QuickBooks vs Xero for US Small Business (2026)

The verdict

Pick Xero if you want lower monthly costs, expect to add people who need access, and don’t need more than its Growing plan offers. Pick QuickBooks Online if your accountant or bookkeeper already works in it, or you need inventory and project profitability in one plan. A solo business sending only a handful of invoices can start on Xero Early. Most other small businesses should compare Xero Growing ($59) with QuickBooks Essentials ($85).

At a glance

List prices as of October 2026, per month for the whole business.

	QuickBooks Online	Xero
Entry plan	Simple Start, $38	Early, $27
Mid plans	Essentials $85; Plus $140	Growing $59
Top small-business plan	Advanced, $340	Established, $97
Users	1 / 3 / 5 / 25 by plan	No per-user license fees
Entry-plan limits	1 user, 1 connected bank	20 invoices, 5 bills
Inventory	Plus and up	Add-on (Growing and up)
Multi-currency	Check current plan details	Established
Payroll	Add-on, check current price	Gusto add-on: $36/mo + $6/person
Current promotion	50% off for 3 months	90% off for 6 months (ends Nov 2, 2026)

Pricing and users

The biggest practical difference is how each one counts people. QuickBooks Online ties users to the plan: 1 on Simple Start, 3 on Essentials, 5 on Plus and 25 on Advanced. If a fourth person needs access, you move from $85 to $140 a month.

Xero says it charges no per-user license fees. Your bookkeeper, office manager and you can all log in on the same plan. For a team of four, Xero Growing at $59 a month replaces QuickBooks Plus at $140. That’s a difference of $972 a year at list price.

Both vendors discount the first months heavily. QuickBooks offers 50% off for three months. Xero offers 90% off for six months for new US customers through November 2, 2026. Budget on the regular price, since that’s what you’ll pay from then on.

What you’ll pay in a year

Regular prices after promotions end, before payroll and add-ons.

Business	QuickBooks Online	Xero
Solo, few invoices	Simple Start: $456/yr	Early: $324/yr (+$60 for auto-reconcile)
Solo or pair, regular invoicing	Essentials: $1,020/yr	Growing: $708/yr
4 to 5 people with access	Plus: $1,680/yr	Growing: $708/yr
Needs inventory	Plus: $1,680/yr	Growing + Inventory Plus: check current price
Multi-currency or project costing	Plus or Advanced: check plan details	Established: $1,164/yr

The gap is widest for teams of four or five, because Xero doesn’t charge for extra users. It narrows if you need Xero’s paid add-ons. Price the exact plan and add-ons you’ll use before you decide.

Limits on the cheapest plans

Xero Early is $27 a month, but it allows only 20 invoices and 5 bills. Hit either and you’ll need Growing. Early also charges $5 a month extra to auto-reconcile transactions, which is included on higher plans. Early works for a consultant billing a few clients a month. It won’t work for a shop or a busy service business.

QuickBooks Simple Start is $38 a month for one user and one connected bank account. If you have a business checking account and a business credit card to connect, plan on Essentials.

Features that matter to small business

Invoicing and bills. Both handle invoicing, quotes and bank reconciliation. Xero includes Smart Document Capture for receipts, plus W-9 and 1099 management, on every plan. QuickBooks includes bill pay with free ACH up to monthly allotments, then $0.50 per standard ACH transaction.

Inventory. QuickBooks Plus tracks inventory and project profitability, and adds classes and locations for splitting results by department or site. Xero puts inventory in an optional Inventory Plus add-on. Project time and cost tracking is on its $97 Established plan.

Reporting and forecasting. QuickBooks adds richer reports and budgets as you move up plans. Xero gives a 30-day cash flow forecast on Early, 60 days on Growing and 180 days on Established, plus budgets from Growing up.

Payroll. Neither includes payroll in the base price. Xero lists Gusto-powered payroll at $36 a month plus $6 per person. QuickBooks offers payroll at signup but didn’t show a price on its pricing page, so check current price.

Working with your accountant

This often decides it. Ask your accountant which system they use and whether they’ll give you a discount or work faster in one of them. Over a year, their hourly rate can matter more than the difference between these subscriptions.

If you’re on Zoho CRM or Zoho One, also look at Zoho Books, which connects to the rest of the Zoho suite. See Zoho Books vs QuickBooks and our Zoho One review.

Our take

For a small US business with a few people who need access, Xero Growing is the better value. At $59 a month with no per-user fees, it does what most service businesses need. Choose QuickBooks Online if your accountant prefers it, you need inventory and classes in one plan, or you’re moving from QuickBooks Desktop. Whichever you pick, connect it to your invoicing and CRM so nobody types the same data twice. Our guides to business automation tools and planning your business technology stack show how, and our Asana vs monday.com comparison covers the project side. We can also get it set up for you.

Questions people ask

Is Xero cheaper than QuickBooks?

Yes, at list price. Xero’s plans are $27, $59 and $97 a month. QuickBooks Online’s are $38, $85, $140 and $340. Both run new-customer discounts, so compare the full price you’ll pay after the promotion ends.

How many users do QuickBooks and Xero allow?

QuickBooks Online includes 1 user on Simple Start, 3 on Essentials, 5 on Plus and 25 on Advanced. Xero says it charges no per-user license fees on any plan.

Does Xero include payroll in the US?

Not in the base price. Xero offers payroll through Gusto as an add-on, listed at $36 a month plus $6 per employee or contractor. QuickBooks also sells payroll separately. Check current price at signup.

Which is better for inventory?

QuickBooks Online Plus ($140 a month) includes inventory tracking. Xero offers Inventory Plus as an optional add-on on its Growing and Established plans. For basic stock counts either works. Check what your sales channels connect to before choosing.

Can I switch from QuickBooks to Xero?

Yes, but plan it for the start of a month or quarter, and get your accountant involved. You’ll need opening balances, open invoices and bills, and your chart of accounts moved over, then a reconciliation to confirm everything matches.

Sources

• QuickBooks Online pricing
• Xero US pricing plans