QuickBooks Online vs Xero
QuickBooks Online and Xero are both full cloud ledgers for small businesses with bank reconciliation, invoicing, bills and reporting. The key difference is how features are tiered: QuickBooks ties inventory, budgeting and project profitability to Plus and above and scales users by plan, while Xero's US plans are shaped by invoice and bill volume and reserve multi-currency and projects for Established.
QuickBooks Online
Small business accountingChoose QuickBooks Online if… Choose QuickBooks if you need inventory tracking, class and location tracking or budgeting on a mid-tier plan, or expect to grow to a larger team with custom permissions on Advanced.
Visit QuickBooks Online Official vendor site
Xero
Small business accountingChoose Xero if… Choose Xero if you want a full ledger with a large app marketplace and built-in cash flow forecasting, and can use the Established plan when multi-currency or project tracking is required.
Visit Xero Official vendor siteKey differences
Side-by-side comparison
| Criterion |  QuickBooks Online |  Xero |
|---|---|---|
| Pricing | VerifyVaries — see official pricing | VerifyVaries — see official pricing |
| Free plan | Not verified | Not verified |
| Free trial | Not verified | Not verified |
| Platforms | Not verified | Not verified |
| Integrations | Not verified | Not verified |
| Support options | Not verified | Not verified |
| Best for | Small businesses wanting an all-in-one ledger, Growing teams that may need inventory or project tracking later, Businesses that work with an outside accountant | Small businesses wanting a full cloud ledger, Businesses that rely on many connected apps, Companies working closely with an accountant or bookkeeper |
| Main limitation | Class and location tracking is capped on Plus; unlimited classes and locations require Advanced | Budgeting is not included on Early and is capped at a few budgets on Growing |
| Editorial score | Not yet scored | Not yet scored |
Indicators summarise the text beside them: Included Varies Not available Verify (pricing not yet editor-verified). QuickBooks Online: Last checked: not yet verified by our editors · Xero: Last checked: not yet verified by our editors.
Pricing matrix
QuickBooks OnlinePricing not yet verifiedPricing varies — check the official pricing page.
Official QuickBooks Online pricing ↗XeroPricing not yet verifiedPricing varies — check the official pricing page.
Official Xero pricing ↗“From” is the lowest paid price listed for that billing period, as captured from the official page on the check date. Currencies are never converted; plans and limits differ, so compare the full plan tables on each review.
QuickBooks Online at a glance
Pros
- Covers core accounting, invoicing, bill pay and reporting in one product
- Clear upgrade path from a single user up to 25 users on Advanced
- Accountant access included on paid plans
Cons
- Inventory, budgeting and project profitability require the Plus plan or higher
- Simple Start is limited to a single user
- Custom user permissions and workflow automation are limited to Advanced
- Class and location tracking is capped on Plus; unlimited classes and locations require Advanced
- Excel data sync and batch invoicing and expenses are only available on Advanced
Xero at a glance
Pros
- Full accounting with invoicing, bills and bank reconciliation in one system
- Large marketplace of connected third-party apps
- Cash flow forecasting and dashboards built in
Cons
- The Early plan caps monthly invoices and bills
- Multi-currency is only available on the Established plan
- Project time and cost tracking is limited to Established
- Budgeting is not included on Early and is capped at a few budgets on Growing
- KPI analysis and industry benchmarking are only on the Established plan