Is Xero better than QuickBooks?

Xero and QuickBooks Online are two of the most popular cloud-based accounting platforms for small businesses. Both help with tasks like bookkeeping, invoicing, VAT returns, and reporting — but which one is better?

The answer depends on your needs, as both have strengths.

Usability

• Xero: Clean, simple interface — easy for beginners.

• QuickBooks: More detailed dashboard, better for those wanting more data upfront.

Bank Feeds

Both have reliable bank feeds. QuickBooks has slightly more flexible automation rules.

Invoicing

• Xero: Simple, neat invoices, easy to use.

• QuickBooks: More invoice customisation, plus better payment integrations.

VAT and Tax

Both handle VAT and Making Tax Digital (MTD) seamlessly, with little to separate them.

Reporting

• QuickBooks: Stronger built-in reports with more filters.

• Xero: Reports are clear but less customisable without third-party apps.

Payroll

• Xero: Basic payroll included.

• QuickBooks: More robust payroll, but as an extra paid feature.

Integrations

• Xero: Larger ecosystem in the UK, connects well with third-party apps.

• QuickBooks: Good integrations but fewer UK-specific apps.

Support

• Xero: Email and ticket support only.

• QuickBooks: Offers phone and chat support for faster help.

Pricing

Similar, though QuickBooks is sometimes slightly cheaper for mid-tier plans. Payroll is a paid add-on with QuickBooks but included in Xero.

Verdict

Neither is outright “better” — Xero suits those who prefer simplicity and clean design, while QuickBooks offers deeper reporting and better support. The best choice depends on whether you value ease of use (Xero) or detailed tools and customer support (QuickBooks).