Xero vs Teamwork
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
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.
Teamwork
Teamwork is a project management platform built specifically for client-facing teams and agencies. It includes built-in time tracking, invoicing, and client portals that make it ideal for professional services businesses managing multiple client projects simultaneously. Teamwork helps agencies deliver projects on time and on budget while keeping clients informed.
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
- ✓Built specifically for agencies and client-facing teams
- ✓Built-in time tracking and invoicing saves money on separate tools
- ✓Client portal keeps clients informed without giving full system access
- ✓Strong resource and budget management features
Cons
- ✗Less suitable for internal team project management
- ✗Interface feels less modern than competitors
- ✗Some key features only on higher paid tiers
- ✗Can be complex to set up for new users
Xero vs Teamwork: Side by Side
| Factor | Xero | Teamwork |
|---|---|---|
| User Rating | N/A | N/A |
| Category | Accounting Software | Project Management |
| Pricing Model | Paid | Freemium |
| Starting Price | $15/mo | Free |
| Best For | Small businesses and accountants wanting a clean, modern alternative to QuickBooks | Agencies and professional services firms managing multiple client projects |
| Our Pick | — | — |
Xero Features
- ✓Bookkeeping
- ✓invoicing
- ✓bank reconciliation
- ✓expense claims
- ✓payroll
- ✓financial reporting
- ✓inventory
- ✓project tracking
- ✓integrations
- ✓mobile app
Teamwork Features
- ✓Project management
- ✓time tracking
- ✓invoicing
- ✓client portals
- ✓resource management
- ✓milestones
- ✓Gantt charts
- ✓budgets
- ✓collaboration tools
Pricing Comparison
Our Take
Choose Xero if small businesses and accountants wanting a clean, modern alternative to quickbooks. Choose Teamwork if agencies and professional services firms managing multiple client projects.
Best For
Small businesses and accountants wanting a clean, modern alternative to QuickBooks
Best For
Agencies and professional services firms managing multiple client projects
Also Consider
If neither Xero nor Teamwork 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 Teamwork?
Xero is best for small businesses and accountants wanting a clean, modern alternative to quickbooks. Teamwork is best for agencies and professional services firms managing multiple client projects.
Which is better, Xero or Teamwork?
Choose Xero if small businesses and accountants wanting a clean, modern alternative to quickbooks. Choose Teamwork if agencies and professional services firms managing multiple client projects.
How much does Xero cost?
Xero starts at $15/mo. Pricing model: Paid.
How much does Teamwork cost?
Teamwork starts at Free. Pricing model: Freemium.
Who should use Xero?
Small businesses and accountants wanting a clean, modern alternative to QuickBooks
Who should use Teamwork?
Agencies and professional services firms managing multiple client projects