QuickBooks vs Xero for Agencies (2026)

Quick picks

Short on time? Start with these picks, then scroll for details and trade‑offs.

ToolBest forLink
QuickbooksGood fit for agencies that want a straightforward setup and a clear workflow.See current pricing
XeroGood fit for agencies that want a straightforward setup and a clear workflow.See current pricing
FreshbooksGood fit for agencies that want a straightforward setup and a clear workflow.See current pricing

Before you choose, sanity‑check these:

  • Do you need a client portal or just internal workflows?
  • Do you need approvals/sign‑offs (and an audit trail)?
  • Which integrations are non‑negotiable (email, accounting, calendar, Slack)?
  • How fast do you need to be live (today vs. next week)?

If you’re building an end‑to‑end stack, start with Stack Builder.

Disclosure: Some links may be affiliate links. See disclosure.

Last updated: 7 Jan 2026

Both are solid. QuickBooks is common and broad; Xero is clean and loved by many service businesses. Choose the one your bookkeeper is happiest with.

If you just want a fast answer:

  • Best default choice: QuickBooks — widely supported and broadly capable.
  • Best for clean workflows: Xero — often feels simpler for service businesses.
  • Best lightweight invoicing: FreshBooks — use it if you don’t need full accounting depth.
Quick path picker
Pick your workflow — we’ll highlight the best fit in the table below.
1 What’s your work mostly?

No JS? Use the quick comparison below.

2 What matters most right now?
3 How much setup can you tolerate?

Less generic, more useful:

Pick based on how you work (not “best overall”)

These fit checks are derived from the shortlists in QuickBooks vs Xero for Agencies (2026) — use them to choose the fastest “good enough” tool for your agency.

If your priority is General accounting

  • Widely supported with lots of integrations
  • Setup: Half day • Pricing: Paid

Best bet: QuickBooks

Avoid if: Can feel heavy; plans add up

If your priority is Service businesses

  • Clean workflows and good accounting UX
  • Setup: Half day • Pricing: Paid

Best bet: Xero

Avoid if: Depends on your region/bookkeeper preference

If your priority is Simple invoicing + basics

  • Easy for invoicing and basics
  • Setup: 1–2 hours • Pricing: Paid

Best bet: FreshBooks

Avoid if: Not a full accounting powerhouse

Quick comparison

Shortlist first, details second. Always double-check current pricing and plan limits on the vendor site.

ToolBest forSetup timePricingWhy it’s hereWatch-out
QuickBooks Top pickGeneral accountingHalf dayPaidWidely supported with lots of integrationsCan feel heavy; plans add up
XeroService businessesHalf dayPaidClean workflows and good accounting UXDepends on your region/bookkeeper preference
FreshBooksSimple invoicing + basics1–2 hoursPaidEasy for invoicing and basicsNot a full accounting powerhouse

How we picked

  • Optimized for agency workflows: delivery visibility, client collaboration, and handoffs.
  • Prioritized low-friction setup and sane permissions (so you actually adopt it).
  • Checked reporting and “share with clients” realism (not just feature checkboxes).
  • Included a clear watch-out for each option to avoid bad fits.

Pricing checked: 7 Jan 2026. Evaluated on: setup friction, permissions, reporting, and handoff realism.


QuickBooks

Best for: agencies that want the common standard

QuickBooks is the safe default if your accountant/bookkeeper already supports it and you want broad capability.

  • Lots of integrations and ecosystem support.
  • Good for growing complexity.
  • Easy to hire support around.

See current pricing

Xero

Best for: agencies that want cleaner day-to-day accounting

Xero is often preferred by service businesses for cleaner workflows and a simpler feel.

  • Good UX for service workflows.
  • Strong for common accounting needs.
  • Great if your bookkeeper likes it.

See current pricing

FreshBooks

Best for: teams that mainly need invoicing

FreshBooks can be enough if you mostly need invoicing + basic accounting and want less complexity.

  • Easy invoicing.
  • Lower operational overhead.
  • Good for small teams.

See current pricing


Next steps in your agency stack

If you picked a tool above, these guides typically come next:

Bottom line

Pick the tool your financial support ecosystem prefers. If your bookkeeper uses QuickBooks, go QuickBooks. If they prefer Xero, go Xero. The biggest win is clean invoicing + consistent categorization, not features.

FAQ

Which is better for agencies?

Either can work. The best choice is usually the one your accountant/bookkeeper can support efficiently.

Do I need full accounting software?

If you have recurring clients and payroll/taxes, yes. If you only invoice a few clients, a lighter tool can work early.

What improves cashflow most?

Clear invoicing, automated reminders, and predictable billing cycles.