Unlimited users and advanced features make this cloud accounting software platform a good fit for many small businesses.
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Editor & Senior Staff Writer
Last updated onUpdated
REVIEWED BY
Expert Contributor
| Total Rating | 4.0 |
|---|---|
| Pricing3.7 | |
| Ease Of Use3.8 | |
| Features4.1 | |
| Customer Service4.7 | |
| User Reviews4.3 | |
Accounting Method
Accrual & Cash BasisPricing Range
$20-$80/monthBusiness Size
Medium to large with unlimited usersPromo: Try Xero with 90% off for six months when you sign up via our link. No promo code required. Claim your discount
Table of Contents
Xero is cloud-based accounting software that has given QuickBooks a run for its money since 2006. Xero is a robust accounting solution with sophisticated accounting features, ample reports, 1,000+ integrations, and unlimited users. Unlike QuickBooks Desktop, Xero also has the mobility and modern UI of cloud-based software.
While Xero has a lot going for it, pricing increases, a lack of built-in payroll, and limited features on its least expensive plans are potential issues. Additionally, customer support has gone downhill since our last review. Still, despite the price ruling out the software for some small businesses, Xero has a lot to offer for medium and large businesses or those in need of multiple users.
| Pricing3.7 |
|---|
| Software Plans 3.8 |
| Pricing Transparency 4.2 |
| Pricing Customization 2.2 |
Xero used to offer incredibly scalable pricing. The other appeal of the software was that each plan came with unlimited users, access to every Xero feature, and payroll.
Xero no longer includes payroll — although a paid Gusto add-on is available — and it has limited some features (such as expenses and multicurrency support) to its most expensive plan. Unlike some of its competitors, there are very few add-ons. These factors lowered our pricing score for Xero to 3.7/5.
Each plan still offers unlimited users and live bank feeds, so businesses can download, categorize, and reconcile their transactions as usual.
| Xero Plans | Price | When To Use |
|---|---|---|
| Early Plan | $20/month | If you need accounting software with up to 20 invoices and 5 bills for unlimited users |
| Growing Plan | $47/month | If you need accounting software with unlimited invoicing and bill management for unlimited users |
| Established Plan | $80/month | If you need accounting software with advanced analytics, multicurrency support, and project management for unlimited users |
Xero offers three different pricing plans. Payments are made monthly. There are no annual contracts, so you can cancel your subscription at any time (although you must give a 30-day notice of your cancellation).
Xero offers a free 30-day trial and even has a demo company set up already, so you can explore the software before you buy it. Xero offers discounts for nonprofits and owners of multiple companies. Xero has been known for offering discounts in the past, so be sure to check the company’s website to see if it’s having a sale.
Here’s what you get with Xero’s new pricing structure:
Xero’s Early Plan costs $20/month and includes:
Xero’s Growing Plan costs $47/month and includes everything in the Early plan, plus:
Xero’s Established Plan costs $80/month and includes everything in the Growing plan, plus:
| Xero Extra Costs | Price |
|---|---|
| Gusto Payroll | Starts at $49/month + $6/month/employee |
| Xero Inventory Plus | $39/month |
Xero no longer offers built-in payroll, but it does integrate with Gusto Payroll.
Xero also has a new add-on called Xero Inventory Plus. This can be added to a Growing or Established plan.
| Ease Of Use3.8 |
|---|
| Initial Setup 2.2 |
| Software Reliability 5.0 |
| Everyday Use 4.2 |
| Integrations 5.0 |
Xero has an attractive, modern UI. While the software is well-organized, it does have a steep learning curve (not as steep as QuickBooks, but it is more difficult to learn than other cloud-based options). It takes quite a while to explore all of the features it has to offer, but once you get acquainted with the software, Xero is fairly easy to use. Getting started is the most difficult part, and it’s this learning curve that lowered our ease of use rating to 3.8/5.
Xero tries to throw you as many bones as possible by adding a video or help article to the top of every page you open. If you need some extra assistance in finding features or understanding the software, Xero also offers a help center. We also have a comprehensive and free How To Set Up Your Xero Account guide that teaches you how to use and optimize your Xero account.
To get the most out of your software, Xero has 1,000+ integrations to choose from. If this isn’t enough, Xero also integrates with Zapier, connecting the software to hundreds of additional add-ons. Some Xero integrations are country-specific, so make sure they are compatible before you make any additions or purchases. Xero also offers API for developers.
Xero often gets praised for its robust feature selection by its customers, and we have to agree. Overall, Xero has a set of features that easily rival competitors like QuickBooks Online. However, we are disappointed that Xero lacks tax support, doesn’t have more advanced inventory (unless you purchase the Inventory Plus add-on), and doesn’t have more invoice templates.
Still, Xero’s feature set is strong, leading to our rating of 4.1/5.
| Xero Features | Availability |
|---|---|
| Budgeting | |
| Tax Support | |
| Invoicing | |
| Estimates | |
| Client Portal | |
| Contact Management | |
| Expense Tracking | |
| Bank Reconciliation | |
| Chart Of Accounts | |
| Accounts Payable | |
| Inventory | |
| Time Tracking | Established plan only |
| Project Management | Established plan only |
| Number Of Reports | 55+ |
| Number Of Integrations | 1,000+ |
Here are more details about some of Xero’s key features:
Xero only offers a single invoice template. You can create custom templates and customize them extensively, but there could be more template designs to choose from. You can also create quotes with the same template. Here’s what to expect from Xero’s invoices and quotes:
Xero has a number of solid bookkeeping features including:
Xero has an excellent contact management feature. Highlights include:
You can add products or services to Xero, although Xero is much better suited for product-based businesses. Here’s what you get with Xero’s inventory management feature:
Xero also has a paid add-on, Inventory Plus, that offers:
If you use the Established plan, you can track billable time to add to projects.
The Established plan offers projects and basic job costing, a welcome addition that Xero hasn’t had in the past. Users can:
Xero offers ample accounting reports and has a Budget Manager for creating and managing budgets. Here are the standout features worth noting:
| Customer Service4.7 |
|---|
| Personal Support 4.0 |
| Self-Service 5.0 |
Xero used to offer strong customer support, and while there are still a ton of great support resources available, getting in touch with an actual representative is a lot more difficult.
| Xero Customer Service | Availability |
|---|---|
| Phone Support | |
| Email Support | |
| Support Tickets | |
| Live Chat | |
| Dedicated Support Representative | |
| Knowledge Base or Help Center | |
| Videos & Tutorials | |
| Company Blog | |
| Social Media |
Xero has never offered phone support and has relied on email support. It may take a day or two to get a response to your email, but there are plenty of other forms of support available. Despite a few shortcomings, we rated Xero 4.7/5 for its customer support.
Here are the ways you can reach Xero:
| User Reviews4.3 |
|---|
| User Feedback 4.0 |
| Review Site Aggregate 4.4 |
Reviews from users and accountants are primarily positive. Xero receives 4.4/5 stars on Software Advice (based on over 3,000 ratings), 4.3/5 stars on G2 (based on over 690 ratings), and 8.5/10 stars on TrustRadius (based on over 740 ratings). We took all user feedback into account when rating Xero 4.3/5 for its user reviews.
In the past, Xero received predominantly positive customer reviews. While there are still a large number of positive reviews, there are some negative reviews to keep in mind. Here are some of the recurring issues, according to Xero users:
Here are the most common reasons users like the software:
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 also boasts an impressive record of 99.97% uptime.
| Xero | QuickBooks Online | FreshBooks | |
|---|---|---|---|
| Price | $20-$80/month | $35-$235/month | $21-$65/month |
| Business Size | Medium To Large | Small To Medium | Small To Medium |
| Number Of Users | Unlimited | 1-25 | 1 |
| Accounting Method | Accrual & Cash-Basis | Accrual & Cash-Basis | Accrual |
Xero and QuickBooks Online have a lot of similarities, as both have strong features and numerous integrations. However, Xero is more affordable and supports unlimited users.
QuickBooks Online is limited to 25 users on its most expensive plan but is easier to use, offers tax support, and has stronger mobile apps.
FreshBooks stands out for its customer support. However, Xero is the better choice if you want more advanced features and support for unlimited users, as additional users are only available for a fee if you use FreshBooks.
Xero is robust, cloud-based software with strong accounting, ample integrations, and some great features. It offers tons of automations to save your business time, such as automatic sales tax lookup, group invoicing, and default email templates. Plus, Xero supports unlimited users at no additional cost — a rarity in the accounting software world.
That said, the software does have its drawbacks. There is limited tax support, limited invoice templates, no built-in payroll, and a steep learning curve. Multiple pricing increases over the years have driven up the cost of the software, and customer support isn’t the best.
However, there are a few things to keep in mind. Xero integrates with Gusto for payroll, which supports all 50 states and has added functionality such as health insurance and retirement support.
Xero has also added projects. This doesn’t forgive the fact that some features are limited to the most expensive plan, but considering that Xero offers unlimited users, the Established plan could very well still be cheaper for your business than QuickBooks Online if you have multiple users.
With an overall score of 4/5 in this review, Xero is a good solution for mid-to-large-sized businesses in need of strong accounting features and multiple users. Take advantage of Xero’s free trial to see if this accounting solution is right for you. If you’re still on the fence, check out our picks for the best small business accounting software to compare your options.
We spend hours researching and evaluating each accounting software system we review at Merchant Maverick, placing special emphasis on key characteristics to generate our ratings.
When rating accounting and invoicing software, we use a 47-point rubric that looks at pricing, ease of use, features, customer service, and user reviews. We weigh each section differently to calculate the total star rating.
Each section is further broken down into granular, weighted subsections, in which we examine specific attributes like relative cost, number of subscription tiers, data import, invoicing tools, quotes and estimates, client portal availability, bookkeeping support options, and the usability of the software interface. We also ensure that the software offers most standard accounting features and reports, awarding higher rankings to those that provide advanced services, like tax filing.
Read more about how we rate accounting software.
The Merchant Maverick Seal of Approval 🏆
|
Xero
|
|---|
After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Xero for yourself.
The Merchant Maverick Seal of Approval 🏆
|
Xero
|
|---|
After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Xero for yourself.
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The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.
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. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.
Our team of experts spends hours on every review so that we can find the best companies to recommend to our readers. Xero made the cut.
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