Xero Review: Pricing, Features, Pros and Cons

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Xero Accounting Software Editor’s Rating:

Our editorial team independently evaluates and recommends products and services based on their research and expertise. NerdWallet independently reviews accounting software products before determining our top picks. We collect the data for our software ratings from products’ public-facing websites and from company representatives. Information is gathered on a regular basis and reviewed by our editorial team for consistency and accuracy. 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. Read our 2024 Xero review to find out if it’s the right solution for your business.

Xero Accounting Software Review and Pricing

Employees can submit a reimbursement request as soon as their receipts are uploaded, and the business owner can track expenses totals by category as they are submitted (Figure C). Xero offers the option to add full service payroll support from Gusto to any plan. This Gusto-Zero integration starts at $40 per month plus $6 per employee. If you are looking for payroll software in addition to accounting software, be sure to check out our guide to the best payroll software for 2024. New users can access a the flow of costs in job order costing free 30-day trial, which doesn’t require a credit card for sign-up. We liked that the trial version of Xero is full-featured, meaning you can test it out with real data.

However, the upside is that Xero does not leave users hanging with long wait times. Instead, the company will call you back at a time convenient for you. One cool new Xero feature is its beefed-up Inventory Plus management system. This system allows you to manage inventory across multiple locations and channels. It integrates with Shopify and includes order fulfillment functions, shipping options and tracking information. We think this new system will prove particularly useful for larger businesses with a big e-commerce presence.

1. Xero is an accounting application with an easy-to-use user interface.
2. Has robust reporting tools and report customization options, basic inventory tracking in all plans and a capable mobile app; Early plan limits the number of invoices and bills.
3. We recommend using Xero if you’re a small-to-medium-sized company that values affordability, collaboration, and user-friendly design.
4. Another page dedicated to short-term cash flow charts out how future bills and invoices can affect your bank balance over the next week or month.

Best Accounting and Bookkeeping Apps for Small Businesses

Growing businesses need data presented in an easily digestible manner so business owners can act on the insights. During our software demo, we found that Xero’s reporting features can help you make sense of the data analytics at your disposal. Xero’s reporting tool distills your accounting data into easily digestible bar charts, pie charts and other graphs.

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. best wave alternatives for your business in 2020 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. Business owners, freelancers and entrepreneurs often spend a large chunk of time on administration and accounting. Suited for small- and medium-sized businesses (SMBs), Xero is an affordable cloud-based accounting software system that streamlines these processes with plans starting at $13 per month.

Founded in 2006, it is based in New Zealand and has clients worldwide. Xero allows companies to collaborate with their accountants and offers a friendly UI for employees and admins. Given that Wave’s single paid accounting plan is cheaper than all the other alternatives we’ve listed here, and that it offers a forever free plan, this is absolutely the best option if you need to save cash. 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. Once you’ve got your bank information in Xero, the software will help you match up your transactions for reconciliation (Figure B). Keep in mind that bulk reconciliation is not included with the cheapest Early plan, so you might have to pay to upgrade if you want this feature.

If the banks or financial institutions do not what is the difference between depreciation and amortization connect to Xero, users can manually import bank statements for reconciliation. Xero uses rules to match bank statements to invoices or bill payments. Bulk sorting and grouping of transactions before reconciliation and receiving alerts for suggested matches are also possible on Xero.

Xero Expenses feature allows businesses to track and claim their expenses. It supports paperless expense tracking by scanning receipts and auto-filling claims from the scanned copy. With Xero, admins can review and approve expense claims submitted by employees. Xero automatically gets hourly currency conversion rates to provide real-time insights into gains and losses.

This feature lets users supervise their cash flow and transaction activities while adhering to accounting standards and regulations. Companies operating in multiple countries or dealing with multinational companies can use Xero’s multi-currency accounting feature. This feature makes international transactions easy by allowing businesses to send invoices, quotes, and purchase orders in over 160 currencies. Users can mark report types as favorites and quickly access drafts, published, and archived reports through dedicated tabs. Xero is a cloud-based, double-entry accounting software tool that is designed with small businesses in mind. More than 3.5 million users all over the globe use Xero to manage their billing and invoicing each month.