QuickBooks Online vs Xero for small businesses (2026)
Last updated October 18, 2026 · Prices and features change, so check the linked sources before you buy.
Price and limits side by side
| QuickBooks Online | Xero (US) | |
|---|---|---|
| Free option | Free plan: 1 user, 2 invoices a month, 1 connected bank, no accountant access [1] | No free plan; new US customers get 80% off for 3 months [2] |
| Entry plan | Simple Start $38/mo, with access for 2 accountants [1] | Early $27/mo: 20 invoices and 5 bills a month [2] |
| Middle plan | Essentials $85/mo, 3 users [1] | Growing $59/mo, unlimited invoices and bills, auto-reconcile [2] |
| Higher plans | Plus $140/mo; Advanced $340/mo for 25 users [1] | Established $97/mo adds multi-currency, projects and expense claims [2] |
| Users | Limited by plan (1, 3, …, 25) | Unlimited users on every plan [3] |
| AI included | “Intuit Intelligence”: expense categorizing from Simple Start; Accounting AI, Payments AI and Business Tax AI from Essentials [1] | JAX, Xero’s AI companion, at no extra charge; JAX’s automated reconciliation needs Growing or higher [3] |
| Contract | No annual contract; cancel anytime [1] | Monthly, auto-renews until cancelled [2] |
Both run introductory discounts (QuickBooks showed 50% off for 3 months, Xero 80% off for 3 months when we checked). Compare the regular price, because that’s what you’ll pay from month four.
Choose QuickBooks Online if…
- Your accountant or bookkeeper works in QuickBooks. Their time costs more than the software.
- You only send a couple of invoices a month and want to start free.
- You want built-in AI that handles more of the bookkeeping for you. The bigger AI features start on Essentials ($85/mo).
Choose Xero if…
- Several people need logins. Unlimited users means your office manager, bookkeeper and you don’t push you into a pricier tier.
- You want the lower regular price: $59/mo Growing is the plan most small businesses end up on.
- You sell in several currencies (Established plan).
Watch out for
- Xero Early’s caps: 20 invoices and 5 bills a month. A busy service business will outgrow it quickly [2].
- QuickBooks user limits: Simple Start is a single-user plan (plus accountants). Adding staff means Essentials or higher [1].
- Payroll is extra on both. Xero Payroll (powered by Gusto) is $36/mo plus $6 per person [2].
Adoptly earns no commission from any tool on this page (as of October 18, 2026). Prices are US list prices from each vendor’s site on the date above unless we label them otherwise.
FAQ
Is QuickBooks or Xero cheaper for a small business?
At regular prices Xero is cheaper: Early is $27 a month and Growing $59, against QuickBooks Simple Start at $38 and Essentials at $85. QuickBooks does have a free plan limited to 1 user, 2 invoices a month and 1 bank connection.
Does Xero include AI?
Yes. Xero says JAX, its AI companion, is available to all subscribers at no extra charge. Its automated bank reconciliation needs the Growing plan or higher.
Does QuickBooks Online include AI?
Yes. Intuit Intelligence is built in. Simple Start categorizes expenses, and Essentials and higher add Accounting AI, Payments AI and Business Tax AI.
Which has more users?
Xero includes unlimited users on every plan. QuickBooks Online plans have user limits: 1 on Simple Start, 3 on Essentials and up to 25 on Advanced.
Sources
- QuickBooks Online pricing (checked Oct 18, 2026)
- Xero US pricing plans (checked Oct 18, 2026)
- Xero: JAX, your AI business companion