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About Xero Accounting Software

Xero Review: Accountng Software for Lawyers

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Lawyerist Rating for Xero

i

Rating Breakdown

Our Rating: 4.5/5

Our rating is based on our subjective judgment. Use our resources—including our rating and community ratings and reviews—to find the best fit for your firm.

Community Rating: 5/5 (based on 1 rating)

The community rating is based on the average of the community reviews below.

Composite Rating: 4.7/5

The composite rating is a weighted average of our rating and the community ratings below.

4.7/5

Overview
Featured Rating

What is Xero Accounting Software?

Xero is cloud-based small business accounting software that is also popular with solo and small law firms. It’s a good fit for most firms, especially those that want to take advantage of its many integration. Xero is also relatively inexpensive, especially because its pricing is not based on the number of users.

Starting Cost: $9/month

Pros
  • Price
  • DIY
  • Cloud-based
Cons
  • ["Lack of Integrations","No HR","Not for Large Firms"]
Overview
Featured Ratings

Xero Review: Accountng Software for Lawyers Features

Customer Experience & Support

/5

Price & Value

/5

Security

/5

Innovation & Future-Proofing

/5

Overview
Featured Rating
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Xero Review: Accountng Software for Lawyers Video

Compare with Other Accounting & Bookkeeping Products Download the Field Guide

Product Details

Apps
  • Android
  • iOS
  • iPadOS
  • Web

Core Features

For Accounting & Bookkeeping, the following are essential features, and you should therefore expect to see a check in every box in this section.

Yes
No

Free Trial

Basic Bookkeeping

This means simple double-entry bookkeeping.

Connect Bank Accounts

Link your bank accounts for up-to-date transaction information with little or no manual data entry.

Billing/Invoicing

Online Payments

This means the ability to accept credit card or echeck payments within your accounting software, either through its own payment portal or via a third-party integration like PayPal or Square. Most online payments involve a separate processing fee.

Timekeeping

Mileage Tracking

Keep track of miles traveled visiting clients or heading to the courthouse, making it easier to tally for taxes or billing purposes or add to your expense reports.

Bill Payment

Pay your firm's bills without leaving your accounting software.

Statement Reconciliation

Helps with the complex task of balancing your business accounts. Does not necessarily include more advanced reconciliation features like three-way trust account reconciliation.

Payroll

Payroll includes automatically calculating employee taxes, printing checks, and paying by direct deposit.

Tax Preparation

Some accounting software can also be used to prepare taxes for your firm so you can review, approve, and even pay your taxes all in one place.

Reporting

Businesses need reports to help assess key business performance indicators like profit and accounts receivable. Some products have more robust reporting features than others.

Foreign Currencies

Check Printing

Contact Management

Store contacts for invoicing or billing purposes.

User Management

User Management means the software allows your firm to differentiate between persons who have access to the information and adjust their levels of access based on their relevant users statuses.

Split Origination Reporting

This means that the product allows your firm not only to track where a file came from but also to allocate a percentage of the origination to individual users.

Recurring Payments

Some providers will allow you to set up recurring payments for your clients that will be automatically debited based on selections your clients make.

Trust Account Management

This means the product allows you to differentiate between client trust accounts and track them individually. It also means that the product helps you manage your three-way reconciliation.

Compare Xero Accounting Software Similar Products

Select another product to compare:

Xero Accounting Software

4.7/5

Xero Accounting Software Logo
Pros
  • Price
  • DIY
  • Cloud-based
Cons
  • ["Lack of Integrations","No HR","Not for Large Firms"]

QuickBooks

4.2/5

Image of Quickbooks logo
Pros
  • Integrations
  • Broad Usage
  • HR Resource
Cons
  • Expensive
  • Complex
  • Need a Bookkeeper
Read QuickBooks Review

Bench

Bench Bookkeeping Accounting Logo for Lawyerist Affinity Benefits Partner program
Pros
  • DIY
  • Bookkeeping Service
  • Cloud-based
Cons
  • Lack of Integrations
  • Not DIY
  • Need a Bookkeeper
Read Bench Review

ZipBooks

4.5/5

ZipBooks Logo
Pros
  • DIY
  • Free Tier
  • Project Accounting
Cons
  • Lack of Integrations
  • Not for Legal Field
  • Difficult Trust Account Mgmt
Read ZipBooks Review

Additional Details about Xero Accounting Software

Migration

Xero allows you to import data from other programs in both TXT and CSV format. It also allows you to import from a QuickBooks file format with Xero’s conversion tool, which converts US QuickBooks accounts from QuickBooks 2007 or later. It can automatically convert the current and previous fiscal year, and you can convert earlier years by purchasing one of Xero’s add-ons. Unfortunately, Xero cannot convert payroll information, closed purchase orders and quotes, or bill reference numbers.

Security

Xero has industry-standard data encryption, and backs up your account daily across multiple servers. It also encrypts your data when stored on its servers and when transferring your data between its own data centers while backing up or replicating your data. Zero also offers two-factor authentication. Physical access to the data centers is monitored 24/7 and Xero performs regular security audits.

Who Xero is For

Xero is aimed at solos and small firms looking for web-based accounting. It is not focused on the legal market, but does integrate with Clio, one of the leading, web-based law practice management systems (LPMS). In addition to core financials, Xero also directly connects to major banks, accepts electronic payments, and integrates with payroll provider Gusto. 

The fact that Xero prominently posts information about finding accountants and bookkeepers to help with the business indicates that the product does not target larger firms or those with complex financial setups. 

Who Xero Accounting Software is for

Xero is aimed at solos and small firms looking for web-based accounting. It is not focused on the legal market, but does integrate with Clio, one of the leading, web-based law practice management systems (LPMS). In addition to core financials, Xero also directly connects to major banks, accepts electronic payments, and integrates with payroll provider Gusto. 

The fact that Xero prominently posts information about finding accountants and bookkeepers to help with the business indicates that the product does not target larger firms or those with complex financial setups. 

Not sure where to begin? Download our Field Guide

Take the guesswork out of researching, purchasing, and implementing the right legal tech products and services for your law firm. Our Field Guide answers your essential questions and breaks down the features most important to your business, so you can buy with confidence.

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Xero Accounting Software Community Reviews

5

Based on 1 Rating

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  • Anonymous says:
    September 5, 2017 at 1:09 pm

    Xero is great accounting software.

    Xero is really great and flexible accounting software.

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