Xero Accounting Software Review: Is Xero Worth It for the Price?

Last Updated:Wednesday, November 15, 2023

If only there were an accounting software that’s full-featured, user-friendly, and simple to use. You may be in luck, because we’ve found one meant to fit the bill: Xero.

In this Xero review, we’ll see if this online software might fulfill your accounting and bookkeeping needs. 

We’ll put the software under the microscope and try to analyze its best features, pricing plans, and pros and cons. Stick with us until the end when we'll discuss real customer reviews and give our final verdict.


Xero review 2023: Is Xero accounts software any good?

This Xero software review has analyzed the Xero software in detail and has concluded that it's a good value for your money. The ease of use is fantastic; even non-tech-savvy users can learn how the software works with the comprehensive guides and webinars Xero offers. 

Xero has more than two million users and is the primary accounting solution for more than 16,000 accounting firms. So it has real-world bonafides. 

Xero accounting software is remarkable for its scalable nature, making it a good choice for both simple and more complex accounting needs. You can start with the most basic plan and then scale up as your business grows. It supports unlimited users on all its subscription plans, which is fantastic. 

The software also offers a good deal of customization. For instance, you can easily customize Xero's default chart of accounts or import an already existing chart of accounts.

Xero online accounting is cloud-based, so there's no need to download or install any program except Xero. Being cloud-based means it's available on every device and any browser as long as you have an internet connection. 

Xero is also a very secure platform; security measures include data encryption, two-step authentication, and 24/7 monitoring at multiple locations. Xero prides itself on having a 99.97% uptime. 

If you want to see how do Xero vs Freshbooks or Xero vs Quickbooks compare, as well as how does this tool stack up against other online accounting software, take a look at this comprehensive accounting software comparison chart we prepared for you.  

Xero pricing plans

First of all, how much does Xero cost? Let’s first review Xero accounting packages pricing:

Xero Price Plans

Monthly Pricing

Annual Pricing




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Is there discount Xero accounting pricing for nonprofits?

Yes, the Xero accounting software price structure is different for nonprofits. The vendor offers registered charities, trusts, and societies a 25% discount on the original pricing. 


Are there any Xero coupon codes or promo discount vouchers?

We did the research, and it seems there are no Xero coupon codes or discount vouchers at this time.


Xero accounting app overview: what is Xero software & what is Xero used for?

Xero for accounting is a cloud-based accounting software with sophisticated features, advanced financial reports, and more than 800 integrations with third-party apps, including Xero ERP integration. It's suitable for small and growing businesses and their advisors, as well as for personal finance. 

It can help you have more financial knowledge of your business and manage your business from anywhere. 

Some notable features of the Xero financial software include general ledger, double-entry bookkeeping support, invoicing with quotes, bank reconciliation, purchase order, expense management, and tax management. 

Xero is suitable for many markets, such as e-commerce, IT, legal, and retail. It also comes with a multi-currency feature, which makes it a good solution for online sellers that sell their products globally.


Xero free vs paid: what’s the difference?

Is Xero free of charge in some incarnation? Sadly no, Xero doesn’t have a free plan. But the good news is there’s a free 30-day trial that lets you test every feature of the software in detail. There’s even a demo company you can explore and play around with without worrying about making a mistake. 

So how much is Xero? In terms of pricing plans, there are three: Early, Growing, and Established. 

The Early plan costs only $12/month and is suitable for sole traders, new businesses, and the self-employed. It includes features such as invoices, quotes, bills, bank reconciliations, and short-term cash flow. There are some limitations to this plan. For instance, you can’t send more than 20 invoices per month or enter more than five bills. 

The Growing monthly plan stands at $34 per month and includes everything from the Early plan, plus unlimited invoices and bills and reconciling bank transactions in bulk. 

The Established plan opens the door to more advanced features such as multiple currency support, project management, expense claims, and in-depth analytics. It costs $65 per month. 


Xero features list 

The main features of Xero are:

  • Dashboard

  • Bank connections

  • Inventory

  • Reporting

  • Online payments

  • Integrations

  • Purchase orders

  • Files

  • Contacts

  • Sales tax

  • Bills

  • Quotes

  • Invoices

  • Client portal

  • Expenses

  • Projects

  • Multi-currency accounting

  • Payroll with Gusto

  • Mobile apps

1. Xero dashboard 

One of the best features of Xero is the Dashboard that's easily navigated, even for non-tech-savvy users. The great thing about the Dashboard is that it's completely customizable, meaning you can choose what's displayed. For example, you can reorganize the panels and keep the useful information for your business, such as total cash in and out, outstanding invoices, overdue bills, etc. 

2. Bank connections

Xero lets you connect your credit card and bank accounts directly to the software, or you can manually import your bank statements. Once you connect your bank or credit card account with Xero, you’ll be able to categorize your expenses, split transactions, and more. Xero smart categorization remembers the past transaction categories you used and automatically categorizes new transactions for you. 

3. Inventory

The Inventory feature is a good-to-have feature for businesses that want to add services or products to Xero. You can add items, add information about those items, write notes, and add attachments to items. You can track which items are in stock, items that are selling fast, and even add items to invoices. 

4. Reporting and analytics 

Xero offers 50+ reports, including sales tax report, profit and loss, and journal report. You can even customize your reports as needed and save your favorite reports for easy access. For additional $7 per month, you can add Xero Analytics Plus and gain deeper insights about your business. 

5. Online payments

Online payments offer your customers different ways to pay you. Customers can pay online invoices with a debit card, credit card, or digital wallets like Apple Pay and Google Pay. Some of the popular payment gateways include Xero and Stripe, as well as GoCardless integration. 

6. Integrations 

Xero offers 800+ integrations with third-party apps to help you run your business more efficiently. If that’s not enough, Xero also integrates with Zapier, connecting the software with hundreds of additional add-ons. Xero also offers APIs for developers. 

7. Purchase orders

The Purchase orders feature lets you create and send purchase orders online. Purchase orders are fully customizable, with the option to tailor the layout and use your own order numbers. Once you create a purchase order, you can email it as a PDF and convert it into a bill for payment or into an invoice to recoup costs.

8. Files

Xero lets you capture data without any manual work using a tool called Hubdoc. By enabling Hubdoc, you'll be able to email, take a photo on your mobile, or scan your documents, and the data will automatically appear in Xero. Hubdoc does the data entry by reading key information from bills and receipts and turns it into usable data. The data from bills and receipts will be synced to Xero and matched to bank feeds.

9. Contacts

Xero has solid contact management features. It lets you add basic contact information, as well as discounts and sales tax rates for customers. You can even create groups, which are lists of contacts to target particular groups of contacts. For example, you can create a list of loyal customers or customers in a specific state to offer promotional deals or send invoices in bulk. 

10. Sales tax

Xero lets you add sales tax in your invoices and estimates. You can set up default sales taxes for customers, sales, and purchases. Xero also has a sales tax lookup feature that automatically calculates sales tax based on your contact’s address. 

11. Bills 

You can easily manage bills with Xero finance software. You can create bills directly in-app or import bills from your device. The platform lets you set up recurring bills and attach relevant documents to bills. You’ll be able to view all your bills in one place in the Purchases overview section. 


Quotes, which you may know as Estimates, can easily be created in Xero. Once a client accepts your quote, you can convert it into an invoice and send it to the client for payment. 

13. Invoices

Although Xero offers only one invoice template, you can customize that invoice extensively. Additionally, Xero helps you save time with features like recurring invoices, automatic invoice reminders, bulk invoicing, and replication of previous invoices. There’s a feature called Xero to Xero that lets you receive and send invoices to other Xero users. 

14. Client portal

The Client Portal is where your clients can view and manage all their transactions. From here, they’ll be able to accept quotes, pay invoices, leave comments, and more. 

15. Expenses 

Xero lets you track expenses, categorize them, convert them to invoices, and bill them to your customers. You can even assign an expense to a customer. The Expense tracking feature is available in each plan. Users of the Established plan also get access to full expense management with features such as Expense claims, Automatic receipt scanning, Expense analytics, and the Xero expenses app.

For example, with the Receipt analysis feature, you can take a photo of the receipt, and Xero will enter the details into an expense claim for you. Another neat feature called Mileage tracking can come in handy if you or your employees are using a vehicle for work. You can download the Xero Expenses mobile app to submit expenses on the go. 

16. Projects 

The Projects feature allows you to quote, invoice, track job profitability, and get paid faster. You or your employees can create an unlimited number of projects. You can share specific projects with your employees or keep them private. Projects can have a contact, description, estimates, due date, tasks, and more. 

Once you create a project, you can populate it with tasks and expenses. You can add as many tasks as you want if it's relevant to the project. If you expect any expenses to occur during a project, you can add an expense. When you're done adding tasks and estimated expenses, you can send a quote to the customer. Additionally, you can track time spent on each task using the time tracking functionality or add time manually. 

17. Multi-currency accounting 

With the multi-currency accounting feature, you can pay and get paid in more than 160 currencies. You can see how currency markets affect your cash flow and profit, and view reports in local or foreign currencies. There's the option to assign a default foreign currency to specific contacts so that they're in the right currency when you create invoices or quotes, receive bills or send purchase orders.

18. Payroll with Gusto

Gusto is Xero's preferred payroll partner that integrates seamlessly with Xero accounting to help you run and manage your payroll online. You'll be able to see and reconcile your Gusto payroll transactions in Xero and easily jump into Gusto from the Gusto payroll menu tab in Xero. You can even give your employees online access to their pay details.

19. Mobile apps 

Xero has three iOS apps and three Android apps. There’s an iOS and Android mobile app that’s a mobile version of the website. The other two apps are Xero Projects and Xero Expenses that support work in the field. In other words, you’re good to go whether you’re using an iPhone or a Microsoft Surface Duo.


Xero accounting system pros and cons

Here are the advantages and disadvantages of Xero:

Xero advantages

Great ease of use. Xero is an easy application to use without any major training. The user interface has a clean design, and it's easily navigated. All options are easily available on the menus, so there's no need to dig around to find them. Even if your team doesn't have significant accounting experience, they won't have difficulties working in Xero.

Each plan comes with unlimited users. Unlike other software that limits the number of users, Xero doesn't impose any limits. You can have as many users as you want on each plan. This feature makes Xero a top pick for firms needing support for multiple users. Even better, you can set permission levels for each user. For instance, you can give some employees access to create and send invoices and allow others to pay bills. You can even limit who can see the company's complete financial picture.

There’s a 30-day free trial. Xero might not have a free plan, but it lets you explore the software for free with its 30-day free trial. There's no credit card required, and you'll get access to the best features.

There are strong integrations with many complimentary applications. Many businesses opt for Xero as it integrates with 800+ third-party apps, letting you connect with various project management, e-commerce, inventory, CRM tools, and more

Onboarding the software is a breeze. Once you sign up for the software or the free trial, you'll be taken to a step-by-step onboarding process explaining how each feature works. The onboarding process is a combination of help articles and videos. You can also explore a demo company to learn how Xero works without worrying about making mistakes.

Xero disadvantages

Many of the more advanced features are reserved for the most expensive plan. Xero’s best features, such as the expense management and multi-currency support feature, are only available if you opt for the Established plan. The cheapest monthly plan also has a limit on how many invoices you can send and bills you can create. 

Payroll is only available as an add-on. One of the main Xero limitations is that payroll in Xero works by integrating the software with Gusto, which is one of the most competent and comprehensive payroll management software. However, the integration comes as an add-on, starting at $40 per month, plus $6 per month per person.

You can’t manage multiple companies under a single account. You might be disappointed to hear that Xero won’t let you set up and manage multiple companies in a single account. You can add as many organizations as you like, but you must choose a separate pricing plan for each one. 


Xero complaints & praise (from real Xero customer reviews)

Some of the most common reasons why users love the Xero software is the software's ease of use. In many reviews of Xero, users praise the large selection of features, especially the reporting and automation features. 

Businesses and accountants seem to be fans of the software's accounting capabilities. Quite a few Xero software reviews comment that its wide range of integrations makes running their business a lot easier.

In more than a few reviews, users praise the stability of the software, saying how it helps them run a successful business with zero disruption. 

Some negative Xero reviews talk about the price increases, saying how Xero used to be a more affordable solution. A few users complain that the best features, such as project management and expense claims, are only available with the most expensive plan. 

Other Xero accounting reviews complain about the lack of phone support, and others about the poor customer support service and slow response times.

Review of Xero support

If you want to learn how the software works, there’s a comprehensive knowledge base that contains learning materials such as help articles, videos, guides, and online courses. But if you want to get in touch with customer support, you must start a free trial.

Once you start your trial, you can go to the support center, Xero Central, to raise a case with the support team. Paid Xero users get free online support 24/7. 

Unfortunately, Xero doesn’t offer phone support or live chat; there’s only email support. The good news is that you hire a Xero professional advisor to teach you how to use the software for your accounting needs. 


Is Xero bookkeeping software worth it? Final points

New Zealand-based vendor Xero might be one of the leading players in the accounting software industry. 

In the years since 2006, the company has expanded across the world, with offices in the USA, the UK, Australia, Canada, Singapore, Hong Kong, and South Africa. Xero has huge investment behind it, and is used basically everywhere on the planet. Clearly, they have been doing a lot of things right and delivering a great product in this industry. 

But the question remains: Is Xero worth it for you?

Our answer is yes, it’s definitely worth it under the right circumstances. 

The Xero accounts package seems like an outstanding solution for freelancers and self-employed individuals who don't want to invest in hiring an accountant but want to be up to date with the financial state of their small business. 

It’s also a good choice for startups and small business owners who are seeking affordable accounting tools with generous features such as inventory management, recurring invoices, and online payments. 

The more business accounting advanced features like multi-currency accounting, project management, and unlimited users make Xero an undisputable option for growing businesses as well. 

With that out of the way, if you’re interested in testing out the software, start with the free 30-day trial and later subscribe to a plan that fits your business needs.
The best accounting software is down to a mix of business application and personal preference. It’s worth exploring Xero alternatives and getting a good sense of the competition. 


Xero FAQs

Is Xero difficult to learn?

All online accounting software has a learning curve, including Xero. However, the vendor has an extensive knowledge base with many resources, including videos, help articles, and guides. After signing up for a free trial, you’ll be taken to a step-by-step onboarding process; you can also explore a demo company.

Is Xero.com safe?

Yes, Xero is a very secure platform. Their security measures include industry-standard data encryption, two-step authentication, and 24/7 monitoring at multiple locations. The platform is also praised for its stability, with 99.97% uptime. In other words, the app ranks well in the security department. 

What size company is Xero good for?

Xero is best suited for sole proprietors and small and growing businesses as it’s more affordable than its competitors and offers a good deal of features. There are three monthly plans so you can start small and scale up to a more robust plan as your business grows.