QuickBooks Online
Intuit
6
Overall Score / 10
Xero
Xero Limited
7.2
Overall Score / 10
Our Verdict
Choose QuickBooks Online if:
- —US-based small businesses needing full-featured accounting
- —Businesses that need payroll and accounting in one platform
- —Companies working with accountants (most accountants know QuickBooks)
Choose Xero if:
- —Businesses with international operations (strong multi-currency)
- —Teams that need unlimited users included in every plan
- —Small businesses outside the US (strong in UK, AU, NZ)
The biggest difference: QuickBooks wins on US accountant ecosystem and payroll integration. Xero wins on multi-currency, unlimited users, and international support.
Side-by-Side Comparison
| Criteria | QuickBooks Online | Xero |
|---|---|---|
| Cheapest Paid Plan | $38/mo (Simple Start)Source: Intuit pricing page → | $29/mo (Starter)Source: Xero Limited pricing page → |
| Free Tier | No No free tier. 30-day free trial or 50% off for first 3 months available for new customers. | No No free tier. First month free on all plans. Promotional discounts frequently available. |
| Value for Money | 5 | 7 |
| Ease of Use | 7 | 8 |
| Feature Power | 9 | 8 |
| Setup Ease | 7 | 7 |
| Migration Ease | 4 | 5 |
| Transparency | 4 | 7 |
| Deployment | cloud | cloud |
| API Available | Yes | Yes |
| Platforms | Web, iOS, Android | Web, iOS, Android |
| Compliance | SOC 2, PCI DSS | SOC 2, GDPR |
Feature Comparison
Feature Comparison Matrix
23 features compared · 20 differences
| Feature | QuickBooks Online | Xero |
|---|---|---|
| Core | ||
| 1099 contractor management | Full | None |
| Balance sheet | Full | None |
| Bank reconciliation | Full | Full |
| Expense tracking | Full | None |
| Financial reports | None | Full |
| Fixed asset management | None | Full |
| Inventory tracking (Plus+) | Full | None |
| Invoicing | Full | Full |
| Mileage tracking | Full | None |
| Multi-currency | None | Full |
| Payroll (add-on) | Full | None |
| Profit & loss reports | Full | None |
| Project profitability (Plus+) | Full | None |
| Project tracking (add-on) | None | Full |
| Purchase orders | None | Full |
| Receipt capture | Full | None |
| Receipt capture (Hubdoc) | None | Full |
| Sales tax tracking | Full | None |
| Unlimited users on all plans | None | Full |
| Advanced | ||
| 1099 reporting (Premium) | None | Full |
| Batch invoicing (Advanced) | Full | None |
| Expense claims | None | Full |
| Integrations | ||
| API Access | Full | Full |
Pricing Comparison
QuickBooks Online Pricing
1 user, basic invoicing, expense tracking, mileage tracking
3 users, bill management, time tracking
5 users, inventory tracking, project profitability, budgets
25 users, custom roles, business analytics, batch invoices, workflow automation
Xero Pricing
20 invoices/mo, 5 bills, bank reconciliation, receipt scanning
Unlimited invoices & bills, multi-currency, bulk reconciliation
Everything in Standard + analytics, 1099 reporting, audit trail
Who Should Choose Which?
Who should choose QuickBooks Online
Best for
- US-based small businesses needing full-featured accounting
- Businesses that need payroll and accounting in one platform
- Companies working with accountants (most accountants know QuickBooks)
Avoid if
- You're on a tight budget (prices increase steeply year over year)
- You need multi-currency as a core feature (Xero is stronger)
- You're outside the US (Xero has better international support)
Who should choose Xero
Best for
- Businesses with international operations (strong multi-currency)
- Teams that need unlimited users included in every plan
- Small businesses outside the US (strong in UK, AU, NZ)
Avoid if
- You need built-in payroll in the US (requires third-party integration)
- You want the largest accountant ecosystem (QuickBooks dominates in the US)
- You need inventory management beyond basics
Switching Guidance
Switching from QuickBooks Online
Common triggers to leave:
- •Annual price increases (10-15% per year)
- •Complexity for simple businesses
- •Customer support quality decline
Potential blockers:
- •Accountant familiarity
- •Historical financial data
- •Payroll setup and tax history
- •Extensive integration ecosystem
Switching from Xero
Common triggers to leave:
- •Starter plan limits (20 invoices/mo)
- •US payroll requires third-party add-on
- •Limited inventory management
Potential blockers:
- •Unlimited users on all plans
- •Multi-currency transaction history
- •Advisor/accountant connected to Xero
Try QuickBooks Online
Plans from $38/mo
Try Xero
Plans from $29/mo