Accounting Software Comparison: Xero vs. QuickBooks Online

Inuit’s QuickBooks Online has dominated the accounting software for years. Recently, another competitor has arisen to challenge them- Xero. QuickBooks Online still has the majority of the market share, but Xero is growing at the same rate of them now showing it to be a worthy competitor.

Many small business owners see these two programs and wonder what the difference between the two are. They both offer similar features but there are a few differences between them. To help you determine which accounting software is right for your small business we’ve compared them to you.

Cloud Accounting

Both software is cloud-based accounting ones. Cloud accounting is when financial data is remotely stored in cloud servers. There are many benefits to cloud accounting. Cloud accounting has increased security, tends to be cheaper, and allows for remote access and real-time updates. So whether you choose Xero of QuickBooks Online you will get the benefits that cloud accounting offers.


When it comes to QuickBooks Online and Xero, the number of allowed users is one of the biggest differences. Xero offers an unlimited amount of users, no matter what subscription package you have. Unfortunately, QuickBooks Online only allowed one, three, or five users depending on the plan you have. If you have a small business that requires multiple people to use the accounting software then Xero might be the option for you. Adding additional user to QuickBooks Online can quickly become pricey.


Neither Xero nor QuickBooks Online would be so popular if they weren’t so easy to use. Both of them offer easy navigation, a nice layout, and tons of useful features. Many accountants say that Xero is slightly better when it comes to ease of use though. A common complaint about QuickBooks Online is that they have some unnecessary navigation steps and minor bugs.


Pricing is a big factor for small business owners when it comes to choosing bookkeeping software. It is a little difficult to compare Xero and QuickBooks Online, as their packages don’t always offer the same things. QuickBooks Online offers a great deal for a company that needs the bare minimum for bookkeeping. For more comprehensive plans, though, Xero offers far more for a lesser price.

Customer Service

Customer service and support says a lot about how a company cares about their clients. Luckily, both Xero and QuickBooks Online have good customer service. In the past people had some issues with QuickBooks Online but Inuit appears to have listened and fixed those problems. Both have proven to be great at fixing small issues. Accountants and clients say Xero does slightly better when it comes to solving bigger issues as they have a faster response time and representatives that know what they’re doing.


A common concern small businesses have about cloud accounting is software. Accountants swear by cloud accounting software such as QuickBooks Online and Xero though. Both companies excel at making sure your small businesses financial data stays safe. Between secure data centers, encrypted passwords, and authorized accounts your information will be safe and protected.


Both Xero and QuickBooks Online are great options for your small business accounting needs. Xero pulls ahead in some categories but QuickBooks Online has years of experience. If you’re still having a hard time deciding between the two ask one of our accountants which one would be better for your small business.



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