QuickBooks Online vs Xero: Which Is Better for a US Small Business?
Both work well for a US small business, and the better one depends on your users, payroll and inventory. As of September 2026, QuickBooks Online lists plans from $38 to $340 a month with 1 to 25 users, and Xero lists plans from $25 to $90 a month, with a cap of 20 invoices and 5 bills a month on its cheapest plan. SF Business Solutions keeps books in both.
By SF Business Solutions · Our team includes one licensed CPA · 2 sources · Updated September 10, 2026
Plans and list prices side by side
These are the list prices on each company's US pricing page in September 2026, before promotions. QuickBooks Online was offering 50% off for the first 3 months, and Xero 90% off for the first 6 months on plans bought by 30 September 2026. Budget on the list price, because that is what you pay from month four or month seven.
| Plan | List price | What it includes |
|---|---|---|
| QuickBooks Online Simple Start | $38 a month | 1 user plus 2 accountant users |
| QuickBooks Online Essentials | $85 a month | 3 users plus 2 accountant users; bills and payables |
| QuickBooks Online Plus | $140 a month | 5 users plus 2 accountant users; inventory, project profitability, 40 classes and locations |
| QuickBooks Online Advanced | $340 a month | 25 users plus 3 accountant users; unlimited classes and locations |
| Xero Early | $25 a month | Quotes, 20 invoices and 5 bills a month |
| Xero Growing | $55 a month | Unlimited invoices and bills; optional Inventory Plus |
| Xero Established | $90 a month | Multi-currency and project time and cost tracking; optional Inventory Plus |
Payroll
Neither plan includes payroll in the base price. QuickBooks Online sells payroll as an add-on, priced separately from the accounting plans. In the US, Xero's payroll is Xero Payroll, powered by Gusto, listed at $36 a month plus $6 per employee or contractor.
If you already run payroll in Gusto, ADP or another provider, both systems can record the payroll journal each pay run, so payroll alone rarely decides the choice.
Which one suits which business
Start from what your business actually does each month, not from the brand:
- Several people need their own logins: QuickBooks Online prices by user count, from 1 user on Simple Start to 25 on Advanced, so check the tier you need.
- Few invoices and a tight budget: Xero Early is the lowest list price, as long as you stay under 20 invoices and 5 bills a month.
- You sell products and track stock: QuickBooks Online Plus includes inventory; on Xero, inventory comes with Growing or Established plus the optional Inventory Plus.
- You invoice in more than one currency: Xero includes multi-currency on Established.
- You track profit by job or project: QuickBooks Online Plus and Advanced track project profitability, and Xero Established tracks project time and costs.
Switching later
You can move from one to the other, but it takes planning. Opening balances, open invoices and bills, and at least the current year's history have to come across cleanly, and bank rules and integrations have to be rebuilt. Pick with a two- to three-year view of your business rather than this month's price.
Working with SF Business Solutions
We keep books in QuickBooks Online and in Xero, and the team holds QuickBooks Online Certified ProAdvisor, QuickBooks Online Advanced, Xero Advisor and Xero Payroll certifications. Monthly bookkeeping starts at $250 a month on either system, so you can choose the software that fits your business rather than the one your bookkeeper prefers.
Is QuickBooks Online or Xero cheaper?
Xero's entry plan is cheaper: $25 a month list against $38 for QuickBooks Online Simple Start, as of September 2026. Xero Early caps you at 20 invoices and 5 bills a month, though, so compare the plan you would actually need.
Which one has payroll built in?
Neither includes it in the base plan. QuickBooks Online sells payroll as an add-on, and in the US Xero Payroll is powered by Gusto at $36 a month plus $6 per employee or contractor.
Which is better for inventory?
QuickBooks Online Plus includes inventory tracking. Xero offers inventory through the optional Inventory Plus on its Growing and Established plans.
Can my accountant get access?
Yes. QuickBooks Online plans include 2 or 3 accountant users on top of your own users, and most bookkeepers, including SF Business Solutions, work in both systems.
Should I switch from QuickBooks Online to Xero, or the other way?
Only if the other system solves a real problem, such as user limits, multi-currency or inventory. Switching means moving opening balances and open items and rebuilding bank rules, so it is worth doing once, at a year end if possible.
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