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$5.50/month.

Starting Price:
US$5.50/month
Pricing Details:
Early: $5.50/month Growing: $16/month Established: $31/month
Free Version:
No
Free trial:
Yes

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Xero Reviews

Feature rating

Value for Money
4
Functionality
4
Ease of Use
4
Customer Support
4
5 reviews of 2,019 View all reviews
Kathryn H.
  • 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.
Ralph M.
  • Industry: Consumer Services
  • Company size: 2-10 Employees
  • Used Daily for Free Trial
  • Review Source
Value for Money
5
Features
5
Ease of Use
5
Customer Support
5

5
Reviewed on 20/11/2021

Math-phobic business owners no more - Easy to Follow tabs, instructions, with examples. Thank...

business 101 - understand your business reports - this makes it a lot easier and on google drive, perfect

Pros

reconciling bank statements with the software's created titles and tabs is so much easier.

Cons

this is easy for my level = I can check bookkeeping and accounting annual documents myself.

Rowena J.
  • Industry: Accounting
  • Company size: 2-10 Employees
  • Used Daily for 2+ years
  • Review Source
Value for Money
4
Features
4
Ease of Use
5
Customer Support
4

5
Reviewed on 30/09/2021

It took me a while, but I am a Xero convert!

When I first began using Xero, I had heard a lot about it and was skeptical. Surely, no software could be so "all that"! I was introduced to it by a colleague who has converted the whole of her mid-size accountancy practice to it, and literally within a day and a half (which did include watching some of the short but very clear tutorial videos) I was not only up and running, but felt confident using it, finding my way around it, locating and fixing errors etc. It's literally that simple and straightforward. It's also incredibly stable - I think in 3 years it's only been offline (to my knowledge) 3 times, each for a very short period. I've also not found ANY bugs so far - almost unheard of! - and the support is fantastic, even though it's online.

Pros

Provided it's set up properly, Xero is probably the most friendly accounting software - to non-accountants that is - of any I've ever come across. Back in the 90's, MYOB revolutionised accounting software for small business, but Xero takes it to a whole new level, by removing so much of the data entry work that takes time, leaves room for errors and is in general a pain, when you'd rather be - you know, running your business. With Xero, it's up to the individual operator how much they want to automate their accounting transactions; if you want to, you can use the really powerful, but still simple tools to do a lot of the legwork for you. If you prefer to do it more manually, that's OK too - it's still simple and very quick and easy to use.

Cons

Xero is constantly adding and refining its software. Inventory control is an area I'd like to see strengthened, but that's already way ahead of where it was a couple of years ago. Similarly processing payments in advance. But these are relatively small niggles which for the majority of small businesses don't present any issue.

Alternatives Considered

MYOB Business

Reasons for Choosing Xero

I was contracting to an accountancy firm who had converted their entire practice to Xero.

Switched From

MYOB Business
Quincy N.
  • Industry: Retail
  • Company size: Self Employed
  • Used Daily for 1-5 months
  • Review Source
Value for Money
5
Features
5
Ease of Use
5
Customer Support
5

5
Reviewed on 13/01/2022

Making accounting simplified and easy to navigate

Excellent experience so far! I switched from Quickbooks and never turned back

Pros

The software has been crucial for the operation of my small business, it connects with Shopify sales very well and the reporting functions allows me to track sales and profitability easily. It also makes it easy for tax time.

Cons

N/A - every function has been great and no dislikes as yet

Richard G.
  • Industry: Mining & Metals
  • Company size: 2-10 Employees
  • Used Daily for 6-12 months
  • Review Source
Value for Money
1
Features
1
Ease of Use
3
Customer Support
1

3
Reviewed on 19/05/2021

Better functionality elsewhere

Very poor. My expectations were high after all the good things I had heard about this software but my experience was so bad that we migrated (for the second time) to QBO. It also has issues but there is great support and maybe they will make some of the changes we have requested?

Pros

XERO was recommended by our accountant and I assumed , incorrectly, that the account worked closely with the software. They do at the enterprise level with P&L, BS and ATO annual returns but not at the day-to-day transaction level.

Cons

Certainly not best-of-class and we ditched it after 6 months and switched to QuickBooks Online. XERO is simply not designed with small business needs taken in to account. Delivery dockets, which the majority of small service businesses use every day, is clumsy and very inefficient.
Customer service is non-existent. You can post issues on XERO Central to your hearts content but there is no interest and less action.

Alternatives Considered

Reckon One and MYOB Business

Reasons for Choosing Xero

NBN finally arrived and we thought a cloud based solution would give us more access and flexibility.

Reasons for Switching to Xero

Accountants recommendation which was a poor one!

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