Is Xero or QuickBooks better for a small business?

Both are excellent and most small businesses would do fine on either. The decision usually comes down to which you find easier to use, the price on the plan you actually need, and which one your accountant knows well.

Do both handle Making Tax Digital?

Yes. Both Xero and QuickBooks are fully compatible with Making Tax Digital for VAT and Income Tax, so compliance is not a deciding factor between them.

Which is cheaper, Xero or QuickBooks?

It depends on the plan and any introductory offers. QuickBooks often competes hard on price for sole traders and smaller businesses, while Xero is priced by plan features. Compare the plan that matches what you actually need.

Can I switch from one to the other later?

Yes, though it is easier to start on the right one. A switch involves migrating your data and chart of accounts, which an accountant can handle to avoid losing history or making a mess of the opening balances.

Do I still need an accountant if I use accounting software?

The software records what happened; it does not tell you whether you are paying too much tax or making good decisions. Most owners get the best value from software kept tidy plus an accountant who interprets the numbers.

Xero vs QuickBooks: which accounting software suits your business?

Bookkeeping10 October 2026 · Concorde Company Solutions

If you are moving your books onto proper software, Xero and QuickBooks are the two names you will keep hearing. Both are genuinely good, both handle Making Tax Digital, and honestly most small businesses would do fine on either. Here is how they compare, and what actually decides it.

The case for Xero

Xero has built a strong following among small businesses and accountants for its clean, modern design. Bank feeds, invoicing and reconciliation are straightforward, and there is a large library of apps — from stock systems to receipt capture — that plug into it. If you value something that feels simple to use, and you like the idea of your accountant working in the same system without friction, Xero is a strong choice. As a Xero Gold Partner, it is the system we set most of our clients up on, though that is a preference, not a rule.

The case for QuickBooks

QuickBooks is the other heavyweight and does much the same job well. Many people rate its reporting and its handling of VAT and self-employment, and it often competes hard on price, particularly for sole traders and smaller businesses. If your needs are simple, its lower-tier plans can be very good value. It deserves a proper look alongside Xero rather than being dismissed.

What actually decides it

The features overlap heavily, so the decision usually comes down to three practical things: which one you find easier to use day to day, what it costs on the plan you genuinely need, and which one your accountant knows well. Software you understand and will keep on top of beats a slightly cleverer package you find fiddly and abandon by March. And since both are Making Tax Digital ready, compliance is no longer the deciding factor it once was.

Don't underestimate the setup

Wherever you land, a large part of the value comes from setting the software up properly: connecting your bank, getting a sensible chart of accounts, and learning the handful of tasks you will do every week. A poor setup makes good software feel like a chore and quietly produces unreliable numbers. This is where an accountant earns their keep, and it pairs naturally with building a few good bookkeeping habits so the system stays clean.

It is part of a bigger picture

Your software choice also connects to decisions like which VAT scheme suits you and how you handle Making Tax Digital as a landlord if you let property. Good software makes all of these easier, but it does not make the decisions for you — that is still a conversation worth having with someone who knows your numbers.

We work with both Xero and QuickBooks and are happy either way, because the best software is the one that fits how you work and that you will actually keep up with. If you are not sure which to choose, or your current setup is a muddle, we help businesses around Garforth and Leeds pick the right system and get it running cleanly — then show you the handful of things you need to do to keep it that way.

This is general information, not advice for your circumstances. If you'd like it applied to your situation, get in touch — the first chat is free.

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