Xero vs QuickBooks Online
By Sebastiaan Smits ·
Published October 8, 2026 · Updated October 8, 2026
Xero charges per organization with unlimited users and builds its product around bank reconciliation. QuickBooks Online caps users by plan but is the ledger most US bookkeepers already know. Businesses in the UK, Australia and New Zealand lean to Xero; US companies with an outside accountant usually stay on QuickBooks.
Side by side
 Xero |  QuickBooks Online | |
|---|---|---|
| What it is | Bank-feed-first cloud ledger with unlimited users | The ledger most US accountants already know |
| Best for | Small firms in the UK, Australia and New Zealand | US small businesses with outside accountants |
| Headquarters | New Zealand | United States |
| Pricing model | Per organization / month | Per company / month |
| Pricing | Published monthly tiers with no per-user license fees; the entry tier caps invoices and bills, and multi-currency sits on the top plan in the US and on the top two UK plans. | Published monthly tiers from a limited Free plan (one user, two invoices a month, one bank connection) through Simple Start to Advanced, each capping users; payroll, payments and some add-ons are billed separately. |
| Free option | Free trial | Free plan |
| List price as listed on October 8, 2026 | $27 per month (Early), $59 (Growing) or $97 (Established), unlimited users on each | $38 per month (Simple Start, 1 user), $85 (Essentials), $140 (Plus) or $340 (Advanced), regular price |
| Place in our accounting software ranking | #5 of 14 | #4 of 14 |
| Website | xero.com | quickbooks.intuit.com |
Both are reviewed in full in Best Accounting Software in 2026. Position in that ranking can be paid for; the wording of a review or of this comparison cannot. Placement disclosure.
Which one to choose
Choose Xero if
several people need to log in without seat charges, you want the reconciliation screen to do most of the bookkeeping, and your accountant works in Xero.
Xero, #5 in the ranking · Visit Xero →
Choose QuickBooks Online if
you are in the United States, your bookkeeper or CPA already works in QuickBooks, and you need the broadest set of connected payroll, point-of-sale and ecommerce apps.
QuickBooks Online, #4 in the ranking · Visit QuickBooks Online →
Where they differ
Users and who can log in
Xero lists no per-user license fees on any plan, so an owner, a bookkeeper and an accountant can all work in one file. QuickBooks Online caps users by plan: one on Simple Start, three on Essentials, five on Plus and 25 on Advanced, with accountant seats listed on top. A growing team reaches QuickBooks' limits well before it reaches Xero's.
Edge: Xero
Accountant familiarity
In the United States nearly every bookkeeper and small-firm CPA already works in QuickBooks, which smooths each handover and tax deadline. Xero has that standing in the UK, Australia and New Zealand instead. Where your accountant lives decides this round, and in the United States it favors QuickBooks.
Edge: QuickBooks Online
Entry plan limits
Xero's entry plan lists quotes and 20 invoices plus 5 bills a month, which is tight for a real business, and multi-currency starts only on the top plan in the US. QuickBooks lists a Free plan limited to one user and, by our earlier check, two invoices a month. Neither entry tier carries a growing company for long, and we could not verify QuickBooks' current Free plan limits on this check.
Edge: even
List price at the working tier
Xero lists Early at $27, Growing at $59 and Established at $97 per month, with 3 months at 80 percent off. QuickBooks lists regular prices of $38 for Simple Start, $85 for Essentials, $140 for Plus and $340 for Advanced, each at 50 percent off for 3 months. Xero's unlimited users and unlimited invoices on Growing make the mid-range cheaper for most teams, but QuickBooks plans include more of the class and location tracking US firms ask for on Plus.
Edge: Xero
Tally: Xero 2, QuickBooks Online 1, even 1.
When neither fits
Neither suits a freelancer who wants invoicing and little else, or a business that needs consolidation across entities. FreshBooks is built around invoicing and time, and Zoho Books costs less for companies already on other Zoho products.
See FreshBooks, Zoho Books and FreeAgent among the 14 products in Best Accounting Software in 2026.
Questions and answers
Is Xero cheaper than QuickBooks Online?
At the mid-range, usually yes. Xero Growing is listed at $59 per month with unlimited users, invoices and bills, while QuickBooks Essentials is $85 for three users and Plus is $140 for five. Both offer a reduced price for the first 3 months. Xero Early at $27 is cheaper than Simple Start at $38 but caps invoices and bills.
Does Xero or QuickBooks have a free plan?
Neither on the Xero pricing page: Xero offers 3 months at 80 percent off, not a free plan. QuickBooks Online lists a Free plan for one user, with no credit card required, plus a 30-day trial on the paid plans. We have not verified what the Free plan includes beyond the user limit.
Does Xero charge per user?
No. The Xero pricing page lists unlimited users on all three US plans and says there are no per-user license fees. QuickBooks Online limits users by plan, from one on Simple Start to 25 on Advanced, with extra accountant seats.
Can Xero and QuickBooks handle multiple currencies?
Xero's US pricing page lists multi-currency on the Established plan only. We could not verify QuickBooks' multi-currency tier on this check, so confirm it before choosing a plan if you invoice abroad.
Sources
Prices, plan limits and product facts on this page were checked against the vendors' own pages on October 8, 2026. Vendors change both without notice, so treat the figures as of that date.
- Xero US pricing page: Xero plan prices, invoice and bill caps, unlimited users, multi-currency tier and the introductory discount
- QuickBooks Online pricing page: QuickBooks Online regular and promotional prices, user limits per plan, the Free plan and the 30-day trial