Xero vs QuickBooks: Head to head comparison

Two of the most popular choices for accounting software in the UK are Xero and QuickBooks Online. Each are comprehensive tools offering most of the essential accounting features that small-to-medium size businesses need.

In this essential guide, we'll compare Xero and QuickBooks on features, pricing, ease of use, multi-currency support and more, to help you choose the right tool for your business.

We’ll also look at how both platforms can be integrated with Wise Business. This can streamline international payments, sync transactions automatically and save your business money on costly bank fees.

Register for Wise Business ✍️

Quick comparison

Feature	Xero3	QuickBooks4
Cloud-based ☁️	Yes	Yes
Fees 💰	From £16 per month1	From £10 per month2
Mobile app 📱	Yes - iOS & Android	Yes - iOS & Android
Multiple users 👥	Depends on plan	Depends on plan
Multi-currency 💱	Depends on plan	Depends on plan
Payroll 💷	Optional add-on	Optional add-on
Expenses tracking 📊	Yes	Yes
VAT submission 🪙	Yes	Yes
AI-driven features ✨	AI invoicing and cashflow insights	AI-powered bookkeeping suggestions
Integrates with Wise Business 🤝	Yes	Yes
UK support 📞	Live chat and request a callback	Phone, live chat and screen sharing

Register for Wise Business ✍️

An overview of Xero

Launched in 2006, Xero has become one of the top accounting tools on the market. It has over 4.6 million subscribers across a number of countries, including the UK, Australia and New Zealand.⁵

This all-in-one accounting software is particularly popular with start-ups and younger business owners, and is known for its clean, uncluttered interface.

Xero’s features include:

• Payroll, expenses and invoicing
• Bank syncing capabilities
• Automated invoicing and reporting
• Real-time collaboration with accountant or employees
• Customisation options, including integration with third-party apps
• Add-ons such as Xero Payroll, Xero Expenses and Xero Projects.

The Xero mobile app for Android and iOS devices is free when you sign up for a subscription. It offers easy access to Xero’s accounting tools on the move, including looking up contacts, sending invoices and reconciling bank transactions.

In the Xero app, you can also:

• Monitor spending
• Convert quotes into invoices
• Set reminders for bills to pay
• Access reports on the move.

An overview of QuickBooks

Trusted by millions of businesses,⁶ QuickBooks is an offshoot of Intuit’s general desktop-based accounting software.

It’s particularly good at helping businesses to streamline repetitive tasks. It’s also cloud-based and designed for use on the move, so you can access it from your laptop, smartphone or other mobile device.

Its features include:

• Sending professional invoices
• Uploading receipts for business expenses
• Running payroll including time tracking
• Submitting VAT in line with HMRC’s Making Tax Digital rules - including a VAT error checking feature
• Connections with your accountant and other bank accounts
• Real-time reporting for profit and loss and cashflow insights.

Note: This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited, its subsidiaries or affiliates, and it is not intended as a substitute for obtaining business advice from a tax advisor or any other professional.

QuickBooks Online Essentials

While searching for accounting software, you might also come across something called QuickBooks Online Essentials.

This is a mid-tier subscription level within the main QuickBooks Online software, specially designed for service-based businesses, and it’s specially designed for service-based businesses which invoice for their time.

With this tool, you can automate invoices on a recurring schedule, track income and expenses and pay multiple vendors at the same time.

QuickBooks app

With the QuickBooks app, you can stay on top of all your business finances and accounting from your phone.

Available for free on iOS and Android when you’re a QuickBooks Online customer, the app offers instant access to your QuickBooks dashboard, including accounting reports, invoicing and much more.

All your data is automatically backed up to the cloud and synced across devices, so any changes made on the move will be updated when you next login. This includes snapping pictures of your receipts and uploading them via your phone.

Register for Wise Business ✍️

International business and multi-currency support

For UK businesses trading internationally, handling multiple currencies efficiently is crucial. Both Xero and QuickBooks support this type of accounting:

Xero: Multi-currency functionality is an option and allows for invoicing, bills and bank reconciliation in over 160 currencies.⁷
QuickBooks supports multi-currency accounting too, including currency conversion and reporting.

---

💡 This is where Wise Business becomes invaluable. Both platforms integrate with Wise Business, allowing UK businesses to automate international payments and synchronise transactions directly.

This not only reduces high bank fees but also enables businesses to hold balances in over 40 currencies, ready to pay suppliers or receive funds globally.

---

AI and automation integration

In 2026, both platforms are leveraging AI to make their accounting solutions even smarter.

• Xero: Uses AI to automatically categorise transactions, forecast cashflow and provide real-time insights.³
• QuickBooks: Offers AI-powered bookkeeping suggestions, automated invoice reminders and predictive analytics for cashflow and expenses.⁴

---

💡 For UK SMEs, integrating these platforms with a Wise Business multi-currency account can help to further streamline international operations.

This is because Wise can automatically sync payments into either platform, updating your books in real-time and again reducing costly FX fees.

---

Pricing and plans: QuickBooks versus Xero

Business type	Xero (Monthly)8	QuickBooks (Monthly)9
Sole trader / Freelancer	£16	£10
Small business	£37	£16 to £38
Growing business	£50	£38 (standard price for QuickBooks Plus)
Medium-sized business	£65	£123

Xero pricing⁸

Xero’s most basic plan is for sole traders and start-ups, and offers up to 20 invoices/quotes and 10 bill payments a month.

The next plan up doesn’t have an upper limit on invoices and bills, while the most expensive plan lets you manage accounting in multiple currencies. All plans have optional add-ons for an extra cost, such as Xero payroll.

QuickBooks pricing⁹

QuickBooks costs vary depending on the plan. It splits its pricing plans into two categories - one for freelancers and sole traders, and another for businesses. If you only have Self Assessment to worry about, you can choose a Sole Trader plan for the low price of £10 a month.

If you pay VAT, work with suppliers or are a growing business, you can take your pick from 4 plans. The features list grows with the monthly subscription cost, and you can bolt-on extra services such as Payroll for a small extra monthly fee.

Register for Wise Business ✍️

Bank feeds

Xero has automatic bank feeds, which means that all you have to do is make the initial connection between the software and your bank. After that, the data will be updated automatically every business day.

There are no manual uploads needed, and you can set up secure, encrypted feeds from any number of different bank accounts.

Plus, you can import up to 12 months of transactions when you first use Xero, so you’re not starting from scratch.

With QuickBooks, you can connect any bank account to the platform provided that the bank is supported under the Open Banking regulations. You can even connect company credit card accounts.

Once connected, QuickBooks bank feeds give you an accurate, real-time view of your cashflow and finances. The platform will download all transactions from the last 90 days and will also let you import up to 2 years of historical transactions.

Data imports are automatic and secure, but you will need to reconfirm the connection occasionally for security purposes.

Ease of use

Xero and QuickBooks are both user-friendly, streamlined and cloud-based:

• Xero is known for a clean and intuitive interface. Its dashboard is easy to navigate, and reporting is visually straightforward.
• QuickBooks offers a guided set-up with user-friendly dashboards, smart reports and mobile access for accounting on the move.

Both apps allow UK business owners to check cashflow, reconcile transactions and manage invoices from their smartphone or tablet.

Integrating with Wise Business also means that international payments can be handled directly through your accounting software without logging into multiple systems.

Register for Wise Business ✍️

The verdict: QuickBooks v Xero

There’s a lot to think about when comparing and choosing accounting software for your business, and not only the monthly cost. It’s tempting to go for the cheapest, but this could mean having to pay extra for the add-on features your business needs.

Ultimately, the best option for you depends on your business size, as well as its international needs.

Here are some quick points to bear in mind as you make your decision:

• Xero is ideal for UK businesses wanting unlimited users, a visually clean interface and strong multi-currency capabilities.
• QuickBooks suits businesses looking for affordable starter options, AI-powered bookkeeping suggestions and flexible user limits.

---

💡 Both software integrate with Wise Business, making international transactions more efficient, affordable and easy to reconcile.

---

Seamlessly integrate your favourite accounting software with Wise Business

Efficiently managing a global client base requires a financial partner that understands the fast-paced nature of digital marketing. For many, that’s Wise Business.

With Wise Business*, you can:

• 🌍 Send money to 140+ countries at the mid-market exchange rate with no hidden fees or sneaky exchange rate markups (product availability varies by region; please check the Wise website for local availability)

• 📥 Receive payments using 8+ local account details for 24 currencies

• 💰 Hold money in 40+ currencies

• ⚡ Use the batch payments tool to create and send up to 1,000 payments in a single transfer

• 👥 Run payroll and make international payments for up to 1,000 employees all over the world

• 💳 Get business debit cards with 0.5% cashback for you and your team to keep track of team expenses and spend all over the world

• 🏢 Manage cash in 55+ currencies across international offices from a single business account and move money between business accounts in seconds (exact speeds can vary depending on individual circumstances and may not be the same for all transactions)

• 🔄 Connect and sync every business transaction to your favourite accounting software, including Xero, Quickbooks, and more

• 🔐 Create your own payment approvals process to manage your team better with customised access for different team members

• 📑 Create custom professional invoices and schedule invoice payments for future dates

• 📈 Earn returns on GBP, USD and EUR with Wise Interest (Capital at risk, growth not guaranteed. Your money is at risk if governments default or interest rates go negative. Visit https://wise.com/gb/interest/ to find out more)

• 🔗 Create payment links and QR codes to get paid easily

• ⚙️ Automate payouts with the Wise API (comes with 24/7 customer support, a sandbox account to test integrations, API tokens, and clear documents on how to implement and make the most of our API)

Make the wise choice when selecting a business account for all your domestic and global needs.

Be Smart, Get Wise.

Register for Wise Business ✍️

*Disclaimer: The UK Wise Business pricing structure is changing with effect from 26/11/2025 date. Receiving money, direct debits and getting paid features are not available with the Essential Plan which you can open for free. Pay a one-time set up fee of £50 to unlock Advanced features including account details to receive payments in 22+ currencies or 8+ currencies for non-swift payments. You’ll also get access to our invoice generating tool, payment links, QuickPay QR codes and the ability to set up direct debits all within one account. Please check our website for the latest pricing information.

Investments can fluctuate, and your capital is at risk. Interest is offered by Wise Assets UK Ltd, a subsidiary of Wise Payments Ltd. Wise Assets UK Ltd is authorised and regulated by the Financial Conduct Authority with registration number 839689. When facilitating access to Wise investment products, Wise Payments Ltd acts as an Introducer Appointed Representative of Wise Assets UK Ltd. Please be aware that we do not offer investment advice, and you may be liable for taxes on any earnings. If you're uncertain, we urge you to seek professional advice. To find out more about the Funds, visit our website.

The Wise account is not a bank account but offers some similar features and your money is safeguarded.

FAQs

Can I use Xero or QuickBooks for a UK freelancer?

Yes. Both Xero and QuickBooks have plans that are ideal for freelancers and sole traders.

Can I hold multiple currencies in Xero or QuickBooks?

Yes, both Xero and QuickBooks have plans that allow users to complete multi-currency accounting. Pairing with Wise Business also allows you to hold over 40 currencies.

Do these platforms support Making Tax Digital for VAT?

Yes. Both Xero and QuickBooks are MTD-compliant.

Are there AI features in 2026?

Both platforms use AI for transaction categorisation, cashflow forecasting and invoice automation.

Can I switch from one platform to the other easily?

Yes. Both Xero and QuickBooks allow you to export your data, making it straightforward to migrate if your business needs change.

Do Xero and QuickBooks work with UK payroll?

Yes. Both platforms support UK payroll and comply with HMRC requirements, including RTI submissions.

Sources:

1. Xero - Pricing Plans
2. QuickBooks - Pricing
3. Xero - Comparing Plans
4. QuickBooks - About
5. Xero - About
6. QuickBooks - An Overview
7. Xero - Multi-Currency Accounting
8. Xero - Plans and Features
9. QuickBooks- Plans and Features

Sources last checked on 21st February 2026