Our verdict
Ask your accountant first. Without a preference, US businesses lean to QuickBooks; teams needing many users or outside the US often prefer Xero.
QuickBooks Online and Xero dominate cloud accounting for small businesses. Both handle invoicing, bank reconciliation and reporting well; the decision usually comes down to region, user count and what your accountant prefers.
Choose QuickBooks Online if…
- You are in the US and your accountant uses QuickBooks
- You want the broadest US app ecosystem
- You need features like project profitability on mid tiers
Choose Xero if…
- Several people need access (unlimited users)
- You are in the UK, Australia or New Zealand
- You prefer a cleaner reconciliation interface
Side by side
| Criterion | QuickBooks Online | Xero |
|---|---|---|
| Overall score | 8.5 / 10 | 8.5 / 10 |
| Features & fit | 9.0 | 8.7 |
| Ease of use | 8.4 | 8.6 |
| Value for money | 7.6 | 8.4 |
| Support & reliability | 8.0 | 7.8 |
| Security & privacy | 8.4 | 8.4 |
| Integrations & ecosystem | 9.4 | 9.0 |
| Starting price (indicative) | From around $30–38 / month (Simple Start) | From around $20–29 / month |
| Free plan | No | No |
| Free trial | Yes | Yes |
| Best for | US small businesses | Teams wanting unlimited users |
Feature by feature
| Feature | QuickBooks Online | Xero |
|---|---|---|
| Users included | Limited per plan | Unlimited users on all plans |
| Bank reconciliation | Strong, rule-based | Strong, popular with accountants |
| Payroll | Built-in add-on in supported countries | Native in some countries; partners elsewhere |
| Inventory | On higher tiers | Basic tracked inventory |
| App marketplace | Large | Large |
| Best for | US-centric businesses and accountants who know it | Multi-user teams and international businesses |
Pricing compared
QuickBooks Online
| Plan | Indicative price | Notes |
|---|---|---|
| Simple Start | ≈ $30 / mo | Up to 1 user · Promotional discounts common |
| Essentials | ≈ $60 / mo | Up to 3 users |
| Plus | ≈ $90 / mo | Up to 5 users |
| Advanced | ≈ $200 / mo | Up to 25 users |
Xero
| Plan | Indicative price | Notes |
|---|---|---|
| Starter | ≈ $20 / mo | Limits on invoices and bills |
| Standard | ≈ $40 / mo | — |
| Premium | ≈ $55 / mo | Multi-currency |
Indicative USD list prices; excludes tax, add-ons and promotions. Confirm on each vendor’s site.
Users
Xero includes unlimited users on every plan. QuickBooks Online limits users by tier, which can push teams to higher plans.
Regional strength
QuickBooks is the dominant choice among US accountants. Xero is very strong in the UK, Australia and New Zealand.
Entry plan limits
Xero's entry plan has limits on invoices and bills; QuickBooks' entry plan has user and feature limits. Compare against your transaction volume.
Users and pricing
QuickBooks caps users by tier, from one on Simple Start to 25 on Advanced, so growing teams may need to upgrade for seats alone. Xero includes unlimited users on every plan, which makes it attractive for businesses where several people — owners, bookkeepers, managers — need access.
Accountants and region
QuickBooks dominates among US accountants and bookkeepers, while Xero is the default in the UK, Australia and New Zealand. Choosing your accountant's platform usually lowers year-end fees and speeds up month-end close, so ask before you decide.
Pros & cons
QuickBooks Online
- Widely supported by accountants
- Comprehensive features and reports
- Large app ecosystem
- Higher cost than some competitors
- User limits on lower tiers
Xero
- Unlimited users on every plan
- Clean reconciliation workflow
- Strong app marketplace
- Entry plan transaction limits
- Support is mainly online
Key features of each
QuickBooks Online
- Bank feeds & rules. Automatic import and categorisation of transactions.
- Invoicing. Custom invoices with online payments.
- Reports. Standard and customisable financial reports.
- Project profitability. Track costs and income per project on higher tiers.
Integrates with: Gusto, Shopify, HubSpot, PayPal, Stripe.
Xero
- Bank reconciliation. Match transactions quickly with suggestions.
- Invoices & bills. Send invoices and track payables.
- Multi-currency. Trade in many currencies on higher plans.
- App marketplace. Hundreds of connected apps.
Integrates with: Gusto, Shopify, Stripe, HubSpot, Square.
Who should avoid each
Skip QuickBooks Online if…
- Very small budgets
- Businesses needing many users on entry tiers
Best for: US small businesses; Companies whose accountant uses QuickBooks; Service businesses needing invoicing and expenses.
Skip Xero if…
- High-volume invoicing on the entry tier
- Complex US payroll inside one tool
Best for: Teams wanting unlimited users; UK, AU and NZ businesses; Businesses with app-heavy workflows.
Switching between QuickBooks Online and Xero
Migration difficulty: Moderate
Open balances, contacts and chart of accounts move easily; full transaction history often moves via conversion tools or is kept read-only in the old system.
- Pick a switch date — ideally the start of a month, quarter or financial year.
- Reconcile the old system up to that date.
- Import chart of accounts, contacts, items and opening balances.
- Use a conversion service if you need full history.
- Keep the old subscription read-only for audit access as long as you need it.
Weigh it your way
Adjust the weights to your priorities to see which tool comes out ahead for you. Print or export the result for your team.
| Tool | Features | Ease | Value | Support | Security | Integrations | Your score |
|---|---|---|---|---|---|---|---|
| 1. Xero | 8.7 | 8.6 | 8.4 | 7.8 | 8.4 | 9.0 | 8.54 |
| 2. QuickBooks Online | 9.0 | 8.4 | 7.6 | 8.0 | 8.4 | 9.4 | 8.50 |
Drag the sliders to match your priorities. Scores are our editorial sub-scores; weights start at the values we publish on the methodology page. Nothing you change is stored or sent anywhere.
How our scores and weights work · Add a third tool side by side
Frequently asked questions
Can I switch from QuickBooks to Xero?
Yes, migration tools exist, often run by a bookkeeper. Plan the switch for the start of a financial period.
Which is cheaper?
It depends on plan and region. Xero's unlimited users can make it cheaper for larger teams.
Does QuickBooks Online or Xero have a free plan?
QuickBooks Online has a free trial but no permanent free plan; Xero has a free trial but no permanent free plan. Indicative starting prices: QuickBooks Online — From around $30–38 / month (Simple Start); Xero — From around $20–29 / month.
Which scores higher in our review, QuickBooks Online or Xero?
QuickBooks Online scores 8.5/10 and Xero 8.5/10 on our weighted rubric. QuickBooks Online leads on 3 of six criteria. A higher score does not make it right for every buyer — see the “choose if” lists above.
