QuickBooks vs Xero: Full comparison for Australian businesses

Choosing the right accounting software is a big decision for your business. It’s basically the nerve centre for all your bookkeeping and finances, giving you the tools to match your internal records with bank statements, send invoices, manage payroll, and more.

QuickBooks and Xero are two very popular accounting options in Australia. In this guide, you’ll get a clear, in-depth comparison of QuickBooks vs Xero — what they do, how they differ, and what those differences mean for your business.

Table of contents
Overview of QuickBooks and Xero Pricing comparison in AU Feature comparison Identifying the right accounting solution Wise Business: Reconcile global transactions with your favourite accounting software

What are QuickBooks and Xero?

QuickBooks and Xero are cloud-based accounting platforms that centralise financial activity. They replace scattered records and time-consuming manual inputs with a live, automated system that keeps track of all the money moving in and out of a business.

Critical business data involving sales, expenses, payments, and tax information all flow into this single “hub,” giving users a better view of their finances and supporting better decision-making.

Both QuickBooks and Xero can be used to:

• Automate bank reconciliation
• Keep accurate books
• Track invoices and bill payments
• Manage Goods and Services Tax (GST)
• Prepare reports
• Integrate with business accounts and systems

Overview of QuickBooks

US-based QuickBooks is used by startups and mid-sized companies to manage everyday financial admin. Over time, it has evolved into a broader online workspace, bringing together invoicing, bills, payroll, and reporting. QuickBooks, which has 7 million customers¹, recently confirmed that it’s focusing on cloud services, with desktop software scheduled to be phased out².

Overview of Xero

Xero was founded in New Zealand and now has over 4.6 million global subscribers³. It’s built mainly for sole traders and small businesses that want a cloud-based system to handle day-to-day bookkeeping. It’s flexible and accessible, too — all plans support unlimited users, making it easy for teams or accountants to jump in when needed⁴.

Pricing comparison: QuickBooks vs Xero in Australia

QuickBooks and Xero use a subscription-based pricing model for their accounting services. They each have four main tiers, which smooths the process for comparing pricing. There aren’t any “free” plans, but both platforms usually have a 30-day trial to test features before committing to a paid subscription.

Here’s an overview of the pricing for each of the respective plans on QuickBooks versus Xero.

Plan	QuickBooks⁵	Xero⁶
Entry-level	Simple Start - $33 per month	Ignite - $35 per month
Mid-tier	Essentials - $60 per month	Grow - $75 per month
Advanced	Plus - $84 per month	Comprehensive - $100 per month
High-end	Advanced - $125 per month	Ultimate 10 - From $130 per month

In addition to the monthly fee, you might also have to pay for extra features and users on these platforms, depending on your specific use case.

QuickBooks pricing

QuickBooks has four tiers, with set pricing up to $125 per month for Advanced.

With QuickBooks, payroll is an “add-on”; there aren’t any included allowances. You’ll have to pay a $6 fee per employee per month, but you can scale up and down when it’s convenient for you⁵.

Xero pricing

Xero also has four tiers with set pricing, but the highest tier, Ultimate 10, can go up to $272 per month.

Payroll features are included in all Xero plans, though there is a cap on the number of people you can add per tier. For example, with Grow, you only get a 2-person payroll, with this increasing to between 10 and 100 with Ultimate 10. There’s a $2 fee for each person thereafter, up to a max of 200 people.

There are two other variable fees: $5 per additional user for claiming expenses and mileage, and $7 per additional user for tracking projects (Ultimate 10-only)⁶.

Feature comparison: Xero vs QuickBooks

So, is QuickBooks better than Xero? We’ll try to take a step closer to answering that all-important question with a full rundown of the features. First, there’s a table overview, then a direct comparison between all the main things on offer.

Feature	Xero⁶	QuickBooks⁵
Reconcile bank transactions	✅Every plan	✅Every plan
Send quotes and invoices	✅Ignite limited to 20 invoices per month	✅Unlimited
Enter bills	✅Ignite limited to 5 bills per month	Available from Essentials
Track GST and lodge BAS	✅Every plan	✅Every plan
Manage payroll	✅Every plan but tiered allowances	Add on
Claim expenses	Available from Grow with tiered allowances	Available from Essentials
Integrate with Wise Business	✅Yes	✅ Yes
Multi-currency support	Comprehensive and Ultimate 10 only	Available from Essentials
Track projects	Ultimate 10 only	Plus and Advanced only

As you can see, there’s an overlap with most features, though there are differences in how they’re implemented or presented. Let’s look at those in more detail.

Ease of use and user interface

Xero and QuickBooks are, generally, both quite easy to use with simple dashboards and accessible tools which can be wielded by most non-technical users.

Xero uses a simple top-navigation menu where you can get right into all the main features, like bank reconciliation and paying bills⁷. The dashboard provides a clear overview of bank balances for cash flow, and anything that’s due (invoices, etc). It also has a consistent layout across desktop and mobile.

QuickBooks recently rolled out a new design for “Modern Reports” with a streamlined top panel and tweaked layout providing clearer tables and visuals⁸. The dashboard shows all the important details, like income, expenses, and sales at a glance. Like Xero, the mobile app offers a very similar experience.

Invoicing and billing

QuickBooks lets you create professional invoices and add payment details for fast payments, then track the status from the dashboard. You can also set up recurring invoices. Xero works similarly, with customised invoices and automated reminders.

One difference to note around invoicing: QuickBooks offers unlimited invoicing from the lowest tier, whereas Xero’s entry-level plan caps the allowance at 20 invoices per month.

For billing, QuickBooks includes tools to enter bills, schedule payments, and organise expenses from the “Bills” section. Xero works in pretty much the same way, allowing users to add bills, store copies of supplier invoices, and track what’s owed and to whom from the “Bills” dashboard.

Bank reconciliation

Xero and QuickBooks make bank reconciliation a breeze with automatic bank fees. After linking bank accounts within seconds, data then flows into the respective platforms automatically, ready for you to match and approve.

Xero provides instant match suggestions, which you can reconcile with one click, or if you prefer, you can set up your own rules for specific transactions⁹. QuickBooks also lets you “tick off” transactions and provides reports to help you identify any discrepancies¹⁰.

If your business sends or receives money globally, Wise Business can integrate with Xero and QuickBooks here, for even more functionality. This allows users to:

• Sync multi-currency businesss transactions automatically
• Match international invoices with real payment amounts
• Save time and avoid frustrating foreign currency-related mismatches

Sign up for the Wise Business account! 🚀

Inventory management

QuickBooks offers three main inventory features: inventory tracking, purchase orders, and sales orders. However, these are only available on the two highest tiers, Plus and Advanced⁵. You won’t be able to track your inventory on the lower Simple Start or Essentials plans unless you connect a third-party app like Shopify.

In contrast, Xero includes inventory management across all its plans, with support for up to 4,000 different items, which can be added to invoices and purchase orders¹¹. Xero says customers can also integrate a third-party inventory app from the store for more advanced features and larger inventories¹².

Payroll services

Both Xero and QuickBooks have Single Touch Payroll software. This is convenient, allowing you to lodge all the important details (PAYG, super, etc.) with the ATO automatically during each pay run. You can also automate tax calculations and other reporting obligations on both platforms. And both are STP Phase 2 compliant.

However, they do differ slightly in depth of features and how payroll is handled day to day.

• Xero is more streamlined with an integrated payroll workflow. The Xero Me app (included in every subscription) allows employees to manage their own timesheets, leave requests, etc., to reduce the burden for business owners¹³.
• QuickBooks provides detailed guidance for handling more complex payroll scenarios, which might be useful for larger businesses with complicated pay structures or that have industry-specific requirements¹⁴.

Reporting and analytics

Xero offers quite a few visualisation and forecasting tools. Only “advanced KPI analysis” is locked to the highest tier, so most users will be able to cycle through multiple graphs to make sense of their data⁶. These can also be customised with different logos and colours, and then exported to share with others.

QuickBooks groups its reporting and analytics features under “Business Intelligence,” where users across all tiers can generate and export profit and loss sheets and expense reports⁵. However, things like forecasting, custom dashboards, and custom report building are exclusive to the highest tier.

App integrations and ecosystem

Both QuickBooks and Xero offer a big library of tools that integrate seamlessly with the software. Xero has the edge in terms of numbers, boasting 1,000+ tools¹⁵, compared to the 500+ on offer with QuickBooks¹⁶. Users can download apps from respective app stores, which are well laid out and grouped by function and industry.

Customer support

Xero comes with “unlimited” online support, but that’s mainly through its “Central” portal, where you’ll find lots of support articles and discussions. There’s no live chat, but you can click “Get in Touch” to send a query, and Xero will respond via email¹⁷.

QuickBooks has a vast learning and support hub, too, with user guides and training. You can even book a free 45-minute video session to onboard, and there’s an option for live chat within the software.

It’s also easier to talk with someone with QuickBooks: they have a support number you can call Monday to Friday between 8.30am to 6.30pm AEDT¹⁸. Xero doesn’t offer direct inbound phone support, but you can raise a ticket and request a call back for free¹⁹.

Identifying the right accounting solution for your business

When comparing Xero vs QuickBooks in Australia, you’ll see that there’s quite an exhaustive list of features available. To find the right fit for your business, consider these factors:

• Number of users - Businesses with multiple staff or advisors (accountants) may require several user logins. Xero allows unlimited users on every plan, while QuickBooks has limits tied to tiers, i.e. 5 users with Plus.
• Payroll - Businesses with employees need to run payroll and manage superannuation. Xero includes payroll as standard (for a select number of users), but it’s only available as an ‘add-on’ with QuickBooks.
• Integrations - If you want your accounting software to connect to other tools like CRM or ecommerce platforms, it’s wise to check the respective app stores before signing up (or during free trials) to see if they’re compatible with Xero or QuickBooks.
• Employee self-service - Businesses that want employees to share some of the burden of admin might need self-service tools. Xero’s Me app lets staff submit timesheets and access payslips. QuickBooks doesn’t offer a similar standalone app.
• Multi-currency - Global businesses need support for international payments. Multi-currency features are only available on these plans: Xero Comprehensive and Ultimate 10; QuickBooks Essential, Plus, and Advanced.

Wise Business: Reconcile global transactions with your favourite accounting software

Wise Business connects directly to both Xero and QuickBooks, so you can manage all your global payments in one place.

To get started, all you need to do is log in to either platform and link your Wise Business account. After that, your balances and transactions sync automatically. This means all your international payments and currency conversions land straight in your books without manual entry, making it easier to match your invoices, tidy up reconciliation and keep your multi-currency records accurate.

A Wise Business account allows users to can send, receive, and hold in multiple currencies. Experience hassle-free global transactions by transacting like a local business. Here's what you get with a Wise Business account:

• Free to register — Hold and convert between 40+ currencies. Send to 140+ countries
• Debit cards for you and your team, which you can use in 150+ countries
• Multi-user access for team members, with ways to control and manage permissions
• Pay up to 1,000 recipients at once with the Wise batch payments feature
• Integrate with your favourite cloud accounting solutions like Xero, QuickBooks, and more
• Get account details to receive in 8+ currencies for a one-time fee of 65 AUD

Sign up for the Wise Business account! 🚀

This general advice does not take into account your objectives, financial circumstances or needs and you should consider if it is appropriate for you.

---

Sources:

1. QuickBooks Australia - New businesses
2. QuickBooks - Desktop discontinuation info
3. Xero Australia - Home page
4. Xero - Can multiple people use Xero software
5. QuickBooks - Pricing
6. Xero - Pricing
7. Xero - Accounting software dashboard
8. QuickBooks - Preparing your reports for the future with modern view
9. Xero - Bank reconciliation
10. QuickBooks - Bank reconciliation
11. Xero - Manage inventory
12. Xero - Options for managing inventory
13. Xero - Xero Me payroll app
14. QuickBooks - Pay categories for STP phase 2
15. Xero - App store
16. QuickBooks - App store
17. Xero - Contact support
18. QuickBooks - Contact
19. Xero - Phone support