Xero Accounting Software Review 2023

Our Verdict

For this Xero review, we used the software extensively and explored all of its features. We really liked the well-priced payment plans. However, we didn’t like the limit on quotes and invoices in the Early plan. Although it’s clearly stated on the plan and not just in the fine print, we felt it was a low limit for a small business. There’s a lot to this software, including the 1000 other apps that can be integrated, so it takes a bit of learning. We liked the 24/7 support and video tutorials but were disappointed that there is no phone line to contact with queries. Overall, our team’s Xero reviews came to the conclusion that this online accounting software has everything a growing business needs to manage its finances. It is flexible and customizable, with a wealth of features such as multi-currency processing.


  • Unlimited users
  • Customizable dashboard
  • Good app integration


  • Early plan has a limit of 20 bills and invoices
  • Phone support is only given if necessary

Free plan available


Subscription Price

Starting at $25 Per Month





 Expert Review

Very Good


Starting at $25 Per Month

24/7 Support


Mobile App




Xero Accounting Software Review 2023

One of the biggest challenges of running a small to medium-sized business is keeping on top of the accounts. Business owners need to keep track of all aspects of their finances, including expenses, income, taxes, and payroll. However, this is not always easy to accomplish when you’re dealing with the day-to-day running of a company.

Accounting software like Xero can provide a simple, cost-effective, and time-efficient way of managing all of your accounting needs. It is often a more affordable alternative to finding an accountant or using one of the larger accountancy firms. This web-based accounting solution also gives business owners more control over their accounts and greater transparency.

In this 2023 review of Xero online accounting software, we will take you through the key aspects of this software. Other Xero accounting software reviews don’t always go into as much detail or give such an in-depth review of the different features. So, why not read on to find out more about one of the most respected accounting packages on the market.

Who does Xero suit best?

Finding the right accounting solution for your business can seem like a daunting task. Even when you have decided that using an accountant or accountancy firm is not the right move, the number and variety of online accounting software packages can be confusing.

Xero suits a wide range of businesses. It has three payment plans that can cater to solo entrepreneurs, small businesses, growing businesses, and even larger, more established organizations. These payment plans reflect the accounting power of this accounting system. It has the capacity to scale up to accommodate a large organization or scale down for a small business.

Small business owners

For small business owners, Xero offers a whole suite of features that can make your life simpler. By providing a central location for all of your financial transactions, financial documents, and critical business materials, Xero simplifies accounting tasks. The software allows you to track and reconcile bank transactions, create online invoices, and analyze cash flows.

Growing businesses

The more advanced features of this software can be utilized by businesses that are growing to better understand and control their cash flows. Xero can create a business snapshot based on key data, which can highlight areas in which businesses can improve their finances. It can also track projects and keep on top of outstanding invoices.

Large organizations

Xero offers more functionality than many of its competitors, which can make it useful to larger organizations. The software has the capacity to handle multiple currencies, which can be very helpful if you have clients in different countries. It also allows for unlimited users, making it useful for large organizations. Additionally, businesses can use the payroll module to make payments.

All of these features mean that Xero has something to offer everyone. It is largely a package for small and growing businesses, but it does have the capacity to grow with the business. This flexibility means that if your business is likely to grow rapidly, there is no need to move to a different accounting solution later on.

Pricing and features

As outlined above, Xero has three payment plans that can satisfy the needs of most businesses including small and growing businesses. Xero has priced its payment plans competitively. For example, Quickbooks Online Essentials plan costs $27 per month, whereas Xero’s equivalent plan costs $25 per month. There is no free version of Xero available, however, there is a 30-day free trial (UK users can also sign up for the free trial). All of these plans allow for unlimited users.

Let’s take a look at the three payment plans in more detail:

Early plan

Xero designed this plan for solo entrepreneurs or those with small businesses. It has all the necessary accounting features for a small business. This plan costs $25 per month. Its key features are:

  • Send up to 20 quotes and invoices
  • Enter five bills
  • Reconcile bank transactions
  • Capture data using Hubdoc
  • Create short-term cash flow and business snapshots
  • Optional ability to add on payroll using Gusto

Growing plan

As your business grows, it’s vital that the software supporting it can grow with it. That’s not something you need to worry about with Xero. Since its launch in 2006, Xero has strived to create online accounting software that can meet the needs of small and growing businesses.

The Growing plan costs $37 per month and has the following features in addition to those of the Early plan :

  • Send an unlimited number of quotes and invoices
  • Enter an unlimited number of bills
  • Bulk reconcile transactions

Established plan

Once your business has grown and become established in its marketplace, it requires some more advanced features to maintain its financial position. The Xero accounting system has the extra functionality needed for a company to move into bigger markets and to work internationally.

The Established plan costs $70 per month and offers a number of additional features:

  • Accepts multiple currencies
  • Analytics Plus
  • Track projects
  • Claim expenses

Additional features

The three payment plans let business owners select the right level of service for them at the correct Xero cost. This means that they don’t have to pay for services they may never use. It also means that as their businesses grow, they can add more advanced features when they need them.

For example, adding Gusto to Xero extends its functionality to provide a complete payroll service. Gusto is a full-service payroll provider that handles all aspects of payroll. By using Xero and Gusto together, business owners can integrate and streamline their whole accounting system. The addition of Gusto costs $40 per month plus $6 per person.

Xero's ease of use

Accounting can be a very complicated and time-consuming aspect of running a business. However, it is vital to get it right. So when choosing online accounting software, it is crucial that the package is comprehensive and easy to use. If it’s not, then it can make life harder instead of easier.

Launched in 2006, Xero is a New Zealand-based company. Since then, it has consistently refined its user interface and added functionality. By doing this, it has managed to increase its market share and build a brand that is respected worldwide.

With Xero, you can view your bank account balances, online bill pay, claim expenses, accept payments, use Gusto for payroll, track projects, reconcile bank transactions, integrate apps, view accounts payable, and much more. Xero manages to do all of this in a user-friendly online interface that works just as well in the desktop version as the mobile app.

Bank connections

This software brings together all of your bank accounts in one place, by using bank feeds. Businesses can automatically import financial details into Xero, once they set those bank feeds up, resulting in all records being accurate and current. They can use this information to assess their financial position. Xero also holds critical business materials centrally. By integrating bank accounts into one software package, it is much easier for businesses to create financial reports and understand their cash flow.

Purchase orders

Xero can easily generate purchase orders, as it has dedicated purchase order software. Templates are available that let you customize orders and use your own order numbers. The system can convert the purchase orders into bills and issue them in PDF format. Additionally, Xero tracks the progress of orders. This allows you to see if an order has been fully or only partly delivered. Finally, the purchase orders can be converted to invoices if you are on-charging or on-selling.

Project tracking

Another feature of Xero is that it allows project tracking. From the initial job costing right through to invoicing, Xero can manage the whole process. Business owners can generate quotes once they create a project. They can use Xero to customize purchase orders, send invoices, and add account details as the project grows. The ability to use online bill pay helps to speed up payments from the business, so makes balancing the books easier.

Xero can accurately track and cost the time spent on a job thanks to the time tracker built into the system. Clients can break down projects into different stages by using tracking categories. All of these features come together to make project management simple and straightforward.

Customer support

Xero reviews confirm that it does have good customer support. There is online support through a live chat, which is very helpful. Although there is no phone support, customer support agents can call clients back if necessary. Live chat, email support, and the online help center are available 24/7. Xero has also produced a number of online guides and blogs to help guide users through the different aspects of the system.

This web based solution for accounting can present a slightly steep learning curve at the beginning, but there are plenty of resources available to help users find their way around the system. Other platforms, like Quickbooks Online have a similar approach to their user interface, but not all of them have as much functionality. Xero’s software can scale to fit the needs of growing businesses. Also, because banking data is automatically imported, the system is always accurate.

Best in Multi-currency accounting for SMB

In today’s globalized world, many businesses need to work across multiple countries. This means they have to manage their accounting in different currencies. Multi-currency accounting software like Xero makes this process much easier and more reliable. Accounting software can help to simplify compliance, deal with international tax legislation, increase efficiency, highlight the company’s financial position, and improve cash flow.

Xero has a number of key features that makes it particularly well-suited for multi-currency accounting. Some of these features include:

  • Tracking foreign currency transactions. Businesses can track foreign currency transactions across all of their accounts.
  • Ledger support for multiple currencies. Xero supports several currencies and its tools are available to use for those currencies.
  • The system updates exchange rates automatically. This ensures that currency conversions are accurate.
  • International tax requirements are supported. Xero supports tax requirements such as GST and VAT, and therefore simplifies tax reporting requirements.
  • Allows integration with multiple payment gateways. By accepting payments from a variety of payment gateways, Xero makes it easier to use different currencies.

Xero’s capacity to deal with many currencies means that businesses can cut down on the time spent managing financial transactions. When a business starts an account with Xero, one of the first things they do is input their bank account details. From there, the system integrates all of these details and creates a unified hub, from which all financial transactions can be managed. This means that businesses can manage many currencies across the system, making Xero a very versatile tool for global money management.

Financial Reports and Data Analytics

A great advantage of having a completely unified accountancy system is that it can provide overviews and insights into your business. Xero is able to generate complex financial reports and data analytics at the touch of a button.

Due to the complexity of accounting, it’s sometimes difficult to see the big picture. This is where Xero can help. It has a wide range of tools that can create fast and accurate reports and even make projections about the future direction of the business.

Reporting tools

The Xero system holds all the data it needs to generate reports. Information like bank transactions is automatically imported into Xero. Additional tools, such as Hubdoc, are integrated into Xero to allow you to capture additional data with ease. For example, Hubdoc allows you to take a photo, scan or upload documents, making receipt capture simple. Once the documents are in the system, transactions can be synced automatically. The system also allows users to extract data from bank statements as CSV files and search and access bills and receipts.

Xero has a simple interface that lets you drag and drop columns and rows, to create customized reports. In fact, a number of ways exist to reorder and customize the data within the system. Tracking categories can help to drill down into specific areas of the business. Mathematical operations and If statements can be used in formulas to analyze data. The software is also able to present data as percentages in the final reports.

Business dashboard

A range of charts and graphs are available through the Business dashboard. These allow you to quickly understand your data. You can track different aspects of performance, such as debt to equity, gross profit, and net profit on net sales. The system can also be used to track performance and set goals. Then you can add the metrics you use most often to the dashboard. By doing this, you can instantly see how your company is performing.

Analysing data

Xero Analytics Plus allows you to dive even deeper into your finances and helps you to plan for the future. This upgrade gives you access to AI technology, which can make financial predictions including helping you to make cash flow predictions.

Xero can also carry out scenario planning. This helps you to anticipate future events and take steps to avoid adverse outcomes. Finally, Xero Analytics Plus lets you take an even deeper look at your data. It has several customization features that can give you greater insight into your finances.

Using reports

Once reports have been created, you can work with them in real time and even publish them as a PDF and easily send them externally.

Xero also allows you to search for a bookkeeper or accountant in your area. They are categorized by the industry they specialize in. Therefore, you can quickly find someone that has expertise in Xero and in your field of business. Additionally, all of the advisors listed in the directory have staff that are Xero trained, and they have eight or more clients with Xero.

Fantastic SaaS product with excellent software integration, although steep learning curve

A web based solution like Xero can be a cost-effective choice for small and growing businesses. SaaS (Software-as-a-Service) products are cloud-based applications. They allow users to access the software from anywhere through the internet. The applications sit on the provider’s servers and are updated and maintained by them. Users access the software from web browsers, mobile apps or APIs.

In the past, businesses used what was known as, ‘on-premises’ software. That is software that is installed just for that business. However, for small and growing businesses there are a number of drawbacks to this model. Firstly, there is the upfront cost of buying and customizing the software. Then there are hosting costs and IT support costs. Finally, it can be difficult to scale up quickly as there may need to be software and hardware upgrades.

Xero has avoided all of these issues, by using the SaaS model. Upgrades can be made simultaneously to all clients since the software is not hosted locally. Another advantage of Xero is that businesses do not have to have any hardware or in-house IT support. This means that solo entrepreneurs and small businesses can sign up and use the software instantly.

The Xero software itself is fast to use and works seamlessly across devices. You can download the mobile app and view all the Xero features from anywhere. The user interface is designed to work well on all screen sizes, so moving from desktop to mobile is easy.

Xero also performs well in the area of software integration. Over 1000 applications can be integrated into the system. Xero has its own App Store where users can find the apps they need. They can search for specific apps, or use categories such as CRM, Time Tracking, Payroll HR, and Payments. Clicking on the app will display a description of it and how it integrates with Xero. Verified users review the apps. It is also possible to carry out a custom integration using the Xero API.

Although Xero does have a steep learning curve, there is plenty of help available. The customer support channels include live chat and email. It also has a comprehensive Help Center, which includes many video guides. Additionally, Xero has a directory of accountants and bookkeepers who can help business owners with their queries.

Why switch to Xero?

It may seem unnecessary to switch accounting software packages, but there can be good reasons to do it. Xero offers a huge range of features that can scale up as your business grows.

The Xero software package lets you move from Kasflow, Quickbooks Online, and Sage for free. You can convert up to 24 months of their accounting tasks, so you don’t have to worry about losing information.

Customer support can help with any queries you might have about moving to Xero. It is available 24/7 and is free of charge. If required, Xero-certified accountants are on hand to help guide you through the integration process.

Xero has competitively priced payment plans, that reflect the needs of different-sized organizations. The three plans let you add functionality as your business grows and your accounting requirements change. The cost of these payment plans is kept low to minimize your Xero expenses.

This accountancy package offers a full range of features to manage and enhance your financial management. It is a well-respected SaaS product, which has been delivering value to its customers for over 15 years.

Xero offers a user-friendly interface, with an intuitive design. You can move seamlessly from desktop to mobile. There is also an API, that lets you customize your account.

The application has a wealth of features to help you maximize your returns. You can create quotes and track invoices, manage payroll, create reports, and analyze data. The online bill pay helps to keep on top of bills. Bank account balances are displayed within the system and bank transactions can be reconciled.

Choose Xero

Listed above are just a few of the features that make Xero stand out. Why not try out the 30-day free version and take your accounting to the next level.

To sum up

Xero is an online accounting package. It caters to all of a company’s accounting needs, in one centralized account. It is a big package, with a huge amount to offer small and growing businesses. The software is suitable for solo entrepreneurs, small and growing businesses and can even scale up to larger organizations. Over 1000 apps can be integrated into Xero with Hubdoc being used for file uploads and management. Gusto can be added to manage payroll within Xero.

The payment plans are well-priced and let businesses choose the level of service they require, thus avoiding spending money on unnecessary functions.

Although the overall package is complex, the advantages of using Xero justify the effort it takes to learn it. Additionally, there is plenty of help available in the form of customer support and Xero-certified accountants.

The ability to customize the dashboard is another standout feature. Xero presents its data reports and analytics in easy-to-understand formats with key data displayed in user-friendly graphs and charts on one page.

Another excellent aspect is the huge number of apps, over 1000, that can be easily integrated into the system. Since businesses use a wide range of apps, the ability to bring them all together in one application is a major advantage.

Xero invoice Integrations

Xero invoice competitors



ZipBooks: Optimize your financial management with intuitive online software designed to streamline accounting tasks and boost productivity.



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QuickBooks Online: Simplify accounting tasks and manage finances effectively with this comprehensive cloud-based software solution.

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