It gives small business owners access to Xero’s suite of tools to help manage their business and their people processes in one plan. The Ultimate plan includes all Xero’s core accounting features plus tools for advanced analytics, employee management and multi-currency. Xero lets new customers sign up for a 30-day free trial to test out its features. You can add Gusto payroll to any plan for an extra $40 per month, plus $6 per month per person.
The best accounting software received top marks when evaluated across 10 categories and more than 30 subcategories. Unlike Xero, QuickBooks allows unlimited invoices on the cheapest Simple Start plan — why profits don't equal cash flow 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. Once you’ve got your bank information in Xero, the software will help you match up your transactions for reconciliation (Figure B).
Xero Review 2024: Features, Pricing & More
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. Still, Xero’s feature set is strong, leading to our rating of 4.1/5. More complex businesses in particular are wanting to make managing their employees easier and get deeper insights into their business performance.
Time Tracking
Also included in the Ultimate plan is Xero Analytics Plus, a set of tools to help small businesses gain a deeper understanding of how their business may be performing, and plan ahead. For small businesses wanting in-depth insights and advanced cash flow forecasting, Analytics Plus provides a greater overview of cash flow and financial performance. 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. Xero doesn’t provide a phone number on its customer support page, but a representative will call you if necessary. This is a serious drawback if you want to be able to pick up the phone and talk through an issue or are new to accounting software and have lots of questions. All three plans come with an optional add-on for payroll with Gusto for $40 per month plus $6 per month per person.
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. 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.
Sales Tax
For unlimited invoicing and bill-paying capacity, you'll need to upgrade to the Growing plan. Xero helps transform the data you enter into actionable information at every subscription level. A dashboard provides a summary of your business’s financial health, including total cash in and out, outstanding invoices and overdue bills.
Included in the Growing plan
- This is a real drawback for owners of multiple businesses or bookkeepers who work with multiple clients.
- For small businesses wanting in-depth insights and advanced cash flow forecasting, Analytics Plus provides a greater overview of cash flow and financial performance.
- 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.
- More than 3.5 million users all over the globe use Xero to manage their billing and invoicing each month.
- Find out more about Xero’s commitments to data protection and data security.
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. 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.
Transactions initiated by app partners may automatically contribute to your invoice limit. FreshBooks charges $17 per month and QuickBooks charges $30 per month). However, the best option and price point will depend on the specific capabilities and features you are looking for. Access all Xero features for 30 days, then decide which plan best suits your business. †Invoice limits for the Early plan apply to both approving and sending invoices.
After you start a free 30-day trial of Xero, you’ll activate the account and provide details about your business. Then, you can connect your bank accounts to Xero and decide if you'll accept electronic payments for online invoices. Includes project tracking tools in most expensive plan; has transaction tracking tags; lacks industry-specific reports; users with multiple businesses must pay for separate subscriptions. 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.
