QuickBooks Online vs Xero: which is better for a new business? (2026)
9.4/10
QuickBooks Online
Free plan
Choose QuickBooks Online if: Businesses whose accountant already works in QuickBooks
Skip it if: You need a cheap paid plan; Essentials costs $85/mo after the August 2026 increase.
Visit QuickBooks Online6.6/10
Xero
From $27/mo
Choose Xero if: Small teams that want unlimited users at one price
Skip it if: You want a free plan, Spanish, or over 20 invoices for $27.
Visit XeroQuick verdict
| Higher OwnerUnlocked score | QuickBooks Online (9.4 vs 6.6) |
|---|---|
| Lower starting price | QuickBooks Online (Free plan vs From $27/mo) |
| Better public ratings | QuickBooks Online (4.7 vs 4.4 / 5) |
| More Spanish help | QuickBooks Online (Spanish support vs English only) |
Side by side
| Best for | Businesses whose accountant already works in QuickBooks | Small teams that want unlimited users at one price |
|---|---|---|
| Skip if | You need a cheap paid plan; Essentials costs $85/mo after the August 2026 increase. | You want a free plan, Spanish, or over 20 invoices for $27. |
| Free plan or trial | Free plan | 1 month |
| Spanish | Spanish support | English only |
| Support | Phone callback, chat; M-F 6am-6pm, Sat 6am-3pm PT | 24/7 online support; callback on request |
| Mobile app | Yes | Yes |
| Public rating | 4.7/5 (App Store, 269,626) | 4.4/5 (Google Play, 21,049) |
| Price | $0 (Free); paid from $38/mo | $27/mo (Early); $5.40/mo first 3 months |
| Free plan | 2 invoices/mo, 1 bank, 1 user, 2 receipts/mo, 5 trips/mo | No free plan |
| Users | 1 user + 2 accountants (Simple Start) | Unlimited (no per-user fees) |
| Invoicing | Unlimited on paid plans; 2/mo on Free | Early: 20 invoices; unlimited on Growing and up |
| Bank connection | Yes; Free plan limited to 1 bank | Yes, all plans; auto-reconcile on Growing and up |
| Receipt capture | Yes; 2/mo on Free | Yes, Smart Document Capture, all plans |
| Mileage tracking | Yes, GPS in mobile app; 5 trips/mo on Free | Established only |
| Payroll add-on | Bundle from $88/mo + $6.50/employee (with Simple Start) | $36/mo + $6 per employee/contractor (Gusto) |
| Sales tax | Automatic on paid plans; manual on Free | Auto sales tax, all plans |
| Time tracking | Essentials and up | Established only (projects) |
| Inventory | Plus and up | Up to 4,000 items; Inventory Plus add-on |
| Accountant access | 2 accountants on paid plans; none on Free | Yes, invite your advisor at no extra cost |
| 1099 contractors | Track and file 1099s; free e-file on Advanced | W-9 collection and 1099 reports, all plans |
| Online payment fees | Cards 2.99%; ACH 1% ($1 min); keyed 3.5% | Stripe: cards 2.9% + 30¢; ACH debit 1% (max $9) |
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QuickBooks Online
- Free plan includes 1 bank connection and 2 invoices per month.
- Paid plans include automatic sales tax, mileage tracking and receipt capture.
- Simple Start lets 2 accountants access your books at no extra cost.
- Mobile app rated 4.7/5 from about 270,000 App Store ratings.
- Essentials and Plus rose to $85 and $140 per month in August 2026.
- US version has no Spanish interface; Spanish help uses an interpreter.
- Free plan has no accountant access and only 2 receipt scans monthly.
Xero
- No per-user fees: your whole team can log in on any plan.
- Sales tax, 1099 reports and receipt capture included even on Early.
- Tracks inventory for up to 4,000 items on every plan.
- Standard ACH payments to vendors are free on all plans.
- Early plan allows only 20 invoices and 5 bills.
- No published phone line; support is online with callbacks on request.
- English-only app; no Spanish interface found.
Also worth a look
Questions
Is QuickBooks Online or Xero cheaper?
QuickBooks Online starts lower: Free plan for QuickBooks Online vs From $27/mo for Xero. Compare the plan you'd actually use, including add-ons.
Which has better reviews?
QuickBooks Online, with 4.7/5 on average across the public ratings we checked.
Which one helps in Spanish?
QuickBooks Online: Spanish support. Xero: English only.
Can I switch from one to the other later?
Yes, though switching mid-year takes some setup. Export your records before you cancel, and check for annual contracts or cancellation notice periods.
Facts from each company's own pages and public rating sites, checked Oct 4, 2026. How we rate.