Xero Accounting Review 2023: Pricing, Features, Alternatives

If the customer support was better, we’d probably be talking five stars. I’m giving an overall rating of two stars because after being a customer for seven years, never having a problem with my bank feed, it’s stopped working in June. It’s October and their team still says “we’re working on it“ – ?? When you can have an automated bank feed and set up bank rules that essentially do reconciliation activity levels in an activity-based costing system for you, that’s extremely valuable. Good luck – make sure you do a lot of research and trial all of your bank connections very carefully and make sure everything‘s working well before you proceed with this subscription. 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.

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. All three of these offer the ability to scale their accounting for larger businesses and both Xero and QuickBooks offer specific training for accountants. These companies offer Gusto integration for the same price—$40 per month and $6 per month per person.

  • The software shows you potential transaction matches side by side, so you can immediately see if the match is accurate without having to click anything.
  • Another page dedicated to short-term cash flow charts out how future bills and invoices can affect your bank balance over the next week or month.
  • To keep things organized, Xero logs every action users make and compiles the history of every transaction.
  • Xero processes payment through a payment gateway like Stripe, GoCardless and others.
  • 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.
  • Doing this in the first half of fiscal 2024 would have lifted average revenue per user by about 3%-5%, Xero said.

We’ve compared Xero with its competitors to help your search. Sage 50cloud’s Cash Flow Manager tool is a helpful feature for people who want to better understand how future transactions could impact their business. The tool also lets you adjust the time frame to see how your business has changed over time.

Xero Blog

Read our 2023 Xero review to find out if it’s the right solution for your business. FreshBooks offers unlimited time-tracking in its lowest-tier Lite plan, whereas Xero users would have to opt into the highest-tier Established plan for that feature. Easy to use accounting software, designed for your small business. 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.

When asked about how they got started with Xero, Katie and Deb had similar tales to tell. Katie knew about it when a friend asked her for help with bookkeeping in Xero. A friend was starting a naturopathy business and had heard about Xero from other practitioners. Having not heard about it at that stage (this was very early Xero days) I was curious, so said yes.

Business owners, freelancers and entrepreneurs often spend a large chunk of time on administration and accounting. Suited for small- and medium-sized businesses (SMBs), Xero is an affordable cloud-based accounting software system that streamlines these processes with plans starting at $13 per month. These ratings are meant to provide clarity in the decision-making process, but what’s best for your business will depend on its size, growth trajectory and which features you need most. Less scalable products are typically simpler, but diminished functionality can cause headaches down the road for growing businesses. We encourage you to research and compare multiple accounting software products before choosing one. Check out the Xero App Store to find, try and buy business apps that connect to Xero online accounting software and make running your small business even easier.

Collaborate with your team and advisors

In the Early plan, the least expensive subscription, you can send up to 20 invoices and schedule up to five bill payments only. That can be limiting, even for freelancers and sole proprietors. For unlimited invoicing and bill-paying capacity, you’ll need to upgrade to the Growing plan. Set up bank feeds from your accounts so transactions are imported securely into the Xero accounting software each business day. SYDNEY–Xero swung to a first-half profit and maintained its full-year expense target after the cloud-accounting software provider lifted revenue by 21%.

Xero, on the other hand, offers unlimited users for all plans. This can be helpful if your company is growing fast, or you simply want the reassurance that there’s no limit to how many people can be part of the team. After you start a free 30-day trial of Xero, you’ll activate the account and provide details about your business. Then, you can connect your bank accounts to Xero and decide if you’ll accept electronic payments for online invoices.

Seven Years… time to go

We believe everyone should be able to make financial decisions with confidence. Find guides to help you understand online accounting and ultimately do better business. See all your invoices, contacts, balances, financial information and accounts online. All pricing plans cover the accounting essentials, with room to grow. The company plans to remove between 150,000 and 200,000 long-idle lower-value subscriptions, primarily in the U.K.

Xero doesn’t provide a phone number on its customer support page, but a representative will call you if necessary. 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. Includes project tracking tools in most expensive plan; has transaction tracking tags; lacks industry-specific reports; users with multiple businesses must pay for separate subscriptions. Has robust reporting tools and report customization options, basic inventory tracking in all plans and a capable mobile app; Early plan limits the number of invoices and bills. Explore Xero accounting software and its tools for small businesses, accountants, and bookkeepers.

Start using Xero for free

Give your team access to Xero’s software and invite your advisor to collaborate. The tech company spent around $NZ30 million annually over the last decade to break into the US market, a lower investment than many in the market had estimated. “She has taken some costs out of the business and raised prices so far but reformulating any of Xero’s product or sales direction is still to come,” he said. E&P Capital’s analyst Paul Mason described Xero’s result as “below our expectations across the board”. Mr Mason said it was too early to judge Ms Singh Cassidy’s plan, as she was “still in ‘strategy formulation’ mode”. Earnings before interest, tax, depreciation and amortization rose 90% to NZ$206.1 million as Xero reduced its operating-expenses-to-operating-revenue ratio to 79.1% from 83.9% a year earlier.

Another page dedicated to short-term cash flow charts out how future bills and invoices can affect your bank balance over the next week or month. Xero is a great option for large teams and small- to medium-sized businesses that need high-level accounting systems. It’s also a good fit if you want to integrate Gusto Payroll to your accounting platform. Keep in mind that the ability to use multiple currencies in the software and invoice is limited to the company’s highest tier, at $70 per month. If using multiple currencies is a priority to you, consider other platforms that offer this capability at a lower cost. Zoho, for example, is accounting software with a free invoice platform that allows you to bill in multiple currencies.

The Xero Accounting app is ideal for small business owners and managers who are signed up and set up in Xero. Plus a flexible profit and loss report which can be viewed on a cash or accrual basis helps you keep your finger on your business’ financial health. Manage sales from the palm of your hand – Raise and send quotes for faster client approval so you can get started on the job sooner. Get a view of how much is owed and quickly add notes so you can build better business relationships.Reconcile from anywhere – Good bookkeeping habits have been made easy. Smart matches, rules and suggestions makes reconciling your business transactions from anywhere with a few simple clicks. The Xero Accounting mobile app works in tandem with the Xero accounting software so you can run your small business online from anywhere.

Collaborate online in real time

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. Account holders are able to customize online invoices to add a logo, accept payments instantly through the invoice, set automatic reminders for clients to pay and invoice directly from the Xero app. Xero processes payment through a payment gateway like Stripe, GoCardless and others. Keep in mind that these services charge a fee to process payments (usually around 2.9% plus 25 cents per transaction, though this varies by the payment processor).