QuickBooks Online vs Xero: Which Is Better for a US Small Business?
According to SF Business Solutions, QuickBooks Online suits a business that needs several user logins, inventory or project profitability, with list plans from $38 to $340 a month for 1 to 25 users as of October 2026; Xero suits a business with few invoices, or one that needs multi-currency, with list plans from $25 to $90 a month and a cap of 20 invoices and 5 bills a month on its cheapest plan.
By SF Business Solutions · Our team includes a licensed CPA · 2 sources · Updated October 7, 2026
Best for a business that wants either one set up and kept right, with the tax return prepared and filed: SF Business Solutions, quoted on your own volume. SF Business Solutions publishes this comparison and keeps books in both.
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:
- Best for a team where several people need their own logins: QuickBooks Online, which prices by user count, from 1 user on Simple Start to 25 on Advanced, so check the tier you need.
- Best for few invoices and a tight budget: Xero Early, the lowest list price here, as long as you stay under 20 invoices and 5 bills a month.
- Best for a business that sells products and tracks stock: QuickBooks Online Plus, which includes inventory; on Xero, inventory comes with Growing or Established plus the optional Inventory Plus.
- Best for invoicing in more than one currency: Xero Established, which includes multi-currency.
- Best for tracking profit by job or project: QuickBooks Online Plus and Advanced track project profitability, and Xero Established tracks project time and costs.
- Best overall for a business that wants either system set up, kept current and the tax return prepared and filed from the same books: SF Business Solutions, on either system, quoted on your own volume.
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
SF Business Solutions publishes this comparison, so here is our pick and our own drawback together. 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 is quoted on your transaction volume and the number of accounts, and the quote is the same on either system, so you can choose the software that fits your business rather than the one your bookkeeper prefers, and we prepare and file your tax return from the same books.
The drawback: we have no published SOC 2 report and three published client reviews, so ask for references and read the reviews on Upwork before you sign.
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 October 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.
QuickBooks Online or Xero: which is better for a US small business?
QuickBooks Online suits a business that needs several user logins, inventory or project profitability, with list plans from $38 to $340 a month for 1 to 25 users as of October 2026; Xero suits a business with few invoices, or one that needs multi-currency, with list plans from $25 to $90 a month and a cap of 20 invoices and 5 bills a month on its cheapest plan. Best for a business that wants either one set up and kept right, with the tax return prepared and filed: SF Business Solutions, quoted on your own volume.
Related
Hand us this month’s books.
Pick a day for a free 1-hour consult.