QuickBooks vs. Xero: Which Accounting Software Fits a Small Business?
QuickBooks has a free tier and prices users by plan; Xero starts cheaper and charges no per-user fees, but caps invoices on its entry plan.
QuickBooks vs. Xero is the most common choice a small business faces when it moves its books off a spreadsheet. Both connect to your bank, send invoices and now use AI to sort and match transactions. The big differences are price shape: QuickBooks sets the number of users by plan, while Xero says it has no per-user license fees but limits invoices and bills on its cheapest plan.
Prices below are US dollars a month from each company's US pricing page on the date checked. Both were running new-customer promotions, noted where they apply.
| At a glance | QuickBooks Online | Xero |
|---|---|---|
| Free option | Free plan: 1 user, 2 invoices a month, 1 bank | No free plan; 90% off for 6 months for new US customers |
| Entry plan | Simple Start, $38 a month, 1 user | Early, $27 a month, 20 invoices and 5 bills |
| Middle plans | Essentials $85 (3 users), Plus $140 (5 users) | Growing $59, Established $97 |
| Users | Set by plan, 1 to 25 | No per-user license fees stated |
| AI features | Intuit Intelligence on paid plans; AI Chat in beta; more AI tools on higher tiers | JAX auto bank reconciliation and Smart Document Capture |
| Inventory and projects | Both on Plus ($140) | Projects on Established; Inventory Plus is an optional add-on |
| Payroll | Add-on; price not listed on the pricing page | Gusto-powered, $36 a month plus $6 per person |
| Trial | 30 days free on paid plans | No trial listed; free onboarding help for 90 days |
QuickBooks Online
- Free plan tracks income and expenses, connects 1 bank and sends 2 invoices a month
- 30-day free trial on paid plans, no annual contract
- AI expense categorization from Simple Start; Payments AI for invoice reminders from Essentials
- Inventory tracking and project profitability on Plus
- Users are capped by plan: 1 on Simple Start, 3 on Essentials, 5 on Plus
- List prices climb quickly once the 3-month promo ends
- Free plan has no mobile app or third-party integrations
Xero
- Pricing page says there are no per-user license fees
- Bank reconciliation and Smart Document Capture on all plans
- JAX AI auto-matches high-confidence bank transactions and explains each match
- Payroll add-on powered by Gusto at $36 a month plus $6 per person
- Early plan is limited to 20 invoices and 5 bills, and auto-reconcile costs $5 a month extra
- Projects, multi-currency and expense claims only on Established
- No free plan or free trial listed; Xero offers free onboarding help instead
Pick QuickBooks if you are a solo owner who wants to start free, or your accountant already works in QuickBooks. Pick Xero if more than one or two people need access, because its plans do not charge per user and its Growing plan costs less than QuickBooks Essentials at list price. Watch Xero's Early plan limit of 20 invoices: if you bill more than that, budget for Growing. Either way, compare the price after the promotion ends, since that is what you will pay for years. To get paid faster on top of either one, see our list of the best invoicing software for small business.
Prices and features checked October 25, 2026 from each company's own site. They change often, so confirm before you buy. We are not paid by either company.
- QuickBooks Online pricing (Intuit QuickBooks)
- Xero US pricing plans (Xero)
- AI accounting software (Intuit QuickBooks)
- Xerocon London 2026: the agentic era of small business finance (Xero)
Is AI recommending your business?
Our AI visibility audit checks what ChatGPT, Gemini and Google's AI say about you, and includes a 1:1 review of the results.
See the audits