QuickBooks vs Xero for Bookkeepers: Which Should You Use?

Why This Comparison Matters for Bookkeepers

Most bookkeeping practices serve clients on multiple platforms. You don't get to choose one software and stick with it — clients come to you already using QuickBooks or Xero, or they ask you to recommend one. Knowing both platforms well is a professional requirement, not optional.

This comparison is written specifically for bookkeepers and accounting professionals — not for business owners picking a tool for the first time. The focus is on the AP workflow, bill import processes, client management features, and the practical day-to-day experience of running your clients' books in each platform.

QuickBooks Online Overview

QuickBooks Online (QBO) is the dominant small business accounting platform in the United States. Intuit reports over 7 million subscribers globally, with the large majority in the US and Canada. If you're bookkeeping for US-based clients, statistically most of them are on QBO or were on QuickBooks Desktop before.

Pricing (as of early 2026):

• Simple Start: ~$30/month (1 user, no contractor payments)
• Essentials: ~$55/month (3 users, bill pay)
• Plus: ~$85/month (5 users, inventory, project tracking)
• Advanced: ~$200/month (25 users, custom reporting, automation)

Most small business clients land on Essentials or Plus.

Key AP features in QBO:

• Bill entry under Expenses > Bills
• Bill Pay integration (ACH, check) with BILL partnership
• Recurring bills
• Vendor credit memos
• PO-to-bill linking
• Basic 3-way matching (PO to bill, not full receiving report match)
• CSV import for vendor bills

Bill entry workflow in QBO:

Navigate to Expenses > Vendors > select vendor > New Transaction > Bill. Fill in: payee, mailing address, terms, bill date, due date, bill no., category (GL account), description, amount. Save. The bill appears in the Unpaid Bills list and ages by due date.

CSV import format for QBO vendor bills:

QBO accepts bill imports via CSV. Required columns include: VendorName, TxnDate, RefNumber, DueDate, APAccount, Currency, LineAccount, LineAmount, LineDescription. Date format must be MM/DD/YYYY. Vendor names must match the vendor list exactly (case-insensitive, but spelling must match).

Xero Overview

Xero launched in New Zealand in 2006 and built its strongest presence in Australia, New Zealand, and the UK before expanding into the US. It now has approximately 4 million subscribers globally. In the US market, Xero is the primary alternative to QBO for clients who prefer a cleaner interface or have international operations.

Pricing (as of early 2026):

• Starter: ~$29/month (20 invoices, 5 bills per month — limited)
• Standard: ~$46/month (unlimited invoices and bills)
• Premium: ~$69/month (multi-currency)

Most clients doing any real volume need Standard or higher. The Starter plan's invoice/bill limits catch many clients off guard.

Key AP features in Xero:

• Bill entry under Accounts > Purchases > Bills to Pay
• Batch payments
• Repeating bills
• Purchase orders (convertible to bills)
• Bill approval workflow (built-in, simpler than QBO)
• Email forwarding to inbox
• CSV import for bills

Bill entry workflow in Xero:

Accounts > Purchases > New Bill. Fill in: From (vendor/contact), Date, Due date, Reference (invoice number), Currency, Description, Account (GL), Tax rate, Unit price, Quantity. Save as draft or approve directly.

CSV import format for Xero bills:

Xero's bill import CSV uses different column headers than QBO: ContactName, EmailAddress, POAddressLine1, POCity, PORegion, POPostalCode, POCountry, InvoiceNumber, InvoiceDate, DueDate, Description, Quantity, UnitAmount, AccountCode, TaxType, TrackingName1, TrackingOption1. Date format: YYYY-MM-DD or DD/MM/YYYY. Xero creates a new contact if the vendor name doesn't match an existing one — useful but can create duplicates.

Direct Comparison: 8 Dimensions

1. UI and Ease of Use

Xero is widely considered to have the cleaner, more modern interface. Navigation is more consistent, the dashboard is less cluttered, and new users tend to find it more intuitive. The reconciliation flow is particularly well-designed.

QBO has more features, which means more menus and more places things can be. It has improved its UI significantly over the years but still feels denser. Experienced bookkeepers often prefer QBO because they know exactly where everything is; new users often prefer Xero.

Verdict: Xero for UI simplicity; QBO for feature density.

2. Pricing

At equivalent feature levels, pricing is similar. QBO's Plus at ~$85/month and Xero's Standard at ~$46/month sound very different, but QBO Plus includes inventory and project tracking that Xero Standard doesn't. For straight AP-focused bookkeeping: Xero is often cheaper at equivalent functionality.

3. US vs. International

QBO is built for US accounting norms: US tax tables, US payroll integration, USD-first. Its ecosystem of add-ons, integrations, and accountant tools is deepest in the US market.

Xero was built globally and handles multi-currency natively at the Premium tier. For clients with international operations, foreign currency invoices, or non-US entities, Xero handles these scenarios more gracefully.

4. Bank Reconciliation

Both platforms offer direct bank feeds and auto-reconciliation suggestions. Xero's reconciliation workflow is considered its strongest feature — clear, fast, and hard to get wrong. QBO's is functional but less polished.

5. AP Bill Entry

Both platforms have equivalent AP functionality for core bill entry. QBO's bill approval and PO linking are slightly more developed for mid-market clients. Xero's approval workflow is simpler and sufficient for most small businesses.

6. Reporting

QBO has more built-in reports and more customization options — important for clients who want detailed financial reporting without add-ons. QBO Advanced adds custom report builder and management dashboards.

Xero reporting is clean but thinner. Most sophisticated reporting on Xero requires Spotlight Reporting, Fathom, or similar add-ons.

7. Client Collaboration

Both platforms allow you to invite clients as collaborators with limited access. QBO's accountant/client relationship model is more developed, with QBOA (QuickBooks Online Accountant) providing a firm-level dashboard across all clients. Xero's Partner Programme offers similar functionality through Xero HQ.

8. Accountant and Bookkeeper Tools

QBOA (QuickBooks Online Accountant) is free for accountants and provides a consolidated view of all client subscriptions, tools for managing client books, and access to wholesale billing. Strong community, certification program, and US-specific training.

Xero's Partner Programme similarly provides a free partner edition, consolidated client management, and certification. Xero's partner community is particularly strong in AU/NZ/UK.

When to Recommend QBO

• US-based clients, especially those already using QuickBooks Desktop (migration path is well-established)
• Clients who need payroll integration (QBO Payroll is native; Gusto and ADP both integrate well)
• Clients with complex inventory needs
• Clients using US-specific add-ons (TSheets/QuickBooks Time, QBO Payments)
• Any client where the accountant or CPA is already on QBO

When to Recommend Xero

• International clients or clients with multi-currency operations
• Clients who value a cleaner UI and are willing to learn a new platform
• Clients in AU/NZ/UK where Xero has stronger local tax support
• Clients on tight budgets who need Standard functionality
• Clients whose industry ecosystem has strong Xero integrations (some construction software, Shopify, etc.)

Invoice Processing: How AI Extraction Exports Differ for QBO vs. Xero

This is the detail that matters for bookkeepers using tools like SkipEntry.

The two platforms use different CSV formats for bill imports, and the differences are not just cosmetic:

Date format: QBO requires MM/DD/YYYY; Xero accepts YYYY-MM-DD (ISO format). An export built for QBO will fail to import into Xero and vice versa.

Column names: QBO uses "VendorName" and "RefNumber"; Xero uses "ContactName" and "InvoiceNumber." Same data, different labels — a QBO export file dropped into Xero's importer will map nothing correctly.

Tax handling: QBO has separate columns for tax codes; Xero uses a "TaxType" column with Xero-specific tax code strings (e.g., "TAX001" for GST, "NONE" for zero-rated).

Account references: QBO references GL accounts by name; Xero accepts account codes or names (account code is more reliable for import).

Vendor creation: QBO fails if the vendor name doesn't match exactly. Xero creates a new contact automatically if no match exists.

SkipEntry generates platform-specific export files for both QBO and Xero, handling all of these format differences automatically.

Can You Use Both?

Yes — many bookkeeping practices maintain expertise in both platforms and manage clients in whichever system the client is already using. QBOA and Xero's Partner Programme are not mutually exclusive; you can be certified in both.

The practical approach: build deep expertise in whichever platform is most common among your current client base, and develop working familiarity with the other. As you add clients, you'll learn which scenarios push you toward each platform.

The tools and workflows described in this post — including CSV import formats, bill entry workflows, and AI extraction exports — are things every bookkeeper serving US small businesses will encounter regularly in both platforms.