QuickBooks vs Xero vs NetSuite: Which Accounting Software for Your Startup?
A detailed comparison of the three leading accounting platforms for startups, including features, pricing, and recommendations by company stage.
Choosing accounting software is one of the most important financial decisions you'll make as a founder. The right platform becomes the foundation of your entire finance stack—the wrong one creates headaches that compound as you grow.
Three platforms dominate the startup accounting landscape: QuickBooks Online, Xero, and NetSuite. Each serves different needs, price points, and company stages. This guide will help you understand which is right for your startup and when.
The Short Answer
QuickBooks Online is right for 90% of seed and Series A startups. It's affordable, widely understood, and integrates with everything. Consider Xero if you have significant international operations, and NetSuite only at Series B+ or with complex multi-entity needs.
Quick Comparison Overview
| Factor | QuickBooks Online | Xero | NetSuite |
|---|---|---|---|
| Best For | Most US startups | Global/multi-currency | Complex enterprises |
| Monthly Cost | $30-$200 | $15-$78 | $1,000+ |
| Company Stage | Pre-seed to Series B | Pre-seed to Series A | Series B+ |
| Learning Curve | Low | Low | High |
| US Accountant Access | Excellent | Good | Requires specialists |
| Integrations | 750+ | 1,000+ | 200+ (native ERP) |
| Multi-Currency | Plus plan+ | All plans | Advanced |
QuickBooks Online Deep Dive
QuickBooks Online at a Glance
The dominant accounting platform for US small businesses and startups. Owned by Intuit, it's the de facto standard that virtually every bookkeeper and accountant knows how to use.
QuickBooks Online Plans
Simple Start
$30/monthBasic accounting for solopreneurs. Track income/expenses, send invoices, connect one bank account. No multi-user access.
Best for: Pre-revenue foundersEssentials
$60/monthAdds bill management, 3 users, and time tracking. Good for very early-stage with a few vendors to pay.
Best for: Early seed stagePlus
Most PopularAdds project tracking, inventory, budgets, and 5 users. Crucially includes multi-currency support. The sweet spot for most startups.
Best for: Seed to Series AAdvanced
$200/month25 users, custom fields, batch transactions, advanced reporting, and dedicated support. For larger teams with complex needs.
Best for: Series A+ with 20+ employeesQuickBooks Strengths
Universal Adoption
Every bookkeeper and CPA in the US knows QuickBooks. You'll never struggle to find help or hand off to a new accountant.
Extensive Integrations
Connects to virtually every startup tool: Stripe, Gusto, Ramp, Brex, Bill.com, and hundreds more.
Payroll Add-On
Integrated payroll option for companies that want everything in one place (though Gusto is often better).
Strong Reporting
Customizable reports and dashboards. Easy to generate financial statements for investors.
QuickBooks Limitations
- Limited scalability: Starts to struggle with complex multi-entity structures
- Revenue recognition: Basic capabilities, not ideal for complex subscription billing
- Audit trails: Less robust than enterprise systems for SOC 2/audit needs
- Inventory: Basic inventory management, not suited for complex manufacturing
Xero Deep Dive
Xero at a Glance
A cloud-native platform originally from New Zealand, now popular globally. Known for beautiful design, strong bank feeds, and excellent multi-currency capabilities. The #1 choice in UK, Australia, and New Zealand.
Xero Plans
Early
$15/monthLimited to 20 invoices and 5 bills per month. Too restrictive for most startups.
Best for: Side projectsGrowing
RecommendedUnlimited invoices and bills, bank reconciliation, multi-currency built in. The right plan for most Xero users.
Best for: Most startups on XeroEstablished
$78/monthAdds project tracking, expense claims, and multi-currency expense management.
Best for: Project-based businessesXero Strengths
Multi-Currency Native
Multi-currency support on all plans, with real-time exchange rates. Best-in-class for international transactions.
Bank Feed Quality
Direct bank feeds with excellent categorization. Often faster and more reliable than QuickBooks bank connections.
Modern Interface
Clean, intuitive design. Many users find it more pleasant to use than QuickBooks.
Unlimited Users
All plans include unlimited users (with role-based access). No per-user fees.
Xero Limitations
- Less US adoption: Fewer US accountants specialize in Xero, may be harder to find help
- Fewer US integrations: Some US-focused tools work better with QuickBooks
- Payroll: US payroll is an add-on through Gusto partnership, not native
- Reporting: Standard reports are less customizable than QuickBooks
When to Choose Xero Over QuickBooks
Choose Xero if: you're based outside the US, have significant international transactions, want built-in multi-currency without upgrading plans, or have a team/accountant that prefers Xero. For US-focused startups, QuickBooks is usually the safer choice.
NetSuite Deep Dive
NetSuite at a Glance
Enterprise-grade ERP system (owned by Oracle) that goes far beyond accounting. Handles financials, inventory, CRM, e-commerce, and more in one integrated platform. The eventual destination for many high-growth startups.
NetSuite Pricing
NetSuite doesn't publish standard pricing. Costs vary significantly based on modules, users, and customization. Here's what startups typically pay:
NetSuite Strengths
True ERP
Unified system for financials, inventory, order management, CRM, and more. Single source of truth for complex operations.
Multi-Entity Support
Native support for multiple subsidiaries, intercompany transactions, and consolidated reporting.
Advanced Revenue Recognition
ASC 606 compliant revenue recognition for complex subscription and contract billing.
Audit Ready
Robust audit trails, role-based permissions, and controls. SOC 2 compliant out of the box.
NetSuite Limitations
- Expensive: Minimum $50K+ for year one, overkill for most startups under 50 employees
- Complex: Steep learning curve, requires dedicated admin or consultant
- Implementation time: 3-6+ months to implement properly
- Requires specialists: Need NetSuite-certified accountants, not general bookkeepers
The NetSuite Trap
Many startups implement NetSuite too early because their investors use it or they think it signals maturity. The result: months of implementation pain, ongoing costs that drain runway, and complexity that slows you down. For most startups, NetSuite becomes appropriate at Series B or $10M+ ARR—not before. See our guide on When to Upgrade from QuickBooks to NetSuite.
Feature-by-Feature Comparison
| Feature | QuickBooks | Xero | NetSuite |
|---|---|---|---|
| Core Accounting | |||
| Multi-Currency | Plus+ | ||
| Multi-Entity | Limited | Limited | |
| Revenue Recognition | Basic | Basic | |
| Inventory Management | Plus+ | Add-on | |
| Project Tracking | Plus+ | Established | |
| Budgeting | Plus+ | Limited | |
| Custom Fields | Advanced | Limited | |
| API Access | |||
| Audit Trail | Basic | Basic |
Pricing Breakdown
Here's what you'll actually pay for each platform at different company stages:
Early Stage (5-10 employees)
QuickBooks
$90-$200/mo
Plus or Advanced plan
Xero
$42-$78/mo
Growing or Established
NetSuite
$3,000+/mo
Overkill at this stage
Growth Stage (25-50 employees)
QuickBooks
$200/mo
Advanced plan
Xero
$78/mo
May hit limitations
NetSuite
$4,000+/mo
Worth evaluating
Which Should You Choose?
Here's our recommendation framework based on working with hundreds of startups:
Choose QuickBooks Online If...
- You're a US-based startup (or US is primary market)
- You're pre-seed through Series A
- You want maximum accountant/bookkeeper availability
- You need proven integrations with Stripe, Gusto, Ramp, etc.
- You want the safest, most mainstream choice
Choose Xero If...
- You're based outside the US or have significant international operations
- Multi-currency is critical from day one
- Your accountant specializes in Xero
- You prefer modern, clean software interfaces
- Cost is a primary concern (lower prices than QuickBooks)
Choose NetSuite If...
- You're Series B+ or have $10M+ ARR
- You have multiple legal entities requiring consolidation
- Complex revenue recognition requirements (ASC 606)
- Preparing for IPO or significant M&A
- You need unified ERP beyond just accounting
Our Default Recommendation
For most seed and Series A startups reading this guide: start with QuickBooks Online Plus ($90/month). It handles everything you need, works with every tool and accountant, and you can always migrate to NetSuite later if you grow into it. The cost of starting with the wrong enterprise system is far greater than the cost of migration later.
Migration Considerations
Already on one platform and considering a switch? Here's what to know:
QuickBooks ↔ Xero
Migration between QuickBooks and Xero is relatively straightforward. Both offer import tools and there are third-party migration services. Plan for:
- 2-4 weeks for a clean migration
- $500-$2,000 if using a migration service
- Running parallel systems for one month recommended
- Re-connecting all integrations (Stripe, payroll, etc.)
QuickBooks/Xero → NetSuite
This is a significant undertaking. Plan for:
- 3-6 months implementation timeline
- $25,000-$100,000+ implementation cost
- Dedicated internal resource or project manager
- Process redesign (NetSuite requires different workflows)
- Training for entire finance team
For more details on when this makes sense, read our guide on When to Upgrade from QuickBooks to NetSuite.
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