QuickBooks Online vs Xero

Updated October 2026 · AppBreakup editorial

QuickBooks Online

Intuit's cloud accounting software, the default bookkeeping tool for US small businesses and their accountants.

Free plan + paid

Visit QuickBooks Online QuickBooks Online profile

Xero

Cloud accounting for small businesses with unlimited users on every plan and a large app marketplace.

Paid

Visit Xero Xero profile

The short answer

QuickBooks Online is usually the easier choice for US small businesses, because most US accountants and bookkeepers already know it. Xero suits businesses outside the US, particularly in the UK, Australia and New Zealand, and teams that want unlimited users on every plan. The biggest difference is pricing structure: QuickBooks tiers limit users and add paid extras, while Xero charges a flat fee per organisation with unlimited users.

QuickBooks Online or Xero: our take

Both are browser-based double-entry accounting systems with iOS and Android apps, covering invoicing, bills, bank feeds and reconciliation, and reporting. QuickBooks Online is Intuit's product and the default for most US accountants. It adds payroll, payments and time tracking as add-ons, and higher tiers bring more users, inventory, project profitability, classes, locations and AI features under the Intuit Intelligence name. Xero, from New Zealand, is the main rival in the UK, Australia and New Zealand and is growing in the US. It includes quotes, expense claims, multi-currency and projects, and is known for a strong bank reconciliation workflow.

On price, QuickBooks lists a basic free tier for one user, and Simple Start is $38/month at regular price, with a 30-day free trial and frequent introductory discounts. Xero's Early plan is $27/month after its intro offer and Growing is $59/month, and the entry tier caps the number of invoices and bills. QuickBooks prices have risen repeatedly and add-ons add up; Xero's costs climb once you need projects or multi-currency.

Users and integrations also differ. Xero lets you invite as many users as you like on every plan, which suits businesses sharing the books with staff and an accountant. QuickBooks charges for more users through higher tiers. Xero lists 1,000+ connected apps and QuickBooks 800+, so both have large ecosystems. In the US, Xero's payroll comes through a Gusto partnership, while QuickBooks sells its own payroll. Support quality is a frequent complaint about QuickBooks.

Choose QuickBooks Online if you are a US business, your accountant prefers it, or you want payroll and payments from the same vendor. Choose Xero if you are based in the UK, Australia or New Zealand, want many people in the books without paying per user, or work with an accountant who uses Xero. Ask your accountant first; their preference often settles it.

Choose QuickBooks Online if…

US small businesses that work with an accountant and want the most widely supported tool
You want a free option (Xero is paid only)
Almost every US accountant and bookkeeper knows it
Large integration catalogue plus payroll and payments add-ons

Choose Xero if…

Small businesses, especially outside the US, that want accountant-friendly cloud books
Unlimited users included on every plan
Large marketplace of connected apps

What is QuickBooks Online?

QuickBooks Online is Intuit's browser-based accounting product and the tool most US accountants expect their small-business clients to use. It covers invoicing, bill tracking, bank feeds and reconciliation, sales tax, reporting, and add-ons for payroll, payments and time tracking, with a long list of third-party integrations. Higher tiers add more users, inventory, project profitability, classes and locations, and a growing set of AI features that Intuit bundles under the Intuit Intelligence name. Intuit now lists a basic free tier for a single user alongside the paid plans, which are billed monthly per company and are often discounted for the first few months. The main complaints are steady price increases, upsells for payroll and payments, and uneven support. It runs in the browser with iOS and Android apps. If you have a US accountant it is usually the path of least resistance; if price or simplicity matter more, lighter tools exist.

What is Xero?

Xero is a New Zealand-born cloud accounting platform that became the main rival to QuickBooks in the UK, Australia and New Zealand and has a growing US presence. It handles invoicing, bills, bank feeds and reconciliation, quotes, expense claims, multi-currency, projects and reporting, and lets you invite as many users as you like on every plan, which suits businesses that share the books with staff and an accountant. Its app marketplace is large, and many vertical tools treat Xero as the system of record. In the US, payroll comes through a Gusto partnership rather than Xero itself. Pricing is a flat monthly fee per organisation across a few tiers, with the entry tier capping invoices and bills; introductory discounts are common. It runs in the browser with iOS and Android apps. The usual drawbacks are tier limits that push growing businesses up a plan and reporting that some accountants find less flexible than desktop tools.

Side by side

Attribute	QuickBooks Online	Xero
Pricing	Free plan + paid	Paid
Open source	No	No
Self-hostable	No	No
Platforms	Web, iOS, Android	Web, iOS, Android
Best for	US small businesses that work with an accountant and want the most widely supported tool	Small businesses, especially outside the US, that want accountant-friendly cloud books
Status	Active	Active

Verified facts, compared

Facts both apps publish, checked on each vendor's own site.

Fact	QuickBooks Online	Xero
Mobile apps	iOS and Android	iOS and Android
Integrations	800+	1,000+ apps