QuickBooks vs. Xero: The Best Accounting Software for Your Business in 2025

Are you tired of struggling with your bookkeeping and ready to upgrade your accounting software?

You're not alone. Picking the right accounting software isn't just a minor decision—it can have a big impact on the success and efficiency of your business.

Today, we’re putting two of the biggest names in accounting software head-to-head: QuickBooks and Xero. QuickBooks has long been the go-to solution, but Xero is a strong contender. So, which one is the best fit for your business in 2025?

As a QuickBooks Online ProAdvisor and Xero Certified Advisor, I’ve worked with both extensively. Let’s break down their features, pros, and cons so you can make the best decision for your business.

QuickBooks: The Industry Giant

QuickBooks has been a household name in small business accounting for years. It’s reliable, feature-rich, and widely used by businesses of all sizes. Whether you need invoicing, expense tracking, payroll, or tax prep, QuickBooks has the tools to help.

One of QuickBooks’ biggest strengths is its user-friendliness. The interface is clean, making it easy to navigate even if you’re not an accountant. When I first started using QuickBooks, it was a lifesaver, helping me handle everything from invoicing to payroll without feeling overwhelmed.

Pros of QuickBooks:

✅ Easy to use, even for beginners
✅ Powerful features for small and medium-sized businesses
✅ Integrates well with other business tools
✅ Strong customer support and online resources
✅ Works seamlessly with accountants

Cons of QuickBooks:

❌ Pricing can be a concern—starts at $30/month and goes up to $200/month
❌ Regular price increases
❌ Has been shifting focus away from accountants, offering competing services

I have a love-hate relationship with QuickBooks. It’s a fantastic tool, but over the years, they’ve made moves that don’t sit well with professionals like me. They’ve introduced services like Live Bookkeeping and Tax Prep, which compete directly with accountants and bookkeepers. While I still recommend QuickBooks Online to my clients, I do wish they handled this differently.

Xero: A Strong Competitor

Xero is a newer player in the accounting world, but it has quickly gained traction. It’s a cloud-based solution that’s especially popular with startups and small businesses. If you’re looking for a simple, scalable, and affordable option, Xero might be the way to go.

One thing I like about Xero is its flat pricing. Unlike QuickBooks, which increases in price as you add features, Xero keeps things straightforward. This makes it a great choice for businesses that need powerful accounting tools without the high costs.

Pros of Xero:

✅ Affordable pricing—starts at $15/month
✅ Scales well for small businesses
✅ Includes unlimited users at no extra cost
✅ Strong automation features for bank reconciliation and invoicing
✅ Integrates with many third-party apps

Cons of Xero:

❌ Can have a learning curve for QuickBooks users
❌ Customer support isn’t as strong as QuickBooks
❌ Not as widely used in the U.S., so finding an accountant familiar with Xero may be harder

While Xero isn’t as dominant as QuickBooks, it’s a fantastic alternative, especially if you want a cost-effective solution that scales with your business.

So, Which One is Right for You?

Both QuickBooks and Xero offer great features, but the right choice depends on your needs:

✔ If you want a tried-and-true solution with strong integrations and support, go with QuickBooks.
✔ If you’re looking for an affordable, scalable, and modern accounting tool, Xero is a solid choice.

Still unsure? Check out the full comparison in my YouTube video and let me know your thoughts in the comments! Which one are you leaning toward?