QuickBooks vs Xero
Last updated: 2026-07-09
QuickBooks and Xero are the two leading small business accounting platforms, but they're optimised for different markets. QuickBooks dominates the US market with deep tax and payroll integration. Xero is stronger internationally — popular in Australia, New Zealand, and the UK — with better multi-currency and VAT/GST support.
Feature Comparison
| Feature | popular QuickBooks | best Xero |
|---|---|---|
| Price from | $38/mo | $15/mo |
| Free trial | 30-day free trial | 30-day free trial |
| Best for | Small business accounting (US-focused) | International small business accounting |
| Free plan | ✗ | ✗ |
| Starting price | $38/mo (Simple Start), $75/mo (Essentials), $115/mo (Plus) | $15/mo (Starter), $42/mo (Standard), $78/mo (Premium) |
| Invoicing | ✓ | 5/mo (Starter), unlimited (Standard+) |
| Expense tracking | ✓ | — |
| Payroll | Add-on ($45/mo + $5/employee) | Via Gusto (US), built-in (AU/UK/NZ) |
| Tax prep | ✓ | — |
| Bank sync | Major US banks | — |
| Receipt capture | ✓ | — |
| API access | ✓ | ✓ |
| Support | Chat + phone | Email + 24/7 chat |
| Bank reconciliation | — | ✓ |
| Multi-currency | — | Premium plan |
| Inventory | — | Standard plan+ |
| Integrations | — | 1,000+ apps |
QuickBooks Pros & Cons
Pros
- Industry standard for US small business accounting
- Comprehensive feature set — invoicing, expenses, payroll, taxes
- Excellent receipt capture (mobile app)
- Integrates with major US banks and payment processors
- Tax-ready reports — easy for accountants to use
- Payroll add-on handles all tax calculations and filings
Cons
- US-focused — limited support for international accounting standards
- Pricing tiers gated — Simple Start $30, Essentials $55, Plus $83
- Payroll is an expensive add-on ($45/mo + $5/employee)
- Customer support quality has declined in recent years
- Frequent upsell prompts within the dashboard
Xero Pros & Cons
Pros
- Better international support than QuickBooks (multi-currency, VAT, GST)
- More affordable — $15/mo (Starter) vs $38/mo (QuickBooks)
- Excellent bank reconciliation (auto-matching)
- Strong inventory management (on Standard plan+)
- Large app marketplace (1,000+ integrations)
- Cleaner, more modern interface than QuickBooks
Cons
- US payroll not built-in (needs third-party via Gusto)
- Fewer US bank integrations than QuickBooks
- Starter plan limits (5 invoices/bills per month, 20 bank transactions)
- Inventory management requires Standard plan ($42/mo)+
- No built-in time tracking (integrates with third-party)
Final Verdict
For US-based small businesses, QuickBooks is the safer choice — better US bank integrations, built-in payroll, and tax-ready reports that US accountants expect. For businesses outside the US, or companies with international operations and multi-currency needs, Xero is the better choice at a lower starting price ($15/mo vs $38/mo).
Our pick: QuickBooks (US) / Xero (international)
Frequently Asked Questions
Which is cheaper: QuickBooks or Xero?
Xero is cheaper — $15/mo (Starter) vs QuickBooks at $38/mo (Simple Start). However, Xero's Starter plan limits you to 5 invoices and 20 bank transactions per month. QuickBooks' Simple Start includes unlimited invoices. Compare features at each tier, not just price.
Does QuickBooks or Xero include payroll?
QuickBooks offers a payroll add-on ($45/mo + $5/employee) that handles all US tax calculations and filings. Xero has built-in payroll for Australia, New Zealand, and the UK, but for the US you'll need to integrate with Gusto or another payroll provider.
Which is better for international businesses?
Xero is better for international businesses. It supports multi-currency on the Premium plan, handles VAT/GST natively, and is popular in Australia, New Zealand, and the UK. QuickBooks is US-focused with limited international accounting standard support.