QuickBooks Online vs Xero for startups

Last updated 2026-10-17. Prices and terms checked against each linked source on 2026-10-17; vendors change them, so confirm before you buy.

QuickBooks Online and Xero are the two general ledgers most startup accountants and bookkeeping services work in. Price is the visible difference; the bigger practical question is which one your accountant or bookkeeping service uses.

Below: list prices and plan limits from each pricing page.

	QuickBooks Online	Xero
What it is	Widely used small-business accounting software.	Cloud accounting for small businesses.
Category · stage	Bookkeeping & Accounting · Pre-seed	Bookkeeping & Accounting · Pre-seed
Plans & price	Free $0 (1 user, no accountant access); Simple Start $38/mo; Essentials $85/mo; Plus $140/mo; Advanced $340/mo. List prices; a 3-month intro discount is often shown.source	Early $27/mo (20 invoices and 5 bills a month); Growing $59/mo; Established $97/mo. List prices after the intro offer.source
Users & accountants	Essentials 3 users, Advanced 25 users; paid plans include access for 2 accountants (Advanced: 3).source	Not covered in our sources
Classes & budgets	Plus adds budgets, project profitability, inventory and classes/locations (40); Advanced has unlimited classes and locations.source	Not covered in our sources
Payroll	Not covered in our sources	Optional Xero Payroll, powered by Gusto.source
Contract	No annual contract; cancel anytime.source	Not covered in our sources
Website	Visit QuickBooks Online	Visit Xero

How to choose

Your accountant or bookkeeping service already uses one: Use that one. Switching ledgers mid-year is the expensive part, not the subscription.
You're watching every dollar at pre-seed: Xero Early is $27/mo but caps you at 20 invoices and 5 bills a month; QuickBooks Simple Start is $38/mo.
You need budgets and class tracking for board reporting: QuickBooks puts budgets and classes on Plus ($140/mo).
You run payroll on Gusto: Xero offers payroll powered by Gusto as an add-on; Gusto also integrates with QuickBooks.

FAQ

Is Xero cheaper than QuickBooks?

On list price, yes: Xero's plans are $27, $59 and $97/mo; QuickBooks Online's paid plans are $38, $85, $140 and $340/mo (October 2026 pricing pages).

Does QuickBooks have a free plan?

QuickBooks lists a Free plan for 1 user with no accountant access, two invoices a month and one connected bank.

Which is better for a startup?

The one your accountant uses. If you have none yet, compare plan limits: Xero Early caps invoices and bills; QuickBooks adds budgets and classes on Plus.

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