Xero vs. QuickBooks: Which Accounting Software Wins?
Xero and QuickBooks Online solve the same basic problem (bookkeeping and invoicing for a small business) but come from different traditions: QuickBooks grew up as the default choice for U.S. small businesses and their accountants, while Xero built its reputation on cash-flow forecasting and a cleaner interface for business owners who aren't accountants themselves. This guide compares current pricing and what each one actually does well.
The short answer
QuickBooks is still the safer default if you're in the U.S. and want a bookkeeper or CPA who already knows the software without extra explanation, or if you need built-in U.S. payroll. Xero is worth a serious look if cash-flow forecasting is a priority for you, if you do business internationally and need multi-currency support, or if you simply find its interface easier to use day to day.
Pricing comparison
Both companies run introductory promotional pricing that reverts to a higher list price after a set period; Xero's current offer runs the discounted rate for 6 months, QuickBooks' for 3. List (non-promotional) monthly pricing as published on each company's site:
| Xero plan | List price/mo | Built for |
|---|---|---|
| Early | $25 | Very small businesses, up to 20 invoices/mo |
| Growing | $55 | Growing businesses needing unlimited invoicing |
| Established | $90 | Businesses needing multi-currency and project tracking |
| QuickBooks Online plan | List price/mo | Built for |
|---|---|---|
| Simple Start | $38 | Solo owners, basic income/expense tracking |
| Essentials | $85 | Small teams that need bill pay and time tracking |
| Plus | $140 | Businesses with inventory or project profitability needs |
| Advanced | $340 | Larger small businesses needing batch invoicing, custom reporting |
Prices as published at time of writing; both companies change promotional pricing frequently, so confirm current rates directly with Xero or QuickBooks before buying.
What Xero does well
- Cash-flow forecasting is built into every plan (30 to 180 days depending on tier), which QuickBooks treats more as an add-on reporting feature.
- Multi-currency support on the Established plan, useful if you invoice or pay in currencies other than USD.
- A cleaner, less accounting-jargon-heavy interface that many non-accountant owners find faster to get comfortable in.
- A large third-party app marketplace for connecting inventory, e-commerce, and industry-specific tools.
What QuickBooks does well
- Built-in U.S. payroll that integrates directly, without needing a separate connected app.
- Far more common among U.S. bookkeepers and CPAs, so it's usually easier to find help or hand off your books to a professional who already knows the software.
- Inventory tracking on Plus and Advanced plans.
- Deeper batch-processing tools (batch invoices, batch expense entry) on the Advanced plan for higher-volume businesses.
FAQ
Is Xero cheaper than QuickBooks?
At list price, Xero's entry plan is less expensive than QuickBooks Simple Start, but both companies run frequent promotional pricing that changes the comparison for the first several months. Compare list prices, not just the promo you're shown, since the promo expires.
Does Xero have more users included than QuickBooks?
Check each provider's current plan page before deciding based on user count, since both companies have changed per-plan user limits over time. This is worth confirming directly rather than assuming, since it materially affects which plan you actually need.
Can I switch from QuickBooks to Xero later?
Yes, though migrating historical transactions between platforms usually takes manual cleanup or a paid migration service, similar to switching between any two accounting platforms. Get the choice right up front rather than planning to switch.