Xero Review: Pricing, Features, Pros and Cons

More than 3.5 million users all over the globe use Xero to manage their billing and invoicing each month. In this Xero accounting software review, we’ll break down the pros and cons to help you figure out whether Xero is the right accounting tool for your needs. Xero’s built-in invoicing feature lets businesses create customized invoices by including the company logo, custom message, and added fields.

With an overall score of 4/5 in this review, Xero is a good solution for mid-to-large-sized businesses in need of strong accounting features and multiple users. Take advantage of Xero’s free trial to see if this accounting solution is right for you. If you’re still on the fence, check out our picks for the best small business accounting software to compare your options. While Xero has a lot going for it, pricing increases, a lack of built-in payroll, and limited features on its least expensive plans are potential issues. Additionally, customer support has gone downhill since our last review. Still, despite the price ruling out the software for some small businesses, Xero has a lot to offer for medium and large businesses or those in need of multiple users.

Accounting software that helps small businesses using the cloud

QuickBooks Online is limited to 25 users on its most expensive plan but is easier to use, offers tax support, and has stronger mobile apps. While the software is well-organized, it does have a steep learning curve (not as steep as QuickBooks, but it is more difficult to learn than other cloud-based options). It takes quite a while to explore all of the features it has to offer, but once you get acquainted with the software, Xero is fairly easy to use.

You can set the software to send reminders before the payment is due or when it’s past due; you can also set up the system to email your customers’ receipts after receiving and recording payments. However, Wave’s features are more limited than many competitors in order to keep the price low, so it may not suffice for growing businesses. The number of users is also technically unlimited, but FreshBooks does charge an extra fee of $11 per user per month.

For example, if you have an entry for an invoice of $1,000 and a recent $1,000 deposit in your bank account, it might suggest matching these two transactions. Click the “OK” icon between the two to verify the match is correct. Our partners cannot pay us to guarantee favorable reviews of their products or services. what is comprehensive income its income not yet realized We believe everyone should be able to make financial decisions with confidence. Instead, you can integrate a payroll add-on called Gusto, recommended for up to 100 employees. It’s a full-service option with unlimited, automated payroll runs and direct deposit.

Financial Management

Then, you can connect your bank accounts to Xero and decide if you’ll accept electronic payments for online invoices. Templates are available for one-time and repeating invoices and quotes, and you can queue up multiple statements to print or email. Although Xero’s thorough, step-by-step support articles can help with this task, the app doesn’t offer chat, email, or phone help (Patriot Software Accounting offers all three). These tools aren’t as graceful to use—nor are the data fields as plentiful—as they are in QuickBooks Online. The forms don’t miss anything major, though they don’t have FreshBooks’ state-of-the-art look. Zoho Books is an accounting software that is a popular alternative to QuickBooks, offering easy-to-use features.

1. Xero does offer an invoice template to help get you started, and you can choose to create and save your own templates.
2. While the obvious lack of live support might not always be the best part of the overall package there is much to like with this service.
3. Xero doesn’t offer as many pre-built reports compared to Xero alternatives such as QuickBooks.
4. Xero is cloud-based accounting software that has given QuickBooks a run for its money since 2006.

Invoicing and payments

In fact, the Xero experience on a tablet or smartphone seems to be generally good, especially considering its depth of data entry points. Yes, Xero is designed with a user-friendly interface meant to simplify financial management for non-accountants. Yes, Xero offers a mobile app, available for both iOS and Android, enabling access to financial data on the go.

Unlike Xero, QuickBooks allows unlimited invoices on the cheapest Simple Start plan — but limits you to 1 billable user and 2 accountant firm users. If you need only 1 person to use the software but plan to send a high number of invoices and bills, QuickBooks may be a more cost-effective choice than Xero. There is limited tax support, limited invoice templates, no built-in payroll, and a steep learning curve.