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.
Choose 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.
Choose 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.
- QuickBooks includes inventory on Plus and Advanced; Xero lists inventory management as a core capability
- Xero's Early plan caps monthly invoices and bills; QuickBooks' entry paid plan limits you to one user
- Multi-currency and project tracking sit on Xero's Established plan, while project profitability is on QuickBooks Plus and Advanced