Xero also integrates with over 1,000 third-party business apps — one of the highest integration counts of any accounting software we reviewed. As a business moves into higher-growth phases, it will likely require more integrations to scale and operate efficiently. Xero was founded in 2006 by Rod Drury and Hamish Edwards in Wellington, New Zealand. Xero launched in 2006 with a cloud-based accounting platform that enabled small businesses to access their financial data anytime.
It’s not surprising that Xero has been awarded top honors in the small business accounting arena and continues to earn high marks for customer satisfaction. The main drawbacks are the learning curve for complete beginners and the email-only customer support, which can be limiting during urgent situations. Additionally, the entry-level plan’s transaction limits force many users to upgrade sooner than expected, though this doesn’t significantly impact the software’s overall value proposition. For income taxes, Xero provides the financial reports needed for filing but isn’t tax preparation software. On the other hand, Trustpilot reviews paint a more cautious picture with an average rating around 3.7 out of 5.
- It allows three users for its Essentials plan ($65 per month) and 25 users for its top plan, the Advanced ($235 per month).
- Xero is not just a simple bookkeeping software and comes with many advantages.
- If you’re still on the fence, check out our picks for the best small business accounting software to compare your options.
- The customization capabilities is probably the best out of all online accounting software.
Growing
Whether you’re a freelancer or xero review and pricing a growing company, Xero offers a comprehensive solution for managing your finances and staying on top of your business’s financial health. Yes, Xero integrates with payroll services to help businesses process employee payments, calculate taxes, and issue payslips. Overall, Xero’s customer service and support are highly regarded for being responsive and helpful, ensuring that users can make the most of the software’s features without any hindrances. Accounts payable (AP) – Small business owners can efficiently pay their bills by scheduling batch payments. They also get an overview of outstanding expenses and can assign billable expenses to the relevant client. Plus, with multi-currency support, project tracking, and advanced analytics available, Xero is capable of handling a wide array of small-to-medium business scenarios.
We find that most teams based outside of the US tend to use Xero, while the US seems to favor QuickBooks Online, although we believe Xero to be a leader in the accounting space even within the US. Let Xero take the guesswork out of choosing the right plan for your business in less that 2 minutes. Use this world clock web page to check what time the pricing increase will take effect in your local time zone. If you have a current Xero discount or promo code, it will still apply to the new pricing until the discount or code expires.
However, it should be noted that Xero does not offer a dedicated phone line for customer service, and there is no live chat support available. Assistance is primarily via email, but representatives are willing to call if the issue demands it. Something to note is that Xero lets businesses link expenses to specific customer invoices. It helps give an overview of the total cost for specific projects or jobs. Users can create a customizable template and set it as a recurring invoice.
Xero no longer offers built-in payroll, but it does integrate with Gusto Payroll. I also really love the team communication system where you can send messages, share updates, and collaborate with your team in real time. This is especially useful for keeping everyone informed on project progress. The general ledger is the full record of your company’s financial transactions, organized by accounts. I found Xero’s general ledger system to be highly functional and effective. I found Xero’s pricing to be really cheap compared with most of its competitors, especially for businesses with multiple accountants.
Enter bills
The Early plan costs $13 per month and lets users send up to 20 invoices and schedule up to five bills per month (Figure A). Other features include reconciling bank transactions and capturing bills and receipts with Hubdoc. Xero accounting software is a cloud-based solution for small to medium-sized businesses. Capabilities include sending invoices and quotes, entering bills, and reconciling bank accounts.
Software Pricing:
On Xero’s webpage, hover over Resources and select “Support at Xero Central” on the drop-down menu, and you’ll be directed to the Xero knowledge base. Xero’s pricing ranges from $15.00 to $78.00 per month, depending on the plan that you choose. Time can be tracked via Connecteam’s dedicated time clock app for employees—which comes with the ability to track overtime, breaks, employee locations, and more.
- Xero supports every aspect of the financial management of small and growing businesses.
- I recommend it that small businesses and freelancers for necessary accounting tasks, such as expense tracking, invoicing, bill payment, bank reconciliation, document storage, and reporting.
- Despite a few shortcomings, we rated Xero 4.7/5 for its customer support.
- Plus, Xero supports unlimited users at no additional cost — a rarity in the accounting software world.
- We recommend using Xero if you’re a small-to-medium-sized company that values affordability, collaboration, and user-friendly design.
Top 15 Financial Metrics and KPIs in 2024
Managing payroll can be complex, but Xero simplifies the process by integrating with a range of payroll and HR systems, including Gusto and Deputy. These integrations allow businesses to sync payroll data directly with Xero, streamlining payroll calculations, payslip generation, and tax filings. These CRM integrations help businesses maintain an organized, consistent view of customer data and financial records, enabling better decision-making and customer management. Accountants and bookkeepers can also have direct access to a company’s Xero account, allowing them to provide timely advice and manage the business’s finances with minimal disruption.
Multiple rate cards and better tool integration would enhance the projects module, though. Wave offers businesses basic invoicing, expense tracking, and accounting features. It is also attractive to individuals and micro-businesses because its plans include a forever-free plan.
Xero also provides pre-built templates that users can tweak to their liking or create from scratch. Users can add messages or delete elements that don’t fit in the invoice templates. In this review of Xero, I’ve followed SMB Guide’s detailed criteria for evaluating accounting software. The customization options have limitations, and the expense tracking is basic.
These are helpful if you sell only in-store, invoice for sales and don’t need first-in, first-out valuation. That said, we’ve found that Inventory Plus delivers the best overall inventory management experience. Except for a few minor inconveniences, we were impressed with Xero’s invoicing capabilities. Everything is done in the cloud, meaning you can edit invoices in draft mode while awaiting payment, or after payment, without any hassles. You can then easily resend the invoice to customers and it will reflect any changes automatically.
Is Xero suitable for small businesses?
You can set the software to send reminders before the payment is due or when it’s past due. You can also set up the system to email your customers’ receipts after receiving and recording payments. Many business owners with a growth mindset prefer selecting and sticking with one accounting software solution. Compared to other software we reviewed, Xero stands out for meeting businesses’ needs at every stage of growth. While Xero’s plans start at a cheaper price, QuickBooks offers more features across its plans. Then again, QuickBooks requires user limits for each plan while Xero doesn’t.
