About Xero

Xero is an accounting system designed for small and growing businesses. Xero connects small businesses with their trusted advisors and provides business owners with instant visibility of their financial position. As a web-based solution, Xero can be accessed from any device with an active internet connection. With Xero's robust accounting features, small businesses can view their cash flows, transactions and account details from any location. Bank transactions are all automatically imported and coded. Online bill pay helps keep track of spending and stay on top of bills due, improving relationships with the vendors that provide critical business materials. With Xero, personal expenses can also be managed with mobile review and approval of each receipt. Xero offers unlimited user support and integration with a variety of systems, including ADP, Bill.com and Vend. The solution comes with a 30-day free trial period for product testing and feature evaluation.
What is Xero?

Xero is an online accounting system designed to simplify business tasks such as paying bills, managing expense claims, creating invoices, and more.


How do you use Xero?

Xero’s main hub is accessible online and used to manage staff and client data. Its Practice Manager tool is used to manage jobs, assign tasks, and track time. Xero can be integrated with external systems and connected to bank accounts to provide automated transaction feeds.


Who uses Xero?

Xero is primarily used by small business owners, accountants, and bookkeepers.


How much does Xero cost?

Xero offers three pricing plans. "Early" is for new businesses, sole traders, and the self-employed and is $5.50 per month. "Growing" is for small/growing businesses and is $16 per month. "Established" is for established businesses and is $31 per month.


Does Xero have an app?

Yes, the Xero Accounting mobile app (for iOS and Android) provides on-the-go access to invoices, contacts, bank account balances, spending, cashflow, and more.


Xero Software - Xero dashboard
Xero Software - Xero personal dashboard
Xero Software - Xero bank reconciliation
Xero Software - Xero bank account management
Xero Software - Xero payroll overview
Xero Software - Xero inventory management
Xero video
Xero Software - Xero dashboard - thumbnail
Xero Software - Xero personal dashboard - thumbnail
Xero Software - Xero bank reconciliation - thumbnail
Xero Software - Xero bank account management - thumbnail
Xero Software - Xero payroll overview - thumbnail

Xero pricing

Xero does not have a free version but does offer a free trial. Xero paid version starts at US$12.00/month.

Starting Price:
US$12.00/month
Free Version:
No
Free trial:
Yes

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Xero Reviews

Feature rating

Value for Money
4.2
Functionality
4.2
Ease of Use
4.3
Customer Support
4.0
5 reviews of 2,466 View all reviews
Kathryn
  • Industry: Arts & Crafts
  • Company size: Self Employed
  • Used Weekly for 1+ year
  • Review Source
Value for Money
5
Features
5
Ease of Use
5
Customer Support
5

5
Reviewed on 26/08/2019

Affordable professional level accounting software for small business

It's been easier to use Xero than I expected, but I had a nasty surprise at tax time when I realized the default accounts/descriptions for expenses did not correlate 1:1 to IRS categories. (I should have checked this more closely when I set up my accounts because it's a New Zealand company, and the previous product was local.) This means I will need to double-check all my transactions for 2018 and the IRS has my vastly overestimated tax payment until I can do that and file my return on an extension.

I've had a much better experience importing data from financial institutions because Xero uses a well-known importing service that is trusted by the institutions.

I like being able to match multiple invoices to bank deposits because I usually don't run to the bank for each check. This will be more valuable as my company grows.

I should probably find an accountant to assist me with this, but I haven't found an accountant who understands both craft businesses and Xero.

Pros

Professional double entry software at a very affordable price
Accommodates both cash and accrual accounting
Links to financial institutions to get transactions
Uses standard importer recognized by the financial institutions instead of just trying to log in remotely (and triggering fraud alerts)
Can match multiple invoices to a single deposit transaction imported from bank
Can keep using Xero as company grows

Cons

Pre-existing expense categories/descriptions don't map 1:1 with IRS definitions, so I'm having to go back to all my receipts to make sure expenses are entered in proper accounts because I didn't realize this when I switched
More difficult to focus on specific expense categories to check transactions
Have not been able to import historic data from previous app (possibly because it's not double entry) so I am still paying the subscription on that software to retain access to my data
No integration with Craftybase, so I have to enter supply purchases and customer invoices there independently

Alternatives Considered

Quickbooks Online

Reasons for Choosing Xero

Outright depends on importing data from financial institutions but they were extremely unreliable (apparently they don't use a standard importing service and my credit union kept flagging them as hackers for remote logins) and customer service kept giving me the runaround. It also isn't "professional" double-entry bookkeeping and can't be audited. Outright can't handle Cost of Goods Sold properly and requires manual workarounds. It can't generate professional reports needed when applying for loans.

Reasons for Switching to Xero

QuickBooks introduced a special product for Etsy integration, but early adopters had problems with data disappearing and no way to recover it. Otherwise, the cost of QuickBooks to cover the same features I use in Xero would have been very expensive; even a QB consultant told me it's overkill for a business of my size. I forget which other products I looked at, but Xero was recommended by several owners of similar businesses.
Warren
  • Industry: Information Technology & Services
  • Company size: 11-50 Employees
  • Used Weekly for 1+ year
  • Review Source
Value for Money
4
Features
5
Ease of Use
4
Customer Support
5

5
Reviewed on 05/01/2023

One of the best account GUIs on the market

The transition from our old accounting software to Xero was very straight forward. This was down to the great GUI provided by Xero.

Pros

The appearance of XERO makes the whole experience faultless. New users are able to quickly adapt to it and know what to do. It's incredibly intuitive. It is a fresh layout and, dare I say, fun to use.

Cons

The support, when required, isn't as great as we used to receive from Sage. I have no major grumbles about them, but they don't come across with the same level of customer service.

Alternatives Considered

QuickBooks Desktop Pro

Reasons for Choosing Xero

Our accountant was using XERO and recommended it to us.

Reasons for Switching to Xero

Mainly because our accountant uses it.
Dana
  • Industry: Computer Software
  • Company size: 2-10 Employees
  • Used Daily for 2+ years
  • Review Source
Value for Money
1
Features
1
Ease of Use
1
Customer Support
1

1
Reviewed on 09/12/2022

It used to be so good

It's been pretty horrible. They have some of the worst customer service I have ever seen with an enterprise software tool.

Pros

Originally, Xero offered a fully cloud-based accounting solutions. Unfortunately, it has completely degraded and can no longer serve basic functions.

Cons

Xero completely stopped integrating with our bank. It has been several months with no sign of a fix and very little communication. Our books are now a complete mess, we are not able to close out the year or file taxes. It will probably cost us a couple thousand dollars to manually do what Xero used to do automatically.

karl
  • Industry: Retail
  • Company size: 11-50 Employees
  • Used Daily for 2+ years
  • Review Source
Value for Money
5
Features
4
Ease of Use
5
Customer Support
4

5
Reviewed on 09/11/2022

Great software for SMB

We came to Xero from Sage and has changed the way we manage our accounts, and helped the team be more productive.

Pros

customer service is great, even for an SMB like ours, we get good response times and knowledgeable people. the system is very easy to use and has great functionality for managing our sales and supplier invoices so that we can keep track of our cashflow accurately. Apps library is great and has everything that we need.

Cons

certain functionality around automation and AI is not there but can be added via connected apps.

Alternatives Considered

QuickBooks Desktop Pro and Quickbooks Online

Reasons for Choosing Xero

needed more functionality and fewer manual processes

Reasons for Switching to Xero

Allowed for a more flexible account and functionality was better than other solutions and better connected to other apps and services
Garreth N
  • Industry: Accounting
  • Company size: 11-50 Employees
  • Used Daily for 2+ years
  • Review Source
Value for Money
4
Features
4
Ease of Use
4
Customer Support
3

4
Reviewed on 25/12/2022

Expensive But Good

Overall it has saved time, mostly thru automation of bank accounts and bank rules. As with all software there is some frustration, but Xero are continually improving.

Pros

The software is easy to setup, easy to use, very transparent and well-supported by many accountants. It is designed with the end-user in mind, rather than the accountant. Depending on your package, it allows filing direct with IRD for GST and Payroll.

Cons

There is no phone support, only via a web portal. Some matters are not documented well in any of the Xero-supplied "how to" e.g. best practice for issuing dividends.

Alternatives Considered

MYOB Business

Reasons for Choosing Xero

Accuracy and time.

Switched From

Microsoft Excel

Reasons for Switching to Xero

Easier to use.

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