Xero Review 2024: Features, Pricing & More

If you’re still on the fence, check out our picks for the best small business accounting software to compare your options. Xero is cloud-based accounting software that has given QuickBooks a run for its money since 2006. Xero is a robust accounting solution with sophisticated accounting features, ample reports, 1,000+ integrations, and unlimited users. Unlike QuickBooks Desktop, Xero also has the mobility and modern UI of cloud-based software. You’ll receive your invoice at the end of your monthly billing period. FreshBooks starts at $19 per month after the signup discount and incorporates standout features like team roles and time tracking on all plans.

Do I need accounting software for my small business?

If you’re on a tight budget, then check out Wave Accounting, which offers a forever free Starter plan — yes, you read that correctly! You’ll get unlimited clients, invoices and bills on the free program, but you’ll need to upgrade to the $16 per month Pro plan if you want to auto-import bank transactions and digitally capture unlimited receipts. With Xero, you can add an unlimited number of users to your account at each subscription level. This is a notable feature for accounting software; often, lower-tier plans allow fewer users while only higher-tier plans allow unlimited users.

Unlimited users

1. Having these tools bundled into one plan can add value for employers.
2. Keep in mind that bulk reconciliation is not included with the cheapest Early plan, so you might have to pay to upgrade if you want this feature.
3. Xero includes extensive features that make it suitable to handle complex accounting processes for small- and medium-sized businesses as well as larger ones.
4. Unlike QuickBooks Desktop, Xero also has the mobility and modern UI of cloud-based software.
5. You can add Gusto payroll to any plan for an extra $40 per month, plus $6 per month per person.

Keep in mind that the ability to use multiple currencies in the software and invoice is limited to the company’s highest tier, at $70 per month. If using multiple currencies is a priority to you, consider other platforms that offer this capability at a lower cost. Zoho, for example, is accounting software with a free invoice platform that allows you to bill in multiple currencies. Given that Wave’s single paid accounting plan is cheaper than all the other alternatives we’ve listed here, and that it offers a forever free plan, this is absolutely the best option if you need to save cash.

Find out more about Xero’s commitments to data protection and data security. While the software is well-organized, it does have a steep learning curve (not as steep as QuickBooks, but it is more difficult to learn than other cloud-based options). It takes quite a while to explore all of the features it has to offer, but once you get acquainted with the software, Xero is fairly easy to use. Getting started is the most difficult part, and it’s this learning curve that lowered our ease of use rating to 3.8/5.

Best Free Accounting Software of 2024

FreshBooks is another one of our favorites for small businesses — especially freelancers. It has unlimited customizable invoices, a client portal, built-in project and time tracking and a highly rated mobile app. Plus, if you’re new to accounting software, you can’t go wrong with FreshBooks’ easy interface, but if you do get lost, you can easily access the help center through your account.Want to save a little money?

Accounting Software Review Methodology

All feedback, positive or negative, helps us to improve the way we help small businesses. Zoho Books’ paid plans all come with free live chat and phone support. Reports also are customizable, with adjustable formatting and the option to add your own formulas and groupings. For instance, you can drag and drop certain expense categories into a single subgroup — an “office expenses” subgroup could include office equipment, supplies and utilities. And if you don’t like how the dashboard looks, you can reorganize panels and hide the ones that aren’t useful. You can also scroll through Xero’s default chart of accounts and customize it as needed, or import an already existing chart of accounts.

NerdWallet independently reviews accounting software products before determining our top picks. We collect the data for our software ratings from products’ public-facing websites and from company cb contingent liability representatives. Information is gathered on a regular basis and reviewed by our editorial team for consistency and accuracy. In the Early plan, the least expensive subscription, you can send up to 20 invoices and schedule up to five bill payments only.