We run books in both daily. Here's the decision without the affiliate-driven noise.
Where QuickBooks wins
- Deepest US ecosystem — nearly every US accountant, lender and app integrates with it
- Stronger US payroll and sales-tax tooling out of the box
- The default if you're US-based and want maximum local compatibility
Where Xero wins
- Unlimited users on every plan — QuickBooks charges by seat
- Cleaner multi-currency, which matters enormously for non-resident and cross-border sellers
- Flat, predictable pricing and a genuinely nicer bank-reconciliation flow
- Popular with international founders and their accountants outside the US
The honest tie-breaker
Pick the one your accountant works in. Software you love but your firm fights is slower and costlier than the "second-best" tool your team knows cold. We support both and will tell you straight which fits your setup.
Switching later
Migrating between them is routine — see our QuickBooks-to-Xero migration guide. Don't over-agonize the first choice; it's reversible.
Not sure which to run?
Tell us how you bank and who you sell to — we'll recommend the one that fits and set it up.
See Xero Accounting Get a free quoteIf your business pays US contractors, three obligations follow you all year.
1. Collect a W-9 before you pay
Get a signed W-9 from every US contractor before the first payment. It gives you their legal name and TIN — the two things you need at filing time. Chasing W-9s in January from contractors who've moved on is how deadlines get missed.
2. Issue 1099-NEC on time
You report nonemployee compensation on Form 1099-NEC once payments to a contractor cross the reporting threshold for the year (historically $600; recent legislation raises it for payments made after 2025 — check the current figure when you file). The form goes to the contractor and the IRS by January 31.
- Payments to corporations are generally exempt (attorneys excepted)
- Payments made by credit card or through platforms like PayPal business are reported by the processor on 1099-K instead — don't double-report
- Foreign contractors working outside the US get a W-8BEN, not a 1099
3. Make sure they're actually contractors
The IRS looks at behavioral control, financial control and the relationship. Set their hours, provide the tools, make them exclusive — and you may have an employee, with back payroll taxes and penalties to match. When in doubt, run the facts past a professional before the relationship hardens.
The bottom line
W-9 up front, 1099-NEC by January 31, and honest classification. MOREOFTAX handles contractor reporting, payroll setup and classification reviews as part of bookkeeping and tax plans.
Contractor reporting handled for you
W-9 collection, January 1099 filings and classification checks — bundled into our bookkeeping plans.
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