Xero

Accounting Software for SMBs

4.3 /5 (1897 reviews) Write a Review!

Xero Overview

What is Xero?

Xero is a cloud-based small business accounting software with tools for managing invoicing, bank reconciliation, inventory, purchasing, expenses, bookkeeping and more. Xero is an alternative to QuickBooks. It is a modern, small business accounting software that lives in the cloud. It's accessible from any computer or mobile device, making for a smarter and easier accounting process, with features including cash flow tracking, payment processing, bank reconciliation, expense tracking, inventory management, financial reporting, and more.

The Xero dashboard presents users with a clear and concise overview of their financial situation. It provides small business owners with a greater understanding of their cashflow by highlighting bank balances, outstanding invoices, upcoming bills and expense claims in a visually appealing way. Daily bank and credit card transactions are automatically imported into Xero and matched to their corresponding accounting transaction. Doing bank reconciliation is as easy as confirming the match is corrected and clicking "OK."

Xero integrates with a variety of third-party apps commonly used by small businesses including Stripe, PayPal, Capsule, HubSpot, and more in order to streamline workflows and synchronize data such as sales invoices, client data, cashflow reports, payroll data, and more. Data flows directly into the Xero ledger, removing the time and effort required for manual data entry. Every Xero plan comes with unlimited users, so there's no need to pay for extra licenses. Collaborate with colleagues or invite financial advisors to view data remotely and get valuable real-time advice.

Xero Overview

Pricing

Starting from
$25.00/month

Pricing options

Free Trial
Subscription
Value for money

Starter: $25/month
Standard: $50/month
Premium: $75/month


Xero Features

Devices
Business size
S M L
Markets
United States, Canada, United Kingdom, Australia, China and 5 others, India, Japan, Germany, Brazil, Mexico
Supported Languages
English

Media

Xero Dashboard
Xero Payroll
Xero Reporting
Xero Invoices
Xero Assurance Dashboard
Xero Accounts
Xero Contacts
Xero Dashboard
Xero Mobile
Xero Profit and Loss Reports
Xero video Xero video Xero screenshot: Xero Dashboard Xero screenshot: Xero Payroll Xero screenshot: Xero Reporting Xero screenshot: Xero Invoices Xero screenshot: Xero Assurance Dashboard Xero screenshot: Xero Accounts Xero screenshot: Xero Contacts Xero screenshot: Xero Dashboard Xero screenshot: Xero Mobile Xero screenshot: Xero Profit and Loss Reports

Xero Reviews

Xero Reviews

Overall rating
4.3
/
5
Excellent
1089

Very good
516

Average
169

Poor
51

Terrible
72

Value for Money
4.2
Features
4.2
Ease of Use
4.2
Customer Support
3.9
85% recommended this app
Kathryn H.

Affordable professional level accounting software for small business

It's been easier to use Xero than I expected, but I had a nasty surprise at tax time when I realized the default accounts/descriptions for expenses did not correlate 1:1 to IRS categories. (I should have checked this more closely when I set up my accounts because it's a New Zealand company, and the previous product was local.) This means I will need to double-check all my transactions for 2018 and the IRS has my vastly overestimated tax payment until I can do that and file my return on an extension.

I've had a much better experience importing data from financial institutions because Xero uses a well-known importing service that is trusted by the institutions.

I like being able to match multiple invoices to bank deposits because I usually don't run to the bank for each check. This will be more valuable as my company grows.

I should probably find an accountant to assist me with this, but I haven't found an accountant who understands both craft businesses and Xero.


Craig D.

I can't wait for it to be finished!

It's a lot of money to get setup with a certified consultant. Very few consultants available in Canada. When we did find one she was great but she bills you for every second she works. As in not any free advice. My lawyer is easier to work with.


John D.

Concerns with Xero

We've been using Xero for about two years now. There have been a few hiccups along the way but for the most part things have been ok. Recently however, we've had a problem with our bank feed uploading into Xero in order to reconcile transactions. We first encountered this issue on 2/10/18. We informed Xero and they said they would look into the issue. A couple of weeks went by without hearing anything about the feed working as it should. We contacted them again and they said they were still working on the issue but that we could manually download the transactions ourselves in the meantime. Today is 4/10/18 (2 months later) and they still have not fixed the issue. We are still having to manually download these transactions ourselves in order to reconcile our bank accounts within the Xero software.

I spoke with Xero this morning and they still do not have a timeline for when this will be fixed. They said they use an outside company to perform the importing of bank feeds functions and that they are not responsible for it not working. They said when we signed up for the Xero service we were informed about the possibility of the feed possibly cutting out at some point in the fine print (terms & conditions). They refuse to issue any sort of refund for their monthly service during this time of inconvenience because they say the bank feed import function is a free service offered by a third party.

The problem we have is that Xero is marketing this service as part of their overall monthly service package which you assume is really included in your monthly service fee you pay to them. When it doesn't work they take no accountability for it not working. We think it's very deceptive for them to market a service (bank import functionality) to prospective buyers, which you assume is included with your monthly service fee, but then take no responsibility for it not working when things breakdown. We believe they do this to gain a competitive advantage over other companies like Quickbooks. Instead of just charging for the bank import service which would increase their monthly service fee and make them less competitive on a price basis with their competition they artfully setup their service to be able to offer a more competitive price but not assume any of the responsibility when the service doesn't work as expected. The general consumer doesn't think to put this deceptive tactic together when they sign up for the service and Xero assumes once they have you onboard you'll deal with the issue until they can get it fixed because switching accounting software companies at a later date is extremely inconvenient.


Sherm S.

XERO reconciliation is an issue

Overall, it's a decent program, with all the bells and whistles you'd expect from a cloud based accounting program. Unfortunately working without being able to reconcile monthly made life too difficult. And not many accountants work with it, so that made it difficult to have professional eyes on my accounting.


Chris C.

A leading software in it's industry

A beautiful piece of software that turns a once tedious chore, into an easy and intuitive process. I always recommend my clients to use Xero (if they can afford to) as I believe it makes the workflow much smoother and simpler for everyone involved.


Kathryn H.
Industry: Arts & Crafts
Company size: Self Employed

Affordable professional level accounting software for small business

Used Weekly for 1+ year
Reviewed on 8/26/2019
Review Source: Capterra

It's been easier to use Xero than I expected, but I had a nasty surprise at tax time when I realized the default accounts/descriptions for expenses did not correlate 1:1 to IRS categories. (I should have checked this more closely when I set up my accounts because it's a New Zealand company, and the previous product was local.) This means I will need to double-check all my transactions for 2018 and the IRS has my vastly overestimated tax payment until I can do that and file my return on an extension.

I've had a much better experience importing data from financial institutions because Xero uses a well-known importing service that is trusted by the institutions.

I like being able to match multiple invoices to bank deposits because I usually don't run to the bank for each check. This will be more valuable as my company grows.

I should probably find an accountant to assist me with this, but I haven't found an accountant who understands both craft businesses and Xero.

Pros

Professional double entry software at a very affordable price
Accommodates both cash and accrual accounting
Links to financial institutions to get transactions
Uses standard importer recognized by the financial institutions instead of just trying to log in remotely (and triggering fraud alerts)
Can match multiple invoices to a single deposit transaction imported from bank
Can keep using Xero as company grows

Cons

Pre-existing expense categories/descriptions don't map 1:1 with IRS definitions, so I'm having to go back to all my receipts to make sure expenses are entered in proper accounts because I didn't realize this when I switched
More difficult to focus on specific expense categories to check transactions
Have not been able to import historic data from previous app (possibly because it's not double entry) so I am still paying the subscription on that software to retain access to my data
No integration with Craftybase, so I have to enter supply purchases and customer invoices there independently

Rating breakdown

Value for Money
Ease of Use
Customer Support

Likelihood to recommend: 10.0/10

Craig D.
Industry: Marketing & Advertising
Company size: 2-10 Employees

I can't wait for it to be finished!

Used Daily for 1+ year
Reviewed on 8/31/2020
Review Source: Capterra

It's a lot of money to get setup with a certified consultant. Very few consultants available in Canada. When we did find one she was great but she bills you for every second she works. As in not any free advice. My lawyer is easier to work with.

Pros

As a former quickbooks user of about 20 years, it was a big deal to switch platforms. At first glance it looked like it would do everything we wanted. I loved the price point, the interface and relative ease of use. The multi currency was great as was the ability to integrate with Stripe. You make a lot of compromises to save on the huge monthly cost of quickbooks but there are workarounds.

Cons

There are so many things that are just common/must have's for any business. Things like progressive billing, job costing and even the ability to make your own journal entries are missing. We had to hire a consultant and spend around $800 just to get it to add purchases easier to the mix with HubDoc. You see job costing catagories at the invoice level but not software or 3rd party app to back it up. The single most annoying thing about it is the support. It's non existent. You complain, They tell you its not a problem and ignore your requests. I struggle daily with the search function. I can't get about 50% of my searches to work. The clients I'm looking for are entered. I'm typing them in fine but you often have to visit contacts menu and find them manually by quote number or just never ending scrolling. Upon complaining numerous times the best they can do is say "it might take up to two weeks for your contacts to sync. " Xero: It's 2020 and the dark ages of cloud software have passed. You need to fix the search function and add job costing to be considered a contender. So here we are in 2020, manually adding each of our sales to a spreadsheet and adding the subsequent bills to it to see if we made $. They make it incredibly hard to contact support and they are quite unresponsive when they do reply to your ticket. They try really hard to push you to support forums, where there are literally hundreds of complaints on the same issue with the ability to comment closed.

Rating breakdown

Value for Money
Ease of Use
Customer Support

Likelihood to recommend: 7.0/10

John D.
Industry: Transportation/Trucking/Railroad
Company size: 11-50 Employees

Concerns with Xero

Used Daily for 1+ year
Reviewed on 4/10/2018
Review Source: SoftwareAdvice

We've been using Xero for about two years now. There have been a few hiccups along the way but for the most part things have been ok. Recently however, we've had a problem with our bank feed uploading into Xero in order to reconcile transactions. We first encountered this issue on 2/10/18. We informed Xero and they said they would look into the issue. A couple of weeks went by without hearing anything about the feed working as it should. We contacted them again and they said they were still working on the issue but that we could manually download the transactions ourselves in the meantime. Today is 4/10/18 (2 months later) and they still have not fixed the issue. We are still having to manually download these transactions ourselves in order to reconcile our bank accounts within the Xero software.

I spoke with Xero this morning and they still do not have a timeline for when this will be fixed. They said they use an outside company to perform the importing of bank feeds functions and that they are not responsible for it not working. They said when we signed up for the Xero service we were informed about the possibility of the feed possibly cutting out at some point in the fine print (terms & conditions). They refuse to issue any sort of refund for their monthly service during this time of inconvenience because they say the bank feed import function is a free service offered by a third party.

The problem we have is that Xero is marketing this service as part of their overall monthly service package which you assume is really included in your monthly service fee you pay to them. When it doesn't work they take no accountability for it not working. We think it's very deceptive for them to market a service (bank import functionality) to prospective buyers, which you assume is included with your monthly service fee, but then take no responsibility for it not working when things breakdown. We believe they do this to gain a competitive advantage over other companies like Quickbooks. Instead of just charging for the bank import service which would increase their monthly service fee and make them less competitive on a price basis with their competition they artfully setup their service to be able to offer a more competitive price but not assume any of the responsibility when the service doesn't work as expected. The general consumer doesn't think to put this deceptive tactic together when they sign up for the service and Xero assumes once they have you onboard you'll deal with the issue until they can get it fixed because switching accounting software companies at a later date is extremely inconvenient.

Pros

The service accomplishes most of what it was intended to do albiet at a bit of a learning curve for the new user.

Cons

There is no customer service support number to call. Bank feeds do not work properly. IOS app is mising some functionaility

Rating breakdown

Value for Money
Ease of Use
Customer Support

Likelihood to recommend: 1.0/10

Sherm S.
Industry: Marketing & Advertising
Company size: 2-10 Employees

XERO reconciliation is an issue

Used Daily for 2+ years
Reviewed on 8/20/2020
Review Source: GetApp

Overall, it's a decent program, with all the bells and whistles you'd expect from a cloud based accounting program. Unfortunately working without being able to reconcile monthly made life too difficult. And not many accountants work with it, so that made it difficult to have professional eyes on my accounting.

Pros

I loved how easy it was to integrate XERO with my bank accounts and Paypal. XERO seamlessly connected and kept my balances up to date. I also liked how easy it was to invoice clients and connect invoices to Paypal or Stripe.

Cons

Unfortunately, the reconciliation process in XERO is a no-go for me. Rather than the Quickbooks and standard approach, where you do a monthly reconciliation against a bank statement, XERO had no such function. Once an item was matched up to a bank transaction, it was considered "reconciled." No option to close out a month and double-check transactions. I went back to QBO to get that feature.

Rating breakdown

Value for Money
Ease of Use
Customer Support

Likelihood to recommend: 5.0/10

Chris C.
Industry: Accounting
Company size: 2-10 Employees

A leading software in it's industry

Used Daily for 2+ years
Reviewed on 8/10/2020
Review Source: Capterra

A beautiful piece of software that turns a once tedious chore, into an easy and intuitive process. I always recommend my clients to use Xero (if they can afford to) as I believe it makes the workflow much smoother and simpler for everyone involved.

Pros

As an accountant and bookkeeping business owner I have been using accounting software for well over 10 years. I have to say when Xero entered the market I was definitely curious as to what it could bring to the market. I believe Xero have captured a very nice niche of the industry with it's very business orientated user interface and simplisitic feel. It makes accounting somewhat fun for the business owner. The way that they have revolutionized the way the bank reconciliation is performed makes it easier for buiness owner and accountant/bookkeeper to work together. I love the comments functionality and the rules that can be set to repeating transactions. The AI in the bank reconciliation also has a very nice balance to it. It will allocate your transactions when you need it to, but not too aggressively - meaning you don't have to undo all the automatic allocations (unlike some other software like MYOB).

They also have a lot of resources to help business owners and financial professionals. In addition they make continual updates to their software to adapt to the times.

Cons

I think the biggest con of the software is the price tag. Many of my clients have found this to be a stumbling block, saying that the monthly subscription fee is too high for their business.

Other than the price, the only other con is the support is only via email (this is the last time I had an issue which was a few months ago). They do not have a support contact phone line (in Australia at least) - so response has to be via email (which may lead onto a call later if it cannot be resolved by email). Which takes longer to resolve the issues.

Rating breakdown

Value for Money
Ease of Use
Customer Support

Likelihood to recommend: 10.0/10

User recommendation
8.3/10
Based on 1,897 user ratings
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Xero Pricing

Xero Pricing

Starting from
$25.00/month
Free Trial
Subscription
Value for money

Starter: $25/month
Standard: $50/month
Premium: $75/month

Starter: $25/month
Standard: $50/month
Premium: $75/month

Value for Money
4.2/5
Based on 1,897 user ratings
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Xero Features

Xero Features

API
Accounting Integration
Accounting Management
Activity Dashboard
Audit Trail
Automatic Notifications
Billing & Invoicing
Compliance Management
Customizable Reporting
Data Import/Export
Electronic Payments
Expense Tracking
Financial Analysis
Invoice Management
Invoice Processing
Multi-Currency
Real Time Data
Reporting & Statistics
Third Party Integration
Workflow Management
Features
4.2/5
Based on 1,897 user ratings
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Categories

Additional information for Xero

Additional information for Xero

Key features of Xero

  • Access control
  • Ad hoc reporting
  • Assignment management
  • Auto-matching
  • Automated scheduling
  • Automatic backup
  • Automatic updates
  • Balance sheet
  • Bank reconciliation - auto import & code transactions
  • Billing & invoicing
  • Budgeting
  • Bulk imports
  • Business analysis
  • Business asset tracking
  • Business performance analysis
  • Cash coding
  • Cash flow management
  • Cashflow forecasts
  • Charting
  • Check printing
  • Contact history
  • Contact management
  • Convert from QuickBooks
  • Credit card processing
  • Currency conversion
  • Customer & supplier tracking
  • Customer database
  • Customer history
  • Customizable branding
  • Customizable reporting
  • Customizable templates
  • Dashboard - see bank balances, sales & bills
  • Data import
  • Data import/export
  • Data security
  • Depreciation & disposal
  • Depreciation calculation
  • Depreciation tracking
  • Document approval
  • Document management
  • Document storage
  • Document templates
  • Drag & drop interface
  • Electronic payments
  • Email integration
  • Email templates
  • Expense claims
  • Expense tracking
  • File & transaction storage
  • Files attachments
  • Financial management
  • Financial reporting
  • Fixed asset management
  • Free, unlimited email support
  • General ledger
  • Goal setting / tracking
  • Inter-company funds transfers
  • Inventory management
  • Inventory tracking
  • Invoice management
  • Invoice processing
  • Invoicing - create and send invoices automatically
  • Keyboard shortcuts
  • Manual journals
  • Mobile apps (iPhone, iPad, Android)
  • Mobile integration
  • Monitoring
  • Multi-currency
  • Order confirmation
  • Order management
  • Order tracking
  • Pay bills
  • PayPal & Stripe payments
  • Payment processing
  • Payroll management
  • Permission management
  • Price management
  • Profit / loss statement
  • Progress tracking
  • Purchase order management
  • Quick & easy 1099s
  • Quote management
  • Real time data
  • Real time reporting
  • Receipt management
  • Receive bills electronically
  • Recurring billing
  • Reimbursement management
  • Repeating journals
  • Retail inventory management
  • Sales & spending monitoring
  • Sales tax management
  • Search functionality
  • Smart lists
  • Status tracking
  • Stock management
  • Template management
  • Third party integration
  • Transaction history
  • Watch list

Benefits

  • Keep accounting data safe and secure.
  • Access accounts online anytime from anywhere, even on the go using mobile devices (iPhone/iPad/Android) or tablet.
  • Get better visibility on cashflow with real-time data.
  • Reduce the time spent keeping accounts up to date.
  • Software updates are free and available when users log in.
  • Collaborate with the whole team and an accountant. Users decide what each person can see.
  • Seamless accounting and payroll in the US (selected states), UK, Australia and New Zealand.

  • Xero FAQs

    Xero FAQs

    Below are some frequently asked questions for Xero.

    Q. What type of pricing plans does Xero offer?

    Xero offers the following pricing plans:

    Starting from: $25.00/month

    Pricing model: Subscription

    Free Trial: Available

    Starter: $25/month Standard: $50/month Premium: $75/month

    Q. What are the main features of Xero?

    Xero offers the following features:

    • Access control
    • Ad hoc reporting
    • Assignment management
    • Auto-matching
    • Automated scheduling
    • Automatic backup
    • Automatic updates
    • Balance sheet
    • Bank reconciliation - auto import & code transactions
    • Billing & invoicing
    • Budgeting
    • Bulk imports
    • Business analysis
    • Business asset tracking
    • Business performance analysis
    • Cash coding
    • Cash flow management
    • Cashflow forecasts
    • Charting
    • Check printing
    • Contact history
    • Contact management
    • Convert from QuickBooks
    • Credit card processing
    • Currency conversion
    • Customer & supplier tracking
    • Customer database
    • Customer history
    • Customizable branding
    • Customizable reporting
    • Customizable templates
    • Dashboard - see bank balances, sales & bills
    • Data import
    • Data import/export
    • Data security
    • Depreciation & disposal
    • Depreciation calculation
    • Depreciation tracking
    • Document approval
    • Document management
    • Document storage
    • Document templates
    • Drag & drop interface
    • Electronic payments
    • Email integration
    • Email templates
    • Expense claims
    • Expense tracking
    • File & transaction storage
    • Files attachments
    • Financial management
    • Financial reporting
    • Fixed asset management
    • Free, unlimited email support
    • General ledger
    • Goal setting / tracking
    • Inter-company funds transfers
    • Inventory management
    • Inventory tracking
    • Invoice management
    • Invoice processing
    • Invoicing - create and send invoices automatically
    • Keyboard shortcuts
    • Manual journals
    • Mobile apps (iPhone, iPad, Android)
    • Mobile integration
    • Monitoring
    • Multi-currency
    • Order confirmation
    • Order management
    • Order tracking
    • Pay bills
    • PayPal & Stripe payments
    • Payment processing
    • Payroll management
    • Permission management
    • Price management
    • Profit / loss statement
    • Progress tracking
    • Purchase order management
    • Quick & easy 1099s
    • Quote management
    • Real time data
    • Real time reporting
    • Receipt management
    • Receive bills electronically
    • Recurring billing
    • Reimbursement management
    • Repeating journals
    • Retail inventory management
    • Sales & spending monitoring
    • Sales tax management
    • Search functionality
    • Smart lists
    • Status tracking
    • Stock management
    • Template management
    • Third party integration
    • Transaction history
    • Watch list

    Q. Who are the typical users of Xero?

    Xero has the following typical customers:

    Small Business, Non Profit, Freelancers

    Q. What languages does Xero support?

    Xero supports the following languages:

    English

    Q. What type of pricing plans does Xero offer?

    Xero has the following pricing plans:

    Subscription

    Q. Does Xero support mobile devices?

    Xero supports the following devices:

    Android, iPhone, iPad

    Q. What other apps does Xero integrate with?

    Xero integrates with the following applications:

    Capsule, Entryless, FIVE CRM, Loc8, Payment Evolution, ProWorkflow, Receipt Bank, TriggerApp, Vend, WORKetc

    Q. What level of support does Xero offer?

    Xero offers the following support options:

    Forum, Knowledge Base, Online Support, Video Tutorials