Xero or QuickBooks? The Honest Pick for Trade Businesses
The short answer is Xero — but QuickBooks is worth considering if price is a constraint. Here's the full picture: why Xero dominates in Australia, where QuickBooks actually holds its own, and the one factor most tradies forget when comparing them (their accountant's preference).
Xero vs QuickBooks: The Headline Verdict
Xero vs QuickBooks — Feature by Feature
| Feature | Xero (Starter) | QuickBooks (Simple Start) | Winner |
|---|---|---|---|
| Price (AUD/mo) | $35 (Ignite) | $33 (Simple Start) | QuickBooks |
| GST / BAS Handling | ✓ Excellent | ✓ Good | Xero |
| Bank Feeds (AU banks) | ✓ Excellent | ✓ Good | Xero |
| Job Management Integrations | ✓ Extensive | ~ Limited | Xero |
| ServiceM8 Integration | ✓ Native | ✓ Native | Tie |
| AU Accountant Familiarity | ✓ ~75% use Xero | ~ Minority | Xero |
| Receipt Capture | ✓ Hubdoc included | ✓ Built-in | Tie |
| Payroll (AU) | ✓ Included in all plans | ✓ Add-on (Employment Hero) | Xero |
| Payday Super Ready | ✓ | ✓ | Tie |
Prices in AUD and vary by plan tier.
💰 Prices verified 20 May 2026 from each provider’s official website. Pricing can change — always confirm before signing up.
Why Xero Wins in Australia (and Where QuickBooks Fights Back)
Xero's dominance in the Australian SME accounting market isn't accidental — it was built in the Asia-Pacific region and has always treated Australian compliance (GST, BAS, payroll, single touch payroll) as a first-class feature rather than an afterthought. For tradies, the most important consequence of this dominance is the integration ecosystem.
Every major Australian job management platform — ServiceM8, Tradify, AroFlo, simPRO, Fergus, Ascora, Jobber — has a deep, native Xero integration. When you invoice in ServiceM8, it appears in Xero automatically. When a payment is recorded in Xero, it marks the job as paid in ServiceM8. Bank reconciliation happens automatically via bank feeds from every major Australian bank. The result: a tradie with properly set-up Xero and job management integration spends 30–60 minutes per week on accounting admin, not 5+ hours.
The accountant factor is real and underappreciated. Roughly 75% of Australian accountants who work with SMEs use Xero. When your accountant is already working in Xero every day for 50 other clients, they're faster, cheaper, and less error-prone than if they're working in a system they use for 5 clients. At $200–$400/hour for accounting time, the software platform becomes a cost of advice decision.
Payroll is included in all Xero plans, and Xero is confirmed Payday Super ready for the 1 July 2026 deadline. Xero’s weaknesses: the entry-level Ignite plan (from $35/month) has invoice and bill limits that can frustrate growing businesses (though most tradies need to be on at least the Grow plan at ~$55/month). Customer support has historically been via online channels only — no phone support — which frustrates some users.
- Best integration ecosystem for AU job management apps
- Australian accountants overwhelmingly use it
- Excellent GST and BAS handling
- Strong bank feeds for all major AU banks
- Hubdoc (receipt capture) included on most plans
- Excellent payroll for businesses with employees
- Large Australian user community and resources
- Slightly more expensive than QuickBooks at entry level
- No phone support
- Starter plan invoice limits are restrictive
QuickBooks Online AU is a genuinely good accounting product — and it's been unfairly dismissed by some Australian advisors who haven't used the current version. The core accounting functionality, GST handling, BAS reporting, and bank feeds are all solid. For a sole trader or small business that doesn't need deep job management integration and whose accountant happens to use QBO, it's a perfectly reasonable choice.
Where QuickBooks wins: it's cheaper at comparable tiers (roughly $35/month Simple Start vs $38/month Xero Starter, and the equivalent mid-tier plans follow a similar pattern). The mobile app is well-regarded. The receipt capture and expense management are built in. For basic bookkeeping needs, it does everything required.
Key update for 2026: QuickBooks AU now has a native ServiceM8 integration listed on their homepage — this materially narrows the integration gap with Xero. If you’re a ServiceM8 user, QuickBooks is now a genuine option. Payroll is available via the Employment Hero add-on (not built-in like Xero), and QBO is confirmed Payday Super ready for the 1 July 2026 deadline.
The remaining limitations for tradies: while ServiceM8 integration is now native, Tradify and most other Australian job management apps still favour Xero for deep integration. If you’re running Tradify, AroFlo, or simPRO, the integration ecosystem still favours Xero. You can sometimes connect via Zapier or third-party connectors, but these are more fragile and may have sync limitations.
The second gap: accountant availability. Fewer Australian accountants specialise in QuickBooks, and many charge more for QBO work simply because they're less familiar with the platform. If your accountant doesn't currently use QuickBooks, ask them directly which platform they prefer before making a decision — the answer will almost always be Xero.
- Cheaper than Xero at comparable tiers
- Good core accounting and GST handling
- Built-in receipt capture and mileage tracking
- Solid mobile app
- 24/7 phone support on some plans
- Fewer native AU job management integrations (ServiceM8 now native, but Tradify/AroFlo still Xero-first)
- Fewer AU accountants specialise in it
- Lower AU market penetration = smaller community
- Some features lag behind AU-specific compliance needs
From 1 July 2026, employers must pay superannuation at the same time as wages — not quarterly. This is the Payday Super reform, and it affects every tradie who employs staff, including apprentices.
Both Xero and QuickBooks are confirmed Payday Super ready. Xero handles payroll natively in all plans. QuickBooks handles it through the Employment Hero payroll add-on. Either platform will process same-day super contributions correctly.
Cash flow impact: If you currently batch super quarterly, switching to per-pay-period contributions will change your cash flow pattern. You’ll need to set aside super with every pay run instead of banking it for 3 months. Make sure your accounting software (and your bank balance) are set up for this before July. Talk to your accountant now — not in June.
Already on ServiceM8, Tradify, or AroFlo? The integration makes the decision for you.
If you're using a job management app with a native Xero integration, the choice is essentially made. The automation between job management and accounting is worth more than the price difference. Xero's 30-day free trial lets you test the full integration before committing.
Try Xero Free for 30 Days →Frequently Asked Questions
Xero is better for most Australian tradies for three reasons: dominant local market adoption (~75% of Australian accountants use Xero), stronger integration with Australian job management apps like ServiceM8 and Tradify, and excellent GST/BAS handling. QuickBooks Online AU is a credible, cheaper alternative starting at $33/month — and now has native ServiceM8 integration, narrowing the gap.
QuickBooks Online AU now has a native ServiceM8 integration — a significant improvement from previous years. However, Tradify, AroFlo, simPRO, and most other Australian job management platforms still have deeper, native Xero integrations. For ServiceM8 users specifically, both Xero and QuickBooks are now viable options.
QuickBooks Online AU is slightly cheaper at comparable tiers — $33/month for QuickBooks Simple Start vs $35/month for Xero Ignite. However, when you factor in accountant familiarity (Xero accountants are more common and often faster), the Employment Hero payroll add-on for QuickBooks, and potential integration costs, the total cost comparison can favour Xero. Compare on total cost of ownership, not just subscription price.
Yes, and it's a reasonably common migration. Xero has import tools for QuickBooks data and most accountants who work with tradies can manage the switch during a year-end or quiet period. Plan the timing carefully — ideally start of a new financial year (July 1 in Australia) — and ensure your job management app connections are remapped to Xero after the switch. Your accountant should be able to manage the migration for you.
Payday Super is an Australian government reform effective 1 July 2026 requiring employers to pay superannuation at the same time as wages, rather than quarterly. Both Xero and QuickBooks Online AU are confirmed Payday Super ready. This affects every tradie who employs staff, including apprentices. Talk to your accountant now to prepare your cash flow.
Xero Ignite (the entry-level plan, formerly called Starter) costs $35/month AUD. It includes invoicing, bank connections, GST tracking, and payroll. Most growing trade businesses need at least the Grow plan at approximately $55/month for higher invoice and bill limits.