Xero Review

Pros

• Supports unlimited users
• Numerous integrations
• Suited for large businesses
• Advanced features
• Double-entry accounting

Cons

• Steep learning curve
• Poor customer support
• May be expensive for smaller businesses
• Some features limited to the most expensive plan

What Is Xero?

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.

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. Still, despite the price ruling out the software for some small businesses, Xero has a lot to offer medium and large businesses.

Xero Pricing

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).

Each plan supports unlimited users.

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 typically has discounts available, so be sure to check the company’s website for current offers.

Xero Early Plan

This plan includes:

• 20 invoices and quotes
• 5 bills
• Bank reconciliation
• Bill & receipt capture
• Cash flow analytics
• W-9 & 1099 management
• Sales tax calculations
• Contact management
• Inventory management
• Live bank feeds
• Online payments
• Purchase orders
• Document storage
• Reports

Xero Growing Plan

This plan includes everything in the Early plan, plus:

• Unlimited invoices and quotes
• Bill management
• Bulk reconciliation
• Auto reconciliation
• Cash flow forecasts

Xero Established Plan

This option includes everything in the Growing plan, plus:

• Expense claims
• Project management
• Multicurrency support
• Advanced analytics
• International online bill payments

Extra Xero Costs & Fees

Xero no longer offers built-in payroll, but it does integrate with Gusto Payroll.

Xero also has an add-on called Xero Inventory Plus. This can be added to a Growing or Established plan.

Is Xero Easy To Use?

Xero has an attractive, modern UI. While the software is well-organized, it does have a semi-steep learning curve. 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.

Xero makes it a little easier by providing videos and help articles at 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 Features

Xero often gets praised by customers for its robust feature selection, 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.

Here are more details about some of Xero’s key features:

Xero Customer Service

While Xero offers plenty of great support resources, getting in touch with an actual representative can be difficult.

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. However, in-software help is available, or you can use the Xero Central help center.

Additionally, Xero has business guides, hundreds of videos on Xero TV, podcasts, a training program, and a company blog. Xero also has Facebook, X, YouTube, and LinkedIn profiles.

Xero Reviews

Reviews from users and accountants are primarily positive. Xero receives 4.4/5 stars on Software Advice (based on 3,300+ ratings), 4.4/5 stars on G2 (based on 1,700+ ratings), and 8.5/10 stars on TrustRadius (based on 860+ ratings).

Negative Xero Reviews & Complaints

While most reviews are positive, there are some negative reviews to keep in mind. Here are some of the recurring issues, according to Xero users:

• Mobile app functionality
• Pricing increases
• Steep learning curve
• No phone support
• Slow responses to emails

Positive Xero Reviews

Here are the most common reasons users like the software:

• Easy to use once you learn the ropes
• Robust feature set
• Good reporting
• Numerous automations
• Strong accounting
• Mobility of cloud-based software
• Numerous integrations

Is Xero Safe?

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.

How Does Xero Compare To Other Accounting Software?

Final Verdict: Is Xero Worth It?

Xero is robust, cloud-based software with strong accounting, ample integrations, and some great features. It offers plenty 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 also driven up the cost of the software.

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 negate the fact that some features are limited to the most expensive plan. But considering that Xero supports unlimited users, the Established plan could still be cheaper for your business than QuickBooks Online if you have multiple users.

Overall, 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.