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Updated November 17, 2025 at 11:14 PM

Xero 2026: Benefits, Features & Pricing

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Written by Eduardo Garcia

Content Analyst

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Edited by Caroline Rousseau

Senior Editor

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On this page
  • Our Summary
  • Pricing and Plans
  • Features
  • Integrations
  • Key Sentiments
  • User Reviews
  • Frequently Asked Questions

Our Summary

Xero
Xero
4.4
(3250)
FrontRunner 2026

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

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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

Starting price: $25.00 per month
Free Trial
Free Version

Starter

$25.00

flat rate, per month

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)
Read More

Standard

$55.00

flat rate, per month

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
Read More

Premium

$90.00

flat rate, per month

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.

Software options
Starting price*
User rating
$124.42 per month
232

recommendations

$750.00 per month
167

recommendations

$199.00 per month
118

recommendations

10.00 per month
98

recommendations

$4,000.00 one time
83

recommendations

*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 score
Category average

Xero's Best Rated Features

Multi-Country

4.83

3.71 category average

Tax Compliance

4.79

3.76 category average

Calendar Management

4.78

3.56 category average

Xero's Worst Rated Features

Check Writing

3.50

4.27 category average

Customizable Templates

3.57

3.88 category average

Project Accounting

3.65

3.56 category average

  • Popular features found in Accounting
    Billing & Invoicing
    Budgeting/Forecasting
    Expense Tracking
    Fund Accounting
    Income & Balance Sheet
    Multi-Currency
    Payroll Management
    Project Accounting
    Purchase Order Management
    Tax Management
  • More features of Xero
    401(k) Tracking
    Access Controls/Permissions
    Accounting
    Accounts Payable
    Accounts Receivable
    Accrual Accounting
    ACH Payment Processing
    Activity Dashboard
    Activity Tracking
    Ad hoc Reporting
    Alerts/Notifications
    API
    Approval Process Control
    Approval Workflow
    Asset Accounting
    Asset Tracking
    Audit Trail
    Automated Quoting
    Automatic Backup
    Automatic Billing
    Bank Reconciliation
    Benefits Management
    Billing Portal
    Calendar Management
    Case Management
    Cash Flow Management
    Cash Management
    Catalog Management
    Check Printing
    Check Processing
    Check Writing
    Client Management
    Client Portal
    Compliance Management
    Consolidation/Roll-Up
    Construction Breakdowns
    Contact Database
    Contact Management
    Contingency Billing
    Contract/License Management
    Cost Tracking
    CPA Firms
    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
    Data Visualization
    Delivery Management
    Direct Deposit
    Discount Management
    Document Management
    Document Storage
    Document Templates
    Drag & Drop
    Due Date Tracking
    Dunning Management
    Duplicate Payment Alert
    Electronic Payments
    Email Management
    Expense Claims
    Expense Management
    Fee Calculation & Posting
    Financial Analysis
    Financial Management
    Financial Reporting
    Fixed Asset Management
    For Accountants
    For AEC Industry
    For CPA Firms
    Forecasting
    For Legal Professionals
    For Real Estate
    For Religious Organizations
    For Schools
    For Small Businesses
    Fraud Detection
    Fund Management
    General Ledger
    Hourly Billing
    Inventory Control
    Inventory Management
    Inventory Optimization
    Inventory Tracking
    Invoice Creation
    Invoice History
    Invoice Management
    Invoice Processing
    Job Costing
    Kitting
    Mobile Access
    Mobile App
    Mobile Payments
    Monitoring
    Multi-Channel Management
    Multi-Company
    Multi-Country
    Multi-State
    Online Invoicing
    Online Payments
    Order Management
    Order Tracking
    Overpayment Processing
    Partial Payments
    Payment Collection
    Payment Processing
    Payroll Reporting
    Performance Metrics
    Price/Margin Management
    Pricing and Cost Calculations
    Pricing Management
    Product Identification
    Profit/Loss Statement
    Progress Tracking
    Project Billing
    Project Management
    Quotes/Estimates
    Real-Time Data
    Real-Time Reporting
    Receipt Management
    Receivables Ledger
    Recurring Invoicing
    Recurring/Subscription Billing
    Reimbursement Management
    Remote Access/Control
    Reorder Management
    Reporting/Analytics
    Reporting & Statistics
    Requisition Management
    Retail Inventory Management
    Revenue Recognition
    Sales Reports
    Sales Tax Management
    Search/Filter
    Self Service Portal
    Shipping Management
    Sourcing Management
    Spend Management
    Staff Management
    Status Tracking
    Supplier Management
    Task Management
    Tax Calculation
    Tax Compliance
    Template Management
    Third-Party Integrations
    Time & Expense Tracking
    Time Tracking
    Transaction History
    Transaction Management
    Trust Accounting
    Vacation/Leave Tracking
    Vendor Management
    W-2 Preparation
    Wage Garnishment
    Warehouse Management
    "What If" Scenarios

Xero Integrations

Based on 3250 verified reviews, we've identified products most frequently integrated with Xero.

Hubdoc
Hubdoc
Integration rated 4.2 from 29 reviews
Dext
Dext
Integration rated 4.7 from 25 reviews
Gusto
Gusto
Integration rated 4.8 from 17 reviews
GoCardless
GoCardless
Integration rated 3.6 from 16 reviews
Square Payments
Square Payments
Integration rated 4.6 from 11 reviews
ApprovalMax
ApprovalMax
Integration rated 5.0 from 11 reviews

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

86% Positive
7% Neutral
7% Negative

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

64% Positive
26% Neutral
10% Negative

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

55% Positive
32% Neutral
13% Negative

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

50% Positive
29% Neutral
21% Negative

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

43% Positive
13% Neutral
44% Negative

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

42% Positive
31% Neutral
27% Negative

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's profile

Abbey W.

Verified reviewer

Retail

2-10 employees

Used weekly for more than 2 years

Review source

Reviewed 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

5
Ease of use
5
Value for money
5
Customer support
5
Functionality
icon
Pros:
Xero is very affordable and the learning curve is much lower than other bookkeeping programs. The reporting dashboard gives me the information I actually need and it's a breeze to hook up my accounts.
Cons:
Sometimes my accounts disconnect randomly and it takes a little bit to get them synched up again without missing any transactions or having them appear more than once.

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's profile

Debbie M.

Verified reviewer

Accounting

2-10 employees

Used daily for more than 2 years

Review source

Reviewed 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

5
Ease of use
2
Value for money
3
Customer support
4
Functionality
icon
Pros:
The dashboard is easy to use, the reporting functions work well, and I’m not aware of any bugs or issues. Recording transactions is straightforward, and keeping bank activity up to date is simple.
Cons:
It does not offer good value for money compared with competitor products, and customer support is not available by telephone. As a partner, commission opportunities are limited, and payments are taken by direct debit.

Reasons for choosing Xero

The advice I received from accountants was biased, as they had no genuine knowledge of alternative products.

Read More

RH

Russ H.

Verified reviewer

Computer Software

2-10 employees

Used weekly for more than 2 years

Review source

Reviewed 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

4
Ease of use
5
Value for money
3
Customer support
4
Functionality
icon
Pros:
Xero is a great system with great functionality, especially for the small to medium sized businesses.
Cons:
The user interface is not too friendly, especially for none Accountants but this is not a major issue.

Read More

MC

Matthew C.

Verified reviewer

Machinery

2-10 employees

Used daily for more than 2 years

Review source

Reviewed 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

5
Ease of use
5
Value for money
4
Customer support
5
Functionality
icon
Pros:
For us as a small manufacturing company that exports its products worldwide, Xero has proved to be an excellent fit with our needs. It integrates seamlessly with our bank accounts in multiple currencies, as well as our MRP system. The VAT reporting makes submitting VAT returns a very straightforward process. The product is simple to use and all members of our team are comfortable with it. Overall, it provides a high degree of functionality at a very reasonable price point.
Cons:
My only complaint would have been that tools for visualising your financial data were a little thin on the ground, but the new analytics features seem to have addressed this.

Reasons for choosing Xero

Had all the features we needed at a reasonable price

Read More

NS

Natalie S.

Verified reviewer

International Trade and Development

11-50 employees

Used daily for less than 6 months

Review source

Reviewed December 2025

Accounting is made easy

5

Ratings Breakdown

5
Ease of use
5
Value for money
5
Customer support
5
Functionality
icon
Pros:
Xero offers 30 days for trial where you're able to explore all features of this tool and you are able to learn how it's feature can be used for accounting. You can export reports about sales and expense.
Cons:
Xero is perfect and i have no challenges about it since i started using therefore i just recommend it.

Reasons for switching to Xero

Xero has more features compared to zoho invoice

Read More

DK

Denise K.

Verified reviewer

Wholesale

2-10 employees

Used monthly for less than 2 years

Review source

Reviewed 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

5
Ease of use
4
Value for money
5
Customer support
5
Functionality
icon
Pros:
Value for money ,easy to use Their customer support are helpful and not to long a wait on the telephone
Cons:
I haven’t had any issue with zero so therefore I can not comment regarding this matter so all is good

Reasons for switching to Xero

The previous service we was using was too slow

Read More

VR

Verified
Reviewer

Accounting

Self-Employed

Used daily for more than 2 years

Review source

Reviewed 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

5
Ease of use
5
Value for money
5
Customer support
5
Functionality
icon
Pros:
Xero is a gamechanger true value for your money. It's easy to use, great customer service that fixes bugs and issues in a timely manner. Love the user interface dashboard and exceptional features
Cons:
I don't really have an negatives with this product. Maybe the price is a bit heavy for startups without investors but for automations etc. Its just like worth it to get

Read More

Deborah's profile

Deborah K.

Verified reviewer

Consumer Services

Self-Employed

Used weekly for more than 2 years

Review source

Reviewed 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

5
Ease of use
4
Value for money
5
Customer support
5
Functionality
icon
Pros:
It is very user friendly, especially for small self employed businesses! Customer support are prompt in replying.
Cons:
Would be great if there was a Favourites area on the home screen for easy referral to what is incoming/outgoing/owing rather than having to open issued invoices individually. Also would like to be able to label transactions when reconciling, so that instead of deleting lines individually from bank statement import that are personal transaction not related to my business in any way, a label will then just disregard the transaction instead of continually trying to match it with a Xero item code.

Read More

Mahi's profile

Mahi P.

Verified reviewer

Information Technology and Services

501-1000 employees

Used weekly for less than 2 years

Review source

Reviewed 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

5
Ease of use
4
Value for money
5
Customer support
4
Functionality
icon
Pros:
Xero is extremely easy to use for beginners and that dashboard is very clean and gives a quick overview of my business finances. I really like the reporting features they are detailed and easy to generate and It offers great value for money considering the time it saves on manual work. The features like invoicing and bill tracking are very helpful.
Cons:
Sometimes the customer support takes a bit longer to respond than expected Occasionally and I have faced minor bugs and issues with the bank feed connection but they usually get resolved.

Read More

AP

Adam P.

Verified reviewer

Construction

2-10 employees

Used daily for less than 12 months

Review source

Reviewed 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

5
Ease of use
3
Value for money
5
Customer support
3
Functionality
icon
Pros:
the ease of use, it is quick and easy to process invoices and calculate the vat at the end of each month for our accounts.
Cons:
sometimes the OCR reader/scanner doesnt read the entire invoice meaning that you have to manually pick out parts of the invoice and input yourself.

Read More

Showing 1 - 10 of 3250 Reviews

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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