterprises, Quickbooks Online and Xero, have distinct security approaches. The job costing functionality allows businesses to track profitability at the project or client level, providing detailed insights into which services or products generate the highest margins. It’s an essential feature for construction companies, professional services firms, and project-based businesses that need to understand the true cost and profitability of individual engagements. I found it easy to add files to individual transactions in Xero and QuickBooks and uploading receipts from the mobile applications took seconds.

Reports and Dashboards

• Essentially, both tools allow you to manage every area of your small business finances effectively.
• At some point, it will make sense to switch to a more robust ERP solution like Oracle’s NetSuite or SAP, but we think QuickBooks and Xero give you the longest runway on a single tool.
• They also allow you to customize reports, save your customized templates, and export them in Excel and PDF formats.

It also features a function that allows users to capture photos of receipts and automatically import them into their account. However, some users have reported bugs and performance issues with the app. It works with ecommerce accounting and inventory tools like Webgility and DEAR Systems, payroll tools such as Gusto, time tracking apps like Deputy, and CRMs including HubSpot. These extensions help Xero serve as the financial hub for service-based, retail, and online businesses.

This seamless integration saves time, ensures accuracy, and eliminates manual errors. Xero utilizes an App Marketplace with over 1,000 apps to extend its core functionality. Whichever you choose, seamless accounting can save time, reduce errors, and give you peace of mind by keeping your financials in check.

When it comes to costs, there are significant differences that will likely sway SMBs one way or the other. The should you choose xero over quickbooks table below shows how much different plans cost for Xero and QuickBooks and any additional fees you’ll encounter. The QuickBooks mobile application allows you to manage your finances from anywhere. In this comparison, I’ll explain how Xero and QuickBooks are similar and point out key differences so you can pick the right accounting software for your SMB.

These integrations allow you to add additional payroll services, point-of-sale (POS) systems, and inventory management tools to enhance Xero’s core features. Functionality-wise, Xero has a slight edge in advanced features (like multi-currency support and reporting for multiple entities), but both platforms offer robust accounting tools. It offers basic invoicing, expense tracking, and financial reporting completely free of cost. QuickBooks provides a superior customer support infrastructure with 24/7 live chat and scheduled phone support available across all plans.

Many accounting solutions have expense free file fillable forms tracking tools, but we found that QuickBooks makes them especially user-friendly. It takes just a few clicks to run through various accounting functions and get your expenses in order. In our eyes, QuickBooks’ expense-tracking features are among the best around. One of the most important features any accounting tool can offer is integration with your business bank accounts.

Xero is an excellent choice for startups, especially those planning to scale quickly or work with internal accounting teams. With affordable entry pricing, unlimited users, and robust project tracking and document management features, Xero offers high value for cost-conscious early-stage businesses. Xero and QuickBooks Online (QBO) are both popular accounting software solutions for businesses. They offer similar features like invoicing, expense tracking, and payroll management. However, there are a few key differences that can influence which platform is the best fit for your business. We will take a closer look at each platform’s plans, user interface, inventory management features, tax tools, and app store integrations.

The company cut down at least ten hours every week that they used to spend on manual data entry. This change saved more than $400 monthly and improved overall operational efficiency. While Xero allows customization, such as date ranges, filtering by tracking categories, and minor layout adjustments, it has limited flexibility compared to QuickBooks. It is majorly recommended for businesses with standard reporting needs. Well, the winner ultimately comes down to the needs plus the growth trajectory of your business.