Home/Accounting Software/Xero
Updated on: May 26, 2020
What is Xero ?
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Xero

Efficient tool for small-scale businesses
(2,582 Ratings) Write Review

Xero is an award-winning online accounting software for small scale businesses. Xero offers a variety of features to make your business function smoothly and efficiently. The software handles all the accounting transactions effectively. It permits unlimited users to get online at a time and work in collaboration over data which is accessible through a single ledger. Xero also provides Bank Reconciliation services by importing the various transactions from your bank accounts and matching them with your cash-book. Business finances and cash-flow statements are updated on a real-time basis, helping you to keep a track of all your expenses and transactions.

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Xero Technical details

Support 24/7 (Live rep) Online Customer Type Freelancers Small Business
API Location / Phone Number Wellington, New Zealand
Deployment SaaS/Web/Cloud Mobile - Android Mobile - iOS Category Accounting Software

Xero Pricing

Pricing ModelFree Trial , Subscription
EARLY
$9 /Month

Features

  • Send 5 invoices and quotes
  • Enter 5 bills
  • Reconcile 20 bank transactions

Add-ons

  • Gusto full-service Payroll : Pricing starts at $39 per Month Base plus $6 per Month per person (Available across all 50 states)

All Plans includes these features

  • Invoicing
  • Inventory
  • Payroll with Gusto
  • Bank Connections and Reconciliation
  • Dashboard
  • Information security
  • Pay bills
  • Xero Expenses
  • Projects
  • Mobile App
  • Quotes
  • Reporting
  • Accept Payments
  • Purchase Orders
  • Multi-Currency
  • Files
  • Sales tax
  • Contacts and smart lists
  • Fixed Assets
  • Search
GROWING
$30 /Month

Features

  • Send invoices and quotes
  • Enter bills
  • Reconcile bank transactions
  • Includes features of All Plan
  • Includes features of Add-ons
ESTABLISHED
$60 /Month

Features

  • Send invoices and quotes
  • Enter bills
  • Reconcile bank transactions
  • Multi-currency
  • Expenses – capture and manage claims
  • Projects – track project time and costs
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Xero Pricing
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Disclaimer: The pricing details were last updated on 18/03/2018 from the vendor website and may be different from actual. Please confirm with the vendor website before purchasing.

Xero FAQs

Xero is Accounting Software. Xero offers the following functionalities:

  • Accounts Payable
  • Accounts Receivable
  • Bank Reconciliation
  • Billing and Invoicing
  • Cash Management
  • Collections
  • CPA Firms
  • Expense Tracking
  • Fixed Asset Management
  • General Ledger
  • Multi-Currency
  • Payroll
  • Project Accounting
  • Purchasing
  • Revenue Recognition
  • Spend Management
  • Tax Management

Learn more about Xero features.

The pricing for Xero starts at $9.00 per month. Xero has 3 different plans:

  • EARLY at $9.00 per month.
  • GROWING at $30.00 per month.
  • ESTABLISHED at $60.00 per month.

No, Xero does not offer a free plan.

Learn more about Xero pricing.

Yes, Xero provides API.

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Xero Reviews

OVERALL RATING
3.2
Based on 2,582 Rating(s)
Rating Distribution
  • 1234
  • 297
  • 336
  • 707
  • 8
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Jennifer HessSource : trustradius.com
(Reviewed on 10 March 2020)
Great for small biz & simple reporting needs

Use Cases and Deployment Scope

We switched from QuickBooks Online to Xero at the beginning of 2019, so we've been using it as our primary bookkeeping system for just over a year. I was attracted to it for its pricing, interface and integrations — specifically with my time tracking solution (Everhour) and credit card processor (Stripe). With QBO, it felt like all their new product development was just bolted on to an existing structure, but not well thought-out or easily navigable. Every year it seemed they were increasing the cost of my plan for services that were more difficult to use and poorly executed. With Xero, I was able to set up not only credit card options for my clients (which QBO also offers), but autopay solutions, PayPal (much easier to use & reconcile than in QBO) and ACH transfer options. While those take a fee, it helps to reduce the amount of time spent hunting down client payments.

We also began using Earth Class Mail (virtual mailbox) a few years ago, which automatically deposits any received checks to our bank, and has a Xero integration so I can record the deposit directly from the ECM interface (it has limitations, but that's an ECM issue not a Xero issue, though Xero may benefit from improving / expanding their API).

Pros and Cons

  • Simpler, more streamlined interface
  • Easy integration with payment services like Stripe, PayPal & GoCardless
  • Customizable email templates with merge tag support, including reminder emails and recurring invoice email templates
  • Recurring invoices are easier to setup, manage & modify (as compared to QBO)
  • Integration with time tracking solution (Everhour) is easy to manage, and doesn't create any invoice numbering issues due to the generation of invoices from two platforms (e.g., recurring Xero invoices and Everhour time tracking invoices). The system just uses the next sequential Xero invoice number regardless of which platform the invoice comes from. This was a problem on QBO + Harvest.
  • Vendors and clients are all lumped into a giant 'Contacts' pile, which makes it easier to manage contacts who fall into both categories (QBO gets confused about that), as I have clients who are also sometimes vendors.
Edit
  • The reporting options are VERY limited, especially as compared to QBO. Minimal support for filters, and it can be tricky to refine some reports by client.
  • Vendors and clients are all lumped into a giant 'Contacts' list, which can make management & organization there difficult. Especially considering the limited reporting options. You can group them, and it has some 'smart grouping' options, but if you don't create an official 'bill' for every expense, or generate an invoice for every past client on your books, the system won't auto-identify 'suppliers' or 'customers'. So, basically, the groups have to be set up manually.
  • All of the digital payment solutions are paid platforms. There is no free bank-to-bank option like with QBO. Likely due to the use of 3rd party vendors for its payment services.
  • There's a 'classic' and 'new' interface, and users can switch between them. But they don't offer the same features, so I find myself using the 'classic' (less pretty) more often. Though I periodically check the 'new' interface, which seems to be improving.
  • Limited support by accounting professionals (in the US at least). My CPA hates it. But I do most of the day-to-day management myself anyway.
  • You can assign billable expenses to a customer, however, sometimes you want to assign it to a customer without actually billing it on their invoice (e.g., it's included in a flat project rate). The system doesn't allow for that. You either have to assign & bill it to the client, or just list it as a regular expense (I add a manual note as to which client it was used for).

Likelihood to Recommend

Xero is great for small businesses who don't need a lot of complex features, or who will be managing accounting internally. It has robust integration capability that can grow with you (more so than, say FreshBooks), but won't break the bank.

It's not as well suited for larger organizations or those with more complex reporting needs. For example, I acquired another business several years ago, and needed to pull quarterly reports of income from specific clients in order to calculate my pay-out for that quarter. I did that in QBO fairly easily, and had a saved template that I could use to generate it. Luckily I made the switch to Xero after the final pay-out because it would be very difficult to generate such a report now, since there aren't any report filters where you can select only specific customers from your contact list. Xero does support customized report templates that can be saved, the filtering options are just very limited. Essentially, you have to export all of the data to a CSV and then manipulate the spreadsheet locally.
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Genie ForknerSource : trustradius.com
(Reviewed on 09 March 2020)
Perfect For Freelancers & Micro Agencies

Use Cases and Deployment Scope

We have used Xero across our whole organization as an affordable alternative to QuickBooks. With little to no bookkeeping experience, It's user-friendly interface allowed me to effectively and efficiently reconcile my payables and receivables and generate dynamic reports to track our overall financial performance and identify areas of opportunity.

Pros and Cons

  • Integrates perfectly with PayPal and Traditional Banks
  • Allows a novice to generate detailed reports and analytics
  • Easy to use visual interface
  • Affordable alternative to Quickbooks
Edit
  • Sorting and grouping invoices when reconciling payables
  • Payment interface integration with PayPal
  • Streamlining the banking history import features.

Likelihood to Recommend

Xero is an ideal solution for Freelancers or Micro Agencies. It's easy to use, and you don't have to have a degree in finance to reconcile your books, keep accurate records, and generate reports.
It may or may not be as effective if multiple users were needed with various permission roles.
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Lori FeldmanSource : trustradius.com
(Reviewed on 04 March 2020)
Who Thought Accounting Could Be Fun? (Not Me)

Use Cases and Deployment Scope

After 10+ years with QuickBooks, I was ready for a change to accounting software that was designed for non-accounting types and didn't require me spending 5 hours a month to reconcile. (To be fair, we were on the desktop version and Xero's online version is what appealed to me.) The user interface in Xero was simple to understand because each screen only gives you so many choices. I only have 5 employees and only 2 on payroll. The rest are 1099s. Three of us have access, but I'm the only one with admin access.

Pros and Cons

  • Beautiful proposals compared to QuickBooks.
  • Easy reconciliation through the bank feed.
  • Customer service ALWAYS responds, although it may take them a day or so. I never feel abandoned by support.
  • Active and helpful community forum.
Edit
  • Even after 3 years, they never added Missouri to payroll, so I had to hire an outside payroll company, then reconcile their records with Xero.
  • The bank feed broke when my bank changed their authorization to a 2-step verification. Xero said it was out of their control, but I ended up having to export/import several times a month to stay up to date. Bummer.
  • Custom reporting is limited. There were many reports I would like to see and there's no way to create them unless Xero gives you something similar to customize.

Likelihood to Recommend

I couldn't believe how little time I spent reconciling, compared to when I used to use QB. Xero is perfect for small businesses that don't have many transactions. I'm not sure if a larger company, with a CFO type role would find it detailed enough...not saying they wouldn't. But I have ZERO (no pun intended) expertise in accounting, so use a minimal amount of the firepower it seems to have. Reporting is not very detailed, so that would not be acceptable if I were more numbers oriented. As it is, I get that detail from my CPA, outside of Xero.
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Karen TkaczykSource : trustradius.com
(Reviewed on 28 February 2020)
Accounting software that does what I need it to

Use Cases and Deployment Scope

Since 2015, Xero has been my company's accounting solution. It handles all my bookkeeping and reporting needs and handles multiple currency transactions beautifully. I use it mainly on the web from my office but find the Android app helpful when I need to manage things on the go. I am an independent contractor providing a service on a freelance basis, across borders.

Pros and Cons

  • Cloud-based with web and mobile app versions.
  • Supports multiple currencies
  • Great UI
  • Easy to navigate
  • Many reporting options
Edit
  • Response time for improvements
  • No response to the only feature request I ever made (and many other users have supported my request).
  • They changed the payroll services without prior notice. (outsourced to a partner for US payroll).
  • They changed pricing without notice.

Likelihood to Recommend

I have recommended Xero many times to other freelance translators and interpreters as an excellent solution at a reasonable price. I have not regretted my choice to switch to Xero in 2015.
Read Karen Tkaczyk's full review

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Verified UserSource : trustradius.com
(Reviewed on 28 February 2020)
Use the Fabulous Xero - Cloud Based Accounting Intelligence

Use Cases and Deployment Scope

  • The Robby Group is a Consultant/Advisory Accounting Firm that uses Xero, and all of our clients use Xero.
  • Our client base is small businesses with ten or fewer employees that need a reliable accounting, cloud-based application.

Pros and Cons

  • On the lowest level, easy to start using
  • On a higher level, it provides useful accounting reports that both accountants and non-accountants can read and understand.
  • Excellent Integration with other applications
Edit
  • Journal Entries - Accountants need to be able to entry to any Cash Accounts rather than always using "Spend" or Receive" Money.

Likelihood to Recommend

  • Xero is suitable for small to mid-size companies
  • Large Corporations would most likely need a more advanced package
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Holly SnellSource : trustradius.com
(Reviewed on 27 February 2020)
Xero is a great choice for Small Business

Use Cases and Deployment Scope

We use Xero for our sole accounting software. We have a multi-currency company, and this is a massive help with exchange rates and tracking. We are a small company, so just the controller and CCO use this as they are the sole providers and in charge of all inputs of all information.

Pros and Cons

  • Bank account connections to auto-download transactions - really help in ease and time management.
  • Multi-Currency capabilities
  • Financial reporting - concise and a lot of reports to choose from
Edit
  • 1099 capabilities are lacking - 1099 report is cumbersome to produce and doesn't save logistics for the next year or next time you need to run the report.

Likelihood to Recommend

I highly recommend Xero for small businesses. It is concise and has all of the capabilities that small companies might need. It is easy to set up, and the price point is spot on. It is a great step up from using Quickbooks and has helped with our financial tracking and reporting.
Read Holly Snell's full review

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Verified UserSource : trustradius.com
(Reviewed on 27 February 2020)
Not sure what we did before Xero!

Use Cases and Deployment Scope

Xero is used for all of the accounting needs across the organization. Xero allows us to keep track of all of our accounts, transactions, and invoices in one place, and we rely on Xero for budgeting and reporting purposes. Xero also connects seamlessly with our payroll service provider.

Pros and Cons

  • The user interface is very easy on the eyes and intuitive, even for people with little accounting background/experience.
  • Xero produces beautiful and easily customizable reports.
  • Having Xero connect seamlessly with our payroll service provider makes accounting so much easier for us.
Edit
  • Xero is not designed for nonprofits, but it still meets all of our needs.

Likelihood to Recommend

As a nonprofit, we often need to create different reports for foundations, donors, grant applications, and Board members. The reports are easy to generate and easy to customize.
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Jeremy GrantSource : trustradius.com
(Reviewed on 26 February 2020)
XERO issues, XERO hassles, EZ use!

Use Cases and Deployment Scope

Xero is used across our organization. Aside from the standard accounting functionality that it offers, we use it extensively for quotes. The simple, intuitive nature of the user interface allows for a range of user skills, whilst at the same time providing an efficient tool for our business. Its integration with Insightly CRM allows our sales team to easily stay on top of their clients' account status as well. All employees make use of the Expense Claims module, allowing them all to track claims from time of entry through to payment.

Pros and Cons

  • Xero does the accounting and bookkeeping basics very well, and it also caters for the more experienced users to report comprehensively on the current status of their business.
  • Xero is Software-as-a-Service (SaaS), therefore we don't worry about backups. Our friends at Xero do that for us. It's also available 99.99% of the time.
  • Xero is accessible on any machine. We don't need to manage databases, VPNs etc. It's all done for us, securely!
Edit
  • Reporting on the Quotes modules. It is very difficult to manage large volumes of quotes.
  • Access levels could be more granular. Certain areas of the package allow for great flexibility, however there are times when you do need to restrict certain functionality. This is not a deal breaker however!

Likelihood to Recommend

Xero is very well suited to the small-medium sized business. I am comfortable saying this as this is where our business is positioned. I cannot comment on its suitability to larger businesses with many users. From the ease-of-setup, to designing and generating more complex reports, there is not much that is not relatively straightforward to do. Add to this the wealth of knowledge available online, we're very self sufficient with Xero, as opposed to our older system, which required constant interventions by our consultant and days of waiting for any modifications required. With Xero, the system update responsibility is taken out of our hands. More reason to switch to a SaaS product.
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Jamie WilkinsonSource : trustradius.com
(Reviewed on 19 February 2020)
Xero is the Pro’s choice

Use Cases and Deployment Scope

We use Xero as our accounts package for our media business. We use the product online, and we are using the app. It is used by our accounts department and also for the directors to pull off reports. It is a must for all businesses and is a cloud-based software. It allows us to use the product anywhere where there is an internet connection.

Pros and Cons

  • Xero is cloud-based software, unlike the sage product we were using, which allows us to have access from anywhere.
  • Xero links up with lots of other products we use to streamline processes.
Edit
  • The app does not update straight away - when looking at the P+L, and it doesn’t show the same figures as it does in the browser in real-time.
  • When you move from another provider, you have to set up new categories for costs and income.

Likelihood to Recommend

Xero is a must for a business of our size yet may not be required for a smaller business with less invoicing etc. Also, if you work from multiple locations, it is vital to have a cloud software like Xero, before we would have to use Log Me In to get access to the server.
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Verified UserSource : trustradius.com
(Reviewed on 05 February 2020)
So easy to use , saves us so much on Accountant Fees

Use Cases and Deployment Scope

We find Xero easy to use especially the mobile app, we can always update things on the go. Even without a vast knowledge of accounting, we can keep it all updated and only need to see our accountant every quarter.

Pros and Cons

  • The convenience of the mobile version.
  • Setting up rules for easy transaction allocation.
Edit
  • For some reason, one of our preset rules works on the desktop version and not on the mobile version. We have to do this one on the desktop each time.
  • Even though it is a security measure, the 2 point verification is a pain when changing mobile phones.

Likelihood to Recommend

So easy to understand and to keep all of our accounts up to date on the go with the mobile app - we can do it all ourselves and only finalize our quarterly reports with our account, this saves us huge costs.
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Videos on Xero

Xero - 2min Product Summary - Features, Mobility, Security, Integrations & Pricing

Xero Screenshots

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Xero Demo - Xero Bank Reconciliation
Xero Demo - Expense Claim
Xero Demo - Xero on the iPhone
Xero Demo - Xero on Android
Xero Demo - Xero on the iPad
Xero screenshot: Xero payroll
Xero screenshot: Xero reporting
Xero screenshot: Easily create new invoices.
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Xero Demo - Xero Bank Reconciliation
Xero Demo - Expense Claim
Xero Demo - Xero on the iPhone
Xero Demo - Xero on Android
Xero Demo - Xero on the iPad
Xero screenshot: Xero payroll
Xero screenshot: Xero reporting
Xero screenshot: Easily create new invoices.
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Articles on Xero

Research Report
Accounting is an essential part of any size of business - be it small or big, and is a strong... read more

Customers

Xero Accounting Software Software
Xero Accounting Software Software
Xero Accounting Software Software
Xero Accounting Software Software
Xero Accounting Software Software
Xero Accounting Software Software