Xero is cloud-based accounting software for small businesses. Along with basic accounting capabilities, it includes invoicing and payroll abilities.

Xero Highlights

Invoicing. Xero allows you to create customizable invoices that allow clients to pay directly from the invoice. Clients can pay online instantly using credit/debit cards or PayPal. You can also automate invoice notifications to alert you when a payment is overdue.

Payroll. If you have employees, Xero’s payroll feature lets you manage employee working hours, send checks via direct deposit or check, and file taxes. Employees can also submit their timeslips and request time off through Xero.

Dashboard. When it comes to keeping an eye on your firm’s finances as a whole, Xero’s dashboard and bank reconciliation features are useful. The dashboard lets you see all bank accounts at a glance, including outstanding balances for credit cards. Keep an eye on expenses, unpaid invoices, and customizable data sets all in one place. With bank reconciliation, you can automate transaction matching by creating custom rules. You can also bulk import transactions by using cash coding.

Expenses. You can track expenses with Xero and approve or deny reimbursements for employees’ business expenses with the click of a button. All receipts can be recorded and stored in Xero, even via their mobile app while you’re on the go. Expenses can even be assigned to clients as a billable.

Other notable features include their multi-currency accounting capabilities, analytic reports, storing files, and creating contact lists.


Xero’s pricing is based on how many invoices you need to send and what features you’d like.

  • $9/month allows you to send 5 invoices and quotes per month, pay 5 bills, and reconcile 20 bank transactions.
  • $30/month allows for unlimited invoices and quotes, unlimited bank transactions, and payroll for up to 5 people. It does not include multi-currency support.
  • $70/month gives you all the features of the $30 tier, payroll for 10 people, and includes multi-currency support.


Image of Xero Accounting Software


Starting price$9/month
AppsWeb App
Free trial✓ 30 days free.
Connect to bank accounts
Online payments
Secure portal
Tax preparation
Expense tracking
Mileage tracking
Accounts receivable
Multiple users
Accounts payable
Bill payment
Statement reconciliation
Foreign currencies
Check printing
Contact management

Things You Might Want To Know

Security. Xero has industry-standard data encryption in place, with regular backups of your account being stored every day across multiple servers. Physical access to the data centers is monitored 24/7 and Xero performs regular security audits.

Migration. Xero allows you to import data from other programs in both TXT and CSV format. It will also import from a Quickbooks file format.

Apps and Integration. Xero has both iOS and Android apps. The program integrates with over 500 other applications, including payment vendors like Square and PayPal, time tracking programs like Harvest, and office programs such as Microsoft Word. They will also create custom integrations.

Who Xero Is For

Xero is a good fit for firms looking for a feature-rich, all-in-one accounting software solution, particularly given its wide variety of integrations, and it is relatively inexpensive. However, the lowest tier does not include payroll or multi-currency support.

Company Info

Xero was founded in 2006 and is headquartered in New Zealand.

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One Review of Xero

  1. Anonymous says:

    Xero is great accounting software.

    Xero is really great and flexible accounting software.

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