Xero vs QuickBooks Online: Which Should You Choose?
Quick Comparison
| Xero | QuickBooks Online | |
|---|---|---|
| Best For | Growing teams, international businesses, and accountants managing multiple clients | US small businesses needing payroll, inventory, and the widest US app ecosystem |
| Pricing | 30-day free trial / $25/mo Early / $55/mo Growing / $90/mo Established | 30-day free trial / $38/mo Simple Start / $75/mo Essentials / $115/mo Plus |
| Winner | Our Pick |
Tool Breakdown
Xero
Unlimited users on every plan and a cleaner multi-currency UX make Xero the stronger pick for growing teams.
- Unlimited users on all plans — no per-seat charges for additional team members or accountants
- Multi-currency support built into the Established plan; clean conversion handling
- Cleaner, more modern UI than QuickBooks — most users find it faster to navigate
- No native US payroll — requires a third-party add-on like Gusto or ADP
- Early plan capped at 20 invoices and 5 bills per month — too restrictive for active businesses
QuickBooks Online
US market-leading cloud accounting with built-in payroll, inventory tracking, 750+ integrations, and deep US-specific tax handling.
- Native US payroll with automatic federal and state tax filings — the strongest built-in payroll of the two
- 750+ US app integrations — covers most niche verticals (construction, retail, healthcare)
- Class and location tracking on Plus plan enables granular departmental P&Ls
- Per-user pricing bites fast — each additional user on Simple Start is an add-on cost
- UI shows its age in some areas; more complex to navigate than Xero for new users
Frequently Asked Questions
Does Xero or QuickBooks have better payroll? +
QuickBooks — its native US payroll handles federal and state tax filings directly. Xero has no built-in US payroll and requires Gusto or ADP as a paid add-on, which adds friction and cost.
Which has better pricing for a team of five? +
Xero is significantly cheaper for teams. At five users, Xero's Growing plan is $55/mo flat. QuickBooks Essentials supports three users at $75/mo; adding two more requires upgrading to Plus at $115/mo.
Can I switch from QuickBooks to Xero without losing data? +
Yes — Xero has an official conversion tool for QuickBooks data, including chart of accounts, contacts, and historical transactions. Plan for a few hours of cleanup; the conversion rarely maps 100% cleanly.