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Accounting software for small business: what it costs, and which one fits
Xero and QuickBooks Online do the same core job. The big price difference comes from one question: how many people need to log in.
Xero includes unlimited users on every plan. At your size you'd save about $696 a year compared with the QuickBooks Online plan you'd need.
For a single user sending lots of invoices, QuickBooks Simple Start is the cheaper fit, about $252 a year less than Xero Growing. Add a second user or supplier bills and Xero usually wins.
Xero Early allows 20 invoices and 5 bills a month; Growing removes those limits. QuickBooks Online plans include 1, 3, 5 or 25 users, and Simple Start doesn't include bill management. Both often discount the first months for new customers; list prices shown.
The short comparison
| Option | Best for | Pricing (US list) | Main drawback |
|---|---|---|---|
| Xero | Small businesses with more than one person in the books | $27, $59 or $97/mo; unlimited users on all plans | Early plan caps invoices and bills; fewer US accountants use it than QuickBooks |
| QuickBooks Online | Businesses whose accountant already works in QuickBooks | $38, $85, $140 or $340/mo; 1, 3, 5 or 25 users | Costs climb fast as you add users; prices rose again in August 2026 |
| FreshBooks | Freelancers and service businesses that mainly send invoices | See current pricing | Lighter on full bookkeeping as you grow |
| Wave | Very small businesses on a tight budget | Free accounting; paid add-ons | Limited support and fewer integrations |
We earn nothing from FreshBooks or Wave. They're here because a fair comparison needs them.
Xero: best value once more than one person logs in
Who it suits
Small businesses where the owner, an office manager and an outside bookkeeper all need access. Every Xero plan includes unlimited users, so adding people doesn't change the price.
What it costs
Early is $27 a month, Growing $59 and Established $97, on Xero's US price list from October 2026. Early is capped at 20 invoices and 5 bills a month, so most active businesses land on Growing. Full Xero vs QuickBooks cost breakdown.
Good
- Unlimited users on every plan
- Bank feeds, invoicing and reconciliation on all plans
- Month-to-month, no annual contract
Watch out for
- Early's invoice and bill limits are easy to outgrow
- Prices rose in October 2026, so check the current rate
- If your accountant only works in QuickBooks, ask before switching
QuickBooks Online: the familiar choice
Who it suits
Businesses whose accountant or bookkeeper already uses QuickBooks, or a single owner doing their own books on Simple Start.
What it costs
Simple Start is $38 a month for 1 user, Essentials $85 for 3, Plus $140 for 5, and Advanced $340 for 25, after Intuit's August 2026 increase.
Good
- Most US accountants know it
- Large app ecosystem
Watch out for
- Each extra user tier means a bigger plan
- Simple Start doesn't include bill management
- Regular price increases, most recently August 2026
Five things to check before you choose
- How many people need access. This decides the plan on QuickBooks, and doesn't on Xero.
- Your monthly invoices and bills. Entry plans cap or exclude them.
- What your accountant uses. Ask before you switch; most will work in either.
- The price after the intro offer. First-months discounts end; budget at the list price.
- Payroll. Both connect to payroll services, usually billed separately. Our sister guide compares payroll costs by team size.
Switching mid-year is possible, but it's easiest at the start of a month or quarter. Our switching guide covers what to move and what to keep.
Questions
Is Xero cheaper than QuickBooks?
For one person doing simple books, they're close. Once two or more people need access, Xero is usually cheaper because its users are unlimited and QuickBooks moves you to a bigger plan.
Can my accountant use Xero?
Many US accountants work in both. Xero lets you invite your accountant at no extra user cost. Ask yours before switching.
Is there a contract?
Both bill monthly and you can cancel. Check each provider's current terms on its site.
How did you compare these?
From each provider's published US pricing and plan pages as of November 2026. More on how this site works.