Xero also offers flexibility and convenience to all businesses by integrating various payment gateways. 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. You'll receive your invoice at the end of your monthly billing period. These reports help small business owners identify areas for improvement and make evidence-based decisions in real time.
Xero Features
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. The Early plan costs $20 per month and lets users send up to 20 invoices and schedule up to 5 bills per month.
- Xero has never offered phone support and has relied on email support.
- 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.
- Unlike Xero, QuickBooks allows unlimited invoices on the cheapest Simple Start plan — but limits you to 1 billable user and 2 accountant firm users.
- Suited for small- and medium-sized businesses (SMBs), Xero is an affordable cloud-based accounting software system that streamlines these processes with plans starting at $13 per month.
Wave Accounting
It allows three users for its capitalized cost definition Essentials plan ($55 per month) and 25 users for its top plan, the Advanced ($200 per month). This can be helpful if your company is growing fast, or you simply want the reassurance that there’s no limit to how many people can be part of the team. Keep in mind that the ability to use multiple currencies in the software and invoice is limited to the company’s highest tier, at $70 per month. If using multiple currencies is a priority to you, consider other platforms that offer this capability at a lower cost. Zoho, for example, is accounting software with a free invoice platform that allows you to bill in multiple currencies.
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. 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. FreshBooks offers unlimited time-tracking in its lowest-tier Lite plan, whereas Xero users would have to opt into the highest-tier Established plan for that feature.
It’s also a good fit if you want to integrate Gusto Payroll to your accounting platform. The Early subscription is tailored for solopreneurs and business owners who are just getting started. You’re able to send 20 quotes and invoices per month, enter five bills, reconcile bank transactions, capture bills and receipts with Hubdoc and view a short-term cash flow and business snapshot.
Is Xero Right for You or Your Business?
You’ll get unlimited clients, invoices and bills on the free program, but you’ll need to upgrade to the $16 per month Pro plan if you want to auto-import bank transactions and digitally capture unlimited receipts. In contrast to allowing unlimited users, Xero does limit you to one organization or business per subscription. In other words, if you need to do accounting for more than one business, you’ll need to purchase an account for each one.
Multiple pricing increases over the years have driven up the cost of the software, and customer support isn’t the best. 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 Xero, QuickBooks allows unlimited invoices on the cheapest Simple Start plan — but limits you to 1 billable user and 2 accountant firm users. If you need only 1 person to use the software but plan to send a high number of invoices and bills, QuickBooks may be a more cost-effective choice than Xero. While Xero’s plans start at a cheaper price, QuickBooks offers more features across its plans.
Short-term cash flow and business snapshot
Xero’s built-in invoicing feature lets businesses create customized invoices by including the company logo, custom message, and added fields. The clients can click on the Pay Now button on the invoice to make payments using a credit card, debit card, direct debit, or any other payment method of their choice. 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. The other appeal of the software was that each plan came with unlimited users, access to every Xero feature, and payroll. The number of users is also technically unlimited, but FreshBooks does charge an extra fee of $11 per user per month.
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. FreshBooks starts at $19 per month after the signup discount and incorporates standout features like team roles and time tracking on all plans. The basic plan allows users to send unlimited invoices and estimates and track unlimited expenses up to 5 clients, so if you have more clients than that, you’ll need to upgrade.
