QuickBooks vs Xero (2025): Which Accounting Software Is Best for UK Businesses?

QuickBooks vs Xero – Which Is Better? A Complete Comparison for UK Businesses (2025 Edition)

When it comes to managing your business finances, choosing the right accounting software can make all the difference. In today’s digital world, cloud-based tools like QuickBooks and Xero are leading the way for UK businesses of all sizes. Both platforms offer robust features, seamless integrations, and time-saving automation—but which one truly stands out?

Whether you're a sole trader, a small business owner, or an accountant looking for the best solution for your clients, this comprehensive comparison will help you determine whether QuickBooks or Xero is better suited to your needs.

1. Introduction to QuickBooks and Xero

Before diving into the detailed comparison, let's understand what each software brings to the table.

What is QuickBooks?

QuickBooks, developed by Intuit, is a household name in accounting software. It offers a powerful suite of tools for bookkeeping, tax filing, invoicing, payroll, and more. In the UK, QuickBooks is widely used by small and medium-sized businesses, as well as by accounting professionals.

What is Xero?

Xero, a New Zealand-based software, has rapidly gained popularity in the UK due to its sleek design, user-friendly interface, and excellent cloud-based features. It’s particularly known for its clean dashboards and ease of integration with third-party apps.

Both are HMRC-recognised and compliant with Making Tax Digital (MTD), making them suitable for UK businesses adapting to digital tax filing requirements.

2. Pricing Comparison (2025 UK)

Pricing is often one of the first factors business owners consider. Here's a breakdown of the current pricing models as of 2025:

QuickBooks starts at £14/month for the Simple Start plan, ideal for sole traders or very small businesses. The Essentials plan is £26/month, offering added features like bill management and multi-user access. For growing businesses, the Plus plan costs £36/month and includes advanced tools like inventory tracking and budgeting.

Xero begins at £15/month for its Starter plan, which includes basic invoicing and bank reconciliation. The Standard plan is £30/month, offering unlimited invoicing and bills. The Premium plan, priced at £42/month, supports multi-currency and advanced features.

Key Notes:

• Both platforms often offer introductory discounts, such as 50% off for the first 3–6 months.
  

• Xero includes multi-currency support in its Premium plan, whereas QuickBooks only includes this in its Plus tier.
  

Verdict: Xero is slightly more expensive at each tier, but the value for money may vary depending on your business size and complexity.

3. User Interface & Ease of Use

QuickBooks Interface:

QuickBooks has a dashboard that prioritises functionality and in-depth features. However, new users may find the learning curve a bit steep, especially if they aren't familiar with accounting terminology.

Xero Interface:

Xero wins on design. Its interface is clean, modern, and designed for ease of use. It’s particularly attractive to non-accountants or first-time users.

Verdict: Xero takes the lead for user-friendliness, especially for beginners or those without an accounting background.

4.Features Breakdown

When it comes to features, both QuickBooks and Xero offer powerful tools designed to simplify your accounting processes. However, the right choice often depends on your specific business needs.

QuickBooks is known for its comprehensive feature set, including advanced time tracking, job costing, detailed reporting, and inventory management—all built into higher-tier plans. It also includes native payroll integration, mileage tracking, and a more granular level of customisation for reporting and invoicing.

Xero, on the other hand, focuses on simplicity and cloud efficiency, making it ideal for startups and freelancers. Its strength lies in user-friendly interfaces, visual dashboards, and seamless integrations with over 1,000 third-party apps. Xero also includes automated bank feeds, recurring invoicing, smart reconciliation, and intuitive expense tracking. However, features like multi-currency and inventory tracking are only available in higher plans.

Both platforms support VAT returns, HMRC compliance (Making Tax Digital), online payments, and mobile apps for managing finances on the go.

5. Invoicing and Payment Collection

QuickBooks:

• Offers flexible invoice templates and recurring invoices.
  

• Clients can pay directly through the invoice using integrations like PayPal or Stripe.
  

• Send automatic reminders.
  

Xero:

• Beautiful, simple invoices that can be sent in seconds.

• Online payment integrations (Stripe, GoCardless) included.

• Option to schedule recurring invoices and reminders.
  
  

Verdict: Draw. Both do invoicing well, but Xero has a slight advantage in automation.

6. Mobile App Performance

Both apps are available on iOS and Android, and allow you to:

• Send invoices
  
  

• Capture receipts
  
  

• Reconcile bank transactions
  
  

• Monitor cash flow
  
  

QuickBooks App:

• More robust for time tracking and mileage.
  
  

• Occasionally gets reviews for being “clunky” or buggy.
  
  

Xero App:

• Simpler layout, but fewer features.
  
  

• Loved for ease of use on the go.
  
  

Verdict:QuickBooks offers slightly more functionality, but Xero is more intuitive.

7. Payroll Integration

QuickBooks:

• Has its own payroll service (QuickBooks Payroll).
  
  

• Handles RTI submissions to HMRC.
  
  

• Payslips, auto-enrolment, and pension contributions included.
  
  

Xero:

• Xero Payroll is available as an add-on.
  
  

• Fully integrated with employee leave, payslips, and RTI submissions.
  
  

Verdict: Both support UK payroll well, but QuickBooks Payroll is slightly more intuitive and better for businesses with 5–50 staff.

8. Support & Customer Service

QuickBooks:

• Offers phone support, live chat, and a community forum.
  
  

• UK-based support during business hours.
  
  

Xero:

• Primarily offers email-based support.
  
  

• No live phone support, which some users find frustrating.
  
  

Verdict: QuickBooks offers better customer support options for UK users.

9. Integration & Add-Ons

QuickBooks:

• Over 650 integrations including Shopify, PayPal, Amazon, and HubSpot.
  
  

• Strong connection with other Intuit products.
  
  

Xero:

• Over 1,000 integrations including CRM, inventory, eCommerce, and reporting apps.
  
  

• Particularly strong with eCommerce and POS systems like Square and Vend.
  
  

Verdict: Xero wins for the variety and depth of integrations.

10. Security and Data Protection

Both QuickBooks and Xero offer:

• Bank-level security
  
  

• Two-step authentication (2FA)
  
  

• Regular backups
  
  

• GDPR compliance
  
  

Verdict: A tie. Both platforms invest heavily in data protection and privacy.

11. Ideal For…

Choose QuickBooks if:

• You need advanced payroll and time-tracking features.
  
  

• You want strong support and are willing to invest time to learn the system.
  
  

• You’re scaling up and need deep customisation.
  
  

Choose Xero if:

• You prefer a clean, intuitive interface.
  
  

• You’re a startup or freelancer looking for simplicity.
  
  

• You rely heavily on integrations and cloud collaboration.
  
  

12. What Our Experts Say at TaxTrim Assist

At TaxTrim Assist, we’ve worked extensively with both platforms. Here’s our quick insight:

“QuickBooks is excellent for growing businesses that need deep financial insight and advanced payroll, while Xero remains unbeatable for simplicity, design, and integration. Ultimately, the best software depends on your business size, sector, and growth goals.”
— TaxTrim Assist Team

Need a personal recommendation or help setting either one up? Contact us today and we’ll guide you based on your specific needs.

13. Final Verdict – QuickBooks vs Xero: Which Is Better in 2025?

Overall Recommendation:

• Go with QuickBooks if you run a small to medium-sized business with complex needs, like payroll, multi-user permissions, and job costing.
  
  

Go with Xero if you're a startup, freelancer, or service-based business looking for ease of use and seamless cloud-based collaboration.