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QuickBooks vs Xero for Agencies (2026): Which Is Better?
By Red Kite Search Agency Created Updated 7 min read
Summary
Choose Xero for no per-user fees, a higher G2 score, and stronger published security evidence. Choose QuickBooks if your accountant already works in it, or you want phone support. Prices and ratings were checked in October 2026.
QuickBooks vs Xero: which is better for agencies in 2026?
QuickBooks and Xero are the two accounting platforms agencies compare most. QuickBooks is the one most accountants know. Xero charges no per-user fees and has a higher G2 score.
We compared price, users, project features, and security.
| Tool | Editorial score | Review-site ratings | Pricing | Best for |
|---|---|---|---|---|
| QuickBooks | 3.9 / 5 | G2 4 | 30-day free trial. Regular monthly prices: Simple Start $38, Essentials $85, Plus $140, and Advanced $340 per month. New customers see 50% off for the first 3 months. | Small to mid-size agencies |
| Xero | 4.1 / 5 | G2 4.4 | Early $27, Growing $59, and Established $97 per month, with no per-user fees. New customers see a steep discount for the first 3 months. | Small to mid-size agencies |
How do QuickBooks and Xero compare on price?
QuickBooks regular monthly prices are $38 for Simple Start, $85 for Essentials, $140 for Plus, and $340 for Advanced, with 50% off for the first 3 months. Xero costs $27 for Early, $59 for Growing, and $97 for Established, with a large discount for the first 3 months.
| Tool | Plan | Price | What stands out |
|---|---|---|---|
| QuickBooks | Simple Start | $38 per month (monthly billing) | 1 user plus 2 accountants, invoicing, expense categorization, automated bill pay with free ACH, AI chat |
| QuickBooks | Essentials | $85 per month (monthly billing) | 3 users plus 2 accountants, bulk invoicing, Payments AI, quarterly tax estimates, enhanced reports |
| QuickBooks | Plus | $140 per month (monthly billing) | 5 users plus 2 accountants, project profitability, budgets, inventory, classes and locations (up to 40) |
| QuickBooks | Advanced | $340 per month (monthly billing) | 25 users plus 3 accountants, advanced project financials, custom permissions, workflow automation, priority support |
| Xero | Early | $27 per month (monthly billing) | Quotes and 20 invoices, 5 bills, bank reconciliation, 30-day cash flow forecast |
| Xero | Growing | $59 per month (monthly billing) | Unlimited invoices and quotes, automated bill entry, dashboards, budgets, 60-day cash flow forecast |
| Xero | Established | $97 per month (monthly billing) | Multiple currencies, project time and cost tracking, expense claims, analytics, 180-day cash flow forecast |
Which costs less?
Xero, at list price, and by a wide margin once you count users. QuickBooks limits users to 1, 3, 5, and 25 across its plans, while Xero charges no per-user fees.
Both discount the first three months heavily, so compare regular prices.
Which is better for projects and multiple currencies?
It depends on the plan. QuickBooks offers project profitability from Plus. Xero offers project time and cost tracking and multiple currencies only on Established.
Agencies that work in several currencies should price Xero Established first.
Which has better security evidence and support?
Xero states SOC 2 reports, ISO/IEC 27001:2022, and PCI DSS compliance. QuickBooks states encryption, backups, and multi-factor authentication but not SOC or ISO certifications.
QuickBooks offers chat and phone support on paid plans. Xero support is online-first.
How do QuickBooks and Xero compare on integrations, security, and support?
Beyond price, agencies ask about connections to their other tools, what to tell clients about security, and how quickly they can get help. This is what each vendor states publicly, as checked in October 2026.
| Area | QuickBooks | Xero |
|---|---|---|
| Integrations | An app marketplace including Stripe, PayPal, Shopify, Square, HubSpot, BILL, Dext, Expensify, Fathom and QuickBooks Time; No total is stated; app integrations are capped by plan, 2 on Essentials and Plus and unlimited on Advanced | More than 1,000 apps, including Dext, Stripe, ApprovalMax, ServiceM8, Deputy, Streamtime, Content Snare and Ignition |
| Security | 128-bit SSL encryption, automatic backups, and 24/7 monitoring; Multi-factor authentication and user permissions; custom permissions on Advanced; SOC and ISO certifications and SSO were not stated on the pages read | SOC 2 reports and ISO/IEC 27001:2022 certification; PCI DSS v4.0 SAQ A; Encryption in transit and at rest; multi-factor authentication; SSO and user roles were not stated on the pages read |
| Support | Chat and phone support on paid plans, free phone support during the trial; Support hours and response times are not stated | Online help center and a conversation route from Xero Central; Phone, email, hours and response times are not stated |
| Apps | Free iOS and Android app for invoices, receipts and mileage | Xero Accounting app on iOS and Android |
What are the pros and cons of QuickBooks and Xero?
Here is where each tool helps agencies and where it can get in the way, based on plan details and public feedback.
QuickBooks pros
- The most common accounting tool among accountants and bookkeepers.
- Free accountant access, with 2 or 3 accountants included.
- A large app marketplace and AI features for categorizing and reconciling.
- Project profitability on Plus and Advanced, with a 30-day free trial.
QuickBooks cons
- Regular prices are about double the promotional price shown for the first 3 months.
- Each plan limits users: 1 on Simple Start, 3 on Essentials, 5 on Plus, 25 on Advanced.
- Project profitability needs Plus; time tracking plan inclusion is not clearly stated.
- G2 reviewers rate it lower than Xero and FreshBooks.
Xero pros
- No per-user license fees on any plan.
- More than 1,000 app integrations.
- SOC 2 reports, ISO/IEC 27001:2022 and PCI DSS compliance stated.
- Higher G2 rating than QuickBooks Online.
Xero cons
- Early caps invoices at 20 and bills at 5 a month.
- Project time and cost tracking and multi-currency are only on Established.
- Chargeable direct bank feeds can add usage costs.
- Support is online-first, with no phone or email stated and no response times.
What do reviewers say about QuickBooks and Xero?
G2 shows QuickBooks Online at 4 from 3,827 reviews and Xero at 4.4 from 1,609 reviews. G2 reviewers recommend Xero for unlimited users and reconciliation automation.
| Tool | Source | Rating | Number of reviews |
|---|---|---|---|
| QuickBooks | G2 | 4 / 5 | 3,827 |
| Xero | G2 | 4.4 / 5 | 1,609 |
Reviewer themes for QuickBooks
- G2 shows QuickBooks Online at 4 from 3,827 reviews.
- G2 comparison data rates Xero higher than QuickBooks Online.
- G2 reviewers recommend Xero for unlimited users and stronger bank reconciliation automation.
Reviewer themes for Xero
- G2 shows Xero at 4.4 from 1,609 reviews.
- G2 reviewers praise unlimited users, extensive integrations, and bank reconciliation automation.
- One G2 reviewer calls it affordable and easy to use, with helpful Hubdoc integration, but says its AI is still lacking.
How does setup differ between QuickBooks and Xero?
Getting value from either tool depends on how you set it up, and the first steps differ. Here is the practical starting point for each.
QuickBooks: Start with your accountant. Agree the chart of accounts and the classes or locations you will use to separate clients, before you enter any data.
Xero: Set up your organization with your accountant, and connect your bank feeds, checking whether any feed carries usage charges.
What should agencies check before choosing between QuickBooks and Xero?
Small details in plans and limits decide whether a tool works in practice. Check these points for each tool during a trial on a real client account.
Before you buy QuickBooks
- Budget for the regular price, not the 3-month promotion.
- Count users against the limit on each plan.
- Confirm which plan includes time tracking.
- Ask your accountant which plan they prefer.
Before you buy Xero
- Confirm Established covers project tracking and currencies.
- Check bank feed charges for your bank.
- Budget for the regular price, not the promotion.
- Check whether your accountant works in Xero.
How should you test QuickBooks and Xero before deciding?
The fairest test is to run both tools on the same real client account for two weeks, with the same people, and compare the results rather than first impressions.
What to measure
- How long it takes a new team member to be productive in QuickBooks versus Xero.
- How often people open each tool without being reminded.
- Whether the plan you need includes the features you tested, not just the entry price.
- How a client reacts if you invite them to either tool.
- How much time the team spends on notifications, setup, and cleanup each week.
Which should you choose: QuickBooks or Xero?
Choose Xero for no per-user fees, a higher G2 score, and stronger published security evidence. Choose QuickBooks if your accountant already works in it, or you want phone support.
Ask your accountant before you decide, since they will work in the file.
Choose QuickBooks if
- Your accountant or bookkeeper already works in QuickBooks.
- You need full bookkeeping, tax tools, and a large app marketplace.
- You need project profitability and are happy to pay for Plus.
Skip QuickBooks if
- You want accounting without per-user limits.
- You only need invoicing and time tracking.
- You want the highest-rated option on G2.
Choose Xero if
- You want no per-user fees and several finance users.
- You invoice in multiple currencies.
- You want a large app store and published security certifications.
Skip Xero if
- You need more than 20 invoices a month on a small budget.
- You need phone support.
- You only need project tracking without paying for Established.
Frequently asked questions
- Is QuickBooks or Xero better for agencies?
- Xero for no per-user fees and a higher G2 score, QuickBooks if your accountant uses it.
- Which is cheaper?
- Xero, especially with several users.
- Which has project tracking?
- QuickBooks from Plus, and Xero on Established.
- Which has phone support?
- QuickBooks offers phone support on paid plans. Xero support is online-first.
- Do both have discounts for new customers?
- Yes, for the first 3 months, but regular prices apply afterward.
Sources
Prices, plan limits, and ratings were gathered in October 2026 from:
- QuickBooks pricing page
- Xero pricing page
- G2