QuickBooks dominates the US market with 4.5M+ users and deeper accounting features, while Xero leads globally with 3.3M+ users and superior mobile-first design. QuickBooks offers better for traditional accountants; Xero excels for modern, cloud-native businesses.
Xero vs QuickBooks — Side-by-side comparison on A Versus B
Choose QuickBooks if you're a US-based small business or accountant managing multiple clients with complex payroll needs — it dominates the accountancy market with deeper tax compliance and a mature ecosystem. Choose Xero if you're a growing global business, freelancer, or startup prioritizing modern mobile-first workflows, multi-currency transactions, and lower entry costs — it's the future-forward choice with 23% faster mobile performance.
Cloud-first accounting software optimized for global small businesses and freelancers.
US-dominant accounting platform with comprehensive tax compliance and accountant tools.
Structured comparison data for Xero vs QuickBooks with 171 attributes.
Max Client Accounts (Accountant Edition)
Average Total Cost of Ownership (Year 1)
Payroll Module Cost (Per Employee/Month)
Xero vs QuickBooks — Attribute Category Vocabulary
Taxonomy of attribute categories used to classify comparison data for Xero vs QuickBooks.
Which is better for US small businesses with payroll needs?
QuickBooks Online is the clear choice. It has native, integrated US payroll with real-time tax calculations, 1099-NEC/W-2 generation, and is used by 78% of US accountants. Xero requires third-party payroll integration (like Guidepoint), adding complexity and cost.
Which is better for freelancers operating internationally?
Xero is significantly better. It natively supports 160+ currencies with real-time conversion, has a 4.8/5-rated mobile app for on-the-go invoicing, and costs just $13/month to start. QuickBooks' single-currency limitation and US-centric design make it less suitable for global freelancers.
Can accountants manage multiple client accounts with both?
Both support multi-client management, but differently. QuickBooks Accountant edition is purpose-built for firms managing 50+ clients with dedicated tools, forms, and bulk operations. Xero uses an unlimited client portal approach but with fewer accountant-specific bulk features. QuickBooks wins for traditional accounting firms.
How do their mobile apps compare for remote accounting work?
Xero's mobile app (4.8/5 rating) has superior offline capabilities, real-time bank synchronization, and loads 23% faster on average. QuickBooks' app (4.2/5) is functional but heavier and requires more internet connectivity. For mobile-first work, Xero's mobile offering is measurably better.
What are the total costs for a growing business at year two?
For a growing US business with 3 users and payroll: Xero would cost $156/month (Plus tier at $52/month × 3) plus ~$40 payroll integration = $196/month. QuickBooks costs $180/month (Plus tier at $60/month × 3) with payroll included. QuickBooks has lower TCO for US businesses with payroll; Xero wins globally where payroll integration is optional.