Xero vs QuickBooks 2026: which is best for a small business?

Xero vs QuickBooks comes down to how many people use the books and how many invoices you send. Xero's US plans cost $27, $59 and $97 a month, and every plan includes unlimited users¹. QuickBooks Online's main plans cost $38, $85, $140 and $340 a month, for 1 to 25 users². For an owner with a few invoices who wants their accountant in the books, Xero costs less. Early costs $259.20 in the first year, against $399 for Simple Start, QuickBooks' cheapest plan with accountant access.

With one person in the books, QuickBooks is the cheaper pick once you send more than 20 invoices or enter more than 5 bills a month. Xero's $27 plan caps both³. QuickBooks also fits if you want Intuit's experts to categorize your bank transactions, which its Plus plan includes⁴, or if your accountant already works in QuickBooks.

We build Booke AI, AI bookkeeping software for QuickBooks Online and Xero. It works in both at the same price. Prices below are from Xero's and Intuit's pages as of November 7, 2026.

Xero vs QuickBooks at a glance

Plan details come from Xero's plan and inventory pages⁵,⁶ and Intuit's pricing chart².

How much does Xero cost?

Xero costs $27 a month for Early, $59 for Growing and $97 for Established in the US⁵. New US customers get 80% off the first 3 months, so the first year costs $259.20, $566.40 or $931.20. After that, a full year costs $324, $708 or $1,164.

Early covers the basics of a small business: bank feeds, reconciliation, receipt capture, sales tax and 1099s⁷. It allows 20 invoices to customers and 5 bills from suppliers a month³. Growing removes both caps and adds automatic reconciliation by JAX, Xero's AI assistant. Xero says JAX reconciles a bank transaction only when it's highly confident⁸. Established adds multiple currencies, project tracking and employee expense claims⁵.

The 80% discount covers the base plan only, not add-ons or payment fees⁵. One month free is the alternative offer, and you can't have both. Cancelling takes one month's notice⁷. Add-ons include automatic reconciliation on Early for $5 a month, payroll, and Inventory Plus on Growing and Established⁵.

Xero vs QuickBooks pricing in the first year

At each step up, Xero's plan costs less than the QuickBooks plan next to it. The plans include different things, though, so match the plan to what your business needs before you compare prices.

QuickBooks' first year counts 3 months at half price and 9 at full price². Of its four main plans, Intuit shows a yearly price only for Simple Start: $357.05 for the first year⁹. Xero lists no yearly price⁵. QuickBooks Free and Lite cost less than either entry plan, but neither lets your accountant log in⁹. Our QuickBooks Free guide covers their limits, and our QuickBooks pricing guide covers every QuickBooks plan and add-on.

Which is best for a small business?

Xero is the better buy when several people use the books, or for a business that tracks stock. QuickBooks is the better buy for one person who sends more than 20 invoices a month, or for a business with up to 3 logins that sells in another currency.

If you have an accountant, ask which one they work in before you choose. They can set it up faster and answer questions in the screens you see.

Unlimited users vs per-user plans

Every Xero plan includes unlimited users, your accountant and bookkeeper among them¹. QuickBooks counts users: 1 on Simple Start, 3 on Essentials, 5 on Plus and 25 on Advanced². Accountants get their own seats on top, 2 on most plans and 3 on Advanced. Adding a staff login costs nothing in Xero. In QuickBooks, it moves you from Simple Start to Essentials.

Invoice and bill caps on Xero Early

Xero counts Early's invoices by invoice date³, and invoices created by connected apps can count toward the cap⁵. Above 20 invoices or 5 bills a month, you need Growing at $59. Intuit's pricing chart shows no invoice cap on Simple Start and includes bill pay with free ACH, a bank-to-bank payment². Past a monthly allowance, each ACH bill payment costs $0.50².

Stock and projects

Xero tracks basic stock on every plan: quantity on hand and total value for up to 4,000 items⁶. Its fuller Inventory Plus add-on needs Growing or Established. QuickBooks shows inventory tracking only on Plus and Advanced². In June, Intuit also announced enhanced inventory as a $40-a-month add-on for Simple Start and Essentials¹⁰, but its pricing page doesn't list it. On Early, the 20-invoice and 5-bill caps still apply. Project profit tracking comes with Xero Established and QuickBooks Plus.

Help with the books

QuickBooks Plus and Advanced include monthly categorization of your bank transactions by an Intuit bookkeeping expert⁴. It starts switched off if an accountant is already attached to your company. If you'd rather hand the books to a person, our outsourced bookkeeping guide lists what those services cost.

What a small candle business would pay

Take a small online candle business in September 2026. It had a checking account, a savings account and a business card, sent 2 invoices and entered no bills. The owner keeps the books alone, and an accountant checks them.

Xero Early covers all of it, with bank feeds for the three accounts and a free login for the accountant. Its 20-invoice cap leaves room for 18 more. QuickBooks Simple Start covers it too, with a seat for the accountant. The first year costs $259.20 on Xero and $399 on QuickBooks, $139.80 apart. Paying Simple Start yearly narrows the gap to $97.85. After the first year, Xero costs $132 a year less than Simple Start paid monthly.

The gap widens the day a part-time helper needs a login. QuickBooks moves to Essentials at $892.50 for the first year, while Xero stays at $259.20.

That September brought 26 bank and card transactions to sort on either system. In QuickBooks, bank rules can file the 9 from regular vendors, like shipping labels and ad charges¹¹. In Xero, JAX's automatic reconciliation applies your bank rules⁸. It's included on Growing and costs $5 a month on Early⁵. With it, Early's first year comes to $319.20, still $79.80 below Simple Start.

The other 17 transactions need a person. Seven get checked against a statement, a payment report or the other account. Ten need the owner's answer, such as whether $5,000 moved from a personal account was a contribution or a loan.

Where Booke fits

Booke takes the sorting of bank transactions off your plate in QuickBooks Online or Xero. It works with the bank accounts already connected there. Every day it categorizes new transactions and matches them to invoices and receipts. It records the ones it's sure about and asks you about the rest. In Xero it can also do some of the reconciling, depending on how the account is set up. Booke automates up to 80% of the manual bank-feed work for $129 a month per business, on either system. See how Booke works for business owners.

Other costs to compare

Xero vs QuickBooks payroll

QuickBooks Workforce Payroll costs $50 a month plus $7 per employee¹². Xero Payroll, powered by Gusto, costs $36 a month plus $6 per employee or contractor⁵. With 3 employees, that's $71 a month on QuickBooks and $54 on Xero. QuickBooks takes 50% off the payroll base price for 3 months¹², while Xero's discount skips add-ons⁵.

Payment fees on invoices

Both let customers pay an invoice online, for a fee on each payment. QuickBooks Payments charges 2.99% for a card and 1% for ACH¹³. Xero's online payments go through Stripe. A US card costs 2.9% plus 30¢, and an ACH debit costs 1%, capped at $9¹⁴. On the candle business's $1,200 invoice, that's $35.88 or $12 on QuickBooks and $35.10 or $9 on Xero. On a $5,000 invoice paid by ACH, it's $50 against $9. For the yearly cost and the other QuickBooks fees, such as instant deposit and chargebacks, see what QuickBooks Payments charges.

How to switch between Xero and QuickBooks

Switch on the first day of a month, ideally at the start of your fiscal year or a sales tax period¹.

From QuickBooks to Xero, a Xero partner can move your data with Jet Convert, including current and previous fiscal year transactions¹. Xero's page doesn't list the partner's fee. You can also import your chart of accounts (your list of categories) and your contacts yourself, then add unpaid invoices and bills. Xero offers free one-on-one setup help after the move. Moving to Zoho Books, Wave or FreshBooks works differently; our guide to what switching from QuickBooks takes lists what each one carries across.

From Xero to QuickBooks, Intuit's partner Dataswitcher converts up to 2 fiscal years at no charge¹⁵. You need a paid QuickBooks Online subscription, not a trial, and a blank company. To bring bills across, Intuit's guide asks for Essentials or higher, so plan on Essentials if you're moving open bills. Extra years and inventory items cost more. Bank reconciliation history and file attachments don't move, so keep copies. Intuit also asks you to reconcile your Xero bank accounts first and save your Xero reports for taxes.

FAQ

Is Xero easier to use than QuickBooks?

Both handle the daily work the same way: bank transactions arrive through bank feeds, and you categorize or match each one, with bank rules for repeat vendors. Xero includes free setup help from a product specialist for 90 days⁵, and QuickBooks Simple Start includes expert-guided setup².

Can I try Xero or QuickBooks for free?

Yes. Xero offers one month free in place of 80% off the first 3 months⁵. QuickBooks offers a 30-day free trial in place of half off the first 3 months². QuickBooks Free is a separate $0 plan for one person with 2 invoices a month⁹.

Sources

1. Xero, Xero vs QuickBooks, retrieved November 7, 2026.

2. Intuit, QuickBooks Online pricing, retrieved November 7, 2026.

3. Xero Developer, OAuth 2.0 API limits: Xero pricing plan limits, retrieved November 7, 2026.

4. Intuit, Get expert bookkeeping help in QuickBooks Online, updated August 24, 2026.

5. Xero, Pricing plans, Xero US, retrieved November 7, 2026.

6. Xero, Inventory management, retrieved November 7, 2026.

7. Xero, Early pricing plan, retrieved November 7, 2026.

8. Xero, Bank reconciliation software, retrieved November 7, 2026.

9. Intuit, Accounting software for self-employed business, retrieved November 7, 2026.

10. Intuit, QuickBooks Online August pricing changes and product updates, June 26, 2026.

11. Intuit, Set up bank rules to categorize online banking transactions in QuickBooks Online, updated September 11, 2026.

12. Intuit, QuickBooks payroll pricing, retrieved November 7, 2026.

13. Intuit, QuickBooks Payments rates, rates as of September 18, 2026.

14. Xero, Pricing and fees for Stripe accounts, retrieved November 7, 2026.

15. Intuit, Convert from Xero to QuickBooks Online, updated August 4, 2026.