Xero Review: Pricing, Features, Pros and Cons

The new how to calculate the break plans are available from 12 September 2024 and Starter, Standard and Premium plans will no longer be sold. Access all Xero features for 30 days, then decide which plan best suits your business. To review this software, I signed up for a free trial of the Xero Established plan. I also reviewed official product documentation, watched demo videos, consulted user reviews and cross-referenced software reviews in industry publications.

Key features of Xero

Entering these bills is easy thanks to receipt capture with Hubdoc. This helps you see when all your bills are due and schedule batch payments accordingly. Xero doesn’t provide a phone number on its customer support page, but a receivable turnover ratio representative will call you if necessary.

How Xero and Sage Stack Up

Then again, QuickBooks requires user limits for each plan while Xero doesn’t. We compared the two options in terms of their key features, pricing and customer service to help you decide which is right for your business. We’re committed to the security of your data and provide multiple layers of protection for the personal and financial information you trust to Xero. Find out more about Xero’s commitments to data protection and data security. Sage’s accounts payable features are good, as they show you your current cash in, cash out and balance totals. The bank reconciliation feature should automate your transactions, but it would be nice to schedule payments all in the same place.

Once you’ve got your bank what is the point in reissuing a financial statement information in Xero, the software will help you match up your transactions for reconciliation (Figure B). Keep in mind that bulk reconciliation is not included with the cheapest Early plan, so you might have to pay to upgrade if you want this feature. I wish it was included in all plans, because manually reconciling one transaction at a time is very tedious for many businesses. Xero is a cloud-based, double-entry accounting software tool that is designed with small businesses in mind. More than 3.5 million users all over the globe use Xero to manage their billing and invoicing each month. In this Xero accounting software review, we’ll break down the pros and cons to help you figure out whether Xero is the right accounting tool for your needs.

1. Given that there are several invoicing software on the market, it’s worth putting in some time to research your options before choosing one for your business.
2. If you’re looking for an accountant who specializes in Xero, you can search for an accounting advisor through their website by location and industry.
3. Xero, FreshBooks and QuickBooks all offer 30-day free trials and extensive features for online support, including a live chat, email support and a knowledge base.
4. †Invoice limits for the Early plan apply to both approving and sending invoices.
5. As the industry standard, QuickBooks Online is ideal if you have a growing business with specific accounting needs — as long as you don’t mind taking the time to learn the program’s ins and outs.

One drawback is that the base plan only has support for one user. Automatic bank reconciliation makes sure your transactions are in sync, while the automated system converts quotes and estimates into sendable invoices. Don’t forget about the multi-currency support, which lets you accept payments from international clients. If you’re on a tight budget, then check out Wave Accounting, which offers a forever free Starter plan — yes, you read that correctly! Xero is a cloud-based accounting software product that’s easy to use and integrates with more than 1,000 apps. 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.

QuickBooks Online

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. For example, you can give all employees the ability to send quotes and invoices, allow some to enter expenses and limit who can see the company’s complete financial picture. To keep things organized, Xero logs every action users make and compiles the history of every transaction. Today’s leading accounting platforms offer standard security features like data encryption, secure credential tokenization and more. While human error will always play some role in security breaches, you can be confident in your accounting platform when it comes to keeping your information safe. Payments are due by the end of your monthly billing period based on the date you purchased your subscription.

Invoicing and payments

It also integrates with over a thousand apps, meaning if you can’t find a native feature you need, you can likely add it on. The included mobile app is great for checking accounting reports or invoices on the go. And with time tracking as an option on higher plans, you can easily keep records of time spent on tasks. We like Xero for businesses with lots of employees, as they can take advantage of the unlimited number of collaborators. FreshBooks starts at $19 per month after the signup discount and incorporates standout features like team roles and time tracking on all plans. The basic plan allows users to send unlimited invoices and estimates and track unlimited expenses up to 5 clients, so if you have more clients than that, you’ll need to upgrade.

However, if you’re looking to switch from one program to another, you may be able to download your data and migrate it into the new software. Sage is a little more difficult to maneuver, but since it has fewer features, it can ultimately be easier to learn. Xero can be easier to use for beginners, as it has a user-friendly layout. Reports also are customizable, with adjustable formatting and the option to add your own formulas and groupings. For instance, you can drag and drop certain expense categories into a single subgroup — an “office expenses” subgroup could include office equipment, supplies and utilities. And if you don’t like how the dashboard looks, you can reorganize panels and hide the ones that aren’t useful.

Xero doesn’t offer as many pre-built reports compared to Xero alternatives such as QuickBooks. The Established plan costs $80 per month and includes unlimited numbers of invoices and bills. In addition to all the features of the other two plans, the Established plan includes the use of multiple currencies, tracking time and projects, claiming expenses and viewing in-depth analytics.