Xero Accounting Software Review For 2025
Xero Accounting Software Plans & Pricing
Xero Comparison
Expert Review
Pros
Cons
Xero Accounting Software's Offerings
Xero offers three distinct plans to accommodate a variety of needs.
Early:
Priced usually at $20 but currently discounted to $2 USD/month, the Early plan is a budget-friendly option that allows users to send quotes and 20 invoices, enter 5 bills, reconcile bank transactions, and enjoy the features of Hubdoc. This plan targets businesses with fewer transactions, making it suitable for start-ups or sole proprietors. When compared to similar platforms, the inclusion of features like Hubdoc at this price point might be considered competitive.
Growing:
Initially priced at $47 and now available for $4.70 USD/month, the Growing plan offers more flexibility. This plan includes everything in the Starter but without the restrictions on the number of invoices and bills. It’s likely ideal for growing businesses that require regular financial activities without the constraints of the Early plan. The Growing plan’s robust offering at a moderate price could be deemed a value for money, especially given the current promotional offer.
Established: For businesses with more intricate financial needs, the Established plan, originally $80 but currently offered at USD 8/month, includes all features from the previous tiers and adds functionalities like multi-currency and Analytics Plus. It’s designed for businesses that operate on a global scale or those that need deeper financial insights. The multi-currency feature, in particular, stands out as a significant advantage when compared to some competitors that might offer this only at a higher cost.
For all plans, claiming expenses and tracking projects are optional add-ons starting from $5 and $10 respectively, allowing businesses to customize according to their requirements.
With Xero offering 60% off their plans, businesses can enjoy substantial savings over the initial three months. Given the broad range of features across the plans and the current promotional pricing, Xero presents a compelling value proposition against other accounting software in the market. It’s worth noting that over 3.7 million subscribers trust Xero, further reinforcing its market reputation.
Customer Support
Xero offers a comprehensive range of support options for its users, ensuring they can get assistance when needed. While not all support channels are available 24/7, they do prioritize delivering timely and informative assistance through multiple mediums.
Features & Functionality
General Features
Multi-currency Invoicing
Xero offers a dynamic multi-currency feature, allowing businesses to handle transactions in various global currencies seamlessly. This is vital for businesses operating in the international marketplace, as it allows for instant currency conversions, management of exchange rate fluctuations, and consolidated financial reporting across multiple currencies.
Custom Reporting and Dashboards
Xero provides customizable reporting tools, enabling businesses to tailor their financial reports according to their specific needs. The intuitive dashboards present real-time data, allowing users to have a clear and up-to-date picture of their financial health at any given moment. For businesses, this means making informed decisions based on accurate and relevant data.
Auditing Features
The software comes with an in-built audit trail, which means users can track changes made to the financial data over time. This is crucial for maintaining transparency, and accountability, and ensuring that financial records are accurate and uncompromised.
Payment Integration
Xero integrates smoothly with numerous third-party payment gateways, like Stripe and PayPal, streamlining the invoicing and payment process. For businesses, this translates to quicker payments, improved cash flow, and a more streamlined accounts receivable process.
Tax Documents and Accountant Collaboration
Xero shines when it comes to tax documentation and collaboration with accountants. The software has specialized features for generating tax returns, managing VAT, and other tax-related tasks. Furthermore, Xero offers a “Collaborate” feature, where users can invite their accountant or financial advisor directly into their account. This allows for real-time collaboration, where both parties can view and edit financial data simultaneously, making tax time less cumbersome and more efficient.
Access and Compatibility
Xero is a cloud-based accounting software, which means users can access their financial data from anywhere, as long as they have an internet connection. This cloud-first approach ensures data is always backed up, updated in real-time, and secure. Xero also offers a mobile app, available for both Android and iOS, enabling users to manage their finances on the go, from invoicing clients to reconciling transactions.
Browser compatibility
Xero works well with all major web browsers, including Chrome, Firefox, Safari, and Edge. As it’s web-based, there isn’t a traditional desktop version, but the advantage here is that users won’t have to worry about manual software updates or compatibility issues with their operating system.
Xero Accounting Software offers a comprehensive suite of features tailored for modern businesses. Its cloud-based infrastructure, combined with unique features like multi-currency invoicing and custom reporting, makes it a go-to choice for many SMEs and larger enterprises alike.
Track Expenses
Monitor and categorize expenses for accurate financial tracking.
Tax Preparation
Streamline tax compliance with automated preparation tools.
Time-Saving Automations
Automate repetitive accounting tasks to boost efficiency.
Add-Ons
Xero offers a plethora of features and integrations to streamline the accounting process, making it easier for businesses to manage their finances.
Add-on Options:
Payment Processing: Xero supports payment processing integrations with several online payment gateways, such as Stripe, PayPal, and GoCardless. This allows businesses to send online invoices and get paid faster by their customers directly through the invoice link.
Payroll Processing: Xero offers its own integrated payroll feature in select regions, ensuring seamless financial and payroll management within the same platform. Moreover, for regions where native payroll might not be available, Xero provides integrations with third-party payroll solutions.
Project Management: While Xero has its built-in project management module to track time and projects’ profitability, it also integrates with other dedicated project management tools like WorkflowMax to provide more detailed functionality.
Time Tracking: Xero integrates with various time tracking tools, such as TSheets and Harvest, to assist businesses in monitoring employee hours and invoicing accordingly.
System Integrations:
Time/Expense & Payroll Tools: Beyond its native capabilities, Xero integrates with tools like Expensify for expense management and Gusto for payroll services in the US.
CRMs: Xero connects with multiple Customer Relationship Management (CRM) systems like Salesforce and Insightly, bridging the gap between sales and accounting.
Payment Gateways: As mentioned, it integrates with Stripe, PayPal, GoCardless, and other payment processors to facilitate online payments.
Automation and Connectivity: Zapier is an important integration for Xero, as it allows the software to communicate and share data with thousands of other apps, automating workflows and tasks across different platforms.
Xero offers a vast array of integrations and add-ons, from payment processing to app connectivity. This extensive range of features and integrations allows businesses to create a tailor-made financial management system to suit their specific needs.
Supported Devices
Access accounting tools seamlessly across various devices.
Ease Of Use:
One of the notable benefits of Xero is its straightforward setup process. Since it’s a cloud-based solution, it doesn’t require any software installation on a local computer. This means businesses can get started almost instantly after signing up for an account. It doesn’t necessitate IT support for installation, which can be especially appealing for smaller businesses with limited IT resources.
Here’s a deeper look into specific areas of the software.
Interface
Xero boasts a clean and user-friendly interface, designed with non-accountants in mind. The layout is intuitive, with clear navigation menus, accessible features, and concise labeling. Whether you’re reconciling bank transactions, setting up invoices, or generating financial reports, the processes are designed to be straightforward and easily comprehensible.
Dashboards
The dashboard in Xero provides a snapshot of the business’s financial health at a glance. It presents crucial metrics such as bank balances, outstanding invoices, upcoming bills, and cash flow in visually appealing charts and graphs. The customization capabilities allow users to tailor the dashboard to show the most relevant information according to their needs.
Learning Curve
While Xero is designed to be user-friendly, like any robust software, there may be a learning curve, especially for those new to accounting software. However, the curve isn’t steep. Many users find they can accomplish basic tasks after just a short time exploring the platform. The software’s consistency in design across different sections further aids in its ease of use.
Training Program
Recognizing the importance of effective onboarding, Xero offers a range of resources to facilitate the learning process. They have a comprehensive online help center, video tutorials, webinars, and even courses through Xero U. For businesses wanting a more hands-on approach, Xero has a network of advisors who can offer personalized training.
Xero has carved a niche for itself in the accounting software market by ensuring user-friendly features backed by a robust set of tools. Its cloud-based nature eliminates cumbersome installations, and the various training resources provided ensure that businesses can get the most out of the platform efficiently.
Verdict:
Xero offers a robust, flexible, and user-centric accounting solution, backed by innovative features and an expansive range of integrations. Its cloud-based approach, combined with a vast spectrum of tools, positions it as a top choice for businesses of all sizes.
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