Xero is an online accounting software that allows users to instantly create invoices, reconcile bank accounts, track expenses in real time, and more. Its features include inventory management, a customizable dashboard, and a mobile app. Its prices range from $20–$40 per month, and it’s best for small to mid-sized businesses that need daily cashflow updates.
Xero Pros and Cons
Intuitive and neat interface
Reports are not that great
Customer support is not responsive
Nice mobile app
Who Xero is Best For
- Small to medium-sized businesses (SMBs): Xero’s premium plan allows SMBs to send unlimited invoices and quotes, enter unlimited bills, reconcile unlimited bank transactions, and manage multi-currency transactions. It may not be a good fit for large enterprises as it lacks some essential advanced functionalities such as automated sales tax filing and check printing.
- Independent retailers and wholesalers: Its simple inventory tracking software is ideal for wholesale brands and retailers as it provides them with a real-time view of their bestselling product lines.
The Xero pricing guide shows three plans: Starter ($20 per month), Standard ($30 per month), and Premium ($40 per month). The main differences between the plans are the maximum numbers of invoices and quotes that may be sent, bills that may be entered, and bank transactions that may be reconciled.
Choose Your Plan
Looking for a company that scales as you grow? Check out Quickbooks.
Xero currently offers two optional project add-ons: (1) first month free for Xero subscribers and (2) $7 per user per month, plus $5 for each additional user per month.
Xero’s Starter plan allows users to send up to five invoices and quotes, enter up to five bills, and reconcile up to 20 bank transactions.
In its Standard plan, users may send unlimited invoices and quotes, add unlimited bills, and reconcile unlimited bank transactions.
Premium contains all of the features in the Standard plan, in addition to a multi-currency capability.
Popular Accounting Software 2020
Businesses that want the most widely used small business accounting software that scales as they grow
Solopreneurs and freelancers who need to streamline customer invoicing and payment collection
Businesses in the nonprofit, manufacturing & distribution, professional services, contracting, and retail industries
Businesses that use other Zoho products like Zoho CRM
Xero comes in useful given its wide range of features. From basic invoicing and bank reconciliation to reporting, its functionalities help users streamline their accounting workflows. To help you gauge whether or not Xero is for you, we have discussed some of its essential features below.
Once connected to your bank, Xero will automatically import transactions on a daily basis, ready for the user to check and reconcile. Users may also quickly reconcile a massive number of transactions through cash coding, where they may group similar transactions together and then match them at the same time.
Xero’s banking partners in the US include Wells Fargo, CNB, Novo, BBVA USA, and Capital One Bank.
This feature enables users to easily manage and monitor their business assets—such as hardware, office equipment, machinery, and vehicles—and then collaborate with their advisers to manage them. Once the assets and bills are imported to Xero, users may start managing depreciation and disposals.
Business Performance Dashboard
Users can make better business decisions with the help of Xero’s business performance dashboard. This tool provides comprehensive charts and graphs to evaluate their business performance across multiple metrics such as net profit on net sales, debt to equity, and gross profit.
Xero’s integration with Hubdoc, a document management software, helps users automate the financial document collection process. Using any device, they may easily capture bills and receipts and access all other documents in a single centralized system.
Which Accounting Software Provider is Right for You?
Most Helpful Xero Reviews
Users who gave positive Xero reviews mentioned that its interface is simple and straightforward. Others appreciate its time-saving and helpful features such as bank reconciliation and invoice management; while some said that its mobile app is great. Meanwhile, those who left negative Xero reviews commented that it’s a bit expensive and that its reports are not that great.
Intuitive interface and useful features
“Xero is one of the largest CRM software on the market. Its functions and characteristics are very useful for our company. The tool manages our contacts by category so that we can visualize the best way in which each element is ordered. I like the way its interface is handled—intuitive and in order.”
Reports are not that great
“Reports are okay but not great. I would like to make custom reports, and I wish that there were defaults when I run income statements.”
Xero Frequently Asked Questions (FAQs)
What types of business does Xero cater to?
Xero caters to the following businesses: retail, nonprofit, legal, construction, hospitality, healthcare, Amazon sellers, real estate, manufacturing, tourism, franchises, ecommerce, and more.
How does Xero protect its customers’ data?
Xero uses a high-end encryption system and secure data centers to back up and safeguard its customers’ data. It also employs a two-step verification process for an extra layer of security.
Where can I download Xero’s mobile app?
Xero’s mobile app is downloadable for free from Google Play or the App Store.
Our Top Accounting Software Provider Picks
If you aren’t sure that Xero is right for you, then this article on the 4 Best Accounting Software is a review of our top choices. In this guide, we looked at a variety of solutions and narrowed down our recommendations based on detailed financial statements, the ability to create invoices and track payments, and more.
[fsb_ask search=”Xero” count=100]