Choosing the right accounting software for your consulting business
Consultants don't need the same accounting setup as a retail shop or a SaaS startup. Your workflow is project-based, invoice-driven, and usually a team of one to a handful. The right software should quietly handle that — not bury you in features for industries you aren't in.
Two platforms dominate the conversation: QuickBooks Online (QBO) and Xero. Both are solid. Both can run a consulting business beautifully. Choosing between them comes down to how you work, not which one is "better."
What consultants actually need from accounting software
- Clean invoicing. Branded, easy to send, trackable, and quick to follow up on when a client is slow.
- Time and project tracking — or at minimum, tagging income and expenses by client or engagement.
- Bank feeds that actually work. Reconciliation should take minutes per month, not hours.
- Mileage, contractor payments, and 1099 tracking without bolt-on hacks.
- Reports that answer real questions. "Am I profitable on this client?" "What's my runway?" "What did I actually pay in subcontractor costs last quarter?"
QuickBooks Online: the default for a reason
QBO is the most widely supported small-business accounting platform in the U.S. For consultants, that matters more than people realize:
- Every bookkeeper and CPA knows it. If you ever hand the file off, scale up, or need tax help, you'll spend zero time onboarding someone.
- Built-in projects and class tracking let you run profitability per client without leaving the platform.
- 1099 contractor management is native — useful if you sub work out.
- App ecosystem is enormous. Bill, Ramp, Gusto, Stripe, HubSpot — almost everything integrates first.
Where QBO frustrates: the UI has accumulated layers over the years, and Intuit's pricing creeps up regularly. If you're allergic to upsell prompts, you'll notice them.
Xero: cleaner, calmer, especially outside the U.S.
Xero is the global favorite — strong in the UK, Australia, and New Zealand, growing in the U.S. For a service business, it offers a notably calmer experience:
- Unlimited users on every plan. If you have a VA, an OBM, or a part-time bookkeeper, you don't pay per seat.
- Cleaner interface, especially for reconciliation. Most consultants find day-to-day Xero faster once it's set up.
- Tracking categories handle client- or project-level reporting without the "Projects" upcharge.
- Strong multi-currency support — useful if you invoice international clients.
Where Xero frustrates: payroll and 1099 handling in the U.S. require third-party tools (Gusto is the standard pairing), and the U.S. app ecosystem, while strong, isn't as deep as QBO's.
Side-by-side: which fits which consultant
| If you… | Lean toward |
|---|---|
| Run a U.S.-based solo or small consultancy and want the path of least resistance with your CPA | QuickBooks Online |
| Pay subcontractors and issue 1099s | QuickBooks Online |
| Have a small team or collaborators who need access without paying per seat | Xero |
| Invoice in multiple currencies or work with international clients | Xero |
| Want the cleanest day-to-day reconciliation experience | Xero |
| Use a long list of U.S. integrations (Bill, Ramp, expense tools, niche CRMs) | QuickBooks Online |
A few honest tradeoffs nobody mentions
- Switching later is a real project. Pick deliberately, not for the promo price.
- The software isn't your bookkeeping system. Both QBO and Xero will happily produce wrong reports if your chart of accounts, categorization rules, and reconciliation cadence aren't set up well. The platform is the easier half.
- Don't pay for features you won't use. Inventory, advanced budgeting, and the highest tiers are usually overkill for consultants. Start one tier lower than the salesperson recommends.
The short answer
If you're a U.S. consultant who wants the safest, most-supported choice — go with QuickBooks Online. If you have collaborators, work internationally, or just want a calmer interface — go with Xero. Both will serve you well for years if they're set up thoughtfully and maintained monthly.
If you'd like a second opinion on which fits your specific workflow — or help getting either one set up properly so the monthly close takes minutes instead of a weekend — let's talk. You can also browse the services or check the FAQ for more on how we work.