Should I Switch From QuickBooks to Xero After the 2026 Price Increase?
If your QuickBooks renewal came in higher this fall, here is why. Below we cover what changed, how Xero's prices compare over the last five years and how we help customers decide whether to move.
A note up front. Xero is our preferred platform. When a business has no accounting system yet, we will most likely recommend Xero. Most businesses that come to us already run on QuickBooks Online, though. QuickBooks works. If there is a good reason to switch, we are for it. If there is not, we keep you where you are.
What changed in QuickBooks Online pricing in 2026?
Intuit raised prices on three of its four main QuickBooks Online plans for renewals on or after August 1, 2026, according to its pricing announcement. Simple Start stayed at $38 a month. The other plans moved like this:
Essentials: $75 to $85 a month (up 13%)
Plus: $115 to $140 a month (up 22%)
Advanced: $275 to $340 a month (up 24%)
New subscribers keep their starting price for the first six months. The new price begins with the seventh invoice. Intuit tied the increase to new AI features, better bank feeds and industry-specific tools. Its announcement does not list dollar amounts. The figures above come from reseller reporting and match the list prices on Intuit's pricing page today.
Does Xero raise its prices too?
Yes. Xero raises its US prices about once a year, the same pattern as QuickBooks. Its latest change took effect October 1, 2026. Early went to $27 a month, Growing to $59 and Established to $97. Those were increases of 7% to 8%.
Here is how the plans most growing businesses use have moved since 2021. QuickBooks Plus and Advanced line up roughly with Xero Growing and Established. They are not identical feature for feature, so read this as a price trend, not a product comparison.
| Year (after that year's change) | QuickBooks Plus | QuickBooks Advanced | Xero Growing | Xero Established |
|---|---|---|---|---|
| 2021 | $80 | $180 | $34 | $65 |
| 2022 | $85 | $200 | $37 | $70 |
| 2023 | $90 | $200 | $42 | $78 |
| 2024 | $99 | $235 | $47 | $80 |
| 2025 | $115 | $275 | $55 | $90 |
| 2026 | $140 | $340 | $59 | $97 |
| Change, 2021 to 2026 | +$60 (+75%) | +$160 (+89%) | +$25 (+74%) | +$32 (+49%) |
US list prices per month, before promotions or accountant discounts.
Three things stand out:
Both companies raise prices every year. Each one raised US list prices in every year from 2021 to 2026. Neither is the "never changes" option.
In dollars, the QuickBooks increases were larger. Plus went up $60 a month over five years. Advanced went up $160. Xero Growing and Established went up $25 and $32.
In percentages, the picture is mixed. Plus (75%) and Growing (74%) rose about the same. Advanced (89%) rose much faster than Established (49%). At the entry level it flips. Xero Early more than doubled, from $12 to $27, while QuickBooks Simple Start rose about 52%, from $25 to $38.
The 2026 round is where the gap is widest. QuickBooks Plus and Advanced rose 22% and 24% this year. Xero's plans rose 7% to 8%.
Is QuickBooks Online still a good choice?
Yes. QuickBooks Online is a capable system. Most of the businesses that come to Basis 365 already use it. Our team works in it every day.
A higher subscription is rarely a reason to switch on its own. For a business doing $1M to $20M in revenue, the gap between comparable plans is a few hundred to a few thousand dollars a year. Clean, on-time books are worth far more than that. A switch that disrupts your close for two months can cost more than it saves.
When does it make sense to switch to Xero?
Switch when price is one reason among several. These are the situations where we see the move pay off:
You are paying for seats, not features. QuickBooks Plus includes 5 users. Advanced includes 25. Xero does not charge by the user. If you moved up to Advanced mainly to add people, the list-price gap to Xero Established is $243 a month.
Your books need a cleanup anyway. If the file is months behind or the chart of accounts has grown out of control, a fresh start in a new system can cost about the same as repairing the old one.
Your tools fit Xero. Agencies and consulting firms often pair Xero with job management tools like WorkflowMAX and reporting tools like Fathom. If the rest of your stack already connects well to Xero, the move gets easier.
You are setting up a new entity. There is no history to move. This is where we recommend Xero most often.
When should you stay on QuickBooks?
Stay when the system is working and the increase is the only complaint. In particular, stay if:
Your books are clean and your monthly close runs on time.
Your payroll, payments or industry apps only connect to QuickBooks, or would be hard to replace.
Your team knows the system well and the increase is a small part of your budget.
You are in the middle of your fiscal year with nothing broken. Wait for year-end and decide then.
Here is the quick version of how we advise customers:
| Your situation | What we usually recommend |
|---|---|
| No accounting system yet, or a new entity | Start on Xero |
| Clean books on QuickBooks, with price as the only issue | Stay on QuickBooks and review at renewal |
| On QuickBooks Advanced mainly for user seats | Price out Xero Established |
| Books are behind or need a full cleanup | Consider a fresh start in Xero |
| Key apps only connect to QuickBooks | Stay on QuickBooks |
| Middle of your fiscal year with nothing broken | Wait and plan a year-end cutover |
What does switching from QuickBooks to Xero involve?
A clean switch is a project with a start date, not a weekend export. These are the steps we follow:
Pick a cutover date. January 1 is best for calendar-year companies. The start of a quarter is the next best.
Decide how much history to bring. Most businesses bring opening balances plus summarized monthly history. Some convert full transaction detail. More detail takes more time and more review.
Map your apps. List every integration, including payroll, payments, expense tools, your CRM and job management. Confirm each one connects to Xero before you commit.
Set up the basics. Build the chart of accounts, tracking categories, invoice templates, bank feeds and approval rules.
Close the old year in QuickBooks. Finish December, reconcile every account and give your tax accountant year-end reports from one system.
Run your first close in Xero. Compare the results against prior months before you rely on the new reports. Our post on the month-end close process covers what a good close includes.
Export what you need from QuickBooks. After you cancel, Intuit gives paid subscribers read-only access for one year. Export your reports and detail before that window closes.
We run these moves as an accounting system implementation, with a plan and a target date, rather than as a side task. If you are leaning toward Xero, our Xero advisors can map out the move with you.
Why is January 1 the best time to switch?
Because the whole year stays in one system. Your tax accountant gets one set of year-end reports. Your 1099 vendor totals come from one place. Your new budget is built in the system you will track it in. A mid-year switch splits all three across two systems.
To hit January 1, start planning in October or November. That leaves time to choose a history approach, test your integrations and set up the new file before December's close.
What does this look like for a real business?
Here is an illustrative example, not a specific customer. A 30-person marketing agency runs on QuickBooks Plus. Seven people on the agency's team need access, which is more than Plus allows. Moving up to Advanced costs $340 a month, or $4,080 a year at list price. Xero Established lists at $97 a month, or $1,164 a year. The list-price gap is $2,916 a year.
That number alone does not decide it. This agency also wants its job management and reporting tools connected to its books. It is also planning a chart of accounts cleanup before the new year. With three reasons lined up, a January 1 move makes sense. If price had been the only reason, staying put and revisiting at the next renewal would be a sound call.
Frequently asked questions
Is Xero cheaper than QuickBooks Online?
At list price, yes, for the plans most growing businesses use. As of October 2026, Xero Established lists at $97 a month. QuickBooks Plus lists at $140 and Advanced at $340. Promotions, accountant discounts and add-ons like payroll change the real number, so compare your actual bills.
Does Xero raise its prices as often as QuickBooks?
Yes. Both raised US list prices every year from 2021 through 2026. The QuickBooks increases were larger in dollars, especially on Plus and Advanced. In 2026, QuickBooks Plus and Advanced rose 22% and 24%, while Xero's plans rose 7% to 8%.
Can I move my QuickBooks history into Xero?
Yes. Most businesses bring opening balances plus summarized monthly history. Conversion tools can bring more transaction detail, which takes more time and review. Export your QuickBooks reports so you keep a record of prior years either way.
What happens to my QuickBooks data after I cancel?
Intuit says paid subscribers keep read-only access to QuickBooks Online for one year after canceling. You can export data to Excel during that time. Export everything you need before that year is up.
Will Basis 365 make me switch to Xero?
No. We work in both systems. Xero is our preferred platform. We usually recommend it when a business is setting up a system for the first time. If your QuickBooks file works well, we keep you on it.
When is the best time to switch from QuickBooks to Xero?
January 1 is best for calendar-year businesses because the whole year stays in one system. The start of a quarter is the next best option. Plan the work in October or November to hit a January 1 cutover.
Not sure whether your accounting system is helping or slowing you down? Our free Financial Operations Assessment takes a few minutes and shows where your processes are solid and where they need work.
Sources. Intuit, QuickBooks Online August pricing changes and product updates and QuickBooks pricing. Intuit, What happens to my QuickBooks Online data after I cancel? Xero, US pricing plans and 2025 US price change notice. Fourlane, QuickBooks Online pricing changes 2026. Woodard, Intuit announces 2025 QuickBooks price increases. Accounting Today, QuickBooks prices increase (2021). Porte Brown, 2023 QuickBooks pricing changes. Insightful Accountant, Xero price changes for North America (2022) and Xero price increase (2024). Booksla, Xero price increase, October 1, 2026. PriceTimeline, Xero pricing changes. List prices are US monthly rates as published at each change. Your actual price may differ based on promotions and discounts.
