Xero vs QuickBooks – UK 2025 Comparison
Choosing the right accounting software is a crucial decision for any growing business. In the UK market, that choice often comes down to two front-runners: Xero or QuickBooks Online. Both offer powerful cloud-based tools, but which is the better fit your business?
Your ideal platform shouldn’t just serve your current needs, it should scale with you as your company grows.
In this guide, we compare the two head-to-head, focusing on integration capabilities, automation, and scalability, to help you understand the key differences.
Xero vs QuickBooks: At a Glance
| Feature / Capability | Xero | QuickBooks Online |
|---|---|---|
| Invoice limit (entry plan) | 20/month | Unlimited |
| Expense matching & receipt capture | Add-on only (highest tier) | Included in all plans |
| Reconciliation workflow | Click-through to view category | Category shown inline |
| Custom user roles & permissions | Fixed roles | Fully customisable (Advanced) |
| Native budgeting & forecasting | ✗ (requires add-on) | ✓ (Advanced) |
| Number of standard report types | ~30 standard reports | 50+ reports (Advanced) |
| WhatsApp invoicing | ✗ | ✓ |
| Two-factor authentication (MFA) | Enforced via app | Optional |
| Mobile mileage tracking | ✗ | ✓ |
| Phone & chat support | Email only | Phone & 24/7 chat |
| Inventory reorder-point management | Add-on only | ✓ (Plus & Advanced) |
Integration & Automation Capabilities
Growing businesses need a finance platform that can automate core functions, without a software developer. Below, we compare Xero and QuickBooks on how they handle essential finance-team workflows straight out of the box.
1. Bank Reconciliations
Both Xero & Quickbooks have capability to connect to UK banks via Open Banking, giving you a complete up-to-date view of all accounts and credit cards for seamless reconciliation.
Verdict: Both platforms perform similarly.
2. Invoicing
Subscription billing - Xero’s repeating invoices are ideal for true subscription models with per-template schedules. QuickBooks offers recurring invoices, but with fewer custom options for subscription tiers.
Payment links & reconciliation - Both integrate natively with Stripe and GoCardless, so clients pay via embedded “Pay Now” buttons and transactions auto-match to invoices.
Batch processing - QuickBooks Advanced supports CSV batch-imports of hundreds of lines; Xero lets you copy and edit past invoices in bulk.
Verdict: Both systems handle end-to-end invoicing automation equally, Xero edges ahead for subscription billing, while QuickBooks shines on high-volume batch sends.
3. Accounts Payable & Bill Capture
Both Xero and QuickBooks automate supplier bill processing to minimise data entry or human errors:
Machine Learning - Xero bundles Hubdoc on most plans so bills and receipts are auto-fetched, coded and published straight into your ledger. QuickBooks offers similar AI capture via the Hubdoc/Dext apps available in its App Store.
Standard bill entry - Both let you key in bills manually or import via CSV without extra software.
Verdict: Both platforms deliver equivalent AP automation—Xero includes Hubdoc natively, while QuickBooks relies on an official add-on.
4. Paying Bills (Supplier Payments)
Both Xero and QuickBooks streamline supplier payments without manual ledger entries:
Wise integration - Link your Wise Business account in each platform to pay UK and international suppliers at mid-market FX rates, with fees and exchange gains automatically recorded back to your ledger.
Bulk payments & approvals - Both support payment batch files (e.g., CSV or ISO20022) and multi-step approval workflows.
Verdict: Both platforms perform similarly.
5. Reporting & Analytics
Both platforms support seamless data export into BI tools and custom reports:
Power BI Connector - Xero relies on third-party connectors (e.g. Etani, Connectorly) to pull your Xero ledger directly into Power BI for real-time dashboards and consolidated insight. Whereas QuickBooks features a native Power BI connector (in beta) via Power Query.
Custom Reports & Exports – Xero’s standard reporting covers ~30 core reports (P&L, Balance Sheet, Aged AR/AP, etc.) QuickBooks Advanced unlocks 50+ built-in reports, including cash-flow forecasts and KPI dashboards. Both with one-click exports to Excel or PDF.
Verdict: Both platforms are equally strong at delivering your data into BI and report exports, QuickBooks edges ahead on native report volume, while Xero’s connectors give you flexibility for custom dashboards.
6. Budgeting & Forecasting
Built-in planning tools help you move from “what happened” to “what’s next”:
Xero - Offers simple budgeting templates and income-statement/cash-flow forecasts directly within the app, using your actual transaction history to project future performance.
QuickBooks - Includes a Financial Planning module where you can build forecasts, convert them into budgets, and refresh actuals with a single click.
Verdict: Both deliver core budgeting and forecasting without extra apps.
7. Audit Trails & Permissions
Audit Trails – Both systems offer similar history & audit logs, to ensure you know who created, edited, or voided transactions, and when.
User Roles & Permissions - Xero offers a fixed set of permission roles with limited granularity, whereas QuickBooks (Advanced) lets you define fully custom roles and granular access rights per user, ideal for larger finance teams.
Verdict: QuickBooks provides deeper, more customisable permission controls, whereas both platforms offer similar audit trails.
8. Summary
For a developer-free finance function, covering bank recs, invoicing, credit control, AP capture and supplier payments - Xero edges ahead with more native automation tools. QuickBooks delivers excellent ease of use for basic needs but often depends on third-party apps for advanced AP and payment integrations.
If you do have developer capacity, then Xero has a better API, and offers over 1,000 connected apps, whereas Quickbooks has around 750.
Pricing (UK, 2025)
| Plan Tier | Xero (per month) | QuickBooks (per month) |
|---|---|---|
| Starter/Early | £15 | £14 (Self-Employed) |
| Growing/Essentials | £30 | £28 |
| Established/Plus | £42 | £38 |
| Advanced | N/A (Xero has no user cap) | £70+ (up to 25 users) |
| Payroll | From £5/month + £1/employee | From £4/month + £1/employee |
| Free Trial | 30 days | 30 days |
Note: Prices may be discounted for the first 3 months. Always check current offers.
Xero provides better value for businesses with multiple users due to unlimited user access on all plans. QuickBooks is more competitive at the low end for sole traders or limited companies with simple needs.
Final Thoughts: Which Should You Choose?
Choose Xero if you're a growing SME, agency, startup, or multi-user team that values scalability, wide integrations, and developer access.
Choose QuickBooks if you’re a sole trader, freelancer, or small business with simpler needs and want ease of use, great mobile features, and a polished interface.
Aascend Group works with both systems and can advise on the right fit for your operational needs. Whether you're scaling up, going digital, or integrating finance with the rest of your business, getting the right system in place is step one.