Decision Guide

QuickBooks Online vs Xero: Which One Fits Your Solo Dev Stack?

Free tier limits, real costs for 1-10 users, and honest "not for" warnings. The Solo Dev decision guide for QuickBooks Online vs Xero.

Last updated: Feb 2026·8 min read·Solo Score: QuickBooks Online 6 vs Xero 7

⚡ Quick Verdict

Xero edges ahead with a 4.4/5 rating. However, the best choice depends on your team size, budget, and workflow needs. Read on for the full breakdown.

💰 Cost by Team Size

Team SizeQuickBooks OnlineXero
Solo (1 user)$30/mo$15/mo
Small (5 users)$60/mo$42/mo
Growing (10 users)$90/mo$78/mo
Free Tier❌ No❌ No

Pricing Plans

PlanQuickBooks OnlineXero
Free Plan❌ No❌ No
Simple Start$30/mo$15/mo
Essentials$60/mo$42/mo
Plus$90/mo$78/mo
Advanced$200/mo

Feature Comparison

FeatureQuickBooks OnlineXero
Accounting★★★★★★★★★★
Invoicing★★★★★★★★
Reporting★★★★★★★★★
Payroll★★★★★★★★☆☆

Pros & Cons

QuickBooks Online

✅ Pros

  • Industry standard — every accountant knows QuickBooks
  • Most comprehensive reporting and financial analysis
  • Integrated payroll and tax filing
  • 750+ third-party integrations
  • Strong bank feed and reconciliation

❌ Cons

  • Expensive — $30-200/month with no free plan
  • Frequent price increases (has raised prices 3x since 2023)
  • Can be complex for non-accounting users
  • Payroll is an additional $45+/mo add-on
  • Customer support quality has declined

Xero

✅ Pros

  • Best multi-currency accounting — ideal for international businesses
  • Unlimited users on all plans (QuickBooks charges per user)
  • 1000+ third-party app integrations
  • Beautiful, modern UI that non-accountants can use
  • Strong in UK, Australia, NZ with local payroll/tax

❌ Cons

  • Starter plan limited to 20 invoices/month
  • US payroll requires third-party add-on (Gusto)
  • Less widely used by US accountants than QuickBooks
  • Some advanced features require Premium plan
  • No built-in time tracking

Who Should Use What?

✅ Choose QuickBooks Online if...

  • You are a small businesses with accountants/bookkeepers
  • You are a companies needing payroll + accounting in one platform
  • You are a us businesses needing tax preparation

🚫 Skip if...

  • Freelancers with simple invoicing needs (FreshBooks or Wave)
  • Budget-conscious solopreneurs
  • International businesses (Xero may be better)

✅ Choose Xero if...

  • You are a international businesses with multi-currency needs
  • You are a uk/au/nz-based small businesses
  • You are a teams wanting unlimited users without per-seat pricing

🚫 Skip if...

  • US businesses with a QuickBooks-trained accountant
  • Freelancers with few invoices (Wave is free)
  • Very small businesses (Starter's 20 invoice limit is tight)

🏆 Our Verdict

Both QuickBooks Online (4.3/5) and Xero (4.4/5) are excellent tools in their category. Xero takes a slight edge overall, but the best choice ultimately depends on your team's specific needs, budget, and existing tool ecosystem.

Frequently Asked Questions

Is QuickBooks Online better than Xero?

It depends on your needs. QuickBooks Online excels in some areas while Xero has its own strengths. Read our full comparison above to see which tool fits your specific requirements.

How does QuickBooks Online pricing compare to Xero?

QuickBooks Online starts at $30/mo, while Xero starts at $15/mo. Both offer different value propositions — check our pricing comparison section for a detailed breakdown.

Can I migrate from QuickBooks Online to Xero?

Yes, most B2B tools offer data import/export features. Xero typically provides migration guides and sometimes even dedicated support for switching from QuickBooks Online.

Which is easier to use, QuickBooks Online or Xero?

Ease of use depends on your team's experience and workflow preferences. We evaluated both tools on usability — see our feature comparison scores above for details.

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