Xero vs. QuickBooks: What Accounting Software is Ideal for Your Business in 2025?

We know running a business is a challenge, and keeping your money in order can feel like a full-time job. When it comes to Xero accounting vs QuickBooks, you’re looking at two of the top tools to make your finances easier to handle. They assist with things such as sending bills, tracking money, and organizing things, but they both have different atmospheres. 

This article puts the differences in simple words so that you can pick the one best suited for your business whether you have a small accommodation setup, start-up, or restaurant. Let's discover which one is your best option for 2025.

What Are Xero and QuickBooks?

Curious about Xero accounting vs QuickBooks Online? Both are cloud-based software that assists you in keeping your business's finances in line. Xero is renowned for being extremely intuitive and easy to use with a sleek interface. 

QuickBooks has been available longer and comes loaded with features. Both allow you to monitor income, pay bills, and deal with sales or payroll-related stuff, but the two do things slightly differently.

Imagine Xero as a streamlined, uncomplicated resource for those who like to keep things simple. QuickBooks is more like an army knife, full of features for companies that require more oversight. Let's compare them for your purposes.

Tracking Your Money

Be it Xero accounting vs QuickBooks, both are excellent at tracking your cash flow. You can record sales, such as hotel room bookings or restaurant meals, and track expenses, such as supplies or rent. 

With Xero, it is simple to view your money with an easy-to-use dashboard, ideal for a quick peek. QuickBooks provides more detailed reports, ideal if you want to get down to specifics.

For instance, if you own a small cafe, Xero will track your sales and restaurant accounting in an instant. 

QuickBooks will do the same but allows you to tailor reports further, such as separating food and beverage sales. Both link to your bank to import transactions, so you're not typing everything out by hand.

How They Compare

This table illustrates the major differences. Use it to determine which one fits your budget and team size.

Handling Finances Without Trouble

Finances such as sales on hotel rooms or payroll-related stuff on employees can be a headache, but both of these tools assist. Xero tracks sales and payroll stuff automatically, particularly for those in countries. 

It's easy and makes you prepared. QuickBooks does the same but excels where it automatically sorts filings and even assists with filing them. If you have a restaurant, QuickBooks can manage tips for restaurant accounting and calculate payroll for you. 

Xero is also excellent at this but may require an add-on for payroll. Both ensure you remain on the correct side of regulations, so choose depending on where your business is based.

Saving Time with Automation

Both Xero and QuickBooks save you time by doing mundane tasks for you. They can automatically send invoices, remind clients to pay, and pull bank transactions. Xero's really silky for speedy jobs like sending a bill or looking at cash flow. QuickBooks is deeper, allowing you to create rules to classify transactions, such as flagging all coffee shop sales.

For a small hotel, Xero's automation can manage sales-related stuff for bookings with not much hassle. QuickBooks can as well but tacks on extras such as auto-tracking mileage for delivery drivers. If you'd prefer less handwork, both are good, but QuickBooks offers more bells and whistles.

Access Your Books Anywhere

Xero and QuickBooks allow you to monitor your finances on your phone or laptop, which is great if you're on the go at a hotel or restaurant. Xero's phone app is minimalist and allows you to send invoices or capture receipts in the wild. QuickBooks app does the same but includes things like monitoring employee hours or taking payments in person using a card reader.

If you're a solo freelancer or small business operator, Xero's easy app might be sufficient. For larger operations, such as a hotel with many employees, the QuickBooks app provides more features to work remotely.

Who They're Best For

Xero is great for small businesses or startups that need something simple and cheap. It's perfect for restaurant accounting or small hotels, particularly in countries where it's extremely popular. QuickBooks is suitable for businesses with more features, such as detailed reports or industry-specific tools for businesses.

If you’ve got a big team, Xero’s unlimited users are a huge plus. You can give access to your accountant, bookkeeper, and staff for no extra cost. QuickBooks caps users (1-25, depending on the plan), so it’s less flexible for growing teams.

This chart helps you choose between them based on what your business requires most.

Scaling with Your Business

If your business is expanding, such as adding a restaurant to a hotel, both software packages can scale with you. Xero allows you to change plans or add applications for payroll, inventory, or other purposes. QuickBooks offers more expensive plans but comes with additional features preloaded, such as enhanced inventory management for restaurants or job tracking for contractors.

Xero's unlimited number of users makes it ideal for expanding teams, whereas QuickBooks is more suitable if you require in-depth tools without additional apps. As an example, a hotel expanding to add a spa would use QuickBooks to manage both businesses within one plan, but Xero may require an app to manage the added complexity.

Working with Your Accountant

Both Xero and QuickBooks make it simple to share your books with an accountant. Xero's unlimited number of users enables your accountant to hop in at any time, ideal for startups with off-site teams. QuickBooks is popular, so accountants are already familiar with it, making collaboration a cinch.

If you're working on your books, Xero's easy setup is best for novices. QuickBooks offers more options, which may be too much if you're a novice at accounting but perfect if you like being in control. Both allow you to share data without having to pass around spreadsheets.

Keeping Your Data Safe

Your company's financial information is confidential, and both tools secure it tight. Xero applies robust security to shield your data, such as sales information or payroll data. So does QuickBooks, with additional functionality such as determining who can view what. In 2025, with cyber threats all around, both will be your peace of mind.

However you're using it, for tracking restaurants' accounting or hotel reservations, you can rely on Xero and QuickBooks to have your information in safe hands. Just ensure your staff is using good passwords and the standard security measures.

It's all about what your business needs when choosing between Xero accounting vs QuickBooks. Xero is best suited to small business or startup organizations that are seeking a simple, low-cost tool with unlimited users, for example, in the USA.

Related Resource

• QuickBooks Online Accounting: A Beginner’s Guide for U.S. Small Business Owners
• What is QuickBooks in Accounting? Easy 2025 Guide
• Onboarding Guide to QuickBooks Online Accountant Services USA

QuickBooks is the way to go for companies who need more features, like detailed reports or other preparation, but costs more and has a user limit. The Fino Partners feel that both have the potential to make your business shine in 2025. Use their free trials, check out the features, and opt for the one most suitable for your restaurant, hotel, or growing company.