Xero
Cloud accounting software for small businesses with bank reconciliation and invoicing.
Best for
- Small businesses
- International companies
- Freelancers
- Accountants
Not ideal for
- Limited features on starter
- US payroll is add-on
- Invoice limits on lower tier
- Support varies
Get Started with Xero
From $25/mo · 3 plans available
Visit Xero →Xero Overview
Xero vs Top Alternatives
| Software | Rating | Starting Price | Free Tier | |
|---|---|---|---|---|
| XXero | 4.4 ★ | $25/mo | No | |
| FBFreshBooks | 4.5 ★ | $21/mo | No | Compare → |
| WaWave Accounting | 4.4 ★ | Free | Yes | Compare → |
| QQuickBooks | 4.3 ★ | $38/mo | No | Compare → |
| ZBZoho Books | 4.3 ★ | Free | Yes | Compare → |
| NSOracle NetSuite | 4.2 ★ | $99/mo | No | Compare → |
Xero Features
Pros & Cons
Pros
- Beautiful interface
- Great bank feeds
- Strong app marketplace
- Multi-currency
- Unlimited users
Cons
- Limited features on starter
- US payroll is add-on
- Invoice limits on lower tier
- Support varies
Pricing Plans
Early
- 20 invoices
- 5 bills
- Bank reconciliation
Growing
- Unlimited invoices
- Unlimited bills
- Bulk reconciliation
Established
- Multi-currency
- Expenses
- Projects
Xero Integrations
Xero connects with 5 services to extend your workflow.
Who Should Use Xero?
Small Business Owners and Financial Managers
Core user base consists of business owners and financial decision-makers from companies with 10-50 employees and $1-10M in revenue. These users seek simplicity, automation, and real-time financial visibility without requiring deep accounting knowledge.
RecommendedAccountants and Bookkeepers
Over 90% of Xero's paid subscriptions in Australia and New Zealand come through accountant and bookkeeper partners, who recommend and implement the platform for their small business clients. These professionals use Xero's practice management tools and serve as primary influencers in software adoption decisions.
RecommendedStartups and Entrepreneurs
Xero targets businesses needing scalable solutions that can grow with them over time. The platform's cloud-based nature allows startups to access sophisticated accounting capabilities without enterprise-level costs.
RecommendedFreelancers and Sole Traders
Xero offers self-employed accounting software that enables freelancers to send online invoices, manage expenses, and track cash flow. The platform provides invoicing software specifically built for freelancers with hundreds of apps in the Xero App Store.
RecommendedWhen to Consider Alternatives
Manufacturing and Complex Inventory Management
Xero lacks critical features for product-heavy businesses. It doesn't support inventory assemblies, making it unsuitable for manufacturers managing composite goods with multiple parts or ingredients. The software struggles with complex inventory variants, serial number tracking, and advanced pricing structures.
Consider QuickBooks instead →Project-Intensive Industries (Construction, Legal)
Xero cannot handle complex job costing or minute-by-minute project profitability tracking. Time entries must be tied directly to specific projects—you cannot log administrative hours or general overhead work independently.
Consider QuickBooks instead →Advanced Reporting and Analysis Needs
Xero's reporting customization is severely limited. Users report that creating highly specific analyses often requires exporting data to Excel for deeper manipulation. The software offers only two active tracking categories compared to QuickBooks' 40 on entry-level plans.
Consider QuickBooks instead →Top Xero Alternatives
FreshBooks
FreshBooks is cloud-based accounting software tailored for small businesses and non-accountants, offering automated invoicing, expense tracking, double-entry bookkeeping, and tax-ready reports accessible via mobile and web. It emphasizes ease-of-use with features like bank reconciliation and accountant access to streamline financial management.
Wave Accounting
Wave is free small business accounting software offering double-entry bookkeeping, invoicing, and tax reports in an intuitive dashboard, designed for freelancers and SMBs to simplify finances without accounting expertise.
QuickBooks
Small business accounting software with invoicing, expense tracking, and reporting.
Zoho Books
Cloud-based accounting software designed for small businesses and accountants to manage invoicing, expenses, inventory, and financial reporting in one integrated platform. Offers automation, multi-currency support, and collaboration features with flexible pricing including a free tier.
Oracle NetSuite
Oracle NetSuite is the world's leading cloud-based business management software suite that integrates ERP, financials, CRM, and ecommerce capabilities. It serves as a unified platform providing visibility, control, and agility to fast-growing organizations.