Xero vs QuickBooks: Which is better in 2026?
A side-by-side comparison of pricing, features, and use cases to help you decide between Xero and QuickBooks.
Beautiful accounting software for small business
Accounting software for small and medium businesses
Head-to-head comparison
| Feature | Xero | QuickBooks |
|---|---|---|
| Starting price | $15/mo ✓ Cheaper | $17.5/mo |
| Free plan | ✗ No | ✗ No |
| Pricing model | paid | paid |
| G2 rating | 4.3/5 ↑ | 4/5 |
| Capterra rating | 4.4/5 | 4.3/5 |
| Founded | 2006 | 1983 |
Xero: pros & cons
- ✓Clean, modern UI
- ✓Excellent bank feeds
- ✓Strong accountant ecosystem
- ✓Good for non-US businesses
- ✗Starter plan very restrictive
- ✗Can be pricey for full features
- ✗Payroll limited to some countries
QuickBooks: pros & cons
- ✓Most widely used accounting software
- ✓Strong accountant ecosystem
- ✓Comprehensive features
- ✓Good integrations
- ✗Can be expensive
- ✗Prices increase after promo period
- ✗Not ideal for non-US businesses
- ✗Payroll costs extra
Choose Xero if...
- →You're a UK, Australian, or New Zealand small business that wants cloud accounting with bank feeds that reconcile automatically every day
- →Your accountant uses Xero and you want real-time collaboration on books, payroll, and year-end without emailing spreadsheets
- →You deal in multiple currencies and need automatic exchange rate updates built into invoices and expenses without add-ons
Choose QuickBooks if...
- →Your accountant already uses QuickBooks and you want seamless collaboration on tax prep and reconciliation
- →You need payroll, invoicing, inventory, and expense tracking managed from a single US-centric platform
- →You're a service business billing clients and need professional invoicing with automatic payment reminders
Our verdict
Xero scores higher on G2 (4.3/5 vs 4/5), suggesting stronger overall user satisfaction. Xero is the more affordable option. The right pick depends on your team size and workflow.
Xero vs QuickBooks: frequently asked questions
Is Xero better than QuickBooks?
Xero has a higher G2 score (4.3/5 vs 4/5). The best tool depends on your specific use case and budget.
Which is cheaper, Xero or QuickBooks?
Xero is cheaper, starting at $15/mo.
What is the main difference between Xero and QuickBooks?
Xero focuses on invoicing, bank reconciliation, expense claims. QuickBooks focuses on invoicing, expense tracking, bank reconciliation. Both serve similar use cases but differ in approach and pricing model.
Can I migrate from Xero to QuickBooks?
Most teams migrate between Xero and QuickBooks within a day or two. Export your data from Xero (typically as CSV or via API), then use QuickBooks's import wizard to bring it across. Check each tool's help centre for a step-by-step migration guide before switching.