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Xero Review 2024: Features, Pricing & More

Xero only allows one organization per subscription, so if you need to do accounting for more than one business, you’ll need to purchase an account for each one. The software simplifies this process further by providing written and video guidance on what to do if you encounter differing balances. It also flags Xero transactions that appear to match bank statement lines, making reconciliation more straightforward. With more small businesses now using digital tools to run their business, many are looking for ways to become more efficient as they grow. A fantastic trait of small businesses is that they can be very agile in adapting and responding to change. We’ve seen so many small businesses implement digital tools and grow their confidence, and we’re hearing from our customers that they’d like to be able to do even more with Xero.

  1. Read our comprehensive review of Gusto to learn more about the features and capabilities of this robust HR solution.
  2. Additionally, the Apple Watch app allows you to see account balances and the number of new transactions.
  3. This practice, however, can actually lead to more problems, such as human errors.
  4. Regardless of the size, businesses deal with the same challenges in accounting finances.
  5. The software makes it easy to pay bills, claim expenses, accept payments, track projects, manage contracts, store files and more.
  6. Most businesses will soon find themselves needing to upgrade to a more costly plan.

All captured documents are also automatically kept in cloud storage and file sharing systems like Dropbox. We also found that it’s impossible to combine multiple checks along with cash into a single deposit entry. Xero does provide an account to hold undeposited checks, but the feature doesn’t track when checks are removed and deposited and doesn’t allow cash to be added to the deposit. Though such a feature doesn’t impact the overall performance https://quickbooks-payroll.org/ of Xero that much, not being able to group payments into bank deposits makes it difficult to reconcile your bank account. Xero’s banking and cash management features score high in our evaluation because they include all the functions we want to see in accounting software. We like the side-by-side layout when reconciling transactions because it’s easy to match transactions and spot bank statement items that haven’t yet been recorded.

But aside from getting help from professionals, small businesses can also benefit from having the right accounting tools that fit their needs and their budget. Aside from those minor issues, the A/P management system is outstanding, easy to use, and comprehensive. Overall, we gave it a high score since it performs well in most of the A/P aspects we want to see in accounting software. The bills window is presented in a tabular format, wherein you can see pertinent billing details like vendor, invoice date, due date, amount paid or due, and the status of the bill. Navigation is very user-friendly—everything is laid out neatly, and it’s not complicated, even for first-time users.

In this way, you no longer have to manually check every transaction and match them with bill payments. Xero’s bank reconciliation feature also helps detect if there are deleted, duplicated, and missing transactions by simply running a bank reconciliation summary report. Xero’s Early plan is designed for small business startups, especially sole proprietors who are still new to using cloud-based accounting solutions. This plan is also ideal for freelance accountants and bookkeepers looking for a simple, easy-to-use, and robust platform for their services. The COVID-19 crisis hit a number of industries hard and small businesses have suffered the worst from its impact. And although the business recovery process has already started, another set of new challenges await as small businesses adapt to the new normal.

The app is rated 4.6 out of 5 on the Apple App Store, indicating a high level of customer satisfaction. You’ll receive your invoice at the end of your monthly billing period. Zoho Books offers a forever free plan of its accounting and invoicing software, which sets it apart from competitors, in addition to five paid plans that start at $15 per month. Helpful features include quote sharing with clients, multiple payment options and auto-charging for recurring transactions.

Users that are new to bookkeeping won’t be overwhelmed by Xero’s simple and easy-to-navigate layout. This layout makes the reconciliation process, among other accounting tasks, particularly easy. The software shows you potential transaction matches side by side, so you can immediately see if the match is accurate without having to click anything. Reports also are customizable, with adjustable formatting and the option to add your own formulas and groupings. For instance, you can drag and drop certain expense categories into a single subgroup — an “office expenses” subgroup could include office equipment, supplies and utilities. And if you don’t like how the dashboard looks, you can reorganize panels and hide the ones that aren’t useful.

Fortunately, there are accounting tools available that are specifically designed for small businesses and one of them is Xero. Xero offers a choice of three subscription plans, which range in price from $15 to $78 per month. However, accountants and bookkeepers can register in the Xero Partner program to get it for free.

It’s best to judge accounting software based on what you need it to do, rather than what it can be capable of doing. Also, if you are already looking into a plan but feel like the features included are not quite enough, you can always check out the app marketplace. For an additional cost, you can create a Xero platform tailored to your business needs by adding a Xero product or a third-party solution.

With the addition of Ultimate, we now have more plans to suit the needs of small businesses at each stage of their journey, offering more choice, flexibility and value in their plan. All pricing plans are in GBP excluding VAT and cover the accounting essentials, with room to grow. You can manage the users who can access your expenses accounts by setting up user roles.

For most customers, Xero’s direct bank feeds are available at no additional cost. Some UK banks charge fees for bank feeds, that we will pass on to you. At $62 a month, this plan gives you access to Xero’s more premium features. Xero is one of the leading cloud-based accounting solutions designed for SMBs as well as for accountants and bookkeepers. Not all small businesses, however, have been negatively affected by the pandemic.

Most businesses will soon find themselves needing to upgrade to a more costly plan. Unlike many competitors, Xero’s pricing and plans are based on features instead of user numbers. In fact, all of Xero’s plans support unlimited users, which is great for expanding businesses. Xero also integrates with over 1,000 third-party business apps – among the most integrations of any accounting software package we reviewed. As a business moves into higher growth phases, it will likely require more integrations to scale up and keep things running smoothly. We want to see comprehensive features in a mobile app, like sending invoices, entering bills, receiving payments, and entering vendor payments.

If your business isn’t offering accountancy services, you are ineligible for the free Xero account. In our rubric, we emphasized heavier weights on project estimate assignment, labor cost assignment, and the recording of inventory used in projects. We saw all of these features in Xero, and we’re satisfied with how it can help companies stay on top of projects in terms of income, expenses, and profitability. Users can also upload files like bank statements to register the transactions in the books. The only setback we see here is that users can’t enter ending balances of checking accounts—they have to upload the bank statement first before reconciling.

Xero at a Glance

Includes tools that help automate the reconciliation process, along with a global search function; has a simple layout and a customizable dashboard. Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page.

Buy the premium plan

More than 3.5 million users all over the globe use Xero to manage their billing and invoicing each month. In this Xero accounting software review, we’ll break down the pros and cons to help levered free cash you figure out whether Xero is the right accounting tool for your needs. Business owners, freelancers and entrepreneurs often spend a large chunk of time on administration and accounting.

Get set up faster

Other features include reconciling bank transactions and capturing bills and receipts with Hubdoc. Xero is a great option for large teams and small- to medium-sized businesses that need high-level accounting systems. It’s also a good fit if you want to integrate Gusto Payroll to your accounting platform. Xero includes extensive features that make it suitable to handle complex accounting processes for small- and medium-sized businesses as well as larger ones. The software makes it easy to pay bills, claim expenses, accept payments, track projects, manage contracts, store files and more. Included in this plan are some of the basic accounting features, such as creating and sending quotes.

The email address, date and time for automatic payment reminders also appear on this screen. †Invoice limits for the Early plan apply to both approving and sending invoices. Hubdoc is included in Xero Early, Growing and Established plans as long as it’s connected to your Xero subscription.

Does Xero offer customer support?

Its service plans and features easily accommodate different stages of small business development and the changing needs that accompany that growth. These ratings are meant to provide clarity in the decision-making process, but what’s best for your business will depend on its size, growth trajectory and which features you need most. We encourage you to research and compare multiple accounting software products before choosing one. In the Early plan, the least expensive subscription, you can send up to 20 invoices and schedule up to five bill payments only. For unlimited invoicing and bill-paying capacity, you’ll need to upgrade to the Growing plan.

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