Early
$20
/month
- + Up to 20 invoices/month
- + Up to 5 bills/month
- + Bank reconciliation
- + Unlimited users
Xero
Cloud accounting platform for small businesses with invoicing, bank reconciliation, expense tracking, and payroll in one system
finance-accounting
Our Score
4.4
Starting at $20 /month
Try Xero Free →
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4.4
RecommendedXero Score
Ease of Use
4.5
Features
4.3
Value
4.5
Support
4.1
Based on our editorial review across usability, features, value, support, and integrations.
Best For
Small businesses needing comprehensive accounting without complexityService-based businesses with simple inventory needsMulti-entity businesses managing several companiesInternational businesses requiring multi-currency supportGrowing businesses planning to add team members (unlimited users)
Best For
Small businesses needing comprehensive accounting without complexity
Free Trial
No
Standout Feature
Bank feed automation with automatic transaction categorization
Track Record
Since 2006
What Problem It Solves
Xero solves the bookkeeping bottleneck that prevents small business owners from understanding their financial position in real-time. Instead of manual data entry, spreadsheets, and waiting for month-end reports, bank feeds automatically import transactions, AI categorizes them, and real-time dashboards show cash flow and profitability instantly. The platform particularly excels at making accounting accessible to non-accountant business owners, reducing bookkeeping time from hours to minutes weekly, and enabling collaboration with accountants and team members through cloud access and unlimited users.
Key Features
- Bank feed automation with automatic transaction categorization
- Invoicing with customizable templates and online payment acceptance
- Expense claims and receipt scanning via mobile app
- Inventory tracking and purchase order management
- Payroll processing (availability varies by country)
- Multi-currency support for international transactions
- 1,000+ app integrations including CRM, e-commerce, and payment platforms
Pros
- + Extremely intuitive interface for non-accountants
- + Strong bank reconciliation speeds up bookkeeping dramatically
- + Unlimited users on all plans (pay per organization, not seats)
- + Excellent mobile app for on-the-go expense management
- + Robust ecosystem of integrations for specialized needs
Cons
- - Payroll requires add-on purchase in most regions
- - Support primarily online/email (limited phone support)
- - Learning curve for advanced features like job costing
- - Reporting customization limited compared to desktop software
Pricing
Growing
$47
/month
- + Unlimited invoices & bills
- + Quotes & purchase orders
- + Bulk reconciliation
- + Receipt capture
Established
$80
/month
- + Multi-currency support
- + Project tracking
- + Expense analytics
- + Advanced reporting
Starting at $20 /month
Try Xero Free →
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Our Verdict
Xero — Recommended
Xero has grown from a New Zealand startup to one of the world's leading small business accounting platforms, and the product reflects that maturity. After using it for comprehensive business accounting, Xero delivers the rare combination of powerful functionality and genuine ease of use that makes accounting accessible to business owners who are not accountants.
Bank reconciliation is where Xero saves the most time. Bank feeds pull in transactions automatically, and the AI-powered categorization learns your patterns over time, suggesting the correct account for each transaction. What used to be hours of manual data entry becomes a quick review-and-confirm process. The matching algorithm handles most transactions automatically after a few weeks of training, and the remaining ones take seconds to categorize manually.
Invoicing is polished and professional. Customizable templates, automatic payment reminders, and online payment acceptance through Stripe, GoCardless, or PayPal make the invoicing-to-payment cycle faster. The expense management module with mobile receipt scanning eliminates the shoebox of receipts at tax time. Inventory tracking handles basic stock management for product businesses.
The unlimited user model is a significant differentiator. While QuickBooks charges per user on higher tiers, Xero includes unlimited users on every plan. For businesses with multiple employees, bookkeepers, and accountants needing access, this removes a meaningful cost barrier. The advisor access feature lets your accountant log in with their own permissions, facilitating collaboration.
The app ecosystem with 1,000+ integrations extends Xero's functionality into CRM, e-commerce, inventory management, time tracking, and specialized industry tools. This modular approach means you can build a comprehensive business system around Xero as the financial hub.
Pricing starts at $15/month for the Early plan (limited to 20 invoices and 5 bills monthly), $35/month for Growing (unlimited transactions), and $55/month for Established (adds multi-currency, project tracking, and analytics). The Early plan's limitations make it suitable only for very new businesses. Most established small businesses need the Growing or Established tier. Payroll requires a separate add-on in most regions, which adds to the total cost.
The main limitations are support quality (primarily online, with limited phone access) and reporting customization that falls short of desktop accounting software for power users.
The bottom line: Xero is the best all-around cloud accounting platform for small businesses, particularly those with multiple team members and international operations. The unlimited user model, strong bank reconciliation, and extensive app ecosystem create a financial management hub that grows with your business.
Related Tools
Is Xero good for small businesses?
Yes, Xero is one of the best accounting solutions for small businesses, particularly those outgrowing basic tools like Wave or FreshBooks. The Established plan ($55/month) includes unlimited invoices and bills, bank reconciliation, expense claims, inventory tracking, multi-currency support, and unlimited users—covering the complete needs of most SMBs with 5-50 employees. The unlimited user model means you can give access to employees, bookkeepers, and accountants without additional per-seat costs. The AI-powered bank reconciliation saves hours weekly on bookkeeping, and the 1,000+ app integrations let you extend Xero into CRM, e-commerce, and payroll as your business grows.
Does Xero offer a free plan?
Xero offers a 30-day free trial with full access to all features, allowing you to import existing data, connect bank feeds, test invoicing, and evaluate whether the platform fits your business workflow before committing. There is no permanent free plan. Paid plans start at $15/month for the Early plan (limited to 20 invoices and 5 bills monthly), which is suitable for very early-stage businesses with minimal transactions. Most established businesses need the Growing plan at $35/month for unlimited transactions or the Established plan at $55/month for multi-currency and project tracking.
What is the starting price of Xero?
Xero's paid plans start at $15/month for the Early plan, which includes 20 invoices and 5 bills monthly, bank reconciliation, expense claims, and unlimited users—suitable for very new businesses with minimal transaction volume. The Growing plan at $35/month removes invoice and bill limits and adds quotes, purchase orders, and bulk transaction reconciliation. The Established plan at $55/month adds multi-currency support for international transactions, project tracking with profitability reporting, and expense analytics—this tier serves most established small businesses. All plans include unlimited users and access to the full app ecosystem of 1,000+ integrations.
Starting at $20 /month
Try Xero Free →
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Try Xero Free →
Affiliate link