Xero vs Justworks
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
Justworks is our recommended pick for most teams — small businesses wanting fortune 500 benefits.
Try Justworks →Read our full Justworks review →Xero
Xero is a cloud-based accounting platform popular with small businesses and accountants worldwide. It is known for its clean interface, strong bank reconciliation tools, and excellent integration ecosystem. Xero is particularly popular in Australia, New Zealand, and the UK, and is considered the main alternative to QuickBooks for cloud-based accounting.
Justworks
Justworks is a Professional Employer Organization (PEO) that gives small businesses access to Fortune 500-level benefits and simplified payroll. By co-employing your team, Justworks handles compliance, payroll taxes, and benefits administration. It is ideal for small businesses that want premium benefits without an in-house HR team.
Pros
- ✓Beautiful and intuitive interface — one of the cleanest in accounting software
- ✓Unlimited users on all plans — no per-seat pricing
- ✓Excellent bank reconciliation with smart matching
- ✓Strong ecosystem of 1000+ integrations
Cons
- ✗Payroll requires a separate add-on in most regions
- ✗Inventory management is basic compared to QuickBooks
- ✗Reporting is less comprehensive than QuickBooks on lower tiers
- ✗Customer support is primarily online with no phone support
Pros
- ✓Access to high-quality health, dental, and vision benefits typically reserved for large companies
- ✓Simple flat-rate pricing with no hidden fees
- ✓Excellent customer support with fast response times
- ✓Handles all compliance and payroll tax filings
Cons
- ✗More expensive than software-only alternatives due to PEO model
- ✗Only available for US-based employees
- ✗Less flexible than standalone HR software for customization
Xero vs Justworks: Side by Side
| Factor | Xero | Justworks |
|---|---|---|
| User Rating | N/A | 4.6/5 ★ |
| Category | Accounting Software | HR Software |
| Pricing Model | Paid | Paid |
| Starting Price | $15/mo | $59/employee/mo |
| Best For | Small businesses and accountants wanting a clean, modern alternative to QuickBooks | Small businesses wanting Fortune 500 benefits |
| Our Pick | — | 🏆 Recommended |
Xero Features
- ✓Bookkeeping
- ✓invoicing
- ✓bank reconciliation
- ✓expense claims
- ✓payroll
- ✓financial reporting
- ✓inventory
- ✓project tracking
- ✓integrations
- ✓mobile app
Justworks Features
- ✓PEO co-employment
- ✓payroll
- ✓benefits access
- ✓compliance
- ✓HR support
Pricing Comparison
Justworks
PaidStarts at $59/employee/mo
Justworks: $59/employee/mo · Plus: $99/employee/mo
See full pricing →Best Use Cases
Justworks
- →US startups and small businesses wanting full PEO services
- →Companies wanting to offer Fortune 500 benefits to small teams
- →Businesses wanting to outsource HR compliance
Who Should NOT Use These Tools
Justworks is NOT ideal for:
- ✗Companies with international employees
- ✗Businesses wanting full control over HR processes
- ✗Large enterprises with dedicated HR teams
Integrations
Justworks
QuickBooks, Xero, Slack, Google Workspace, Microsoft 365, Greenhouse
Our Take
Choose Xero if small businesses and accountants wanting a clean, modern alternative to quickbooks. Choose Justworks if small businesses wanting fortune 500 benefits.
Best For
Small businesses and accountants wanting a clean, modern alternative to QuickBooks
Best For
Small businesses wanting Fortune 500 benefits
Also Consider
If neither Xero nor Justworks is the right fit, Dext is worth evaluating.
Dext
Bookkeepers, accountants, and businesses with high receipt volumes wanting to eliminate manual data entry
From $15/mo
Frequently Asked Questions
What is the difference between Xero and Justworks?
Xero is best for small businesses and accountants wanting a clean, modern alternative to quickbooks. Justworks is best for small businesses wanting fortune 500 benefits.
Which is better, Xero or Justworks?
Choose Xero if small businesses and accountants wanting a clean, modern alternative to quickbooks. Choose Justworks if small businesses wanting fortune 500 benefits.
How much does Xero cost?
Xero starts at $15/mo. Pricing model: Paid.
How much does Justworks cost?
Justworks starts at $59/employee/mo. Pricing model: Paid.
Who should use Xero?
Small businesses and accountants wanting a clean, modern alternative to QuickBooks
Who should use Justworks?
Small businesses wanting Fortune 500 benefits