Xero Review 2024: Features, Pricing & More

xero for accounting

Xero includes extensive features that make it suitable to handle complex accounting processes for small- and medium-sized businesses as well as larger ones. The software makes it easy to pay bills, claim expenses, accept payments, track projects, manage contracts, store files and more. With your accounting software and data stored online in the cloud, you can access your up-to-date accounts anywhere there’s an internet connection. Your Xero data is backed up regularly and protected with multiple layers of security.

QuickBooks Online

  1. Small business owners unfamiliar with accounting jargon need a manual that speaks their language.
  2. As the industry standard, QuickBooks Online is ideal if you have a growing business with specific accounting needs — as long as you don’t mind taking the time to learn the program’s ins and outs.
  3. Accounting online with Xero will protect your data through multiple layers of security, such as encryption.
  4. If you have an accountant, you can seek their help with this decision.
  5. Xero’s invoicing capabilities allow you to create and customize an invoice for clients and then accept credit card, debit card or bank transfer payments within the invoice itself.

For example, when you purchase the Pro Plus Desktop plan, you can have up to three concurrent users but each of those users must pay for their own account (at $349.99 each per year). Its Online version allows up to 25 users at no additional cost, provided you’re paying for the Advanced plan. Another key difference between the two companies is the maximum number of users it allows.

Products for accountants and bookkeepers

Run things smoothly, keep tidy online bookkeeping records, and make compliance a breeze. Not-for-Profit accounting remains a challenge for many organisations. It requires a great deal of organisation, fund and expense tracking, as well as comprehensive reporting. There are several ways to go about managing your not-for-profit accounting.

Xero’s pricing

This easy-to-use software lets you streamline your tasks, increase your productivity, track your not-for-profit’s financial health and be transparent about it. One big drawback of Xero is that it doesn’t have a dedicated customer service phone number. If you want https://www.kelleysbookkeeping.com/gross-sales-vs-gross-receipts/ to talk to a human being, you have to submit a ticket and request a callback. However, Xero does offer 24/7 online support—a rarity in the accounting software field. You can also browse the Xero Central support database for articles and guides on your issues.

The Early subscription is tailored for solopreneurs and business owners who are just getting started. You’re able to send 20 quotes and invoices per month, enter five bills, reconcile bank transactions, capture bills and receipts with Hubdoc and view a short-term cash flow and business snapshot. The tradeoff for Xero’s unlimited users on the Early plan is that it enforces pretty stiff limits on other things, only allowing 20 invoices and 5 bills per month.

Use the accounting app to keep track of due and overdue invoices and whether they’ve been paid. Xero doesn’t provide a phone number on its customer support page, but a representative will call you if necessary. 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.

We research and recommend products and services suitable for various business types, investing thousands of hours each year in this process. Xero’s analytics features show business owners short-term cash flow projections and a business snapshot to help them keep a pulse on how their companies are performing. You can sync your Xero account to your Gmail and thereby export Xero reports or budgets to Google Sheets.

This function allows you to keep payroll costs in one place rather than having to pull in information from a separate system. You should reconcile weekly, if not daily, to ensure that your accounts are as accurate as possible. All you have to do to create a quote is click on the Business menu in the dashboard, select Quotes, then click on New quote. Let’s take a look at some of the benefits of Xero’s invoicing feature. If you’re on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.

For free invoicing platforms, consider Zoho Invoice, Square Invoices or PayPal Invoicing, although these platforms provide fewer capabilities. If you’re looking for an accountant who specializes in Xero, you can search for an accounting advisor through their website by location and industry. To get the best possible experience please use the latest version of Chrome, Firefox, Safari, or Microsoft Edge to view this website.

Both made our list of the best accounting software because of their invoicing capabilities and bank transaction reconciliation. We compare Xero vs. Sage so you can decide on the perfect accounting solution for your needs. Another option is Wave, which is a free accounting software solved record the entry to close the revenue accounts program that includes invoicing, payroll, double-entry and sales tax tracking. Whatever your needs, there’s sure to be an accounting software program that’s a perfect fit. Track mileage, send invoices and get a snapshot of your business cash flow with both Xero and QuickBooks.

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 our editorial team for consistency and accuracy. Set up bank feeds https://www.online-accounting.net/ from your accounts so transactions are imported securely into the Xero accounting software each business day. Sounds good, but even my small business with what I assume would be simple accounting still has the numbers all messed up.

You can come back to this step once daily reconciliation is part of your routine. If you are switching from another accounting software, then you can import your chart of accounts into Xero, or modify the default chart of accounts. They keep the language simple which is great for users who don’t know accounting terminology. Instead, you can integrate a payroll add-on called Gusto, recommended for up to 100 employees. It’s a full-service option with unlimited, automated payroll runs and direct deposit.

Even with all its features, Xero keeps it simple with a user-friendly interface and visualization to help customers who are new to running a business (see the screenshot from our demo below). For these reasons and more, Xero is our pick for the best accounting software for growing businesses. If you’re on a tight budget, then check out Wave Accounting, which offers a forever free Starter plan — yes, you read that correctly! Unlike many other competitors that cap the number of users per plan (looking at you, QuickBooks), Xero offers unlimited users even on the lowest tier plan. This is beneficial to small businesses that need multiple people to be able to log into the accounting software and don’t want to pay extra or upgrade to get more seats. Xero’s simple invoicing tool (Figure A) makes it easy to upload your logo and choose from several branding themes, but I’d love to see more extensive customization options.

The desktop version is installed on a computer, while the online version is accessed through a web browser. QuickBooks Online includes all the components of the desktop version, plus additional features such as more app integrations, a fully functional mobile app and more attractive pricing. The Online plans start at $30 per month, whereas the Desktop plans must be paid annually and start at $492 per year.

Adding a “pay now” button is free; however, you may be charged a transaction fee for each payment made via card or digital wallet. You can turn the sample dashboard on to get an idea of how your dashboard could look once it’s populated with your business’s data. See our overall favorites, or choose a specific type of software to find the best options for you. The Xero Accounting app is included as part of your Xero subscription and free to download. Get an instant view of cash in and out to help you monitor the numbers and the performance of your small business. Keep your small business books and bookkeeping up to date so you have a current view of your finances.