QuickBooks Online vs Xero
Xero is cheaper per month and has no per-user fees, but only QuickBooks Online has a free plan.
Pick QuickBooks Online if…
Pick QuickBooks Online if you want a free plan to start on, or a plan with a set number of users up to 25. It also lists 800+ integrations.
Pick Xero if…
Pick Xero if you want lower list prices (US$27 to US$97 a month) and no per-user licence fees, and you do not need a free plan.
Price
- Freemium
- Paid
Starting price
Free plan
Open source
Works on
| Feature | Intuit's cloud accounting software for invoicing, expenses and bookkeeping, with a limited free plan. | Cloud accounting for small businesses: invoices, bills, bank reconciliation and payroll add-on. |
|---|---|---|
| Price |
|
|
| Starting price | US$38/month list price (Simple Start); Free plan US$0/month | US$27/month (Early plan); new US customers get US$5.40/month for the first 3 months |
| Free plan | Yes | No |
| Open source | No | No |
| Works on | Web, iOS, Android | Web, iOS, Android |
| Try QuickBooks Online (opens the QuickBooks Online website in a new tab) | Try Xero (opens the Xero website in a new tab) |
Both are hosted accounting tools that run in a browser and on iOS and Android, and neither is open source. The main price difference is the entry point. QuickBooks Online has a limited free plan (one user, up to two invoices a month, no mobile app). Xero has no free plan, and its homepage shows a one-month-free banner without terms.
On paid plans, Xero lists Early at US$27, Growing at US$59 and Established at US$97 a month. QuickBooks Online lists Simple Start at US$38, Essentials at US$85, Plus at US$140 and Advanced at US$340. Both advertise a first-months discount: 80% off for 3 months at Xero, 50% off for 3 months at QuickBooks.
Users and limits work differently. Xero says there are no per-user licence fees, but its cheapest plan caps you at 20 invoices and 5 bills. QuickBooks Online ties users to the plan: 1, 3, 5 and 25. Xero adds payroll for US$36 a month plus US$6 per employee.
On integrations, Xero lists over 1000 apps and QuickBooks Online lists over 800. Check each pricing page before buying, since both say discounts can change.
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Last updated 16 October 2026. How we make money