QuickBooks Online vs Xero: Which Accounting Software Should You Use in 2026?

A factual comparison of QuickBooks Online and Xero covering pricing, features, and who each tool is actually built for.

Updated 2026-10 · 2026

QuickBooks Online

The default accounting software for US small businesses

$35month

Strengths

+Largest ecosystem of accountants and bookkeepers who already know it
+Deep integration with US payroll, tax filing, and 1099 prep
+Strong inventory and project tracking in Plus/Advanced tiers

Weaknesses

-Price jumps significantly between tiers ($35 to $235/mo)
-Interface feels cluttered with upsells for QuickBooks add-ons
-Multi-currency only available on Plus and Advanced plans

Best for

US-based small businesses that want an accountant on staff or a bookkeeper who already uses QuickBooks.

Xero

Cloud-native accounting software with unlimited users

$20month

Strengths

+Unlimited users on every plan, no per-seat pricing
+Cleaner, more modern interface than QuickBooks
+Strong multi-currency support even on mid-tier plan

Weaknesses

-Entry plan (Early) caps you at 20 invoices and 5 bills per month
-Smaller US accountant/bookkeeper network than QuickBooks
-Payroll is a separate add-on (Gusto integration) in most US states

Best for

Small teams with multiple people needing access, or businesses dealing in multiple currencies.

Feature Comparison

Feature	QuickBooks Online	Xero
Starting price	$35/mo (Simple Start)	$20/mo (Early, limited to 20 invoices/mo)
Number of users	1-25 depending on tier	Unlimited on all plans
Invoicing limits	Unlimited on all tiers	Capped at 20/mo on Early plan only
Multi-currency	Plus and Advanced tiers only	Growing and Established tiers
Inventory tracking	Plus and Advanced tiers	All tiers except Early has limits
Payroll	Built-in add-on (QuickBooks Payroll)	Via Gusto integration (separate subscription)
Bank reconciliation	Yes, auto-feed from most US banks	Yes, auto-feed from most banks
Mobile app	Full-featured (invoicing, mileage, receipts)	Full-featured (invoicing, receipts, bank feeds)
Reporting	Strong, especially on Advanced tier	Strong, customizable report builder
Third-party integrations	800+ apps via QuickBooks App Store	1,000+ apps via Xero App Marketplace
Free trial	30 days	30 days
Accountant/bookkeeper adoption	Very high in the US	High internationally, growing in US

The Verdict

QuickBooks Online wins if you're in the US, need tight payroll/tax integration, or your bookkeeper already uses it — that ecosystem lock-in is real and valuable. Xero wins on pure value: unlimited users and a cleaner interface at a lower entry price make it the better pick for small teams where multiple people need login access. If you're outside the US or don't need QuickBooks' specific tax features, Xero is usually the cheaper, less frustrating choice.

How to switch from QuickBooks Online to Xero

Full QuickBooks Online export guide →

1In QuickBooks Online, go to Settings > Export Data and download your Chart of Accounts, Customer list, Vendor list, and Transaction reports as CSV/Excel files; also export a PDF trial balance for reference.
2Sign up for a Xero trial and use Xero's built-in CSV import tool (Contacts, Chart of Accounts, Fixed Assets) to bring in your exported QuickBooks data, mapping fields as prompted.
3Manually re-enter or import historical invoices and bills for the current fiscal year to ensure accurate reporting, since full transaction history import often requires a third-party migration tool like Movebot or a bookkeeper's help.
4Reconnect bank feeds in Xero by linking each bank account directly, then verify opening balances match your QuickBooks closing balances exactly before going live.
5Rebuild integrations one by one (payment processors, payroll via Gusto, e-commerce platforms) through Xero's App Marketplace, testing each connection with a sample transaction.
6Run QuickBooks and Xero in parallel for one full billing cycle, reconcile both systems against each other, then cut over your team to Xero only and cancel the QuickBooks subscription.

QuickBooks Online vs Xero: common questions

How do I export my data from QuickBooks Online before switching to Xero?+

Go to Settings > Export Data in QuickBooks Online, which lets you download reports, lists, and transactions as Excel or CSV files. For a fuller migration, use QuickBooks' built-in 'Export to Excel' on the Chart of Accounts, Customers, Vendors, and Transactions reports individually, since there's no single one-click full backup. Keep a PDF copy of your trial balance and prior tax filings as a reference, since not everything maps cleanly into Xero's import tools.

What do I lose when I move from QuickBooks Online to Xero?+

You lose direct access to QuickBooks' native payroll and 1099 filing workflows — in Xero you'll need to set up Gusto or another payroll provider separately. You also lose historical transaction-level detail unless you import it manually or keep QuickBooks active (read-only) for a few months during transition. Custom QuickBooks reports and saved memorized transactions don't transfer and need to be rebuilt in Xero.

Is Xero's free trial or cheapest plan enough for a small team?+

The $20/mo Early plan caps you at 20 invoices and 5 bills per month, which is tight for most teams doing regular client work — most small businesses need the $47/mo Growing plan. The upside is unlimited users even on the Early plan, so a 3-5 person team can all log in without extra seat costs. Run your typical monthly invoice volume against the Early plan's limits before committing.

Will my QuickBooks integrations still work after switching to Xero?+

No, integrations are tied to the specific platform, so anything connected to QuickBooks (Stripe, Shopify, Gusto, Bill.com, etc.) needs to be reconnected to Xero individually. Most major integrations exist on both platforms through Xero's App Marketplace, but check niche or industry-specific tools before switching since coverage isn't identical. Budget a few hours to reauthorize each connection and verify data is flowing correctly post-migration.

Is Xero actually cheaper than QuickBooks Online over time?+

Yes, if you have more than 1-2 users, since QuickBooks charges indirectly through higher tiers for more features/users while Xero includes unlimited users on every plan. At the mid-tier (QuickBooks Plus $99/mo vs Xero Growing $47/mo), Xero is roughly half the cost for similar functionality. The gap narrows if you need QuickBooks-specific payroll or advanced inventory, since those push you into QuickBooks' pricier tiers anyway.