It also includes features of Analytics Plus, such as basic scenario planning and AI-powered predictions. Analytics – With Xero Analytics, users can track their short-term cash flow and get a picture of their overall financial health via a dashboard. They can track metrics, such as income and expenses, and compare financial performance trends. Expense management – With the expense management functionality, users can take a photo of a receipt from their phone and upload it to Xero. They can grant viewing/submitting/approving expense access to specific employees.
The Xero Accounting mobile app complements the software, enabling business owners to manage their finances on the go. Key features include tracking invoices, monitoring cash flow, and reconciling bank accounts. Xero’s cloud-based platform ensures that financial data is secure and accessible from anywhere with an internet connection. Additionally, the platform supports multiple currencies and includes features for project tracking, expense claims, and comprehensive analytics. We researched and analyzed dozens of the best accounting and invoicing software solutions to help small businesses choose the right accounting software for their needs. Xero offers a comprehensive suite of features, including bill payment, expense management, bank connections, cashflow snapshots, and project tracking.
- This is really helpful for getting some immediate insights into your business’s financial performance.
- Xero also has a mobile app, Xero Expenses, that allows you to snap pictures of receipts and create an expense instead of having to manually enter all the information.
- Though Xero is not a project management software, it offers project planning, budgeting, time tracking, expense monitoring, quoting, and invoicing features to help you manage various projects.
- And businesses looking for employee management features—like full-featured time tracking—won’t find these with Xero.
- Xero’s integration with over 21,000 global financial institutions allows you to effortlessly import bank transactions.
Can Xero handle multi-currency transactions?
Invoicing – Xero includes an invoice template library that users can customize to fit their brand. It also automatically sends payment reminders based on the frequency of reminders the user sets. Users also have the option of adding “Pay Now” instructions for clients to pay online.
However, Xero is not suitable for all types of business, particularly those with very high transaction volumes. When considering Xero for your business, it’s important to weigh both its advantages and limitations to determine if it’s the right fit for your needs. If you’re looking for an accountant who specializes in Xero, you can search for an accounting advisor through their website by location and industry.
Payroll and HR Integration
All Xero customers have access to the Business Help Center, which allows you to enter a keyword or anything else you need to find. The community section is like a forum where you chat with other Xero accounting software users and discuss your questions or concerns. Xero was founded in 2006 in New Zealand and has since become a leading accounting software in over 180 countries. With its cloud-based platform, Xero has revolutionized the traditional accounting space by providing businesses with real-time data access and collaboration. Based on my experience using Xero, the software is completely capable of managing the accounting needs of a small business or freelancer. However, you may want to use some Xero alternatives for additional features like unlimited invoices.
What is the difference between Xero and QuickBooks?
All plans allow an unlimited number of users and include audit trails and easy accountant access. Xero connects with over 1,000 apps, notably HubSpot, DocuSign, and Salesforce. Unlike some of its competitors, all of Xero’s plans come with inventory management. While Xero offers unlimited users, it compensates for that by significantly limiting the number of invoices and bills allowed on the Early plan (20 invoices and five bills).
One reviewer noted that “Xero is super easy to use and great for people like me who work from home. The Growing (Standard) plan is the most popular choice for small businesses, as it removes those transaction caps and lets you comfortably manage a higher volume of invoices and expenses. Growing plan users get everything in Early, so no features are lost in upgrading. This means you can plug Xero into the other tools you use to run your business. For instance, you can integrate e-commerce platforms like Shopify or WooCommerce with Xero to automatically import online sales and fees each day.
Xero Accounting Software Review: Pros, Cons
A user-friendly cloud-based accounting program with numerous integrations with other company tools is called Xero. It is especially advantageous for small organizations that have remote workers or several offices. Xero is user-friendly and simple to teach people to use, which is why I prefer it. It also features multi-level controls and superb time-tracking capabilities.
Visualize financial performance
The Early plan is the cheapest option, containing most core accounting features—but limiting users to 20 invoices and 5 bills per month. The Growing and Established plans are geared toward larger organizations, with unlimited invoices and bills, plus extra add-ons like Inventory Plus and Analytics Plus. We recommend using Xero if you’re a small-to-medium-sized xero review and pricing company that values affordability, collaboration, and user-friendly design. Because Xero doesn’t charge more as you add users to your plan, it offers a cost-effective way to provide employees access to real-time financials. Furthermore, you can scale it up as your company grows; Xero integrates with over 1,000 third-party apps for payroll, time-tracking, and more.
- BlackLine, which provides automation software for accounting and finance, announced the launch of a comprehensive suite of AI capabilities called Verity.
- With pricing, the QuickBooks Online entry plan starts at $18 monthly and, like Xero, lacks a free package.
- As of 2023, QBO has 6.5M paying customers where Xero has 3.75M paying customers.
- Yes, Xero is ideal for small businesses due to its user-friendly interface and affordable pricing plans.
- Today, they have over 3.75M paying customers and are second only to QuickBooks online (6.5M paying customers) in the accounting software industry.
While my overall experience of using Xero was positive, I noticed some platform limitations. Since this plan is ideal for freelancers, removing the restriction will surely encourage more freelancers to opt for Xero. Xero automatically calculates sales tax on your company’s transactions and prepares sales tax returns on the company’s behalf using sales tax reports. I like that you can set up as many sales taxes as you want, and the software will record them automatically.
We weigh each section differently to calculate the total star rating. There is limited tax support, limited invoice templates, no built-in payroll, and a steep learning curve. Multiple pricing increases over the years have driven up the cost of the software, and customer support isn’t the best. Xero no longer includes payroll — although a paid Gusto add-on is available — and it has limited some features (such as expenses and multicurrency support) to its most expensive plan. When it comes to creating journal entries, I found Xero offers many of the same advanced features found in enterprise-level accounting software like SAP or BlackLine.
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The customization capabilities is probably the best out of all online accounting software. It’s best to judge accounting software based on what you need it to do, rather than what it can be capable of doing. All and all, it’s an excellent option for sole proprietors and growing companies requiring an inexpensive way to manage finances and basic inventory. Yes, Xero offers a 30-day free trial for new users to explore its features before committing to a paid plan. Xero integrates with tax compliance tools like Avalara and TaxJar to simplify the process of calculating and filing sales tax, VAT, and other taxes. These integrations help businesses stay compliant with local tax regulations and ensure accurate reporting.