This comprehensive approach to financial management allows businesses to stay organized and ensures their records are always up to date. Xero is a versatile tool designed to handle a wide range of accounting and financial management tasks. Its core functions include invoicing, expense tracking, financial reporting, bank reconciliation, and payroll integration. Businesses use Xero to maintain accurate records, monitor cash flow, and make data-driven financial decisions.

The Established plan is $78 per month and adds the ability to manage multiple currencies, track projects, claim expenses, and deeper analytics. Xero provides essential accounting features such as invoicing, expense tracking, and financial reporting, all of which are designed to save you time and reduce the chance of errors. You can create professional invoices quickly, track expenses, and categorize them for tax purposes.

For first-time users, the dearth of support options might leave you scratching your head. During our latest round of testing, our researchers were particularly impressed with the expenses feature, which makes it very easy to upload receipts, input mileage, and attach expenses to specific clients. During our most recent round of user testing, our researchers were particularly impressed with Xero’s billing and expense management features, but they found the software to be hard to use in general. I spent some time testing the platform myself, and my view is that it’s a great platform, but there are better alternatives out there.

Very easy to understand

Security measures include data encryption, two-step authentication, and 24/7 monitoring at multiple locations. Data is backed up daily across various servers, and regular security audits are performed. Xero used to offer strong customer support, and while there are still a ton of great support resources available, getting in touch with an actual representative is a lot more difficult. Xero no longer offers built-in payroll, but it does integrate with Gusto Payroll. I think Xero has a lot of power and flexibility, which gives it a bigger learning curve to get used to the features available. I recommend finding a bookkeeper who is experienced who can show you the ropes.

Xero certainly doesn’t skimp when it comes to features and even more seem to come out of nowhere as you delve deeper into its hidden depths. Everything revolves around the Xero dashboard area, but we also love the easy way Xero lets you create a new part of your cloud-based experience with a simple ‘+’ button to the right of the screen. Here, you can produce invoices, bills, purchase orders and more besides, with one-click ease.

You will eventually want to switch to a more robust ERP system like Netsuite or SAP, but Xero and QuickBooks will give your eCommerce business the longest runway until you need to switch. QuickBooks comes with more transaction tagging options out-of-the-box than Xero. Xero only allows for two active tracking categories whereas QBO supports 40 in their least expensive plan. This makes Xero’s data a little bit ‘flatter’, and gives QuickBooks deeper out-of-the-box analysis capabilities. On the other hand, if you’re a freelancer or an independent contractor needing something more straightforward, FreshBooks could be a better fit.

Xero Review : Boost Your Bottom Line with Smarter Accounting

Xero processes payment through a payment gateway like Stripe, GoCardless and others. Keep in mind that these services charge a fee to process payments (usually around 2.9% plus 25 cents per transaction, though this varies by the payment processor). Business owners, freelancers and entrepreneurs often spend a large chunk of time on administration and accounting. Suited for small- and medium-sized businesses (SMBs), Xero is an affordable cloud-based accounting software system that streamlines these processes with plans starting at $20 per month. You can compare them directly in our Xero vs FreshBooks comparison piece.

• Often, you will find yourself making some expenditure on behalf of the company and your workers may do so, too.
• In that respect the built-in help will pay dividends as you use it to navigate any of the trickier aspects of the cloud-based layout.
• This feature greatly reduces the chance of manual errors and helps businesses stay on top of their financial health in real-time.
• Yes, Xero integrates with Shopify, WooCommerce, and many other e-commerce platforms.
• The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication.
• These time-saving features are ideal for businesses looking to improve efficiency and streamline their operations.

Negative Xero Reviews & Complaints

Xero launched in 2006 with a cloud-based accounting platform that enabled small businesses to access their financial data anytime. It focused on making accounting tasks simple and its platform open to allow integration with hundreds of third-party apps. Drury invested his own funds initially and secured further investment from entrepreneurs Peter Thiel and Craig Winkler. Xero quickly expanded internationally and by 2013 had customers in over 100 countries. It went public in 2012 on the New Zealand Exchange and then the Australian Securities Exchange in 2013. Xero continued growing globally, competing against accounting software giants like QuickBooks.

Customer Service & Support

• Its invoicing capabilities could also use a bit more intuition when compared with competitor programs.
• This robust, structured support process ensures that users receive consistent, secure assistance, reinforcing Xero’s commitment to helping organisations resolve issues promptly and maintain smooth operations.
• Plus, Xero supports unlimited users at no additional cost — a rarity in the accounting software world.
• It provides a comprehensive view of a company’s cash flow by presenting upcoming bills and outstanding invoices in a clear, tabular format.
• This allows businesses to focus more on growth and less on tedious administrative tasks.

You can send up to 20 invoices, enter five bills, reconcile your bank transactions, and capture bills and receipts. Imagine you’re a freelance graphic designer, juggling multiple clients, deadlines, and invoices. Instead of manually chasing down payments, you can send sleek, professional invoices and let Xero do the follow-up for you with automatic reminders. Xero also makes it easy to stay on top of taxes and your general ledger.

Xero provides a full suite of accounting tools.

Xero has been nicely put together and if, for example, you choose to try out their demo site, which can be found once you’ve registered, there’s even help as you work. At the same time, Xero has evolved into a pretty meaty package, and as a result has many different areas that you’ll need to acquaint yourself with. Why you can trust TechRadarWe spend hours testing every product or service we review, so you can be sure you’re buying the best. The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation. Help us to improve by providing some feedback on your experience today.

Accounting software for larger enterprises often integrates accounting with other services provided by the software, such as workflow management, business intelligence and project planning. Great all in one accounting suite and is a cloud-based system with real-time access, allowing you to manage your finances from anywhere. Our personal pick would be Zoho Books, which combines excellent core accounting features with unmatched usability. Another option worth looking into is QuickBooks, which has great support options and a decent pricing point.

Customers generally applaud Xero for its exceptional customer support. The support staff is highly knowledgeable about the product and provides easy-to-understand guidance. However, it should be noted that Xero does not offer a dedicated phone line for customer service, and there is no live chat support available.

In general, accounting software has a steep learning curve because of the complexity of its functions—but even still, Xero’s software leaves something to be desired. Xero’s time-tracking feature allows for easy tracking of your billable hours and integrates them into invoicing so that your project cost assessments are xero review accurate. Xero’s time and attendance feature tracks employee time and attendance, generates reports, and integrates with the payroll module. It enables employees to request time off and view their attendance records while ensuring compliance with labor laws and regulations.

This online accounting software allows them to connect with their banks, accountants, bookkeepers, and other business apps with ease. Because your accounting software forms the core of your company’s books and finances, it’s crucial that the software you choose integrates well with other software. Like Shopify forms the backbone of your eCommerce stack, your accounting software forms the backbone of your financial stack. Like Shopify, Xero relies on third-party integrations that greatly expand the core functionality of the software and make it scalable. Xero excels with its integrations and has over 1,000 apps that it integrates with. It integrates with banks, payroll providers like Gusto, bill pay companies like bill.com, and expense management companies like Expensify.

In addition, there is a Xero mobile app available on Android phones and iOS devices. The mobile version, Xero Touch, is compatible with many third-party add-ons that enhance the capabilities of Xero. On pricing, there is an affordable set of plans to choose from plus you get 30% off for the first six months of use. If you want to try out Xero before subscribing to it, there is a 30-day trial version available. Xero is a cloud-based accounting software for small business owners to manage their financials more efficiently. Users have access to their cash flow in real time from any device so they can work on the go.