Xero VS QuickBooks Online 2017 Comparison


When it comes to choosing an accounting software solution, you have plenty of options. But a plethora of options is certain to leave you overwhelmed. It is a challenge to pick the best from the rest. Worry not! Here are a few noteworthy points of comparison between two top rated accounting solutions – Xero and QuickBooks.

Xero vs QuickBooks

  1. Setup

The speed to set up both Xero and QuickBooks is almost the same, though the former gets an upper hand for being a little more guided and easier. On the other hand, QuickBooks Online asks you to fill out a few basic questions to start with. However, it involves little more searching around to get access to all the settings to get started.

  1. Bank reconciliation

Reconciliation helps you verify the accuracy of accounts and all invoices clear in a timely manner. The real-time insights give an accurate picture of your finances and help you business make better decisions.

When you log into Xero, the dashboard with your listed bank and credit card accounts is easy to access. A blue tab under each account reminds you to reconcile x number of transactions daily.  When it comes to matching invoices and transactions, Xero offers best recommendations, helping you find errors and avoid fraudulent charges.

With Xero, you can define preset codes categorizing transactions, turning time-sucking tasks into one-minute chores, thus saving you business time.

Contrarily, QuickBooks Online has a search engine type of approach to match transactions.

Mobile vs Desktop

Xero’s mobile app is ideal for monitoring real-time cash flow, making it easier to track transactions even on the go. The cloud-based accounting software comes with invoicing and receipt-tracking features, so invoice generation becomes a breeze with a few clicks. You may snap pictures of invoices, which can be stored in the app.

QuickBooks Online features a tablet app, which is easy to work with, though not as manageable on a small-screened digital device as Xero.

Number of users

While Xero allows for unlimited users, the number of users depends on the size of your plan in QuickBooks Online. You may grant access to two accountants, and they do not count toward user limit.


The cost of Xero depends on the version purchased. While the “Starter” plan costs $9 per month, the “Standard” plan is available at $30, with the option of unlimited transactions and payroll for five employees and the “Premium” plan at $70 per month, with payroll for 10 employees and multiple currencies. You don’t need to spend more to add users, as all of Xero’s packages include multiple users.

For QuickBooks Online, the basic or “Simple Start” plan costs $12.95 per month per user, while “Essentials” plan costs $26.95 for three users. QuickBooks also offers “Plus” plan at $39.95 for five users.


In the US, Xero uses Yodlee, while QuickBooks has a bank feed service of its own. Outside of the US, the former has a few direct connections with some banks.

When categorizing or dealing with imported transactions, Xero is the leader, offering greater fine-grade control, though both come with internal and user-created rules for automating the categorization process. Xero allows more flexibility when matching entered transactions with the existing ones, while with QuickBooks Online, you cannot use or create credits or deposits, nor add a new transaction in the case of a mismatch between the entered transactions and amount imported.

Xero provides the option of cash coding to advisors, including accountants and bookkeepers, to manually categorize transactions.


Xero has an edge over QuickBooks in terms of customization of invoice and email templates.  With Xero, you can assign templates to customers, ensuring automated selection of invoice and email templates. This means you can automatically send an email message to the customer. QuickBooks Online has no ability or feature to copy or create an email template, which means you have to create a new template every time for each customer.

Ease of use

Xero is the winner as far as usability is concerned. The easy to use accounting software is designed with an intuitive interface, with a beautiful layout, efficient navigation, and comprehensive and well-organized knowledge base.

QuickBooks Online was redesigned in 2013, which has impacted the platform, suffering from a lack of efficiency and being comparatively difficult to navigate.

Some features come standard with both accounting applications. The aforementioned differences can make choice little easier for you.

Still wondering which of the two is better: Xero or Quickbooks Online? If you still see great disparity in both solutions, which makes choice difficult, let ITQlick team come to your rescue. We can help you get your hands on the best accounting software deals around, depending on your specific business needs.