QuickBooks Online vs Xero

QuickBooks Online and Xero are both accounting options. QuickBooks Online lists 8 features across 3 platforms; Xero lists 8 features across 3 platforms — see the full breakdown below, sourced from each vendor's own site rather than ratings or reviews.

Side-by-side summary

ComparingQuickBooks OnlineXero

CategoryAccountingAccounting

Alternatives tracked44

PlatformsWeb, iOS, AndroidWeb, iOS, Android

Pricing modelPaid plansPaid plans

Best for QuickBooks Online

Small businesses that want the accounting software most bookkeepers and CPAs already know how to use, and don't mind a higher list price for that ecosystem support.

Best for Xero

Small businesses that want lower-cost accounting software with unlimited user seats and work closely with an accountant or bookkeeper who already uses Xero.

Feature comparison

Every feature listed here comes directly from each vendor's own official site.

QuickBooks Online

Invoicing and payment collection
Expense and receipt tracking
Bank feed reconciliation
Profit & loss, balance sheet, and cash-flow reporting
Optional payroll add-on
Multi-user access with role permissions (Plus and above)
Mobile app for invoicing and mileage tracking
Large accountant/bookkeeper partner ecosystem

Xero

Invoicing and online payment collection
Bank feed reconciliation
Expense claims
Multi-currency accounting
Inventory tracking
Project time and cost tracking
Unlimited users on every plan
Large third-party app marketplace

Pros and cons

QuickBooks Online

Pros

Invoicing and payment collection
Expense and receipt tracking
Bank feed reconciliation
Profit & loss, balance sheet, and cash-flow reporting
Optional payroll add-on
Multi-user access with role permissions (Plus and above)
Mobile app for invoicing and mileage tracking
Large accountant/bookkeeper partner ecosystem

Cons

List prices are meaningfully higher than direct competitors like Xero at the same tier
Frequent promotional discounting on the pricing page makes the real ongoing cost easy to underestimate at signup
Add-on pricing (payroll, payments) is billed separately from the core subscription

Xero

Pros

Invoicing and online payment collection
Bank feed reconciliation
Expense claims
Multi-currency accounting
Inventory tracking
Project time and cost tracking
Unlimited users on every plan
Large third-party app marketplace

Cons

Smaller US bookkeeper/accountant familiarity than QuickBooks, which can matter when hiring outside help
Entry-level Early plan caps monthly invoice and bill volume, unlike QuickBooks' uncapped Simple Start
US-specific payroll support is more limited than QuickBooks' native payroll add-on

Key differences

QuickBooks Online lists Invoicing and payment collection, Expense and receipt tracking, Profit & loss, balance sheet, and cash-flow reporting, Optional payroll add-on, Multi-user access with role permissions (Plus and above), Mobile app for invoicing and mileage tracking, Large accountant/bookkeeper partner ecosystem that Xero doesn't list.
Xero lists Invoicing and online payment collection, Expense claims, Multi-currency accounting, Inventory tracking, Project time and cost tracking, Unlimited users on every plan, Large third-party app marketplace that QuickBooks Online doesn't list.

Choose QuickBooks Online if…

Choose QuickBooks Online if this fits: Small businesses that want the accounting software most bookkeepers and CPAs already know how to use, and don't mind a higher list price for that ecosystem support. Compared with Xero specifically, QuickBooks Online also offers Invoicing and payment collection, Expense and receipt tracking, Profit & loss, balance sheet, and cash-flow reporting, and 4 more features that Xero doesn't list.

Visit QuickBooks Online

Choose Xero if…

Choose Xero if this fits: Small businesses that want lower-cost accounting software with unlimited user seats and work closely with an accountant or bookkeeper who already uses Xero. Compared with QuickBooks Online specifically, Xero also offers Invoicing and online payment collection, Expense claims, Multi-currency accounting, and 4 more features that QuickBooks Online doesn't list.

Visit Xero

Facts on this page are sourced from each vendor's official site (linked below), not from ratings or reviews. Products change — verify anything that matters to your decision directly on the vendor's own site before switching. See our Disclaimer and Sources Policy.