So it’s Xero vs QuickBooks in Australia, who wins?
Choosing the right accounting software is a key decision for small business owners. The platform you use shapes how you manage invoices, track expenses, run payroll, and stay on top of your tax obligations throughout the year.
Xero and QuickBooks are two of the most widely used accounting software options in Australia. Both are cloud-based, both integrate with a wide range of business tools, and both are built to handle Australian tax compliance requirements including GST and BAS lodgement. However, there are real differences in pricing, payroll, industry focus and the way each platform works in practice.
In this comparison, we break down how Xero and QuickBooks compare across the features that matter most to Australian businesses, so you can make a confident and informed decision.
Initial Featrue Comparison
| Feature | Xero | QuickBooks |
|---|---|---|
| Origin | New Zealand | USA |
| Cloud-based | ✓ | ✓ |
| User-friendly interface | ✓ | ✓ |
| Cost | Flexible pricing plans | Subscription-based |
| Scalability | ✓ | ✓ |
| Multi-currency support | ✓ | ✓ |
| Mobile app | ✓ | ✓ |
| Third-party integrations | Wide range available | Extensive marketplace |
| Customer support | 24/7 online chat | 24/7 phone and chat |
| Payroll management | ✓ | ✓ |
| Reporting | ✓ | ✓ |
| Industry specialisation | ✗ | ✓ |
From this initial comparison, it’s clear there isn’t a huge amount separating Xero and QuickBooks, which is part of why both rank among the leading accounting software options in the Australian market.
While each platform streamlines financial management, there are important differences in pricing, ecosystem, and industry focus.
The next step is to look more closely at how each fits your specific workflows, reporting needs, and growth plans.
Key Benefits of Quickbooks vs Xero
| Feature | What it means for your business |
|---|---|
| Cloud-based | Both Xero and QuickBooks are fully cloud-based. Access your financial data from anywhere, collaborate in real time, and skip the hassle of local installs or manual backups. |
| User-friendly interface |
Xero Clean, intuitive layout designed to make daily accounting tasks straightforward, even for non-accountants.QuickBooks Familiar structure that’s easy to pick up from day one, with a layout suited to users at all experience levels. |
| Scalability |
Xero Adjust your plan up or down as your needs change, with no disruption to your data or workflows.QuickBooks Multiple versions available from small business to enterprise, so the platform grows alongside you. |
| Multi-currency support |
Xero Manage invoices and payments in multiple currencies with automatic exchange rate updates.QuickBooks Comprehensive multi-currency support for businesses dealing with international clients or suppliers. |
| Mobile app |
Xero iOS and Android app covering invoicing, expense tracking, and reporting on the go.QuickBooks Full-featured mobile app with similar functionality, including mileage tracking and receipt capture. |
| Third-party integrations |
Xero Connects with 800+ apps across CRM, e-commerce, payroll, and project management.QuickBooks Extensive ecosystem with a large number of integrations covering most common business tools. |
| Customer support |
Xero 24/7 online chat support, plus a knowledge base, tutorials, and community forums.QuickBooks 24/7 chat and phone support, backed by similar self-service resources. |
| Payroll management |
Xero Built-in payroll covering pay runs, leave management, tax calculations, and payslips.QuickBooks Integrated payroll with similar features, including automated tax filings depending on your plan. |
| Reporting |
Xero Customisable reports including profit and loss, balance sheets, and cash flow statements.QuickBooks Strong reporting suite with additional options for budgeting and forecasting on higher-tier plans. |
| Industry specialisation |
Xero Stronger focus on retail, e-commerce, and professional services, with integrations built around those sectors.QuickBooks Broader industry coverage, with features and add-ons catering to a wider range of business types. |
How Much do Xero and Quickbooks Cost?
Pricing is one of the more meaningful differences between the two platforms. Xero structures its plans around payroll headcount and feature depth. QuickBooks follows a tiered subscription model based on the number of users and functionality required. Both increase pricing annually, so it is worth checking each provider’s website for the most current rates.
| Plan | Xero | QuickBooks |
|---|---|---|
| Entry level |
Ignite — $35/month Core accounting, GST tracking, BAS lodgement, Hubdoc, and payroll for 1 person. Capped at 20 invoices and 5 bills per month. |
Simple Start — approx. $29/month Invoicing, expense tracking, GST, BAS, and bank feeds for 1 user. Payroll is a separate add-on. |
| Small business |
Grow — $75/month Unlimited invoices and bills, payroll for 2 people, cashflow forecasting, and expense management for 1 user. Suits most small businesses. |
Essentials — approx. $42/month Adds bill management, time tracking, and multi-currency. Up to 3 users. Payroll still a separate add-on. |
| Growing business |
Comprehensive — $100/month Adds multi-currency, payroll for 5 people, advanced analytics, and deeper cashflow forecasting (90 days). |
Plus — approx. $52/month Adds inventory tracking, project profitability, and budgeting. Up to 5 users. Payroll is a separate add-on. |
| Larger teams |
Ultimate — from $130/month Adds project tracking, payroll for 10+ people, advanced reporting, and 180-day cashflow forecasting. Scales up to 100 employees. |
Advanced — pricing on request Adds workflow automation, custom roles, batch invoicing, and up to 25 users. Available in Australia from early 2024. |
| Payroll | Included in all plans from Ignite. Automated super also included across all tiers from June 2025. | Add-on via Employment Hero. Standard payroll is $6/month per active employee. Advanced payroll adds a $10/month base fee. |
| Free trial | 30-day free trial available. | 30-day free trial available. |
A key practical difference: Xero includes payroll across all plans, whereas QuickBooks charges for payroll separately on top of the base subscription. For businesses with even a small number of employees, this can affect the true cost comparison.
Xero vs Quickbooks in Australia - who wins?
In summary, Xero and QuickBooks are both powerful accounting software options with unique features and benefits.
Xero stands out with its flexible pricing, intuitive interface, and specialisation in certain industries, while QuickBooks offers a comprehensive ecosystem, extensive customer support, and industry-wide appeal.
Consider your business’s specific requirements and preferences to make an informed decision between these two leading accounting solutions.
In Australia, Xero is the market leader, far outpacing both Quickbooks and its other rival, MYOB. This is because Xero is essentially a home grown product (despite coming from New Zealand). It’s head quartered in Melbourne and is used by a far greater number of firms and businesses than Quickbooks.
Why we think Xero is better
If it’s Quickbooks vs Xero in Australia, then we believe that Xero stands out as the better choice. First, its flexible pricing plans cater to businesses of all sizes, allowing them to select the most suitable option based on their needs and budget.
Next, Xero’s intuitive and user-friendly interface makes it easier for users to navigate and perform daily accounting tasks, even for those without extensive accounting experience.
Moreover, Xero’s specialisation in certain industries, such as retail, e-commerce, and professional services, provides tailored features and integrations that cater specifically to the unique requirements of these sectors.
Lastly, Xero’s extensive marketplace of over 800 integrations offers a wide range of third-party applications, enabling seamless integration with popular tools and systems, and further enhancing the overall functionality and efficiency of the accounting software.
Need a Xero accountant in Sydney?
Choosing the right plan is just the first step. Getting Xero configured correctly for your business structure, GST settings, payroll, and reporting can make a significant difference to how useful the software actually is day to day.
JD Scott + Co are Sydney-based Xero accountants who work with small businesses and growing companies across a range of industries. We help clients set up Xero from scratch, migrate from other platforms, and make sure the plan they are on actually fits the way their business operates.
Talk to a Xero Accountant
