An honest, side-by-side comparison of the two biggest cloud accounting platforms, with clear recommendations for different firm types.
Cloud-native accounting with the strongest integration ecosystem in the UK.
Best for: Most UK firms, especially those wanting best-in-class integrations
Pricing: Plans start from £15/month (Starter) to £47/month (Premium). Partner pricing available for accounting firms. All plans include unlimited users.
A solid all-rounder with strong automation and built-in payroll.
Best for: Firms with international clients or those wanting built-in payroll
Pricing: Plans from £12/month (Simple Start) to £32/month (Advanced). Payroll included on some plans. User limits apply on lower tiers.
How Xero and QuickBooks Online stack up across the features that matter most to UK accounting firms.
| Feature | Xero | QuickBooks Online |
|---|---|---|
| Bank Feeds | Automatic feeds with smart reconciliation | Automatic feeds with AI matching |
| Invoicing | Built-in with online payment options | Built-in with customisable templates |
| MTD Compliance | VAT and Income Tax compliant | VAT and Income Tax compliant |
| Integration Ecosystem | 1,000+ apps via marketplace | Smaller UK ecosystem, strong globally |
| Multi-Currency | Full support with live exchange rates | Full support with multi-entity handling |
| Reporting | Good built-in, excellent with add-ons | Class and location tracking, project profitability |
| User Interface | Modern, cloud-native design | Intuitive and client-friendly |
| Mobile App | Full-featured mobile app | Excellent mobile app with receipt capture |
| Payroll | Requires third-party integration | Built-in payroll on eligible plans |
| Pricing | From £15/month, unlimited users | From £12/month, user limits on lower tiers |
| User Limits | Unlimited users on all plans | User caps on Simple Start and Essentials |
| AI Features | Smart reconciliation suggestions | AI-powered categorisation and receipt matching |
Both platforms offer monthly subscriptions with no long-term contracts required.
All plans include unlimited users. Partner pricing available for accounting firms.
Payroll included on eligible plans. User limits apply on Simple Start and Essentials.
The right choice depends on your firm's specific situation. Here is our recommendation for each scenario.
Xero
Xero is the stronger choice for most UK accounting firms. The vast integration ecosystem, unlimited users on all plans, and mature partner programme give it a clear edge. If you are setting up a new practice or migrating clients to cloud accounting, Xero should be your default starting point.
Read full Xero review →QuickBooks Online
If you want payroll included without paying for a separate subscription, QuickBooks Online delivers. The built-in payroll on eligible plans removes complexity and cost, making it a practical choice for firms that handle payroll for many of their clients.
Read full QuickBooks Online review →QuickBooks Online
QuickBooks Online is the global market leader, so firms working with US-based or international clients will find it easier to collaborate. The multi-entity support and worldwide recognition make cross-border accounting more straightforward.
Read full QuickBooks Online review →Book a free discovery call and we will help you choose the right accounting software for your specific needs.
Book a Free Call →