Xero Review: Features, Pricing & Alternatives

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. Brokerage services for Atomic Invest are provided by Atomic Brokerage LLC, a registered broker-dealer and member of FINRA and SIPC and an affiliate of Atomic Invest. Due to the relationship between Atomic Brokerage and Atomic Invest, there is a conflict of interest due to Atomic Invest directing orders to Atomic Brokerage. For additional information regarding conflicts, please see Items 5, 12 and 14 of Atomic Invest’s Form ADV Part 2A. For more details about Atomic Brokerage, please see the Form CRS, the Atomic Brokerage General Disclosures, and the Privacy Policy.

Entry-level plan limits

The tradeoff for Xero’s unlimited users on the Early plan is that it enforces pretty stiff limits on other things, only allowing 20 invoices and 5 bills per month. Most small businesses will exceed that what is xero limit quickly and be forced to upgrade to a more expensive plan. Xero is robust, cloud-based software with strong accounting, ample integrations, and some great features.

QuickBooks Online

Xero has a reputation for some of the strongest cloud security out there. Security measures include data encryption, two-step authentication, and 24/7 monitoring at multiple locations. Data is backed up daily across various servers, and regular security audits are performed. Xero no longer offers built-in payroll, but it does integrate with Gusto Payroll.

How much does Xero cost?

Instead, Xero relies on email support, a user community, and extensive self-help resources. While these options are helpful, the absence of real-time options limits the overall usability for those who prefer direct, hands-on assistance. I evaluated Xero’s reporting features against 17 essential reports and found that it includes 15, and the missing reports’ absence doesn’t significantly impact the overall functionality. While Xero supports creating recurring bills, it doesn’t allow recurring expenses to be deducted automatically from your checking account, requiring manual entry for payments. Xero’s banking and cash management features nearly nailed my evaluation, offering check https://www.bookstime.com/articles/quickbooks-self-employed printing, transaction recording, live bank feeds, and an intuitive side-by-side reconciliation layout.

of Overall Score

This may influence which products we write about and where and how the product appears on a page. 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. However, as the need arises, you may hire a Xero-certified accountant to help you keep your books of accounts accurate and organized. Inventory on a PO isn’t automatically reduced when only part net sales of a PO is received, requiring manual adjustments that don’t leave a clear paper trail or change log.

You can also accept payments from popular services such as Stripe and GoCardless. Xero offers the option to add full service payroll support from Gusto to any plan. This Gusto-Zero integration starts at $49 per month plus $6 per employee. If you are looking for payroll software in addition to accounting software, be sure to check out our guide to the best payroll software for 2024. 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.

Our Xero Banking Features Video

We also assessed whether it could handle non-routine transactions like short payments, credit memos, and the refund of credit balances in customer accounts. Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services.

Reporting

Xero provides strong security for your data, though I feel it falls short in 1 key area. First off, Xero offers 2-factor authentication, which has become a standard, extra layer of protection for online accounts. It does this through an authenticator app—either a third-party’s or Xero Verify, Xero’s own authenticator app. You run payroll directly from Gusto, and the transactions automatically show up in Xero. You can reconcile the payments and keep your financial records current with minimal manual data entry.

• In my expert opinion, your choice would highly depend on your priorities.
• Connecteam streamlines time tracking and workforce communication, bridging the gap and enhancing Xero’s capabilities.
• 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.
• Those who reviewed Xero on third-party websites shared plenty of positive feedback, often accompanied by high ratings.

The Fit Small Business accounting software case study provides a more detailed description of our methodology. Overall, while Xero’s A/R management is competitive against tools like QuickBooks and FreshBooks, improvements in invoice customization and advanced features would enhance its appeal further. Many reviewers highlighted that they switched to Xero because it’s more user-friendly than similar platforms like QuickBooks Online, which others find overwhelming. Some also appreciated its ability to integrate seamlessly with third-party apps essential for their business operations like Gusto, Hubdoc, and Stripe. Leveraging my accounting and bookkeeping expertise, I rigorously assess software using our internal case study that objectively scores key features while upholding editorial independence.