Some links in this comparison are affiliate links. If you sign up through one, we may earn a commission at no extra cost to you. It doesn’t change our verdict. How we make money.
The short version
QuickBooks Online and Xero both handle the basics well: invoicing, bills, bank feeds, reconciliation and standard reports. The decision usually comes down to three things: who keeps your books, how many people need access, and whether you deal in other currencies.
- Choose QuickBooks Online if you’re a US business, your accountant uses it, or you need job costing, inventory or built-in payroll.
- Choose Xero if many people need to log in, you bill or pay in other currencies, or you want a cleaner interface for less money.
At a glance
| QuickBooks Online | Xero | |
|---|---|---|
| Price per month | $38 to $340 | $27 to $97 |
| Users | 1, 3, 5 or 25, by plan | Unlimited on every plan |
| Multi-currency | Essentials ($85) and up | Established ($97) only |
| Inventory | Plus ($140) and up | Paid add-on on Growing and Established |
| Project or job costing | Plus ($140) and up | Established ($97) only |
| Entry plan limits | 1 user | 20 invoices and 5 bills a month |
| Payroll | Built-in add-on | Through partners such as Gusto |
| US accountant familiarity | Very high | Moderate |
Pricing
Xero is cheaper at every level. Its plans are Early ($27), Growing ($59) and Established ($97). QuickBooks runs Simple Start ($38), Essentials ($85), Plus ($140) and Advanced ($340), after an August 2026 increase on the top three plans.
The gap widens as you add people. A five-person team needs QuickBooks Plus at $140 for the seats alone, while Xero’s $59 Growing plan covers everyone. Watch Xero’s Early plan, though: 20 invoices and 5 bills a month is tight for most businesses, so Growing is the realistic starting point.
Both run steep introductory discounts for new customers. Budget for the list price, because that’s what you’ll pay from month four or seven onward.
Ease of use
Xero has the cleaner interface. The dashboard shows your bank balances and what needs attention, and most owners find their way around quickly. QuickBooks packs in more features and more menus, which makes it more capable and a little harder to learn, especially as you turn on extras like classes and inventory.
Reporting
Both produce the standard profit and loss, balance sheet and cash flow reports. Xero’s reports are easier to read and share. QuickBooks goes deeper on the higher plans, with profit by class, location and project, which matters if you need to see how each part of the business performs.
Integrations
Both connect to Shopify, Amazon, Stripe, PayPal and most popular business apps. QuickBooks has the larger marketplace and is more often the default integration for US-focused tools. Xero is strong on inventory and international apps. Check that your must-have tools connect before you commit.
Working with your accountant
This is often the deciding factor. Most US bookkeepers and CPA firms work in QuickBooks every day, and an accountant who knows your system works faster and bills fewer hours. Plenty of firms support Xero too, particularly those with international clients. If you already have an accountant, ask which they prefer before you decide.
Which should you choose?
QuickBooks Online is the better fit if:
- You operate mainly in the US and want sales tax and 1099s handled with little setup
- Your accountant or bookkeeper uses QuickBooks
- You need job costing, detailed inventory or payroll in the same system
Xero is the better fit if:
- More than a few people need access to the books
- You invoice or pay in other currencies
- You want a simpler interface and a lower monthly bill
For more detail on QuickBooks plans and pricing, read our QuickBooks Online review. To see how both compare with FreshBooks, Zoho Books and Wave, see the best accounting software for small businesses.
Prices and plan features checked October 26, 2026. Software companies change pricing often, so confirm on the provider’s site before you buy.
Leave a Reply