QuickBooks vs Xero: Which Accounting Software Should You Use?

A factual comparison of QuickBooks Online and Xero for small business accounting, covering pricing, features, and migration steps.

Updated 2026-09 · 2026

QuickBooks

Small business accounting software with the largest US market share

35month (Simple Start plan)

Strengths

+Largest ecosystem of bookkeepers and accountants trained on it
+Deep US payroll and tax integration (QuickBooks Payroll)
+Strong inventory tracking in Plus and Advanced tiers

Weaknesses

-Price increases frequently and promotional discounts expire fast
-UI feels cluttered compared to Xero as feature set grows
-Multi-currency and unlimited users only on higher tiers

Best for

US-based small businesses that want the most accountant-compatible software and need payroll or inventory bundled in.

Xero

Cloud accounting software with unlimited users on every plan

20month (Early plan)

Strengths

+Unlimited users included on every plan, no per-seat pricing
+Cleaner, more modern interface that's easier to navigate
+Strong multi-currency support even on mid-tier plans

Weaknesses

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

Best for

Growing teams that want unlimited users without per-seat fees and don't need heavy US payroll bundled in.

Feature Comparison

Feature	QuickBooks	Xero
Starting price	$35/mo (Simple Start)	$20/mo (Early, capped)
Mid-tier price	$65/mo (Essentials)	$47/mo (Growing)
Top-tier price	$235/mo (Advanced)	$80/mo (Established)
Users included	1-25 depending on plan	Unlimited on all plans
Free trial	30 days	30 days
Payroll	Built-in add-on (US)	Via Gusto integration (add-on)
Inventory tracking	Plus/Advanced tiers	Established tier
Multi-currency	Plus/Advanced tiers only	Included on Growing/Established
Bank reconciliation	Yes	Yes
Mobile app	iOS/Android	iOS/Android
App marketplace	750+ integrations	1,000+ integrations
Accountant network size (US)	Larger	Smaller but growing

The Verdict

QuickBooks wins if you're US-based, need bundled payroll, and want the widest pool of accountants who already know the software. Xero wins if you have multiple users who all need login access and don't want to pay per seat, or if you value a cleaner interface. For a small team on a budget with more than 2-3 people needing access, Xero's unlimited-user pricing usually comes out cheaper over time.

How to switch from QuickBooks to Xero

Full QuickBooks export guide →

1In QuickBooks Online, go to Settings > Export Data and export your Chart of Accounts, Customers, Vendors, and Products/Services lists as Excel/CSV files; also export transaction history reports (Profit & Loss, Balance Sheet, General Ledger) for your records.
2Sign up for Xero and use Xero's CSV import tools (under Contacts and Accounting > Chart of Accounts) to bring in your exported customer/vendor lists and chart of accounts.
3Import historical invoices and bills via Xero's bulk CSV import feature, or hire a Xero-certified advisor to run a full conversion using a migration tool like Movemybooks for a cleaner transfer of transaction history.
4Reconnect your bank feeds in Xero (Accounting > Bank Accounts) since QuickBooks bank connections don't transfer over.
5Rebuild your app integrations (payment processors, e-commerce, payroll via Gusto) through Xero's App Marketplace one by one, testing each before going live.
6Run QuickBooks and Xero in parallel for one full billing cycle, reconcile that both show matching balances, then cut over your team's daily use to Xero and cancel QuickBooks.

QuickBooks vs Xero: common questions

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

In QuickBooks Online, go to Settings > Export Data, which lets you export your Chart of Accounts, customer/vendor lists, and transaction reports as Excel or CSV files. For a fuller backup including all transactions, use the built-in 'Export to Excel' on each report screen. QuickBooks Desktop users can export a full company file backup or use QuickBooks' data export wizard.

What features do I lose moving from QuickBooks to Xero?+

You lose native bundled payroll (Xero requires a separate Gusto subscription) and QuickBooks' more mature inventory management if you're on Plus or Advanced. You'll also likely need to find a new bookkeeper if yours specializes only in QuickBooks, since Xero has a smaller US practitioner base.

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

Xero's Early plan caps you at 20 invoices/quotes and 5 bills per month, which is too limiting for most active small businesses beyond the trial period. Most teams need the Growing plan ($47/mo) to remove those caps, so budget for that tier rather than Early.

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

Not automatically — each integration (payment processors, e-commerce platforms, CRM tools) needs to be reconnected through Xero's own app marketplace, which has different (though comparable) options. Check Xero's app store for a direct equivalent before switching, since some niche QuickBooks-only apps don't have a Xero version.

Is switching from QuickBooks to Xero actually cheaper long-term?+

For a team of 3+ users, yes — QuickBooks Essentials caps you at 3 users for $65/mo, while Xero's Growing plan at $47/mo includes unlimited users. For a solo user or 2-person team, QuickBooks' Simple Start at $35/mo can be comparable or cheaper depending on which features you need.