Choosing the right accounting software is one of the most important decisions a small business can make. In Australia, two platforms dominate the market: QuickBooks Online and Xero.
Both are cloud-based, ATO-compliant, and widely used by accountants and bookkeepers — but they suit different types of businesses. In this article, we compare QuickBooks vs Xero to help Australian small business owners decide which software best fits their needs.
Overview: QuickBooks and Xero
Xero was founded in New Zealand and has become the most commonly recommended accounting software among Australian accountants and bookkeepers. It’s known for its simplicity, clean design, and strong local compliance.
QuickBooks Online, developed by Intuit, is a global accounting platform with powerful reporting, automation tools, and a large ecosystem of integrations.
Both platforms support:
- GST tracking and BAS reporting
- Bank feeds and reconciliation
- Invoicing and expenses
- Payroll (via add-ons)
- Cloud access from anywhere
Ease of Use
For many small business owners, ease of use is the deciding factor.
Xero is often praised for its intuitive layout and gentle learning curve. The dashboard is clean, navigation is straightforward, and everyday tasks like invoicing and reconciling bank transactions are simple to learn.
QuickBooks Online offers a polished interface but can feel more complex at first. It provides more options and customisation, which is powerful — but may require more setup and guidance.
Verdict:
👉 Xero is generally easier for beginners; QuickBooks suits users who want more control and detail.
Pricing and Value
Pricing changes regularly, but in Australia:
- Xero is usually more cost-effective for businesses that need multiple users, as most plans allow unlimited users.
- QuickBooks Online limits user numbers on lower plans, with additional users available on higher tiers.
Both platforms offer free trials, making it easy to test them before committing.
Verdict:
👉 Xero offers better value for small teams and businesses working closely with accountants or bookkeepers.
Features and Functionality
Invoicing & Bank Reconciliation
Both platforms perform extremely well here. Bank feeds are reliable, reconciliation is fast, and invoicing is professional and customisable.
Reporting
This is where QuickBooks stands out. It offers more detailed and customisable reports, which can be valuable for growing businesses that want deeper insights.
Xero’s reports are clear and useful but more standardised.
Integrations
QuickBooks has a slight edge in the number of available integrations globally, while Xero integrates seamlessly with many Australian business tools.
Inventory
QuickBooks offers more advanced inventory features on higher plans. Xero’s inventory is suitable for basic needs but may require add-ons for complex stock management.
Verdict:
👉 QuickBooks wins for advanced reporting and inventory; Xero covers the essentials very well.
Payroll and ATO Compliance
Both Xero and QuickBooks support:
- Australian GST
- BAS preparation
- Single Touch Payroll (STP)
Payroll is available as an add-on or via integrated services, and both platforms are widely accepted by Australian accountants.
There’s no clear winner here both meet ATO requirements.
Accountant and Bookkeeper Support in Australia
This is an important factor many business owners overlook.
- Xero is the most widely used platform among Australian accountants and bookkeepers.
- Many firms specialise in Xero, making it easier to find local support.
- QuickBooks is also well supported, but less dominant in the Australian accounting ecosystem.
Verdict:
👉 Xero has stronger local adoption among Australian professionals.
Which Should You Choose?
Xero is ideal if you:
- Are a small business or sole trader
- Want simple, easy-to-use software
- Need unlimited users
- Work closely with an accountant or bookkeeper
- Prefer a platform built with Australia/NZ in mind
QuickBooks is ideal if you:
- Want advanced reporting and automation
- Have more complex workflows
- Need detailed inventory tracking
- Are comfortable with a steeper learning curve
Final Verdict: QuickBooks vs Xero
There is no one-size-fits-all answer.
- Xero is the best choice for most Australian small businesses due to its simplicity, value, and strong local support.
- QuickBooks Online is better suited to businesses that want deeper reporting, more automation, and plan to scale.
Both are excellent cloud accounting solutions and both are far better than spreadsheets.
With Loyalty Accounting, whether you are using Xero or Quickbooks, our highly qualified and experienced bookkeepers will look after all your bookkeeping and BAS requirements. We also work with Zoho and MYOB accounting packages as well.
Please call us for a free 1hour consultation on 03 9462 1825
