Xero Reviews & Pricing

by Xero Limited | Founded 2006, New Zealand

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What is Xero?

Industry Specialties: Serves all industries

Xero is a cloud-based accounting software designed for small businesses. It streamlines bookkeeping tasks like invoicing, expense tracking, bank reconciliation, and payroll, all accessible from any device. Xero boasts user-friendly interfaces and automated features, saving time and simplifying financial management. Popular features include online invoicing with reminders, bank feeds for automatic transaction import, and customizable reports for insights into cash flow and profitability. While Xero caters well to various industries, its strengths lie in freelancer/contractor work, startups, and service-based businesses. Pricing scales with business size and complexity, starting at a monthly subscription for basic accounting needs and increasing with additional features and users. Compared to some competitors, Xero offers a robust mobile app, strong integrations with third-party tools, and a focus on user experience. However, it may lack advanced inventory management or complex accounting functions suited for larger enterprises. Ultimately, Xero's value proposition lies in its ease of use, automation, and scalability, making it a popular choice for small businesses seeking a streamlined and efficient accounting solution.

Pros:

Cloud-based access anywhere
Easy invoicing and expense tracking
Automated bank reconciliation
User-friendly interface
Mobile app for on-the-go use

Cons:

Learning curve for new users
Limited inventory management
No built-in payroll (separate fee)
Higher cost for advanced features
Limited phone support

PRICE

COMPANY SIZE

DEPLOYMENT

PLATFORM

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User Sentiment

Based on 4652 reviews:

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Xero Pricing

Based on our most recent analysis, Xero pricing starts at $15 (Monthly).

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Starting From: $15
Pricing Model: Monthly
Free Trial: Yes, Request for Free

Training Resources

Xero is supported with the following types of training:

Documentation
In Person
Live Online
Videos
Webinars

Support

The following support services are available for Xero:

Email
Phone
Chat
FAQ
Forum
Help Desk
Knowledge Base
Tickets
Training
24/7 Live Support

Xero Benefits and Insights

Why use Xero?

Key differentiators & advantages of Xero

Affordable Payroll: Take advantage of the free trial to see how much time automated data entry can save and assess if the solution is a good fit for the business. Save countless hours on tracking expenses, calculating payments, processing payroll and more.
Better Interoperability: Centralize company processes and handle a wide range of functionality with more than 700 add-ons available through the app marketplace. This includes programs for CRM, e-commerce, inventory, invoicing, job tracking, payroll, time and attendance and more.
Centralizes Data and Processes: Organize information and put the primary software that handles day-to-day issues all in one place. Manage files to a document library where users can see originals next to updated versions. Send files to stakeholders to ensure a clear flow of information.
Saves Time: Eliminate tedious data entry and ensure better data integrity by cutting down on human error. Provide a clear documentation trail to ensure that the business is running ethically and save time hunting for documents when it’s time to verify the information.

Industry Expertise

Xero serves clients in more than 180 countries and integrates with many solutions. ExpensePoint, an expense management software, announced an integration between QuickBooks Online, Xero Accounting and FreshBooks. Xero has shown up in many different industry news sources, including AccountingWEB, Business Wire, The Courier, iTnews, TechRepublic and more. Additionally, it was named an industry leader in the report, “COVID-19 Impact on 2021-2026 Global and Regional Accounting Software for Small Businesses Market Report 2020 Industry Production.”

Xero Reviews

Based on our most recent analysis, Xero reviews indicate a 'great' User Satisfaction Rating of 86% based on 4652 user reviews from 5 recognized software review sites.

4652 reviews

86%

of users would recommend this product

Synopsis of User Ratings and Reviews

Based on an aggregate of Xero reviews taken from the sources above, the following pros & cons have been curated by a SelectHub Market Analyst.

Pros

Affordable: Of all the reviews that mentioned price, over 70% felt it was well within their price range and felt satisfied.
Good Customer Service: Over 70% of reviews that mentioned the customer support said they received excellent service, especially from their reps.
Excellent Functionality: In more than 50% of all reviews that mentioned features, users were happy with its capabilities. They especially like the integrations, reconciliation process, invoices and accounting functions.
Simple and intuitive interface: Xero's clean layout and straightforward navigation make it easy for users of all skill levels to manage their finances. In over 80% of reviews that mentioned the UI, users said it was easy to navigate.
Automated tasks: Xero automates repetitive tasks like invoicing, expense tracking, and bank reconciliation, saving users valuable time and reducing errors.
Mobile app for on-the-go access: Manage your finances and stay up-to-date on your business performance anytime, anywhere with Xero's mobile app.
Customizable reports and dashboards: Gain valuable insights into your cash flow, profitability, and other key financial metrics with Xero's customizable reports and dashboards.
Multi-user access and permissions: Collaborate with team members and advisors seamlessly with Xero's secure multi-user access and permission controls.

Cons

Limited inventory management: Xero lacks advanced inventory tracking features, making it less suitable for businesses with complex inventory needs.
Learning curve for complex features: While basic tasks are easy, some advanced features like multi-currency accounting can be challenging for non-accountants to navigate. Though the system was widely popular after implementation, users said it was old-fashioned and had a steep learning curve in 20% of reviews that mentioned the UI.
Higher cost for advanced features: Access to advanced features like payroll processing and multi-currency comes at a higher price point, potentially exceeding budgets for smaller businesses.
Limited phone support: Xero primarily relies on email and live chat for support, which may not be ideal for users seeking immediate assistance with critical issues.
Integration limitations: While offering many integrations, some key business tools may not have seamless integration with Xero, requiring workarounds or data duplication.
Invoices: While around 60% of users felt that the invoicing system worked well, around 40% said they had trouble making changes to them once they were saved.
Downgrading Issues: Around 20% of reviews that mentioned price said they had issues while trying to go to a lower pricing tier and often ended up paying a month or more at a higher rate.

Researcher's Summary:

Xero’s users say it’s easy to use and has good accounting and bookkeeping capabilities. Most found the price to be acceptable, with some complaints about issues they ran into while trying to switch to a lower pricing tier. More than 70% loved the customer service and felt their representatives were extremely helpful. It has a range of features including band feeds, invoice creation, integrations and reconciliation processes. The reconciliation was particularly popular with over 80% of reviewers who mentioned it describing positive experiences.

One issue with the system came in making updates to invoices after they’d been saved. Some users said they were sent prematurely to clients or claimed to have difficulties changing the data at a later date. Many also felt that the implementation process for the new platform was difficult, but that once they learned where things were they felt comfortable. This may be a good choice for small and medium businesses. Larger companies should consider a system that’s able to handle a higher volume.

Key Features

Payroll Processing: Provide payroll across 50 states. See when payments are due, track them and ensure on time payment. Analyze accounts payable with a quick view, schedule advanced payments and make batch payments.
Banking: Connect to the right bank to track and facilitate transactions daily. Keep an eye on the flow of money through a secure connection that goes directly into the solution.
Expense Management: Seamlessly track and manage expense claims. Access real-time data and reports that provide insight into patterns and trends. Record costs, see and approve claims, view overall spending and dole out reimbursements. Capture receipts to monitor employee spending and verify costs.
Project Management: Integrate with other workflows to facilitate financial project management. Provide a quote for client work before you begin to track time, costs, profitability and other variables for an accurate invoice.
Customer History: Use smart lists and contacts to contact details, emails, past sales, emails, invoices, past payments and more when working with a partner or client.
Mobile App: Let users track bank transactions, send invoices, access supplier details and more, from any mobile device.
Inventory Management: Undertake basic inventory management, including taking inventory, seeing what was bought or sold, look at reports on how well items are doing and get invoices and orders.
Gusto Integration: Calculate and pay taxes, deductions and employees through an integration with the accounting software Gusto. Simplify compliance and keep on top of industry updates.
Other Capabilities: Processes payment in multiple currencies, calculates sales taxes, tracks purchase orders, manages files and does several other administrative tasks.

Approach to Common Challenges

Time-consuming manual tasks: Xero automates repetitive tasks like bank reconciliation, invoice creation, and expense tracking, saving time and reducing errors.
Limited visibility into financial performance: Xero offers customizable reports and dashboards that provide real-time insights into cash flow, profitability, and financial health.
Collaboration and communication challenges: Xero's multi-user access and permission levels enable collaboration among team members and advisors, fostering better financial decision-making.
Managing receipts and paperwork: Xero integrates with receipt management apps like Hubdoc, allowing users to capture and store receipts digitally for easy access and organization.
Staying up-to-date with tax compliance: Xero tracks tax obligations and generates tax reports, simplifying tax filing and compliance for businesses.

Cost Of Ownership

Frequently asked questions regarding Xero pricing include:

Q: How much does Xero cost per month?
A: Xero offers several subscription plans to fit different business needs, starting at $15 per month for the Early plan (3 users) and scaling up to $115 per month for the Ultimate 10 plan (57 users). The most popular plan, Growing, with 10.5 users, comes in at $42 per month. Additional users can be added to any plan for an extra fee.
Q: Are there any hidden fees or additional costs I should be aware of?
A: While the subscription fee covers core accounting features, some additional costs may apply. Payroll processing comes with a separate fee per employee, and some integrations with third-party tools may have extra charges. Make sure to check the specific plan details and explore potential integrations before committing.
Q: Is Xero worth the cost compared to other accounting software options?
A: Deciding if Xero justifies its cost depends on your specific needs and budget. While its user-friendly interface and automation features come at a premium compared to basic accounting software, Xero offers significant value for businesses seeking cloud-based solutions, seamless integrations, and mobile accessibility. Consider Xero's free trial to test its functionality and compare it to alternative options before making a decision.

Limitations

Notable limitations of Xero include:

Inventory management: Limited tracking of items and stock levels, may require third-party integrations for complex inventory needs.
Project tracking: Basic project tracking features, lacks advanced project management capabilities for multi-phase projects or task dependencies.
Customization: Limited ability to customize charts of accounts or reports without add-ons, may not fully align with unique business structures.
Integrations: While offering many integrations, some key business tools may not have seamless integration with Xero.
Phone support: Primarily relies on email and live chat support, lacks dedicated phone support for immediate assistance.
API rate limits: Restrictions on the number of API calls per minute and per day, may impact high-volume transaction processing.

Suite Support

Xero has a support page that directs users to various resources depending on the type of user, problem or scenario. It has 24/7 support accessible via submitting tickets. It also comes with multiple training materials, including blogs, product updates, guides for small businesses, accounting glossaries and more.

Email: Subscribers have access to online chat support from Xero experts through the platform’s support hub. From there, they can message their customer service team.

Training: Xero offers users unlimited support through FAQs, a community page, an accounting glossary and courses to help understand the program.

Phone: Support via telephone is available through Xero, however, the vendor does not offer inbound telephone support. Xero's support team may make a call to their clients when necessary, but there is no phone number through which the company can be reached for support. Xero warns that any numbers found online claiming to be their support line are fraudulent.

Tickets and Live Chat: Users can submit case files by clicking the help icon and track the cases through the “my cases” section. There’s no live chat immediately available on the website, but users can message through their portal.

FAQ

Frequently asked questions regarding Xero include:

Q: Is Xero suitable for my business type?
A: Xero works well for various businesses, particularly freelancers, startups, and service-based companies. Its strengths lie in invoicing, expense tracking, and basic accounting needs. For complex inventory management or large volume transactions, other solutions might be more suitable.
Q: How easy is Xero to learn and use?
A: Xero boasts a user-friendly interface and intuitive navigation. Basic tasks like invoicing and expense tracking are straightforward, even for non-accountants. However, some advanced features like multi-currency accounting may require a learning curve.
Q: How secure is my data with Xero?
A: Xero takes data security seriously, employing industry-standard encryption and security measures to protect user information. Additionally, multi-user access controls allow businesses to limit access to sensitive data.
Q: Can I import my existing data from another software?
A: Yes, Xero offers data import tools for various accounting software. However, the complexity of the import process depends on the specific software and data volume. Xero provides user guides and support to help with the transition.
Q: How does Xero handle multi-currency transactions?
A: Xero's advanced plans support multi-currency transactions, allowing businesses to manage invoices, expenses, and reports in different currencies. Automatic exchange rate updates ensure accuracy. However, navigating multi-currency features may require advanced accounting knowledge.
Q: What kind of customer support does Xero offer?
A: Xero offers email, live chat, and community forum support. Additionally, paid plans include phone support for quicker assistance with critical issues. Extensive online resources, including video tutorials and knowledge base articles, are also available.
Q: Does Xero integrate with other business tools I use?
A: Yes, Xero integrates with numerous third-party tools for CRM, e-commerce, payments, and productivity. Users can customize their workflow by connecting Xero with their preferred tools for seamless data exchange and improved efficiency.