Updated November 17, 2025 at 11:14 PM
Xero 2026: Benefits, Features & Pricing
Written by Eduardo Garcia
Content Analyst
Edited by Caroline Rousseau
Senior Editor
Wondering if Xero is right for your organization?
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- Our Summary
- Pricing and Plans
- Features
- Integrations
- Key Sentiments
- User Reviews
- Frequently Asked Questions
Our Summary
Pros:
- Accounting for small businesses
- Automation of repetitive tasks
Cons:
- Pricing structure
- Customer support
Pricing
Starting at $25.00 per month
What is Xero:
Xero is a cloud-based accounting platform designed especially for small to medium-sized businesses. It allows businesses to connect to accounts from various banks, accept payments from clients, track spending, manage payroll and vendors, maintain inventory, and generate customized reports and insights.
Why we like Xero:
Xero is equipped with features for automating accounting processes and maintaining financial records. It has customizable invoicing solutions and includes payroll management. Xero also integrates with third-party apps, e-commerce platforms, and CRM systems. It offers security through multi-factor authentication and data encryption.
Who should use Xero:
Xero’s accounting design and features make it useful for self-employed professionals, trades, and retail businesses. Almost 70% of businesses that reviewed the product have between 2 and 200 employees. Xero offers a free trial version, but beyond the trial, a subscription must be purchased. The three versions are Starter, Standard, and Premium.
Xero Screenshots

Xero Overview
Xero is a cloud-based accounting platform designed to assist small and midsize businesses with financial operations management, financial visibility and business performance optimization and more. The platform helps automate accounting tasks and maintain accurate financial records. It offers expense management tools that enable users to track and manage business expenses. Key features include invoicing, quoting, making and collecting payments, tax payment, employee and workforce management, bank reconciliation, expense management, projects handling, reporting and analytics...
and security measures. Users can capture receipts, categorize expenses and submit them for approval. Xero also supports expense claims, allowing employees to submit their expenses for reimbursement. It provides detailed expense reports, helping businesses monitor spending and identify cost-saving opportunities. One of the core features of Xero is its invoicing capability. The solution allows accountants and bookkeepers to create and send professional invoices to clients, track their status and receive payments online. Users can customize invoice templates to align with their brand identity and set up automated reminders for overdue payments. It supports multi-currency invoicing, making it suitable for businesses with international clients. Xero's bank reconciliation feature is designed to streamline the process of matching bank transactions with accounting records. The tool automatically imports bank transactions and suggests matches based on historical data. Users can also create custom bank rules to automate the categorization of recurring transactions. Xero also provides real-time updates on cash flow, helping businesses maintain accurate financial records. Xero includes payroll management functionalities that assist businesses in managing employee payroll and compliance. It allows users to process payroll, calculate taxes and generate payslips. It also supports direct deposit, enabling businesses to pay employees electronically. Additionally, Xero provides tools for managing employee leave and tracking work hours, ensuring accurate payroll processing and compliance with labor regulations. Xero complies with the Payment Card Industry Data Security Standard, and produces Service Organization Control (SOC 2) reports. It also offers a range of reporting and analytics tools that provide valuable insights into business performance. Users can generate custom financial reports, such as profit and loss statements, balance sheets and cash flow statements. Xero's dashboard provides a real-time overview of key financial metrics. The tool supports budgeting and forecasting, enabling businesses to plan for future growth and manage financial risks. Xero integrates with several third-party applications, including CRM systems, eCommerce platforms and payment gateways. Xero’s integrated practice management software includes Xero HQ, Xero Practice Manager, Xero Workpapers and Xero Tax. It connects businesses with their bank, their advisor, accounting tools, payment services and more. These integrations facilitate data synchronization and optimize overall operational. Data is protected by multiple layers of security, including encryption and the platform is subject to strict privacy controls as it uses multi-factor authentication.Xero Pricing and Plans
Starter
$25.00
Plan includes:
- Send Quotes And 20 Invoices
- Accept Online Invoice Payments
- Enter 5 Bills
- Make Online Bill Payments
- Reconcile Bank Transactions (Auto-reconcile, Beta)
- Capture Bills And Receipts With Hubdoc
- View Real-Time Reports
- W-9 + 1099 Management
- Sales Tax
- Forecast Cash Flow (30 Day Forecast)
Standard
$55.00
Plan includes:
- Send Quotes And Unlimited Invoices
- Enter Unlimited Bills
- Make Online Bill Payments
- Reconcile Bank Transactions (Auto-reconcile, Beta)
- Capture Bills And Receipts With Hubdoc
- View Real-Time Reports
- W-9 + 1099 Management
- Sales Tax
- Forecast Cash Flow (30 Day Forecast)
- Visualize Performance With Graphs
Premium
$90.00
Plan includes:
- Forecast Cash Flow (180 Day Forecast)

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Our Analysis of Xero's Pricing Plans
We've dug deep into Xero's accounting software subscription plans to help you determine which option aligns best with your business needs. We've also outlined the key advantages and considerations for each plan. Xero provides three core subscription options: Early, Growing, and Established. Each plan is tailored to accommodate businesses at different stages and with varying requirements, so understanding the nuances of each is essential for...
choosing the right fit for your company. __Early plan__ Xero's Early plan, at $20 per month, is tailored for sole proprietors, freelancers, and businesses just starting out. This plan covers the fundamental accounting needs, providing a solid foundation for financial management. **Pros:** - **Essential features:** Includes core accounting functions to efficiently manage finances. - **Scalable:** Provides a starting point with room to upgrade as the business grows. **Cons:** - **Basic functionality:** Advanced features for complex accounting needs are not included. - **Potential outgrowth:** As the business expands, the plan's capabilities may become insufficient. __Growing plan__ The Growing plan, priced at $47 per month, is designed for small businesses experiencing growth. It offers expanded features and supports collaboration among team members. **Pros:** - **Enhanced features:** Includes additional accounting tools to support business development. - **Collaborative:** Allows multiple users to work together on financial management. **Cons:** - **Potential underutilization:** Some features may not be necessary for all growing businesses. - **Limitations for larger businesses:** May not offer sufficient capabilities for businesses with more complex needs. __Established plan__ At $80 per month, the Established plan caters to businesses with well-established operations and more intricate accounting requirements. It offers a comprehensive feature set to streamline financial processes. **Pros:** - **Scalability:** Supports businesses with larger teams and higher transaction volumes. - **Time-saving:** Automates and simplifies accounting tasks, improving efficiency. **Cons:** - **Higher cost:** The increased monthly expense may be challenging for some businesses to justify. - **Learning curve:** The extensive feature set may require additional training for effective utilization. __Free trial__ Xero offers a 30-day free trial, allowing potential users to explore the software's capabilities before committing to a paid plan. This trial provides an opportunity to assess which plan best aligns with the business's needs and budget. __Conclusion__ After analyzing Xero's pricing structure, it's evident that they offer a range of plans designed to cater to businesses at various stages of growth and with different accounting needs. - **For sole traders and startups:** The Early plan, at just $20 per month, provides an entry point into professional accounting software. While it covers the basics, rapidly growing businesses may soon find themselves needing more advanced features. - **For small businesses on the rise:** The Growing plan, at $47 per month, strikes a balance between affordability and functionality. It offers a broader range of features to support business expansion, making it a good choice for companies outgrowing the Early plan but not yet requiring the full suite of tools. - **For mature and complex businesses:** The Established plan, at $80 per month, is designed to meet the demands of larger, more intricate operations. Though it comes with a higher price tag, the comprehensive feature set can streamline even the most complicated accounting processes, potentially saving time and money in the long run. Ultimately, the choice of plan depends on a careful assessment of a business's current needs, growth trajectory, and budget. By aligning these factors with Xero's pricing tiers, companies can ensure they're getting the right tools at the right price to support their ongoing success. With a 30-day free trial available, businesses can explore Xero's offerings risk-free and make an informed decision about which plan best fits their unique circumstances.Compare Pricing
Compare pricing across our most frequently recommended Accounting products.
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*Defined as the price above any available free plan
Xero Features
Drawn from insights across 3250 verified reviews, we've outlined Xero's best and worst rated features and how they stack up against the average rating.
Xero's Best Rated Features
Multi-Country
3.71 category average
Tax Compliance
3.76 category average
Calendar Management
3.56 category average
Xero's Worst Rated Features
Check Writing
4.27 category average
Customizable Templates
3.88 category average
Project Accounting
3.56 category average
- Popular features found in AccountingBilling & InvoicingBudgeting/ForecastingExpense TrackingFund AccountingIncome & Balance SheetMulti-CurrencyPayroll ManagementProject AccountingPurchase Order ManagementTax Management
- More features of Xero401(k) TrackingAccess Controls/PermissionsAccountingAccounts PayableAccounts ReceivableAccrual AccountingACH Payment ProcessingActivity DashboardActivity TrackingAd hoc ReportingAlerts/NotificationsAPIApproval Process ControlApproval WorkflowAsset AccountingAsset TrackingAudit TrailAutomated QuotingAutomatic BackupAutomatic BillingBank ReconciliationBenefits ManagementBilling PortalCalendar ManagementCase ManagementCash Flow ManagementCash ManagementCatalog ManagementCheck PrintingCheck ProcessingCheck WritingClient ManagementClient PortalCompliance ManagementConsolidation/Roll-UpConstruction BreakdownsContact DatabaseContact ManagementContingency BillingContract/License ManagementCost TrackingCPA FirmsCredit Card ProcessingCross Ledger PostingCurrency ConversionCustomer DatabaseCustomer HistoryCustomer StatementsCustomizable BrandingCustomizable InvoicesCustomizable ReportsCustomizable TemplatesData Import/ExportData VisualizationDelivery ManagementDirect DepositDiscount ManagementDocument ManagementDocument StorageDocument TemplatesDrag & DropDue Date TrackingDunning ManagementDuplicate Payment AlertElectronic PaymentsEmail ManagementExpense ClaimsExpense ManagementFee Calculation & PostingFinancial AnalysisFinancial ManagementFinancial ReportingFixed Asset ManagementFor AccountantsFor AEC IndustryFor CPA FirmsForecastingFor Legal ProfessionalsFor Real EstateFor Religious OrganizationsFor SchoolsFor Small BusinessesFraud DetectionFund ManagementGeneral LedgerHourly BillingInventory ControlInventory ManagementInventory OptimizationInventory TrackingInvoice CreationInvoice HistoryInvoice ManagementInvoice ProcessingJob CostingKittingMobile AccessMobile AppMobile PaymentsMonitoringMulti-Channel ManagementMulti-CompanyMulti-CountryMulti-StateOnline InvoicingOnline PaymentsOrder ManagementOrder TrackingOverpayment ProcessingPartial PaymentsPayment CollectionPayment ProcessingPayroll ReportingPerformance MetricsPrice/Margin ManagementPricing and Cost CalculationsPricing ManagementProduct IdentificationProfit/Loss StatementProgress TrackingProject BillingProject ManagementQuotes/EstimatesReal-Time DataReal-Time ReportingReceipt ManagementReceivables LedgerRecurring InvoicingRecurring/Subscription BillingReimbursement ManagementRemote Access/ControlReorder ManagementReporting/AnalyticsReporting & StatisticsRequisition ManagementRetail Inventory ManagementRevenue RecognitionSales ReportsSales Tax ManagementSearch/FilterSelf Service PortalShipping ManagementSourcing ManagementSpend ManagementStaff ManagementStatus TrackingSupplier ManagementTask ManagementTax CalculationTax ComplianceTemplate ManagementThird-Party IntegrationsTime & Expense TrackingTime TrackingTransaction HistoryTransaction ManagementTrust AccountingVacation/Leave TrackingVendor ManagementW-2 PreparationWage GarnishmentWarehouse Management"What If" Scenarios
Xero Integrations
Based on 3250 verified reviews, we've identified products most frequently integrated with Xero.
See all 223 integrations
Xero Key Sentiments
We analyzed 3250 verified reviews for Xero to find out what actual users really think.
Most Positive Sentiments
Ease of use
The interface is designed to be intuitive, helping teams navigate without needing extensive training. Many users say they were able to get started quickly, even without prior experience in accounting software. The layout is clean and organized, making it easy to locate key tools and features. This simplicity supports faster onboarding and smoother daily operations.
Accounting
Managing core financial tasks becomes easier with Xero’s cloud-based setup, which allows real-time collaboration between accountants, bookkeepers, and business owners. Users say it supports small businesses with tools for payroll, inventory, tax management, and more. The ability to grant unlimited user access helps teams maintain oversight and streamline accounting workflows.
Invoicing
Automated invoice tracking and payment reminders help reduce manual work and improve efficiency. Users appreciate the customizable templates that allow for branding and layout preferences. The platform also supports accounts payable, receivable, and inventory management, making it easier to keep financial records organized and up to date.
Least Positive Sentiments
Reporting
Financial reporting tools offer a range of templates that can be tailored to specific business needs. Users say these reports help monitor performance and guide decision-making. However, some note that the platform lacks depth for complex or industry-specific reporting, and limited customization options can make it harder to extract detailed insights.
Customer support
Help resources, such as tutorials and FAQs, are useful for resolving common issues. Users mention that the invoice portal and online support channels are convenient for day-to-day troubleshooting. However, slow response times and the absence of live phone support often lead to frustration when urgent assistance is needed.
Bank feeds
Automated bank feed integration helps simplify transaction tracking by connecting with multiple banks and payment platforms. Users value features like bank rules and external tool linking for broader financial oversight. That said, occasional connection failures and limited compatibility with certain banks can disrupt automation and require manual fixes.
Xero User Reviews
Overall Rating
4.4
Ratings Breakdown
5
60%
4
28%
3
7%
2
2%
1
3%
Secondary Ratings
Ease of Use
4.4
Value for money
4.2
Customer support
4.0
Functionality
4.3

Abbey W.
Verified reviewer
Retail
2-10 employees
Used weekly for more than 2 years
Review sourceReviewed January 2026
Simple to use and learn and still robust!
5
I've tried a few bookkeeping programs and either they didn't have enough features to be useful or they were so overly bloated, it made it difficult to do basic tasks or get simple reports on the health of my business. Xero threads the needle perfectly, being simple to use and get the information I need while still being robust enough to fill all of my business needs.
Ratings Breakdown
Reasons for choosing Xero
These products, while affordable, didn't offer all the features.
Reasons for switching to Xero
Quickbooks was too expensive and complicated to use
Read More

Debbie M.
Verified reviewer
Accounting
2-10 employees
Used daily for more than 2 years
Review sourceReviewed January 2026
Xero is ok
5
I’m generally happy with Xero. It’s very easy to use and integrates well with other products, though often at an additional cost. Its reporting features are somewhat limited, but they’re sufficient for what I need.
Ratings Breakdown
Reasons for choosing Xero
The advice I received from accountants was biased, as they had no genuine knowledge of alternative products.
Read More
Russ H.
Verified reviewer
Computer Software
2-10 employees
Used weekly for more than 2 years
Review sourceReviewed December 2025
8 out of 10
4
Xero is a decent accountancy system that helps in all aspects of your accounts. It is especially useful for Vat.
Ratings Breakdown
Read More
Matthew C.
Verified reviewer
Machinery
2-10 employees
Used daily for more than 2 years
Review sourceReviewed December 2025
Xero - a great fit for our small business
5
In the more than 5 years we have been using the software, our experience with Xero has been overwhelmingly positive. The improvements and new features that have been added in that time have been relevant and well implemented
Ratings Breakdown
Reasons for choosing Xero
Had all the features we needed at a reasonable price
Read More
Natalie S.
Verified reviewer
International Trade and Development
11-50 employees
Used daily for less than 6 months
Review sourceReviewed December 2025
Accounting is made easy
5
Ratings Breakdown
Reasons for switching to Xero
Xero has more features compared to zoho invoice
Read More
Denise K.
Verified reviewer
Wholesale
2-10 employees
Used monthly for less than 2 years
Review sourceReviewed January 2026
Zero for your business
5
My overall experience with zero has been absolutely fine ,no issues whatsoever a good piece of software
Ratings Breakdown
Reasons for switching to Xero
The previous service we was using was too slow
Read More
Accounting
Self-Employed
Used daily for more than 2 years
Review sourceReviewed January 2026
Xero is the hero finance tool you need
5
I love this product I use it as a go to financial tool and I love the integration with bill.com. Makes my life way easier
Ratings Breakdown
Read More

Deborah K.
Verified reviewer
Consumer Services
Self-Employed
Used weekly for more than 2 years
Review sourceReviewed January 2026
User friendly, especially for individuals
5
So far, so good. A lot of helpful articles available and the Help desk is also prompt with responding.
Ratings Breakdown
Read More

Mahi P.
Verified reviewer
Information Technology and Services
501-1000 employees
Used weekly for less than 2 years
Review sourceReviewed January 2026
Best Accounting Software for Small Businesses
5
My overall experience with Xero has been fantastic because It simplifies accounting tasks and helps keep everything organized. It is a reliable tool for managing daily finances without any hassle.
Ratings Breakdown
Read More
Adam P.
Verified reviewer
Construction
2-10 employees
Used daily for less than 12 months
Review sourceReviewed December 2025
Good system
5
overall XERO is a quick and effective tool for the accountants and people who calculate month end figures and balance sheets. for accounts team who process the invoices if the scanner doesnt read them correctly it can be tricky.
Ratings Breakdown
Read More
Xero FAQs
- Is Xero difficult to use?
Xero’s cloud-based software and mobile apps make it relatively easy to access and use. It offers templates and training resources that help non-accountants to learn its features. Most also find its user interface easy to use, with reviewers rating it 4.5 out of 5.
- Do I need a bookkeeper if I use Xero?
Yes, you may still need a bookkeeper or accountant to take advantage of financial benefits and services. Some examples of reasons for hiring an accountant might be leveraging possible tax breaks, ensuring compliance, interpreting data effectively for business decisions.
- Does Xero do payroll?
Yes, Xero manages and processes payroll, calculating taxes and producing payslips. There are also features for managing work hours and tracking employee leave or vacation. The payroll feature can also be configured to manage healthcare deductions and retirement plans.
- Does Xero automatically pay employees?
Yes, Xero allows electronic payments to employees via direct deposit. Additionally, it will subtract taxes and generate payslips. Its features ensure accurate payroll and proper compliance with local labor regulations.
- Does Xero have journal entry?
Yes, Xero is a double-entry accounting system that allows transactions to be recorded as journal entries. This allows the user to ensure that debits and credits balance each other. Journal entries can be single, compound, and recurring. First, users identify the transaction, classify it as debit or credit, record the details, and then post it to their ledger.
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