QuickBooks Online vs Xero
QuickBooks Online and Xero are the two accounting platforms most small businesses end up choosing between, and it is a decision that is expensive to reverse — your bookkeeper, your accountant and your bank feeds all follow the software. Neither has a free plan, so this is a comparison people make before spending rather than after.
Which should you choose?
Choose QuickBooks Online if
- US small businesses that want the accounting system most bookkeepers and CPAs already use
- Product businesses that need inventory and project profitability (Plus and above)
- Companies with many third-party apps to connect
- Businesses planning to add payroll and payments from the same vendor
Choose Xero if
- Businesses that want owners, staff and an accountant in one file without per-user fees
- Companies based in the UK, Australia or New Zealand
- Growing businesses that connect ecommerce, payment and CRM apps
Cheapest to start
Xero · From $25/mo
Free plan
Neither
Highest editor rating
QuickBooks Online · 4.4
| Compare | QuickBooks Online |
|---|---|
| Free plan | No |
| Free trial | Yes |
| Starting price | From $38/mo |
| Editor rating | 4.4 |
| Ease of use | Moderate (3/5) |
| Category | Finance & Accounting |
| Pricing model | Four company-level plans priced $38 to $340 per month in the US, with user caps of 1, 3, 5 and 25. Payroll, time tracking and payments are separate add-ons, and list prices have increased most years. |
| Plans |
|
| Platforms | Web, Windows, macOS, iOS, Android, API |
| Integrations | Gmail, HubSpot, Mailchimp, Make, PayPal, Salesforce, Shopify, Zapier |
| Best for |
|
| Pros |
|
| Cons |
|
| API access | Yes |
| App marketplace | Yes |
| Bank connections | Yes |
| Expense tracking | Yes |
| Inventory management | Yes |
| Mobile app | Yes |
| Multi-currency invoicing | Yes |
| Payroll | Yes |
| Quotes & invoices | No |
| Recurring invoices | Yes |
| Reporting & dashboards | Yes |
| Roles & permissions | No |
| Tax reports | Yes |
| Time tracking | Yes |
Common questions
- Is QuickBooks Online cheaper than Xero?
- Xero starts lower, at $25 a month against $38 for QuickBooks Online. Both figures are the entry paid plan billed monthly, checked against each vendor's own pricing page. Higher tiers and add-ons can change the comparison, so price the plan you actually need.
- Does QuickBooks Online or Xero have a free plan?
- Neither offers a permanently free plan. QuickBooks Online and Xero offer a free trial instead.
- How long is the QuickBooks Online and Xero free trial?
- QuickBooks Online offers a 30-day free trial.
Our verdict
Xero is the cheaper entry at $25 per month against QuickBooks Online's $38, and both offer a free trial. VERILO rates QuickBooks 4.4 and Xero 4.3, and both score 3 out of 5 for ease of use — neither is software you learn in an afternoon. The deciding factor is usually not the product: check which one your accountant already works in, because that matters more than any feature on this page.