Xero and QuickBooks are the two dominant cloud accounting platforms in the UK. Both are MTD-compliant, both integrate with hundreds of apps, and both have strong bank feed functionality. So which one should you choose?
As accountants who work with both platforms daily, we've seen the strengths and weaknesses of each. Here's our honest comparison for UK small businesses.
| Feature | Xero | QuickBooks |
|---|---|---|
| Starting price (UK) | £15/month | £12/month |
| MTD for VAT | Yes | Yes |
| Bank feeds | Excellent | Very good |
| Mobile app | Good | Excellent |
| Payroll (UK) | Add-on (£5+/month) | Included in some plans |
| Inventory management | Basic | Good |
| Multi-currency | Yes (higher plans) | Yes (higher plans) |
| Self Assessment | Via add-ons | Built-in (some plans) |
| Ease of use | Moderate | Easy |
| Accountant access | Excellent | Very good |
Xero: Best For Growing Businesses
Xero is our preferred platform for limited companies and growing businesses. Its bank reconciliation is best-in-class, and the reporting suite gives you a clear picture of your business finances at any time.
Xero Strengths
- Superb bank reconciliation with smart matching
- Excellent accountant collaboration tools
- Strong ecosystem of integrations (800+ apps)
- Clean, modern interface
- Robust multi-currency support
- Detailed financial reporting
Xero Weaknesses
- Payroll is an expensive add-on
- Can be complex for complete beginners
- Customer support is email-only (no phone)
- Self Assessment requires third-party tools
QuickBooks: Best For Sole Traders & Freelancers
QuickBooks is generally easier to pick up for non-accountants, and its Self Assessment features make it particularly well-suited to sole traders who want to manage their own tax affairs.
QuickBooks Strengths
- Very user-friendly for beginners
- Excellent mobile app
- Built-in Self Assessment (higher plans)
- Good inventory management
- Competitive pricing
- Phone support available
QuickBooks Weaknesses
- Bank reconciliation less intuitive than Xero
- Fewer third-party integrations
- Reporting less detailed than Xero
- Price increases significantly at renewal
Our Recommendation
Choose Xero if...
- You run a limited company
- You have complex bookkeeping needs
- You want the best bank reconciliation
- You're growing and need scalability
- Your accountant recommends it
Choose QuickBooks if...
- You're a sole trader or freelancer
- You want to manage your own Self Assessment
- You're new to accounting software
- You want phone support
- You need good inventory management
We'll Set It Up For You
Our bookkeeping team can set up either platform, migrate your existing data, and train you to use it — all included in our service.
Get Software Setup Help