At a glance
| Tool | Starting price | Free plan | Free trial | Best for | Source |
|---|---|---|---|---|---|
| Xero | GBP: Ignite £18/month (excl. VAT); USD: Early $27/month (intro discount shown) | No | Not stated (intro discount shown) | Invoicing and bookkeeping for most small businesses | Official pricing (checked 29 October 2026) |
| QuickBooks Online | USD: Simple Start $38/month (intro discount shown) | Yes (US only: 1 user, 2 invoices a month) | 30-day free trial | Bookkeeping with built-in AI on paid plans, plus a free US plan | Official pricing (checked 29 October 2026) |
Prices are the starting paid plans shown on each official pricing page on 29 October 2026. Currencies are as shown there; prices in your country, taxes and intro offers can differ. Always confirm on the official site.
What each does
Xero: Cloud accounting with invoicing, bank feeds and MTD-compatible VAT returns. Starting price: Ignite £18/month (excl. VAT). Free plan: No. Trial: Not stated (intro discount shown).
QuickBooks Online: Cloud accounting with invoicing, bank feeds and AI features (Intuit Intelligence) on paid plans. Starting price: Simple Start $38/month (intro discount shown). Free plan: Yes (US only: 1 user, 2 invoices a month). Trial: 30-day free trial.
Verdict by business type
- Invoicing and bookkeeping for most small businesses: Xero.
- Invoicing and bookkeeping: QuickBooks Online.
- Starting on a tight budget: QuickBooks Online. It has a free plan; compare trials before paying.
- Outside the US and UK: check local pricing pages; listed prices are in GBP, USD.
FAQ
Is Xero cheaper than QuickBooks Online?
Xero: Cloud accounting with invoicing, bank feeds and MTD-compatible VAT returns. Starting price: Ignite £18/month (excl. VAT). Free plan: No. Trial: Not stated (intro discount shown). QuickBooks Online: Cloud accounting with invoicing, bank feeds and AI features (Intuit Intelligence) on paid plans. Starting price: Simple Start $38/month (intro discount shown). Free plan: Yes (US only: 1 user, 2 invoices a month). Trial: 30-day free trial. Currencies differ by region, so compare in your own currency on the official pages.
Does Xero or QuickBooks Online have a free plan?
Xero: No. QuickBooks Online: Yes (US only: 1 user, 2 invoices a month).
Which is better, Xero or QuickBooks Online?
Xero suits invoicing and bookkeeping for most small businesses; QuickBooks Online suits bookkeeping with built-in AI on paid plans, plus a free US plan. Try each one with your own work before you commit.
Last checked: 29 October 2026. Our picks are never paid for; paid placements are always marked Featured. See our disclosure.
Browse all accounting & invoicing tools in the directory, with checked prices.