Accounting Software Price Hikes Hit SMEs: Budget for October
QuickBooks raised prices across its Online range in August 2026, with increases ranging from 13-24%. QuickBooks Online Essentials (three users) now costs £85 per month, up from previous rates. QuickBooks Online Plus (five users) rose from £115 to £140 per month. QuickBooks Advanced jumped to £340 per month.
Xero has announced a smaller but still significant increase: 7-8% across US plans, effective October 1, 2026. While Xero's hike is lower than QuickBooks', the cumulative cost over a year still adds up for SMEs managing tight margins.
For Ltd companies and sole traders using these platforms, this is an opportunity to review whether you're on the right plan. Many SMEs upgrade to higher tiers to unlock features but may be paying for functionality they do not use. Others find they've outgrown the entry tier and need the upgrade anyway.
Before October 1, consider these steps: audit which users in your organisation actually need licences, switch to a lower tier if your feature needs have changed, or evaluate alternatives like Sage, FreshBooks, or Zoho. Some firms negotiate annual contracts with software vendors to lock in rates before price hikes take effect.
For SME owners working with bookkeeping services or a management accountant, discuss software costs as part of your year-end review. The cost of cloud accounting, payroll, and payments now represents a material line item for many businesses. Planning ahead beats surprises in October.