Xero vs QuickBooks is the question almost every UK business faces when choosing accounting software. Both are excellent, both are Making Tax Digital compatible, and both will do the job for most small businesses. The right choice comes down to how you work.
The quick verdict
- Xero tends to win on user experience, unlimited users on every plan, and its huge ecosystem of add-ons. It is especially popular with UK accountants.
- QuickBooks tends to win on price at the entry level and on built-in features, and it has strong reporting and a capable self-employed tier.
Pricing and users
Both use tiered monthly subscriptions. The headline difference is that Xero includes unlimited users on all plans, whereas QuickBooks limits users by tier. For a growing team that wants the bookkeeper, directors and an external accountant all in the system, Xero's model can be more economical despite a higher sticker price.
Making Tax Digital
Both products are fully MTD for VAT compatible and are preparing for MTD for Income Tax. Whichever you choose, you will be able to keep digital records and file directly to HMRC.
Payroll
Xero and QuickBooks both offer payroll as an add-on. If payroll is central to your business, compare the per-employee pricing and check that the features you need (pensions auto-enrolment, RTI, payslips) are included at your tier.
Ease of use and reporting
Xero's bank reconciliation and dashboard are widely considered the most intuitive. QuickBooks offers very strong customisable reporting and project profitability tracking that some businesses prefer. If management reporting matters to you, trial both.
So which should you choose?
For most UK small businesses working with an accountant, Xero is the safe default thanks to its ubiquity and add-on ecosystem. QuickBooks is a strong, often cheaper alternative — particularly for sole traders and the self-employed. The best answer is the one your accountant supports, because that is where you'll get the most value.
How PushDigits can help
We are certified advisers on both platforms and migrate businesses between them regularly. We'll recommend the right system, set it up properly, and train your team. See our Bookkeeping service or ask which software suits you.