QuickBooks Online vs Xero
QuickBooks Online and Xero are both accounting & finance tools aimed at small businesses. Xero costs less, from $27/mo versus $38/mo for QuickBooks Online. Only QuickBooks Online has a free plan.
Small-business accounting standard in the US
Cloud accounting popular outside the US
| Pricing | Freemium · $38 | Paid · $27 |
| Starting price | $38/mo | $27/mo |
| Free plan | Yes | No |
| Free trial | 30 days | 30 days |
| Built for | Small businesses | Small businesses |
| Platforms | web, ios, android | web, ios, android |
| Country | US · 2001 | NZ · 2006 |
| Rating | — | — |
Choose QuickBooks Online if
US small and mid-size businesses that work with an accountant.
- Most accountants in the US know it
- Huge integration ecosystem
- Comprehensive feature set
Look elsewhere if: Businesses outside the US/UK or with local e-invoicing rules (Xero, Paraşüt).
Choose Xero if
Small businesses outside the US and teams with many users who need books access.
- Unlimited users on all plans
- Excellent reconciliation experience
- Strong in UK, ANZ and international markets
Look elsewhere if: Very small freelancers (Wave, FreshBooks) or Turkish e-invoice compliance (Paraşüt).
QuickBooks Online vs Xero pricing
QuickBooks Online
- Free$01 user
- Simple Start$38/mo1 user; promo 50% off for 3 months
- Essentials$85/mo3 users
- Plus$140/mo5 users
- Advanced$340/mo25 users
Xero
- Early$27/mo20 invoices, 5 bills; 90% off first 6 months until Nov 2 2026
- Growing$59/moUnlimited invoices and bills
- Established$97/moMulti-currency, projects, analytics
QuickBooks Online · Key features
- Invoicing, estimates and online payments
- Bank feeds with rules and AI categorization
- Bills, expenses and receipt capture
- Sales tax tracking and reports
- Inventory and project profitability (Plus)
- Payroll add-on and accountant collaboration
Cons
- Repeated price increases
- User limits per tier
- Support quality is inconsistent
Xero · Key features
- Bank reconciliation with smart matching
- Invoices, quotes and online payments
- Bills, expenses and Hubdoc document capture
- Multi-currency accounting (Established)
- Projects, inventory and fixed assets
- Analytics, short-term cash flow and reporting
Cons
- Early plan limits are tight
- US payroll requires integrations
- Multi-currency only on the top plan
QuickBooks Online vs Xero: FAQ
Which is cheaper, QuickBooks Online or Xero?
Xero starts at $27/mo and QuickBooks Online at $38/mo. Both prices are checked on the vendors' own pricing pages.
Do QuickBooks Online and Xero have a free plan?
QuickBooks Online has a free plan. Xero has no free plan, a 30-day free trial.