QuickBooks and Xero both handle the core work of small business accounting: invoices, bills, bank feeds and reports. The real differences are how they price users, what each plan limits, and how payroll fits in.
The short verdict
- Pick QuickBooks if you work alone or with one or two people, you want inventory and project tools in the mid plans, or your accountant already works in it.
- Pick Xero if several people need access, such as a partner, a bookkeeper and an assistant, and you would rather not pay per person.
Both are solid. If your accountant has a strong preference, that is often the best reason to choose.
Prices and plans
These are US prices in US dollars, as of October 2026, from each vendor's pricing page. Both run discounts for the first months, and prices differ by country and change often.
- Free: 0 dollars, 1 user, 1 bank connection, 2 invoices a month unless you turn on QuickBooks Payments.
- Simple Start: 38 dollars a month, 1 user.
- Essentials: 85 dollars a month, 3 users.
- Plus: 140 dollars a month, 5 users, adds inventory, budgets and project profitability.
- Advanced: 340 dollars a month, 25 users.
- Early: 27 dollars a month, with limits of 20 invoices and 5 bills.
- Growing: 59 dollars a month, adds automatic bill entry, budgets and auto-reconciliation.
- Established: 97 dollars a month, adds multiple currencies, project time and cost tracking, and expense claims.
The differences that matter
Users
This is the biggest practical gap. QuickBooks sets a user count on every plan, from 1 on Simple Start to 25 on Advanced. Xero's US pricing page says there are no per-user license fees and does not list a user cap. If three or four people need to log in, compare the plan you would actually need in each.
Limits on the cheapest plan
Xero Early is cheaper than QuickBooks Simple Start, but it caps you at 20 invoices and 5 bills. If you send more than that, you will need Growing at 59 dollars. QuickBooks Simple Start does not list an invoice cap, but it allows only 1 user.
Inventory and projects
QuickBooks includes inventory and project profitability in Plus. Xero includes project time and cost tracking in Established, and offers its inventory tool as an optional add-on on Growing and Established.
More than one currency
Xero includes multiple currencies on Established only. If you invoice abroad, check this before you choose a plan in either tool.
Payroll
In the US, both offer payroll at extra cost. Xero's payroll is powered by Gusto, at 36 dollars a month plus 6 dollars per employee or contractor, as of October 2026. QuickBooks payroll is sold in bundles with its accounting plans. The bundle with Simple Start is 88 dollars a month plus 6.50 dollars per employee. Outside the US, payroll options differ, so check each local site. See QuickBooks vs Gusto for how payroll and accounting fit together.
How to decide
- Count the people who need to log in, including your bookkeeper.
- Count your invoices and bills in a busy month.
- Check whether you need inventory, projects or other currencies.
- Ask your accountant which one they know best.
- Try both with one real month of your own transactions.
Check the second point carefully. If you would hit a plan limit every month, the next plan up is your real price.
If neither feels right, see QuickBooks alternatives for small business for Zoho Books, FreshBooks and Wave. And whichever you pick, a weekly routine like the one in bookkeeping basics keeps the books useful. Tax rules differ by country, so check with an accountant where you file.