About Xero

Xero is a cloud-based small business accounting software with tools for managing invoicing, bank reconciliation, inventory, purchasing, expenses, bookkeeping and more. Xero is an alternative to QuickBooks. It is a modern, small business accounting software that lives in the cloud. It's accessible from any computer or mobile device, making for a smarter and easier accounting process, with features including cash flow tracking, payment processing, bank reconciliation, expense tracking, inventory management, financial reporting, and more.

The Xero dashboard presents users with a clear and concise overview of their financial situation. It provides small business owners with a greater understanding of their cashflow by highlighting bank balances, outstanding invoices, upcoming bills and expense claims in a visually appealing way. Daily bank and credit card transactions are automatically imported into Xero and matched to their corresponding accounting transaction. Doing bank reconciliation is as easy as confirming the match is corrected and clicking "OK."

Xero integrates with over 1,000 third-party apps commonly used by small businesses including Stripe, PayPal, Capsule, HubSpot, and more in order to streamline workflows and synchronize data such as sales invoices, client data, cashflow reports, payroll data, and more. Data flows directly into the Xero ledger, removing the time and effort required for manual data entry. Every Xero plan comes with unlimited users, so there's no need to pay for extra licenses. Collaborate with colleagues or invite financial advisors to view data remotely and get valuable real-time advice.

Pricing starting from:

$12.00/month

  • Free Version
  • Free Trial
  • Subscription

Key benefits of Xero

  • Keep accounting data safe and secure.
  • Access accounts online anytime from anywhere, even on the go using mobile devices (iPhone/iPad/Android) or tablet.
  • Get better visibility on cashflow with real-time data.
  • Reduce the time spent keeping accounts up to date.
  • Software updates are free and available when users log in.
  • Collaborate with the whole team and an accountant. Users decide what each person can see.
  • Seamless accounting and payroll in the US (selected states), UK, Australia and New Zealand.
  • Typical Customers

    • Freelancers
    • Small Businesses (2-50)
    • Mid-size Companies (51-500)
    • Large enterprises (500 and more)

    Deployment

    • Cloud-based
    • On-premise

    Markets

    Australia, Brazil, Canada, China, Germany and 9 others

    Supported Languages

    English

    Pricing starting from:

    $12.00/month

    • Free Version
    • Free Trial
    • Subscription

    Images

    Xero Software - Xero Dashboard
    Xero Software - Xero Payroll
    Xero Software - Xero Reporting
    Xero Software - Xero Invoices
    Xero Software - Xero Assurance Dashboard
    Xero Software - Xero Accounts
    Xero Software - Xero Contacts
    Xero Software - Xero Dashboard
    Xero Software - Xero Mobile
    Xero Software - Xero Profit and Loss Reports
    Xero Software - Xero Payroll
    Xero Software - Xero Summary Report
    Xero Software - Xero Sales Account
    Xero Software - Xero Contacts
    Xero Software - Xero Timesheets, Payslips, and Leave
    Xero Software - Xero Calendar
    View 18 more
    Xero video
    Xero video
    Xero Software - Xero Dashboard
    Xero Software - Xero Payroll
    Xero Software - Xero Reporting
    Xero Software - Xero Invoices
    Xero Software - Xero Assurance Dashboard
    Xero Software - Xero Accounts
    Xero Software - Xero Contacts
    Xero Software - Xero Dashboard
    Xero Software - Xero Mobile
    Xero Software - Xero Profit and Loss Reports
    Xero Software - Xero Payroll
    Xero Software - Xero Summary Report
    Xero Software - Xero Sales Account
    Xero Software - Xero Contacts
    Xero Software - Xero Timesheets, Payslips, and Leave
    Xero Software - Xero Calendar

    Features

    Total features of Xero: 175

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

    Alternatives

    QuickBooks Desktop Pro

    4.4
    #1 Alternative to Xero
    QuickBooks Desktop Pro automates billing and invoicing in addition to work orders. Users can link bank accounts, define...

    QuickBooks Desktop Enterprise

    4.5
    #2 Alternative to Xero
    QuickBooks Desktop Enterprise is an accounting software for small businesses which provides users with real-time access...

    Invoicely

    4.7
    #3 Alternative to Xero
    invoiceky enables freelancers and small businesses to create, send and manage an unlimited number of simple and...

    Microsoft Excel

    4.8
    #4 Alternative to Xero
    Excel is a spreadsheet management software program with data analysis tools to help users track and visualize data for...

    Reviews

    Overall rating

    4.4 /5
    (2,556)
    Value for Money
    4.2/5
    Features
    4.2/5
    Ease of Use
    4.3/5
    Customer Support Software
    4.0/5

    Already have Xero?

    Software buyers need your help! Product reviews help the rest of us make great decisions.

    Showing 5 reviews of 2,556
    Kathryn
    Overall rating
    • Industry: Arts & Crafts
    • Company size: Self Employed
    • Used Weekly for 1+ year
    • Review Source

    Overall rating

    • Value for Money
    • Ease of Use
    • Customer Support Software
    • Likelihood to recommend 10.0 /10

    Affordable professional level accounting software for small business

    Reviewed on 26/08/2019

    It's been easier to use Xero than I expected, but I had a nasty surprise at tax time when I...

    It's been easier to use Xero than I expected, but I had a nasty surprise at tax time when I realized the default accounts/descriptions for expenses did not correlate 1:1 to IRS categories. (I should have checked this more closely when I set up my accounts because it's a New Zealand company, and the previous product was local.) This means I will need to double-check all my transactions for 2018 and the IRS has my vastly overestimated tax payment until I can do that and file my return on an extension.

    I've had a much better experience importing data from financial institutions because Xero uses a well-known importing service that is trusted by the institutions.

    I like being able to match multiple invoices to bank deposits because I usually don't run to the bank for each check. This will be more valuable as my company grows.

    I should probably find an accountant to assist me with this, but I haven't found an accountant who understands both craft businesses and Xero.

    Pros

    Professional double entry software at a very affordable price
    Accommodates both cash and accrual accounting
    Links to financial institutions to get transactions
    Uses standard importer recognized by the financial institutions instead of just trying to log in remotely (and triggering fraud alerts)
    Can match multiple invoices to a single deposit transaction imported from bank
    Can keep using Xero as company grows

    Cons

    Pre-existing expense categories/descriptions don't map 1:1 with IRS definitions, so I'm having to go back to all my receipts to make sure expenses are entered in proper accounts because I didn't realize this when I switched
    More difficult to focus on specific expense categories to check transactions
    Have not been able to import historic data from previous app (possibly because it's not double entry) so I am still paying the subscription on that software to retain access to my data
    No integration with Craftybase, so I have to enter supply purchases and customer invoices there independently

    Alternatives Considered

    Quickbooks Online

    Reasons for Choosing Xero

    Outright depends on importing data from financial institutions but they were extremely unreliable (apparently they don't use a standard importing service and my credit union kept flagging them as hackers for remote logins) and customer service kept giving me the runaround. It also isn't "professional" double-entry bookkeeping and can't be audited. Outright can't handle Cost of Goods Sold properly and requires manual workarounds. It can't generate professional reports needed when applying for loans.

    Reasons for Switching to Xero

    QuickBooks introduced a special product for Etsy integration, but early adopters had problems with data disappearing and no way to recover it. Otherwise, the cost of QuickBooks to cover the same features I use in Xero would have been very expensive; even a QB consultant told me it's overkill for a business of my size. I forget which other products I looked at, but Xero was recommended by several owners of similar businesses.
    Faisal Shafi
    Overall rating
    • Industry: Financial Services Software
    • Company size: 501–1,000 Employees
    • Used Daily for 2+ years
    • Review Source

    Overall rating

    • Value for Money
    • Ease of Use
    • Customer Support Software
    • Likelihood to recommend 8.0 /10

    Make Your Accounting Automated

    Reviewed on 02/09/2022

    Xero is cloud-based accounting software that connects banks, accountants, management, and advisors...

    Xero is cloud-based accounting software that connects banks, accountants, management, and advisors from anywhere with any device with active internet. It performs all accounting tasks from preparing ledgers, accounts receivable, accounts payable, financial statements to the management of payroll, taxation, bank reconciliation, and inventory. Online billing enables to send bill through email.

    Pros

    Xero manages the whole accounting of business straight forward. Particularly automating the process of bank reconciliation is amazing time saver, it connects to banks and credit cards. Moreover, it effectively and easily integrates with other cloud based software which enhances usability of Xero.

    Cons

    Process of bank reconciliation has been automated but the process got glitches causing bank feeds stopped and entity has to restore to importing bank statement manually which takes time and attempts more than once. Inventory management needs improvement. Customer support is not perfect comparatively. It is not user friendly for those who have little accounting knowledge.

    Emmanuel
    Overall rating
    • Industry: Apparel & Fashion
    • Company size: 2–10 Employees
    • Used Daily for 6-12 months
    • Review Source

    Overall rating

    • Value for Money
    • Ease of Use
    • Customer Support Software
    • Likelihood to recommend 9.0 /10

    Review of Xero from the perspective of a small business in Ghana

    Reviewed on 03/03/2023

    Overall, my impression of Xero is positive, and I believe it's a reliable and efficient accounting...

    Overall, my impression of Xero is positive, and I believe it's a reliable and efficient accounting software for small businesses. It offers many benefits, such as its user-friendly interface, cloud-based nature, and integrations with other tools, which make it easier to manage financial operations. While it may not be the best fit for every business, it's definitely worth considering.

    Pros

    I love Xero's user-friendly interface. I find the platform intuitive and easy to use, which saves me time and reduces frustration. For example, creating and sending invoices can be done with just a few clicks, and navigating the platform is straightforward.I also like its cloud-based nature. I can access my financial information from anywhere with an internet connection, which is particularly beneficial for my small business especially at moments that I need to manage my finances on the go. Additionally, because Xero is cloud-based, I don't need to worry about installing and maintaining software on my own computer.Xero's integrations with third-party apps are also a plus to me. For example, it can integrate easily with payment gateways such as PayPal and Stripe, making it easier for my customers to pay invoices.

    Cons

    One challenge I face with Xero is its limited customer support. I have experienced difficulty getting timely help from Xero's customer support team. While Xero does offer a knowledge base and community forums, it can be frustrating to have to wait for a response to a support ticket or to not receive the level of support needed. For instance, there was a time I had issues with my login. It had to take days before I could speak with a customer care representative. This really affected my business.

    Verified Reviewer
    Overall rating
    • Industry: Financial Services Software
    • Company size: Self Employed
    • Used Weekly for 1+ year
    • Review Source

    Overall rating

    • Ease of Use
    • Likelihood to recommend 5.0 /10

    Zero or zero

    Reviewed on 13/02/2023

    Pros

    Cloud makes this simple to access from many sites

    Cons

    Cloud also means you can’t work offline which can be a real pain

    Alternatives Considered

    Sage 300cloud
    Amanda
    Overall rating
    • Industry: Marketing & Advertising
    • Company size: 2–10 Employees
    • Used Daily for 2+ years
    • Review Source

    Overall rating

    • Value for Money
    • Ease of Use
    • Likelihood to recommend 8.0 /10

    Cumbersome Migration But Overall Highly Satisfied

    Reviewed on 21/11/2022

    It's a tool that I anticipate staying with for a very long time. It does everything we need it to!...

    It's a tool that I anticipate staying with for a very long time. It does everything we need it to! The one thing that is a personal pet peeve of mine is that we're billed extra each month because the company deals in two currencies.

    Pros

    Since our business model is fairly simple and streamlined, it's a perfect solution for reconciling the books and autogenerating the monthly expense reports. Other small business colleagues wait until the end of the month to see how the company is performing but with Xero, I can run that report at the click of a button at any time.

    Cons

    Adding new assets to the balance sheet was a cumbersome process and wasn't explained very well within the help documentation. However, now that it's been set up, running the depreciation is a simple click of a button.

    Showing 5 reviews of 2,556 Read all reviews

    Xero FAQs

    Below are some frequently asked questions for Xero.

    Xero offers the following pricing plans:

    • Starting from: $12.00/month
    • Pricing model: Subscription
    • Free Trial: Available

    Early: $5.50/month Growing: $16/month Established: $31/month

    Xero has the following typical customers:

    Self Employed, 2–10, 11–50, 51–200, 201–500, 501–1,000

    Xero supports the following languages:

    English

    Xero supports the following devices:

    Android (Mobile), iPhone (Mobile), iPad (Mobile)

    Xero integrates with the following applications:

    Accelo, Actionstep, ActiveCollab, Acuity Scheduling, Administrate Training Management, Adobe Commerce, Agile CRM, ApprovalMax, AroFlo, Authorize.Net, AutoEntry, Batchbook, BigCommerce, BlueFolder, BookingBug, Buildertrend, Capsule, Chargebee, Chargify, Chaser, Checkfront, Checkmybooks, Chrometa, Cin7 Omni, ClicData, Clio, CollabSpot, Constant Contact, Copper, Corecon, CreditorWatch Collect, Current RMS, CustomerSure, Cyfe, DEAR, Datamolino, Deputy, Dext Prepare, Dryrun, EZRentOut, Ecwid, Emburse Nexonia Expenses, Emburse Tallie, Entryless, Epos Now, Everhour, Expensify, Exsalerate CRM, FUTRLI, Fathom, Fergus, FieldAware, Financial Driver, Fishbowl, Float, Float Cash Flow, FreshBooks, Freshdesk, GeoNext, Google Workspace, Grow, Handshake, Harvest, Hike, Hotelogix, Hubdoc, Ignition, Insightly, InvoiceSherpa, JobAdder, Kickserv, Klipfolio, Lightspeed POS, LivePlan, MRPeasy, Mailchimp, Manu Online, Microsoft 365, Microsoft Power BI, Mindbody, MinuteDock, MyBuys, Nobly, OnePageCRM, OneSaas, Onsight, Operations Hub, Panalitix, PandaDoc, PayPal, Payment Evolution, Payoneer, Pepperi, Plooto, Podio, ProWorkflow, ProfitSee, Proposify, QuickBooks Time, QuickBooks eCommerce, Quickbooks Online, Quoter, Quotient, Qvinci, Qwilr, RESULTS.com, Re-Leased, Really Simple Systems CRM, Rydoo, Sage 50cloud Accounting, Sage Business Cloud Accounting, SalesSeek, Sapaad, Satago, ServiceM8, Shoeboxed, Shopify, Simple Salon, Solve CRM, Spotlight Reporting, Square Point of Sale, Starshipit, Streamtime, Stripe, SugarCRM, Synchroteam, Synergy, Tabology EPOS, Tidy, Time Tracker, TimeCamp, Timely, Tradify, Trigger, Unleashed, Veeqo, Vend, WORKetc, WooCommerce, Workato, WorkflowMax, XEDI Web EDI, XO Cashflow, ZENOTI, Zahara, Zapier, Zendesk Sell, Zoho Analytics, Zoho Books, Zoho CRM, ezyCollect, ezyVet, simPRO, vWorkApp, webexpenses

    Xero offers the following support options:

    Email/Help Desk, FAQs/Forum, Knowledge Base Software, 24/7 (Live rep), Chat

    Related categories

    See all software categories found for Xero.