Nonprofit Tools
QuickBooks OnlinevsXero

QuickBooks Online vs Xero for nonprofits

Choose QuickBooks Online if…

US 501(c)(3) charities that want a familiar system and can use the TechSoup offer

Not ideal for: Organisations needing strict fund accounting with built-in restricted-fund controls

Choose Xero if…

Small and medium charities that want a widely supported, accountant-friendly system

Not ideal for: Organisations that need true fund accounting with built-in restricted-fund reports

QuickBooks OnlineXero
Our rating●●●●●●●●●●
PriceFree plan · paid from US$38/month list price (Simple Start)From US$27/month (UK: £18/month ex VAT)
Nonprofit offerUS 501(c)(3) charities can get QuickBooks Online Plus or Advanced through TechSoup for a small yearly admin fee; Australian non-profits and charities are offered 50% off for 6 months.Registered not-for-profits get 25% off Xero's business pricing plans (confirmed on the UK page; Xero describes the discount as global).
TypeSpecialistSpecialist
SuitsVolunteer-run, Small, MediumVolunteer-run, Small, Medium
Available in🌍 Anywhere🌍 Anywhere
Strengths
  • Most accountants and bookkeepers know it
  • Deep integrations with donation and CRM tools
  • Classes and locations give basic fund tracking
  • Very widely used, so accountants and bookkeepers know it
  • Local editions for UK, Australia, New Zealand and US
  • Large marketplace of connected apps
Watch out for
  • Not true fund accounting
  • Price rises after promotional periods
  • Payroll and other add-ons are charged at full price
  • No built-in fund accounting; funds are handled with tracking categories
  • Plans limit invoices and bills on the cheapest tier
  • Not-for-profit discount must be requested within 31 days of subscribing
Key features
  • Fund or programme tracking using classes and locations
  • Nonprofit reports: statement of financial position and activities
  • Donation tracking and receipts
  • Bank feeds and automatic reconciliation
  • Invoices, bills and quotes
  • Tracking categories to report by programme or grant

Our ratings: QuickBooks Online: The best-known accounting tool, with nonprofit reports and a wide accountant base. Xero: Popular cloud accounting with a nonprofit discount in many countries.

General information, not professional advice. Prices and nonprofit offers change and our research is AI-assisted, so confirm with the vendor before you buy. Names and logos belong to their owners. Full disclaimer

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