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Xero at a Glance
Xero includes extensive features that make it suitable to handle complex accounting processes for small- and medium-sized businesses as well as larger ones. The software makes it easy to pay bills, claim expenses, accept payments, track projects, manage contracts, store files and more.
Here is how the monthly fees for Xero break down:
- Early: $13 per month
- Growing: $37 per month
- Established: $70 per month
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.
The Growing plan is best suited for growing businesses, grants the same capabilities in addition to the ability to send unlimited quotes and invoices, enter unlimited bills, and reconcile transactions in bulk.
The Established price tier is the company’s plan for businesses that are already up and running, particularly businesses that service international audiences or markets. It provides the ability to use multiple currencies, track projects, claim expenses and view in-depth analytics, in addition to the features mentioned above.
All three plans come with an optional add-on for payroll with Gusto for $40 per month plus $6 per month per person. Gusto is a platform that automates payroll filing for all 50 states in addition to automating payroll taxes, deductions and filings and providing employees with the platform to view pay stubs and W-2s online.
Xero’s invoicing capabilities allow you to create and customize an invoice for clients and then accept credit card, debit card or bank transfer payments within the invoice itself. Account holders are able to customize online invoices to add a logo, accept payments instantly through the invoice, set automatic reminders for clients to pay and invoice directly from the Xero app. Xero processes payment through a payment gateway like Stripe, GoCardless and others. Keep in mind that these services charge a fee to process payments (usually around 2.9% plus 25 cents per transaction, though this varies by the payment processor).
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1
Xero
Starting price
Reg. Price: $15 per month; Special Offer: 75% off all plans for 3 months until February 13
Unlimited Users On All Plans
Yes
Free Trial
30 days
2
Sage Intacct
Cloud Financial Management
Yes
Multi-entity financial visibility
Yes
CRM, Payroll, POS Integrations
Yes
3
Melio
Accounts payable & receivable
Yes
Accounting software sync
Yes
Pay by Card
Yes
4
QuickBooks
Starting price
$15 per month (for the first 3-months, then $30 per month)
Free Trial
30 days
Key Features
Expert help, Invoicing, maximize tax deductions, track mileage
Other Benefits
If you’re looking for an accountant who specializes in Xero, you can search for an accounting advisor through their website by location and industry.
Fine Print
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.
How Xero Stacks Up
| Xero | FreshBooks | QuickBooks | |
|---|---|---|---|
Starting Price (Monthly) | $13 | $17 | $30 |
Free Trial | 30 days | 30 days | 30 days |
Free Version | No | No | No |
Maximum Users | Unlimited | 1 – $10 per month for each additional user | 1 |
Number of Clients | Unlimited | 5 | Unlimited |
Quote and Invoices | 20 per month | Unlimited | ✓ – With Simple Start plan ($25/month) |
Track Miles | ✓ | ||
Customizable Features | Good | Good | Excellent |
Customer Support | 24/7 online support through live chat, knowledge base, help center, email support, blog and guides | Phone and email support, live chat, knowledge base and help center | Live chat, video tutorials, phone and email support |
Learn More | — | ||
Read Reviews | — | Read FreshBooks Review | Read QuickBooks Review |
Given that there are several invoicing software on the market, it’s worth putting in some time to research your options before choosing one for your business. We’ve compared Xero with its competitors to help your search.
Featured Partners
Advertisem*nt
1
Xero
Starting price
Reg. Price: $15 per month; Special Offer: 75% off all plans for 3 months until February 13
Unlimited Users On All Plans
Yes
Free Trial
30 days
2
Sage Intacct
Cloud Financial Management
Yes
Multi-entity financial visibility
Yes
CRM, Payroll, POS Integrations
Yes
3
Melio
Accounts payable & receivable
Yes
Accounting software sync
Yes
Pay by Card
Yes
4
QuickBooks
Starting price
$15 per month (for the first 3-months, then $30 per month)
Free Trial
30 days
Key Features
Expert help, Invoicing, maximize tax deductions, track mileage
Xero, FreshBooks and QuickBooks all offer 30-day free trials and extensive features for online support, including a live chat, email support and a knowledge base. All three of these offer the ability to scale their accounting for larger businesses and both Xero and QuickBooks offer specific training for accountants. These companies offer Gusto integration for the same price—$40 per month and $6 per month per person. On the other hand, FreshBooks may be a better fit for freelancers and solopreneurs, as the capabilities are easier to navigate.
QuickBooks caps the number of users who can use the account. It allows three users for its Essentials plan ($55 per month) and 25 users for its top plan, the Advanced ($200 per month). Xero, on the other hand, offers unlimited users for all plans. 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.
Xero has the most affordable lowest tier, at $13 per month. 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.
Is Xero Right for You or Your Business?
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. However, for freelancers, consultants and solopreneurs mainly looking to send invoices, receive payments and keep track of income, consider some of the free software available including Zoho Invoice, Square Invoices and PayPal Invoicing.
Frequently Asked Questions (FAQs)
Is Xero hard to learn?
Xero may be harder to learn than a simpler invoicing platform like Square Invoices or Zoho Invoice. However, it’s generally considered easier than QuickBooks Online. While Xero may involve a slight learning curve, the features are designed in an intuitive way and there are extensive online resources, including a knowledge base and video tutorials, to help you understand how all of the features of this software work.
How much does Xero cost?
After a 30-day trial period, Xero will bill a monthly charge of $13 per month for the Early plan, $37 per month for the Growing plan and $70 per month for the Established plan. For free invoicing platforms, consider Zoho Invoice, Square Invoices or PayPal Invoicing, although these platforms provide fewer capabilities.
Can I pay for Xero annually?
No, Xero plans are on a month-to-month basis. Payments are due by the end of your monthly billing period based on the date you purchased your subscription.
Do I need accounting software for my small business?
Yes, if you want to save time and money. Accounting software can automate many of the tedious tasks associated with bookkeeping, such as invoicing, tracking payments and preparing reports. This frees up your time so you can focus on running your business. Plus, accounting software can help keep your books in compliance.
Is accounting software secure?
Today’s leading accounting platforms offer standard security features like data encryption, secure credential tokenization and more. While human error will always play some role in security breaches, you can be confident in your accounting platform when it comes to keeping your information safe.
What is better: QuickBooks or Xero?
The answer depends on the type of business. While Xero’s plans start at a cheaper price,QuickBooks offers more features across its plans. Then again, QuickBooks requires user limits for each plan while Xero doesn’t. We compared the two options in terms of their key features, pricing and customer service to help you decide which is right for your business.
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