Xero

Featured

Accounting & Finance

4.1(104 ratings)

82% recommend

Xero is a cloud-based accounting software tailored for small to medium-sized businesses.

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About Xero

Best for small businesses wanting accessible cloud-based accounting.

Xero is a cloud-based accounting platform designed primarily for small to medium-sized businesses and their accountants or bookkeepers. It handles core financial tasks like invoicing, bank reconciliation, expense tracking, payroll, and financial reporting through a clean, approachable interface. What sets Xero apart is its strong ecosystem of over 1,000 third-party integrations and its emphasis on real-time collaboration between business owners and their financial advisors. Originally founded in New Zealand, it has a particularly strong presence in Australia, the UK, and New Zealand, though it serves businesses globally.

Pros

Intuitive interface with minimal accounting knowledge required
Excellent bank reconciliation and automatic bank feeds
Unlimited users included on all plans
Massive third-party app marketplace with 1,000+ integrations
Strong multi-currency support for international businesses

Cons

Limited invoices and bills on lower-tier plans
Reporting can feel basic compared to competitors
U.S. payroll requires a separate add-on cost
Customer support is email-only with no phone option

Use Cases

Best for small businesses needing simple invoicing and expense tracking

Best for freelancers and contractors managing multiple client accounts

Best for accountants and bookkeepers collaborating with multiple business clients

Best for growing businesses needing multi-currency and international invoicing

Key Features

7 features

Real-time financial reporting

Automated bank reconciliation

Expense tracking with receipt capture

Multi-currency support

Invoicing and billing automation

Payroll processing and management

Inventory tracking and management

SaasHunter Score

8.0/10

“Your small to medium-sized business prioritizes robust accounting features at an affordable monthly rate.”

Ease of Use

8.0

Features

9.0

Pricing

8.0

Support

7.0

Integrations

8.0

Best For

Small Business 9Startups 8Agencies 7Freelancers 7Enterprise 6

Integrations

StripePayPalHubSpotShopifyGustoZapierSquareDext (Receipt Bank)

Cloud Accounting Financial Reporting Accounting Software

Frequently Asked Questions

What is Xero?

Xero is a cloud-based accounting software that helps small and medium-sized businesses manage invoicing, bank reconciliation, expenses, payroll, and financial reporting. It's designed to make accounting accessible for non-accountants while supporting collaboration with financial professionals.

How much does Xero cost?

Xero offers three main plans: Starter (around $15/month) with limited invoices and bills, Standard (around $42/month) for unlimited invoicing, and Premium (around $78/month) which adds multi-currency support. Pricing varies by region, and a 30-day free trial is available.

What are the main features of Xero?

Key features include automated bank reconciliation, invoicing, bill payments, expense claims, financial reporting, inventory tracking, purchase orders, and multi-currency support. It also offers a project tracking tool and payroll functionality in select regions.

Who should use Xero?

Xero is ideal for small to medium-sized business owners, freelancers, and startups who want straightforward accounting without heavy financial expertise. It's also well-suited for accountants and bookkeepers managing multiple client accounts through its partner program.

Is there a free plan for Xero?

Xero does not offer a permanent free plan, but it does provide a 30-day free trial on all plans. Promotional pricing with discounted rates for the first few months is also frequently available.