QuickBooks vs Xero for Freelancers: Which Accounting Tool Wins?
Here’s a hot take: neither QuickBooks Online nor Xero are the right tool for most solo freelancers. Both are designed for small businesses with employees, inventory, and complex accounting needs. Solo freelancers sending 10-20 invoices a month and tracking a few dozen expenses? FreshBooks or Wave are better fits.
But if you’re choosing between these two (maybe your accountant insists), here’s how they compare.
The Real Comparison
| Feature | QuickBooks Online ($30/mo) | Xero Standard ($42/mo) |
|---|---|---|
| Invoicing | Adequate | Good |
| Expense tracking | Good | Good |
| Reports | Excellent | Excellent |
| Multi-currency | Limited | Excellent |
| Bank connections | Good (US-focused) | Good (global) |
| Payroll | Built-in ($45+/mo extra) | Integrated ($40+/mo extra) |
| Learning curve | Moderate | Steep |
| Accountant familiarity | Very high (US) | High (global, growing US) |
QuickBooks Online: The US Default
QBO is the most widely used small business accounting software in the US. Your accountant probably uses it. It’s competent across the board with strong reporting.
The problem for freelancers: QBO Simple Start ($30/month) costs nearly as much as FreshBooks Plus ($33/month) but has worse invoicing and no proposals. You’re paying for accounting power you don’t need as a solo freelancer.
QuickBooks Self-Employed ($15/month) is the freelancer product — quarterly tax estimates, mileage tracking, expense categorization. But it’s a completely different product with limited features and no upgrade path to QBO.
Xero: The International Choice
Xero is popular in the UK, Australia, and New Zealand and growing in the US. Its multi-currency support is excellent — better than QuickBooks for freelancers with international clients.
The problem for freelancers: Xero’s cheapest plan is $15/month (Starter) with limited invoices (20/month), or $42/month (Standard) for unlimited. At $42/month, you’re paying more than FreshBooks for a tool designed for more complex businesses.
My Recommendation
Solo freelancer, US-based: Skip both. Use FreshBooks ($33/month) or Wave (free).
Solo freelancer, international clients: Consider Xero for multi-currency, or use FreshBooks + Wise for payments.
Growing beyond solo (hiring, agency): QuickBooks Online or Xero, depending on your accountant’s preference.
Your accountant insists on QuickBooks: Ask if they can work with FreshBooks exports. Most can. If they truly can’t, QBO Simple Start ($30/month) works.
The honest answer: for most solo freelancers, both QuickBooks Online and Xero are overkill. Save your money for a tool designed for how freelancers actually work.