The battle is here yet again between the two giants of the accounting software industry – Xero vs. QuickBooks – and only one can reign supreme when it comes to capturing the hearts of accountants.  

The battle has been heating up this year with both companies making strong showings. But Xero has just managed to clinch the win with just 187 more users than QuickBooks.  

But when we zoom out on a more global scale these two bemouths have provided their own numbers – which show QuickBooks the most popular globally.  

But, for accountants how can you choose between these two powerhouses? Which one is better for your firm? We dive even deeper past the report to give you the answers.  

What do QuickBooks and Xero excel at?  

QuickBooks 

QuickBooks focuses on ease of use, and simplicity and is the #1 small business accounting software. This really comes into play when you begin to play with their platform, automation in QuickBooks is like having a personal assistant—recurring invoices, automatic bank reconciliations, and expense tracking all happen without a second thought. You set it, forget it, and check it when the numbers roll in.  

It really is about fast-tracking your busy work and letting your firm focus on serving and advising clients. Plus, with it being so easy and intuitive it is also easy for the firm’s clients to also see what is going on with their business.  

Xero 

Xero certainly is working hard not to give any ground to QuickBooks either. It again focuses very strongly on the small business market and is about trying to help small businesses get their finances and books sorted quickly and easily. Founded in New Zealand in 2006, and launched in the US in July 2013, Xero has quickly grown to be the dominant player in the APAC market and has their eyes on the US as its next big region.  

Xero offers solid automation features like QuickBooks which makes it easy to manage client’s books, but it doesn’t have quite as much customization as QuickBooks Online. 

Which is better for my firm? 

QuickBooks 

QuickBooks is often considered the Swiss Army Knife of accounting software. From invoicing, banking reconciliation and more, QuickBooks has what most firms need (if not more). It is firmly built for the much more complicated US accounting workflow and really excels within this area.  

Xero 

Xero is no slouch either. It provides a good strong set of features and can excel when you need to handle multiple currencies. However, being New Zealand-born it is still developing its more advanced features around 1099 contractors or sales tax depending on the region.  

Conclusion 

Xero or QuickBooks – there is no clear winner between the two. Both have their own benefits. When making the decision between the two providers it is important to consider your clients, their tax implications, their primary location, and how advanced you need their software to be.  

The battle between the two giants is only heating up, time will tell who will come out on top in next year’s report. 

Download the 2024-2025 Cloud Accounting Report here.