Xero Review 2024: Features, Pricing & More

In this Xero equity definition 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. Additionally, Xero offers a 30-day free trial, so you and your employees can test the software before you buy it. Not every accounting software provider offers a free trial, so we appreciate this feature. Xero connects to your bank and credit card accounts and imports data daily, so we really appreciate that it protects your sensitive business data with bank-grade encryption.

Guided setup process

1. This screen also shows automatic payment reminder information, such as the relevant email address and the date and time.
2. By automating regular tasks like invoicing and expense tracking, it frees up financial professionals to work on strategic planning and analysis.
3. It also supports accepting payments directly from the online invoice and reduces the time spent chasing payments.
4. 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.
5. The support is heavily weighted to “email” and it can be hard to get people on the phone.
6. Xero offers additional features like project management, payroll, and inventory management, but it is not dedicated software for these functions.

The best accounting software received top marks when evaluated across 10 categories and more than 30 subcategories. In the Early plan, the least expensive subscription, you can send up to 20 invoices and schedule up to five bill payments only. For unlimited invoicing and bill-paying capacity, you’ll need to describe and prepare closing entries for a business upgrade to the Growing plan. With Xero, businesses can automate the process of tracking and managing business expenses. They can categorize expenses, attach receipts, and assign them to specific projects or employees. Xero functions as a centralized system for the overview of spending, enabling businesses to identify cost-saving opportunities.

For expense organizations, users can also add tags to the expenses. Xero connects to more than 21,000 financial institutions around the globe, meaning the chances are very high you’ll be able to connect to your business bank accounts and automatically import transaction info. If your bank doesn’t already have a connection, you can import PDF statements. In addition to reaching out for live help, you can access valuable online support resources, including videos, a blog, podcasts, small business guides and training courses. Xero recently streamlined the ability to accrual accounting vs cash basis accounting search for help while using the software, so you don’t have to leave the site. We really liked Xero’s unique History & Notes feature, which presents an activity report at the bottom of every transaction screen.

Project and time tracking

You’ll receive your invoice at the end of your monthly billing period. 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.

Online Invoicing

Xero lets companies accept payment from their customers using multiple methods, increasing the chance of getting paid on time. It also supports accepting payments directly from the online invoice and reduces the time spent chasing payments. While sending the invoice, companies have the freedom to choose the most suitable payment method for each customer.

FreshBooks starts at $19 per month after the signup discount and incorporates standout features like team roles and time tracking on all plans. The basic plan allows users to send unlimited invoices and estimates and track unlimited expenses up to 5 clients, so if you have more clients than that, you’ll need to upgrade. FreshBooks is another one of our favorites for small businesses — especially freelancers. It has unlimited customizable invoices, a client portal, built-in project and time tracking and a highly rated mobile app. Plus, if you’re new to accounting software, you can’t go wrong with FreshBooks’ easy interface, but if you do get lost, you can easily access the help center through your account.Want to save a little money? FreshBooks has a deal running where you can save 50% for the next six months.

Limits on bills and invoices in the entry-level plan

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. We tested the top web-based accounting software for small businesses and mid-sized companies, i.e. It does not have any phone support number, but you can request a callback from Xero if necessary. However, it has an active community forum and a collection of support articles that are beneficial to the users.

Due to its scalability and cost-effectiveness, Xero is a great choice for growing businesses. Because it supports unlimited users, it facilitates employee collaboration and allows them to quickly submit expenses and send invoices. Xero also grows with your company, integrating with your email, customer relationship management (CRM), or point-of-sale platforms to help streamline operations even further. Xero’s built-in invoicing feature lets businesses create customized invoices by including the company logo, custom message, and added fields.