Xero Review 2023: Pricing, Features, Pros and Cons

Xero’s invoicing capabilities allow you to create and customize an invoice for clients and then accept credit card, debit card or bank transfer payments within the invoice itself. Xero processes payment through a payment gateway like Stripe, GoCardless and others. Keep in mind that these services charge a fee to process payments (usually around 2.9% plus 25 cents per transaction, though this varies by the payment processor).

It’s also a good fit if you want to integrate Gusto Payroll to your accounting platform. It allows three users for its Essentials plan ($55 per month) and 25 users for its top plan, the Advanced ($200 per month). Xero, on the other hand, offers unlimited users for all plans. This can be helpful if your company is growing fast, or you simply want the reassurance that there’s no limit to how many people can be part of the team. The Early subscription is tailored for solopreneurs and business owners who are just getting started.

What are some competitors to Xero?

These reports help small business owners identify areas for improvement and make evidence-based decisions in real time. The Growing plan costs $42 per month and includes unlimited numbers of invoices and bills. In addition to the features on the Early plan, the what is xero Growing plan also includes bulk transaction reconciliation to speed things up. Has robust reporting tools and report customization options, basic inventory tracking in all plans and a capable mobile app; Early plan limits the number of invoices and bills.

Xero doesn’t provide a phone number on its customer support page, but a representative will call you if necessary. This is a serious drawback if you want to be able to pick up the phone and talk through an issue or are new to accounting software and have lots of questions. Xero lets new customers sign up for a 30-day free trial to test out its features.

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QuickBooks is a popular accounting software used by small businesses, solopreneurs and freelancers. The software helps users to keep track of their finances, customers and vendors. If you can’t justify the $90-per-month QuickBooks Online Plus plan, you won’t get inventory management, because QuickBooks Online’s lower-tier plans don’t come with it. This could be a real shortcoming for small online retail businesses, for instance, that need to keep track of their products and the materials used to make them. All of Xero’s plans come with inventory management so business owners can track what’s in stock and which products are selling.

So if you’re working with your advisor to make the transition, keep in mind they’re likely helping many others do the same. Stay patient as they work through the process, and in the meantime, check out our Resource Hub or Xero Central for more information. You’ll need to identify and update certain pay items with the new earnings categories defined by the ATO for STP Phase 2 reporting. This is because gross amounts for each income type will now need to be reported as a separate itemised amount, like overtime or allowances. Head to Xero Central for more details, including a breakdown of the different earnings categories. Xero does not provide accounting, tax, business or legal advice.

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Its $70-per-month plan also includes multiple currencies, project tracking, in-depth analytics and employee expense claims. Starting at $40 per month, add payroll to any plan using Gusto. Xero comes in three pricing levels, all of which kick in after a 30-day free trial, and they all support unlimited users.

• That can be limiting, even for freelancers and sole proprietors.
• There are a number of alternative accounting software programs that can offer powerful features and a user-friendly interface.
• Xero Expenses supports employee expense claims and lets users snap photos of receipts.
• Collaborate easily, automate manual tasks & access client records any time with tools to manage your practice.
• Xero is robust, cloud-based software with strong accounting, ample integrations, and some great features.

Xero and QuickBooks have similar pricing, except when it comes to QuickBooks Desktop. The Desktop plan offered by QuickBooks starts at $349.99 per year, goes up to $804 for your first year and renews at $1,340 per year. Integrates with more than 750 apps and offers live, in-house bookkeeping add-on. Xero has a reputation for some of the strongest cloud security out there. Security measures include data encryption, two-step authentication, and 24/7 monitoring at multiple locations. Data is backed up daily across various servers, and regular security audits are performed.

It also provides snapshots of your expenses, creditors, bank balances, and debtors. Xero software is nothing but a practice manager tool used to manage staff, track time, and assign tasks. Keep your practice a step ahead with Xero accounting software.

But if your business needs project management or multicurrency support, Xero doesn’t come cheap. If you run a small business, explore all of your options by checking out the top alternatives to Xero. Unlimited users and advanced features make this cloud accounting software platform a good fit for many small businesses.

The basic plan allows users to send unlimited invoices and estimates and track unlimited expenses up to five clients. After you start a free 30-day trial of Xero, you’ll activate the account and provide details about your business. Then, you can connect your bank accounts to Xero and decide if you’ll accept electronic payments for online invoices.