It’s worth noting that some features may require a separate subscription or purchase of add-ons, leading to additional costs beyond the base pricing. Here’s a deep dive into Xero features, best use cases, pricing, customer support, and other purchase factors. To review this software, I signed up for a free trial of the Xero Established plan. I also reviewed official product documentation, watched demo videos, consulted user reviews and cross-referenced software reviews in industry publications. Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.
Multiple pricing increases over the years have driven up the cost of the software, and customer support isn’t the best. However, Xero is the better choice if you want more advanced features and support for unlimited users, as additional users the post‐closing trial balance example are only available for a fee if you use FreshBooks. Xero often gets praised for its robust feature selection by its customers, and we have to agree. Overall, Xero has a set of features that easily rival competitors like QuickBooks Online.
The number of users is also technically unlimited, but FreshBooks does charge an extra fee of $11 per user per month. Unlike Xero, QuickBooks allows unlimited invoices on the cheapest Simple Start plan — but limits you to 1 billable user and 2 accountant firm users. If you need only 1 person to use the software but plan to send a high number of invoices and bills, QuickBooks may be a more cost-effective choice than Xero. Once you’ve got your bank information in Xero, the software will help you match up your transactions for reconciliation (Figure B).
If your bank doesn’t already have a connection, you can import PDF statements. Xero offers a free 30-day trial and even has a demo company set up already, so you can explore the software before you buy it. Xero offers discounts for nonprofits and owners of multiple companies. Xero has been known for offering discounts in the past, so be sure to check the company’s website to see if it’s having a sale. We believe everyone should be able to make financial decisions with confidence. Xero may be harder to learn than what are generally accepted accounting principles gaap a simpler invoicing platform like Square Invoices or Zoho Invoice.
Xero supports integration with 21,000+ global financial institutions for fetching bank data. Xero uses an encrypted connection to securely import bank transactions into it. For a bank that does not support a direct feed connection with Xero, companies can export bank data in OFX, QIF, QBO, QFX, or CSV format before uploading it to Xero. Xero Expenses feature allows businesses to track and claim their expenses. It supports paperless expense tracking by scanning receipts and auto-filling claims from the scanned copy.
This is a serious drawback if you want to be able to pick up the phone and talk through an issue or are new to accounting software and have lots of questions. Supplier and contractor record templates are identical to customer record templates. For contractors, you can create reports that feed into integrated Xero apps to create 1099s at tax time. You can also send links to contractors that take them to the W-9 forms they must complete. The version of QuickBooks Online that’s most similar to Xero Established costs $99 per month. One of the most affordable accounting services for small businesses is Patriot Software Accounting, at $30 per month for an equivalent tier.
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 representatives. Information is gathered on a regular basis and reviewed by profitability ratios definition our editorial team for consistency and accuracy. FreshBooks offers unlimited time-tracking in its lowest-tier Lite plan, whereas Xero users would have to opt into the highest-tier Established plan for that feature. Xero doesn’t provide a phone number on its customer support page, but a representative will call you if necessary.
A complete solution for small and growing businesses, Xero doesn’t restrict how many people can help manage your company’s financial matters. Highlights include support for Gusto payroll, a useful inventory management add-on, and a capable collection of mobile apps. Upcoming enhancements like full bank account reconciliation and integration with Bill (for accounts receivable and payable) should make Xero even more competitive. Transaction templates could be simpler to customize, however, so we continue to recommend FreshBooks and QuickBooks Online as our Editors’ choice winners.