About 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 over 1,000 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.

Pricing starting from:

$15.00/month

  • Free Version
  • Free Trial
  • Subscription

Key benefits of Xero

  • 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.

  • Devices

    Business size

    S M L

    Markets

    Australia, Brazil, Canada, China, Germany, United Kingdom, Guernsey, Ireland, India, Jersey, Japan, Mexico, New Zealand, United States

    Supported Languages

    English

    Pricing starting from:

    $15.00/month

    • Free Version
    • Free Trial
    • Subscription

    Images

    Xero Software - Xero Dashboard
    Xero Software - Xero Payroll
    Xero Software - Xero Reporting
    Xero Software - Xero Invoices
    Xero Software - Xero Assurance Dashboard
    Xero Software - Xero Accounts
    Xero Software - Xero Contacts
    Xero Software - Xero Dashboard
    Xero Software - Xero Mobile
    Xero Software - Xero Profit and Loss Reports
    Xero Software - Xero Payroll
    Xero Software - Xero Summary Report
    Xero Software - Xero Sales Account
    Xero Software - Xero Contacts
    Xero Software - Xero Timesheets, Payslips, and Leave
    Xero Software - Xero Calendar
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    Xero video
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    Xero Software - Xero Dashboard Xero Software - Xero Payroll Xero Software - Xero Reporting Xero Software - Xero Invoices Xero Software - Xero Assurance Dashboard Xero Software - Xero Accounts Xero Software - Xero Contacts Xero Software - Xero Dashboard Xero Software - Xero Mobile Xero Software - Xero Profit and Loss Reports Xero Software - Xero Payroll Xero Software - Xero Summary Report Xero Software - Xero Sales Account Xero Software - Xero Contacts Xero Software - Xero Timesheets, Payslips, and Leave Xero Software - Xero Calendar

    Features

    Total features of Xero: 162

    • "What If" Scenarios
    • 401(k) Tracking
    • ACH Payment Processing
    • API
    • Access Controls/Permissions
    • Accounting Software
    • Accounts Payable Software
    • Accounts Receivable Software
    • Accrual Accounting
    • Activity Dashboard
    • Activity Tracking
    • Ad hoc Reporting
    • Alerts/Notifications
    • Approval Process Control
    • Approval Workflow
    • Asset Accounting
    • Asset Tracking Software
    • Audit Trail
    • Automated Quoting
    • Automatic Backup
    • Automatic Billing
    • Bank Reconciliation
    • Benefits Management
    • Billing & Invoicing
    • Billing Portal
    • Budgeting/Forecasting
    • CPA Firms
    • Calendar Management
    • Case Management Software
    • Cash Flow Management
    • Cash Management
    • Cataloging/Categorization
    • Charting
    • Check Printing
    • Check Processing
    • Check Writing
    • Client Management
    • Client Portal
    • Collections Management
    • Compliance Management
    • Consolidation/Roll-Up
    • Construction Breakdowns
    • Contact Database
    • Contact Management Software
    • Contingency Billing
    • Contract/License Management
    • Core Accounting
    • Cost Tracking
    • Credit Card Processing
    • Cross Ledger Posting
    • Currency Conversion
    • Customer Database
    • Customer History
    • Customer Statements
    • Customizable Branding
    • Customizable Invoices
    • Customizable Reports
    • Customizable Templates
    • Data Import/Export
    • Direct Deposit
    • Discount Management
    • Document Management Software
    • Document Storage
    • Document Templates
    • Drag & Drop
    • Due Date Tracking
    • Dunning Management
    • Duplicate Payment Alert
    • Electronic Payments
    • Email Management Software
    • Email Templates
    • Expense Claims
    • Expense Management
    • Expense Tracking
    • Fee Calculation & Posting
    • Financial Analysis
    • Financial Management Software
    • Financial Reporting Software
    • Fixed Asset Management Software
    • For CPA Firms
    • For Government
    • Forecasting
    • Fraud Detection
    • Fund Accounting Software
    • General Ledger
    • Hourly Billing
    • Income & Balance Sheet
    • Inventory Control Software
    • Inventory Management Software
    • Inventory Optimization Software
    • Inventory Tracking
    • Invoice History
    • Invoice Management
    • Invoice Processing
    • Job Costing Software
    • Kitting
    • Mobile Access
    • Mobile App
    • Mobile Payments
    • Monitoring
    • Multi-Channel Management
    • Multi-Company
    • Multi-Country
    • Multi-Currency
    • Multi-State
    • Nonprofits
    • Online Invoicing
    • Online Payments
    • Order Management Software
    • Order Processing
    • Order Tracking
    • Overpayment Processing
    • Overrun Reporting
    • Partial Payments
    • Payment Processing Software
    • Payroll Management
    • Payroll Reporting
    • Price / Margin Management
    • Pricing Management
    • Product Identification
    • Profit/Loss Statement
    • Progress Tracking
    • Project Accounting Software
    • Project Billing
    • Project Management Software
    • Purchase Order Management
    • Quotes/Estimates
    • Real Time Data
    • Real Time Reporting
    • Receipt Management
    • Receivables Ledger
    • Recurring/Subscription Billing
    • Reimbursement Management
    • Reorder Management
    • Reporting/Analytics
    • Requisition Management
    • Retail Inventory Management Software
    • Revenue Recognition
    • Sales Reports
    • Sales Tax Management
    • Search/Filter
    • Self Service Portal
    • Shipping Management
    • Sourcing Management
    • Spend Management Software
    • Staff Management
    • Status Tracking
    • Stock Management
    • Supplier Management
    • Tax Calculation
    • Tax Compliance
    • Tax Management Software
    • Template Management
    • Third Party Integrations
    • Time & Expense Tracking
    • Time Tracking Software
    • Transaction History
    • Vacation/Leave Tracking
    • Vendor Management Software
    • W-2 Preparation
    • Wage Garnishment
    • Warehouse Management Software

    Alternatives

    Quickbooks Online

    4.3
    #1 Alternative to Xero
    QuickBooks Online is a complete small business accounting solution which allows users to manage all their financial...

    QuickBooks Desktop Enterprise

    4.5
    #2 Alternative to Xero
    QuickBooks Desktop Enterprise is an accounting software for small businesses which provides users with real-time access...

    MYOB Business

    3.8
    #3 Alternative to Xero
    MYOB Business is accounting software designed to help businesses of any size across Australia and New Zealand take care...

    Sage 50cloud

    3.8
    #4 Alternative to Xero
    Sage 50cloud is an online accounting solution for SMBs with Office 365 integration that helps manage accounting,...

    Reviews

    Overall rating

    4.3 /5
    (2,016)
    Value for Money
    4.2/5
    Features
    4.2/5
    Ease of Use
    4.2/5
    Customer Support Software
    3.9/5

    Already have Xero?

    Software buyers need your help! Product reviews help the rest of us make great decisions.

    Write a Review!
    Showing 5 reviews of 2,016
    Kathryn H. Kathryn H.
    Overall rating
    • Industry: Arts & Crafts
    • Company size: Self Employed
    • Used Weekly for 1+ year
    • Review Source

    Overall rating

    • Value for Money
    • Ease of Use
    • Customer Support Software
    • Likelihood to recommend 10.0 /10

    Affordable professional level accounting software for small business

    Reviewed on 2019-08-26

    It's been easier to use Xero than I expected, but I had a nasty surprise at tax time when I...

    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

    Alternatives Considered

    Quickbooks Online

    Reasons for Choosing Xero

    Outright depends on importing data from financial institutions but they were extremely unreliable (apparently they don't use a standard importing service and my credit union kept flagging them as hackers for remote logins) and customer service kept giving me the runaround. It also isn't "professional" double-entry bookkeeping and can't be audited. Outright can't handle Cost of Goods Sold properly and requires manual workarounds. It can't generate professional reports needed when applying for loans.

    Reasons for Switching to Xero

    QuickBooks introduced a special product for Etsy integration, but early adopters had problems with data disappearing and no way to recover it. Otherwise, the cost of QuickBooks to cover the same features I use in Xero would have been very expensive; even a QB consultant told me it's overkill for a business of my size. I forget which other products I looked at, but Xero was recommended by several owners of similar businesses.
    Rowena J. Rowena J.
    Overall rating
    • Industry: Accounting Software
    • Company size: 2-10 Employees
    • Used Daily for 2+ years
    • Review Source

    Overall rating

    • Value for Money
    • Ease of Use
    • Customer Support Software
    • Likelihood to recommend 10.0 /10

    It took me a while, but I am a Xero convert!

    Reviewed on 2021-09-30

    When I first began using Xero, I had heard a lot about it and was skeptical. Surely, no software...

    When I first began using Xero, I had heard a lot about it and was skeptical. Surely, no software could be so "all that"! I was introduced to it by a colleague who has converted the whole of her mid-size accountancy practice to it, and literally within a day and a half (which did include watching some of the short but very clear tutorial videos) I was not only up and running, but felt confident using it, finding my way around it, locating and fixing errors etc. It's literally that simple and straightforward. It's also incredibly stable - I think in 3 years it's only been offline (to my knowledge) 3 times, each for a very short period. I've also not found ANY bugs so far - almost unheard of! - and the support is fantastic, even though it's online.

    Pros

    Provided it's set up properly, Xero is probably the most friendly accounting software - to non-accountants that is - of any I've ever come across. Back in the 90's, MYOB revolutionised accounting software for small business, but Xero takes it to a whole new level, by removing so much of the data entry work that takes time, leaves room for errors and is in general a pain, when you'd rather be - you know, running your business. With Xero, it's up to the individual operator how much they want to automate their accounting transactions; if you want to, you can use the really powerful, but still simple tools to do a lot of the legwork for you. If you prefer to do it more manually, that's OK too - it's still simple and very quick and easy to use.

    Cons

    Xero is constantly adding and refining its software. Inventory control is an area I'd like to see strengthened, but that's already way ahead of where it was a couple of years ago. Similarly processing payments in advance. But these are relatively small niggles which for the majority of small businesses don't present any issue.

    Alternatives Considered

    MYOB Business

    Reasons for Choosing Xero

    I was contracting to an accountancy firm who had converted their entire practice to Xero.

    Switched From

    MYOB Business
    Ryan K. Ryan K.
    Overall rating
    • Industry: Accounting Software
    • Company size: 2-10 Employees
    • Used Daily for 2+ years
    • Review Source

    Overall rating

    • Value for Money
    • Ease of Use
    • Customer Support Software
    • Likelihood to recommend 0.0 /10

    ACCOUNTANT WARNING DO NOT PARTNER - I was 2nd partner in Canada not a smart move heres why!

    Reviewed on 2019-07-13

    Pros

    Not much to say here anymore, they pretty much used to be good and totally lost faith.

    Cons

    As an accounting firm I would be very cautious with using Xero or recommending it to clients. Outside of Xero billing for things that were supposed to be free, which after complaining they claim they will reconcile but I had to threaten with a lawyer to get that reaction. As an accounting firm it is a very risky move to partner with the Xero software platform. As a firm Your clients will know your using Xero and as a result will likely start to follow Xero using social media. When this happen your clients will receive advertisements about other Accounting firms partnered with Xero. The problem isn’t that you will loose your clients, but this makes you look really bad in front of your clients that you are recommending a software that recommends other accountants outside your firm. This actually happened to me in Canada, and the response of the Canadian Xero team was simply that they didn’t intend on these promotions to be received by the clients of my firm. They didn’t care, they didn’t apologize, they didn’t even acknowledge what they did was wrong, it was evident that they prioritized their growth over their existing partners, at least in Canada. Even The Canadian director of Xero comments where limited to telling me ” I understand that you need to make important decisions in the best interest of your firm”. To me this was a clear message that he doesn’t care. As a small business the software was historically leading, recently, many clients are having issues logging in

    Iain S. Iain S.
    Overall rating
    • Industry: Industrial Automation
    • Company size: 2-10 Employees
    • Used Daily for 1+ year
    • Review Source

    Overall rating

    • Value for Money
    • Ease of Use
    • Customer Support Software
    • Likelihood to recommend 7.0 /10

    Very different to Sage 50

    Reviewed on 2021-11-01

    We moved from Sage line 50 to Xero, this has mainly been a positive experience. From our day-to-day...

    We moved from Sage line 50 to Xero, this has mainly been a positive experience. From our day-to-day usage, sending invoices, chasing debt, bank reconciliation it is very easy to use. Our accountant set up Dext to import receipts and expenses which means we spend much less time with data entry now and we are much more paperless than we were. The key driver for us was to work in a cloud based system that would integrate with other business management systems and Xero kept coming up as the one that plays nicely with lots of other services. Our managment accountant has taken a lot more convincing as the web-based interface can be a little more clumsy in some 'pure-accountancy' areas and getting the chart of accounts nicely presented has taken a bit of effort. Generally we're really happy with Xero and are also happy with the split that the CRM/MRP/ERP system is supported by that vendor leaving the accountancy to the accountancy experts.

    Pros

    Ease of use from a day-to-day perspective for a non accountant and integration with other cloud software such as Dext and Flowlens

    Cons

    We have had a couple of glitches where bank feeds have stopped working for periods of time, manual import of bank statements can take a few attempts to get right.

    Alternatives Considered

    Dynamics 365 Business Central

    Reasons for Choosing Xero

    Compatibility with CRM/ERP, Cloud system

    Switched From

    Sage 50cloud

    Reasons for Switching to Xero

    Ease of use, Established brand, Integrated Payroll, migration support, ongoing cost
    Andrew C. Andrew C.
    Overall rating
    • Industry: Accounting Software
    • Company size: 2-10 Employees
    • Used Weekly for 1+ year
    • Review Source

    Overall rating

    • Value for Money
    • Ease of Use
    • Customer Support Software
    • Likelihood to recommend 10.0 /10

    Xero is the One

    Reviewed on 2021-08-16

    I am very satisfied to be building my practice on Xero. They have a good product with a good...

    I am very satisfied to be building my practice on Xero. They have a good product with a good company behind it. They seem to really care about their advisors and see them as key to their business model. They have a great community and great support.

    Pros

    What I like most about Xero is its open-platform ethos. It's not one particular feature, it's the whole way that Xero approaches what it does, and it shows up all over the product. One small example is how easy it is to manually import bank transactions via CSV file, and then how easy it is to undo that import if it went wrong. It's less about features (although Cash Coding and Find & Recode are brilliant) and more about design choices.

    Cons

    I want them to hurry up and integrate Hubdoc into Xero itself. And when that happens, I want there to be a way to generate a report that shows which GL transactions don't have a source document.

    Alternatives Considered

    Sage 50cloud

    Reasons for Choosing Xero

    Quickbooks treats their ProAdvisors the way Scar treats the hyenas in the Lion King. For Quickbooks, the advisor community will always be a means to an end. Their products are built for consumers, not professionals, and I expect they always will be.

    Switched From

    Quickbooks Online

    Reasons for Switching to Xero

    In the end, I decided that the ability to integrate apps was going to be determinative over the long term. Xero and QBO are way out in front when it comes to integration and I expect that as the market matures, they will end up with a Coke-and-Pepsi-level of market dominance. They may already be there. Early on, I tried to get someone to sell me Accounting Power and/or Sage 50, but neither company seemed organized enough to close the sale. I was looking for a software partner that I could build my practice on and Xero were the ones who showed me they wanted to be that and had a plan to make it happen.
    Showing 5 reviews of 2,016 Read all reviews

    Xero FAQs

    Below are some frequently asked questions for Xero.

    Xero offers the following pricing plans:

    • Starting from: $15.00/month
    • Pricing model: Subscription
    • Free Trial: Available

    Early: $15/month Standard: $40/month Premium: $52/month

    Xero has the following typical customers:

    Self Employed, 2-10, 11-50, 51-200, 201-500, 501-1,000

    Xero supports the following languages:

    English

    Xero supports the following devices:

    Android (Mobile), iPhone (Mobile), iPad (Mobile)

    Xero integrates with the following applications:

    Accelo, Actionstep, ActiveCollab, Acuity Scheduling, Administrate Training Management, Agile CRM, ApprovalMax, AroFlo, Authorize.Net, AutoEntry, BarTab, Batchbook, BigCommerce, BlueFolder, BookingBug, BuilderTREND, Capsule, Chargebee, Chargify, Chaser, Checkfront, Checkmybooks, Chrometa, Cin7, ClicData, Clio, CollabSpot, Constant Contact, Copper, Corecon, Current RMS, CustomerSure, Cyfe, DEAR Systems, Datamolino, Debtor Daddy, Deputy, Dext Prepare, Dryrun, EZRentOut, Ecwid, Emburse Nexonia Expenses, Emburse Tallie, Entryless, Epos Now, Everhour, Expensify, Exsalerate CRM, FUTRLI, Fathom, Fergus, FieldAware, Financial Driver, Fishbowl, Float, Float Cash Flow, FreshBooks, Freshdesk, GeoNext, Google Workspace, Grow, Handshake, Harvest, Hike, Hotelogix, Hubdoc, Insightly, InvoiceSherpa, JobAdder, Kickserv, Klipfolio, Lightspeed POS, LivePlan, MRPeasy, Magento Commerce, Mailchimp, Manu Online, Microsoft 365, Microsoft Power BI, Mindbody, MinuteDock, MyBuys, Nobly, OnePageCRM, OneSaas, Onsight, Operations Hub, Panalitix, PandaDoc, PayPal, Payment Evolution, Payoneer, Pepperi, Plooto, Podio, Practice Ignition, ProWorkflow, ProfitSee, Proposify, QuickBooks Commerce, QuickBooks Time, Quickbooks Online, Quoter, Quotient, Qvinci, Qwilr, RESULTS.com, Re-Leased, Really Simple Systems CRM, Rydoo, Sage 50cloud, Sage Business Cloud Accounting, SalesSeek, Sapaad, Satago, ServiceM8, Shoeboxed, Shopify, Simple Salon, Solve CRM, Spotlight Reporting, Square Point of Sale, Starshipit, Streamtime, Stripe, SugarCRM, Synchroteam, Synergy Practice Management, Tidy, Time Tracker, TimeCamp, Timely, Tradify, Trigger, Unleashed, Veeqo, Vend, WORKetc, WooCommerce, Workato, WorkflowMax, XEDI Web EDI, XO Cashflow, ZENOTI, Zahara, Zapier, Zendesk Sell, Zoho Analytics, Zoho Books, Zoho CRM, ezyCollect, ezyVet, simPRO, vWorkApp, webexpenses

    Xero offers the following support options:

    Email/Help Desk, FAQs/Forum, Knowledge Base Software, 24/7 (Live rep), Chat

    Related categories

    See all software categories found for Xero.