Written ByKaren LiuSmall Business Technology Journalist
Reviewed ByMichael TorresQuickBooks ProAdvisor Level 3QuickBooks Desktop vs Xero: Which One Fits Your Business?
Desktop ownership vs cloud convenience, compared honestly.
QuickBooks Desktop and Xero are both excellent accounting tools, but they come from completely different ideas about how software should work. QuickBooks Desktop lives on your computer and can be bought once. Xero lives in the cloud and is paid monthly. That one difference shapes almost everything else.
Here's a straight comparison to help you decide which fits the way you work.
What's in This Guide:
▶ At a Glance
▶ Where QuickBooks Desktop Wins
▶ Where Xero Wins
▶ Cost Over Time
▶ Which One Should You Choose?
▶ Switching From Xero to QuickBooks Desktop
▶ FAQs
At a Glance
| QuickBooks Desktop | Xero | |
|---|---|---|
| Where it runs | Installed on your Windows computer | In a web browser and mobile app |
| How you pay | One-time license or yearly subscription | Monthly subscription |
| Works offline | Yes | No |
| Users | Pro 3, Premier 5, Enterprise up to 40 | Unlimited users on all plans |
| Industry editions | Yes (Premier and Enterprise) | No, uses add-on apps instead |
| Inventory | Strong, advanced in Enterprise | Basic tracked inventory |
| Job costing | Strong in Premier Contractor | Projects feature on higher plans |
| Payroll | Intuit Desktop Payroll on supported versions | Built in for some regions, apps in others |
| US accountant familiarity | Very high | Growing |
Where QuickBooks Desktop Wins
You can own it
With a one-time license, you pay once and keep using it. Over three to five years that usually works out much cheaper than any monthly plan. See our pricing guide.
Speed and depth
Desktop software is fast, especially for heavy data entry and large reports. Premier and Enterprise add industry features, like contractor job costing and manufacturing assemblies, that Xero handles only through third-party apps.
Works without internet
Your books are on your computer. A slow connection or an outage doesn't stop you invoicing or running reports.
Accountants know it
In the US, almost every bookkeeper and CPA knows QuickBooks Desktop inside out, which makes handing over files or getting help easy.
Where Xero Wins
Access from anywhere
Xero runs in a browser, so you can work from any computer, a Mac or a phone. No installs, no backups to manage.
Unlimited users
Every Xero plan includes unlimited users, which suits businesses where lots of people need occasional access.
Automatic bank feeds and updates
Bank feeds and updates are always included and always current. There's no version to upgrade.
App marketplace
Xero connects to a large ecosystem of apps for payments, inventory, CRM and more.
Cost Over Time
Xero's monthly cost is modest in month one, but it never stops, and plan prices have tended to rise. A one-time QuickBooks Desktop license costs more up front, then nothing. For a business that's happy working from one office, Desktop is usually cheaper by the second year. For a business that needs bank feeds, remote access and many users, Xero's subscription can be good value.
Which One Should You Choose?
Choose QuickBooks Desktop if:
- You work mainly from one office on Windows computers
- You'd rather pay once than every month
- You need industry features like job costing or assemblies
- You want your data on your own machines
- Your accountant prefers QuickBooks
Choose Xero if:
- Your team works remotely or on Macs
- You want unlimited users
- You rely on automatic bank feeds every day
- You prefer software that updates itself
Switching From Xero to QuickBooks Desktop
There's no one-click converter, but the switch is manageable. Export your contacts, chart of accounts and items from Xero, import them into QuickBooks, and enter opening balances as of a cut-off date. Our guide to moving from QuickBooks Online to Desktop uses the same approach and works well for Xero too.
Frequently Asked Questions
Is Xero better than QuickBooks Desktop?
Neither is better for everyone. Xero is better for remote teams and people who want unlimited users and automatic updates. QuickBooks Desktop is better for businesses that want to own their software, work offline and use industry features.
Is QuickBooks Desktop cheaper than Xero?
Over two years or more, a one-time QuickBooks Desktop license is usually cheaper than a Xero subscription, because there's no ongoing monthly fee.
Can Xero work offline like QuickBooks Desktop?
No. Xero is cloud software and needs an internet connection. QuickBooks Desktop works fully offline.
Can I move from Xero to QuickBooks Desktop?
Yes. Export your lists from Xero, import them into QuickBooks Desktop, and enter opening balances as of a cut-off date. Conversion services can bring over full history if you need it.
Want Help Deciding? Talk to a Real Person.
We're real people who know QuickBooks inside and out.
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