QuickBooks vs Xero vs FreshBooks
By the FirstHire Team · Last updated Nov 2026
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QuickBooks Online, Xero and FreshBooks are the three bookkeeping tools most small owners shortlist. Once you hire, you also need payroll to post cleanly into your books. Here is how their published prices and payroll add-ons compare.
How we wrote this: we read each vendor's public pricing and product pages (linked at the bottom) and compared them for a business with 1 to 10 people. We have not run a long-term hands-on test of these products, and we will say so on this page when we have.
The short answer
- Pick QuickBooks Online if your accountant already uses it or you want the most widely used option in the U.S.
- Pick Xero if you want lower list prices and payroll powered by Gusto built in as an option.
- Pick FreshBooks if you are a service business that mostly needs invoicing and simple books.
Published prices (Nov 2026)
| Tool | Plans and list price | Intro offer shown | Payroll |
|---|---|---|---|
| QuickBooks Online | Simple Start $38, Essentials $85, Plus $140, Advanced $340 per month | 50% off for 3 months | Sold separately as QuickBooks Payroll |
| Xero | Early $27, Growing $59, Established $97 per month | Discounted first 3 months | Optional Xero Payroll powered by Gusto: $36/month + $6 per employee or contractor |
| FreshBooks | Lite $23, Plus $43, Premium $70 per month; Select is custom | 80% off for 4 months; 30-day free trial | FreshBooks Payroll add-on: $40/month + $6 per user |
FreshBooks' Lite plan lets you invoice up to 5 clients and Plus up to 50, so check the client limit. Team members on FreshBooks cost $11/month each.
Which fits a business with 1 to 10 people
If you already picked a payroll provider such as Gusto, all three connect to it, so choose the bookkeeping tool your accountant likes. If you want books and payroll from one company, compare Xero with Gusto-powered payroll against QuickBooks with QuickBooks Payroll using your exact headcount.
Our take
Start with what your accountant supports. If you don't have one yet, Xero has the lowest list prices here, QuickBooks is the most common, and FreshBooks is the simplest for invoice-driven service work.
FAQ
Do I need bookkeeping software before hiring?
Not strictly, but payroll creates monthly wage and tax entries, and software that syncs with payroll saves time at tax season.
Can I switch later?
Yes, but switching mid-year is more work. Pick one before your first payroll if you can.
Sources: QuickBooks pricing, Xero US pricing, FreshBooks pricing. Prices and features as of Nov 2026. Check the vendor site before you buy, because prices and promotions change. Not tax or legal advice.