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Home / Business / Xero vs QuickBooks

Xero vs QuickBooks Online: which is right for your small business?

Two of the most-compared accounting tools, side by side: what they cost, what you get, and who each one fits. Updated October 5, 2026.

Short answer: Xero charges per plan with no per-user fees, so it can be cheaper for teams with several people who need access. QuickBooks Online has the larger US ecosystem (more accountants, bookkeepers and add-ons use it) and tiers that scale up to 25 users. If you are a solo owner with simple needs, compare Xero's Early plan against QuickBooks' Solopreneur or Simple Start. If several people need access, Xero's flat pricing is worth a close look.

Plans and prices, side by side

 Xero (US)QuickBooks Online Entry planEarly: $27/mo (20 invoices, 5 bills)Solopreneur: $20/mo (1 user); Simple Start: $38/mo (1 user) Middle planGrowing: $59/mo (unlimited invoices and bills)Essentials: $85/mo (3 users); Plus: $140/mo (5 users) Top planEstablished: $97/mo (180-day cash flow forecast)Advanced: $340/mo (25 users) User feesNo per-user fees on any planUser counts are capped per plan (1, 3, 5 or 25) New-customer promo80% off the first 3 months on base plans (US customers)50% off the first 3 months on plans, as reported in September 2026

Prices in USD, billed monthly, before taxes. Plans, limits and promotions change often, so confirm on each company's pricing page before you buy.

Where Xero tends to fit better

Teams where several people (an owner, a bookkeeper, an accountant, a manager) all need access, because Xero does not charge per user. Businesses that want unlimited invoices and bills without moving up to a pricier tier: Xero's Growing plan includes both. Owners who value a simple, modern layout and bank-feed reconciliation on every plan.

Where QuickBooks Online tends to fit better

Businesses that already work with an accountant or bookkeeper who uses QuickBooks, since it is widely used across the US. Companies that need inventory tracking, project profitability and budgeting (the Plus plan) or workflow automation and advanced reporting for larger teams (Advanced). Very small solo operators, since the Solopreneur plan starts at $20 a month.

How to decide in four steps

1. Count how many people need to log in. 2. List the features you cannot do without (inventory, projects, payroll, multi-currency). 3. Ask your accountant which one they prefer, because that saves time and fees. 4. Use the free trial or promotional period on both and enter a month of real transactions before you commit.

Pick one and start: a realistic first month. A comparison can only take you so far. For most small businesses, picking the second-best tool costs little, and you can export your data and switch later. Not tracking your money costs far more. So choose, and begin:

  1. Choose with one question. Does your accountant or bookkeeper already use one of them? If yes, pick that one. If you have no accountant, pick the one whose cheapest plan covers your invoices and bills (see the price table above).
  2. Start small. Use a free trial or the lowest paid plan. You can upgrade when you outgrow it, so there is no need to buy the top tier on day one. Trial and promo terms change, so check each pricing page.
  3. Use a separate business bank account and connect it, so your transactions flow in on their own.
  4. This week: record every transaction and send one real invoice.
  5. Once a month: take 30 minutes to match transactions and read your profit-and-loss report.
  6. After 90 days, ask whether the tool still fits. If it does not, export your data and switch.

Be realistic about what software does. It will not make a business succeed; customers do. Accounting software mostly shows you the truth about your money sooner, which helps you make better decisions. For tax questions, talk with a licensed accountant. This page is general education, not tax or financial advice.

Related guides

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Xero pricing QuickBooks pricing

Sources: Xero US pricing page (checked October 5, 2026); FitSmallBusiness (September 1, 2026) and Tech.co (September 2, 2026) for QuickBooks pricing and promotion. General information only, not financial, tax or accounting advice.

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