We get this question at least once a week: "Should I be using QuickBooks or Xero?"
Here is what makes our answer different from most. We are not a QuickBooks shop. We are not a Xero shop. We work in both platforms every single day across our client base. So we have no horse in this race. Just honest observations.
The Short Answer
QuickBooks Online is probably right for you if you are a US-based business that wants robust payroll integration, needs industry-specific features, or works with other accountants who are already in the QuickBooks ecosystem.
Xero might be right for you if you have international operations, want unlimited users without extra cost, or you are technically savvy and prefer a more modern interface.
Where QuickBooks Wins
Payroll integration is the big one. QuickBooks Payroll is deeply connected to QuickBooks Online, and it just works. Xero partners with Gusto, which is excellent but adds a separate cost and a separate login.
The accountant ecosystem matters too. The vast majority of US accounting firms work primarily in QuickBooks. If you ever want a second opinion on your books, or if you change accountants, QuickBooks is the path of least resistance.
Industry-specific features are another advantage. Job costing for contractors, class tracking for nonprofits, and inventory management are all built into QuickBooks Plus or higher.
Where Xero Wins
Unlimited users on every plan is huge for growing teams. QuickBooks charges per user after your included limit, and those costs add up fast.
The reconciliation interface in Xero is genuinely faster and more intuitive. When you reconcile hundreds of transactions a month across multiple clients, that difference matters.
Xero's API and third-party app integrations also tend to be higher quality. If you are a tech-forward business that connects a lot of tools, Xero's ecosystem feels more modern.
The Real Answer
The best accounting software is the one you actually use consistently. Both platforms can serve your business well if they are properly set up and maintained.
What matters more than the software choice is having clean books, regular reconciliation, and financial visibility. A perfectly set up QuickBooks file that nobody touches for three months is worse than a basic Xero setup that gets reconciled every week.
If your current software is working, do not switch just because someone told you the other one is better. The switching costs, both financial and operational, are almost never worth it for a platform change alone.
And if you are starting fresh? For most US-based small businesses, we recommend QuickBooks Online Plus. The ecosystem, familiarity, and feature depth are hard to beat.