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The short answer
Xero is a mature, global cloud accounting platform with a strong following among accountants and a marketplace of more than 1,000 connected apps. It is a good fit when you want a well-supported ledger and plan to assemble the rest of your finance stack from integrations.
ClearBooks is a younger, US-focused product that puts more of the startup back office inside the ledger itself:
- An AI bookkeeping agent that categorizes, reconciles, invoices, and reports through permissioned tools, and shows you every write as a Confirm/Cancel card before anything posts.
- Agent and developer access through an MCP server (300+ tools) and a REST API (280+ endpoints) with scoped keys.
- Startup filings and equity in the same books: Form 1120, California Form 100, payroll return figures, and SAFEs on the cap table.
Feature comparison
| ClearBooks | Xero (US) | |
|---|---|---|
| Core ledger | Double-entry general ledger, trial balance, period close with database-enforced locks | Double-entry cloud ledger with bank reconciliation on every plan |
| Bank feeds | Plaid bank sync, plus Brex and Stripe imports and CSV | Bank feeds; auto-reconciliation included on Growing and Established |
| AI | AI agent with tool access to your books; every write needs your confirmation | JAX, Xero's AI finance assistant |
| Agent and developer access | MCP server (300+ tools) and REST API (280+ endpoints) with scoped keys | Xero API and an app store of 1,000+ apps |
| Multi-currency | US-focused, USD books | Included on the Established plan |
| Corporate tax | Form 1120 and California Form 100 prepared from the ledger, filled onto the official PDFs | Not prepared in the product in the US; usually handed to an accountant |
| Cap table | SAFEs, convertible notes, priced rounds, investor data rooms | Not included |
| Payroll | In-house engine: federal plus California, Texas, Arizona; no money movement or e-file | Xero Payroll powered by Gusto, an add-on that handles tax filing and employee payments |
| Price | Free Starter plan; Pro $29/month; Business $99/month (pricing) | Early $27, Growing $59, Established $97 per month regular price, as of October 2026 (source) |
Xero's Early plan is limited to 20 invoices and 5 bills per month, and Xero runs introductory discounts for new US customers; check the Xero pricing page for current terms. Xero Payroll is listed there at $36 per month plus $6 per employee or contractor, as of October 2026.
Where Xero is better
- Ecosystem. Xero advertises integrations with more than 1,000 apps (source). ClearBooks' live integrations are a short list (Plaid, Brex, Stripe, Zapier, webhooks, CSV), and a direct Xero import is listed as coming soon.
- International businesses. Xero supports multiple currencies on its Established plan. ClearBooks is built for US companies with USD books.
- Payroll. Xero Payroll, powered by Gusto, handles payroll tax calculation and filing and employee payments (source). ClearBooks payroll calculates paychecks and prepares return figures but does not move money or e-file, and its state withholding rules cover California, Texas, and Arizona today.
- Maturity and accountant familiarity. Xero has been in market for years and many outside bookkeepers already use it. Pricing also carries no per-user license fees.
Where ClearBooks is better
- An agent that does the bookkeeping, under your control. The ClearBooks agent uses the same scoped tools as the API. Read-only questions run directly; writes appear as a proposed action showing the exact change, and nothing posts until you confirm. Closed periods are locked in the database, so neither the agent nor an API caller can post into them. See AI bookkeeping.
- Your own AI on your books. Connect Claude, Cursor, or a custom agent to the MCP server with an API key; each key carries explicit read or write scopes and sees only one organization.
- US startup filings from the ledger. ClearBooks prepares Form 1120 and California Form 100 from your books and fills the official PDFs, and tracks the California minimum franchise tax and Delaware franchise tax deadlines. You still review and file, ideally with a CPA. See tax.
- Equity and fundraising. Track SAFEs with valuation caps and discounts, convertible notes, and priced rounds, and share investor data rooms from the same system that holds your financials.
- Free to start. The ClearBooks Starter plan is free and includes bank connections and invoice creation; AI usage is metered in monthly credits, and Pro is $29/month.
Switching from Xero to ClearBooks
There is no direct Xero connector yet, so plan a clean cutover:
- Close your books in Xero at a month or year end.
- Export your chart of accounts and transactions to CSV, and record opening balances as journal entries in ClearBooks.
- Connect bank and card accounts through Plaid and let the agent categorize new activity.
- Reconcile the first month against your bank statements before relying on reports.
You can also leave: ClearBooks exports journal entries as a Xero manual-journal CSV and in QuickBooks IIF format. Details are in the docs.
Who should pick which
Pick Xero if you operate in more than one currency or country, you want a large integration marketplace, you need full-service payroll through Gusto, or your accountant already works in Xero.
Pick ClearBooks if you are a US C-corp startup, you want an AI agent to do the bookkeeping while you approve each change, you want MCP and API access for your own tools, and you want the 1120, payroll figures, and SAFEs to come from one ledger. See the pricing page to compare plans.
Frequently asked questions
Is ClearBooks a good Xero alternative for US startups?
For US C-corp startups that want an AI bookkeeping agent, MCP and API access, Form 1120 preparation, and a cap table in one ledger, yes. For multi-currency or international businesses, or teams that rely on many third-party apps, Xero is the stronger choice.
Does ClearBooks support multiple currencies like Xero?
ClearBooks is built for US companies keeping books in US dollars. Xero includes multi-currency on its Established plan, so if you invoice or hold accounts in several currencies, Xero is the better fit today.
Can I move from Xero to ClearBooks?
Yes, through CSV. A direct Xero import is listed as coming soon. Export your chart of accounts and transactions from Xero, import them, and enter opening balances as journal entries. ClearBooks can export journal entries back out as a Xero manual-journal CSV.
How does ClearBooks payroll compare with Xero Payroll?
Xero Payroll, powered by Gusto, files payroll taxes and pays employees. ClearBooks payroll calculates paychecks and prepares Form 941, Form 940, W-2, and California DE 9 figures, with state rules for California, Texas, and Arizona, but it does not send direct deposits or e-file.
What does each cost?
ClearBooks has a free Starter plan, Pro at $29 per month, and Business at $99 per month. As of October 2026, Xero US lists Early at $27, Growing at $59, and Established at $97 per month at regular price, with payroll as an add-on.