Xero Review: Discovering the Hidden Gems of Its Reporting Features! (September 2025)
In this comprehensive Xero review, we delve into the powerful cloud-based accounting software that promises to simplify financial management for businesses of all sizes. Xero offers a range of features, from invoicing and expense tracking to payroll integration and multi-currency support, making it a top choice for freelancers, small-to-medium-sized companies, and even larger enterprises.
Join us as we explore the pros and cons of Xero’s offerings, its pricing plans and how it stacks up against its competitors, helping you make an informed decision about whether Xero is the right accounting solution for your unique business needs.
Table of Contents
Xero Review at a Glance
Xero includes extensive features that make it suitable for managing complex accounting processes for both small and medium-sized businesses as well as larger enterprises. The software makes it easy to pay invoices, claim expenses, accept payments, track projects, manage contracts, store files, and much more.
This is how Xero’s monthly fees are broken down:
The Early subscription is designed for freelancers and business owners just starting out. You can send 20 quotes and invoices per month, enter five invoices, reconcile bank transactions, capture invoices and receipts with Hubdoc, and view a short-term cash flow and business snapshot.
The Growth plan is best suited for growing companies and offers the same features, plus the ability to send an unlimited number of quotes and invoices, enter an unlimited number of invoices and reconcile bulk transactions.
The Established price level is the company’s blueprint for businesses that are already up and running, particularly those serving international audiences or markets. It offers the ability to use multiple currencies, track projects, claim expenses, and view detailed analyses, in addition to the features mentioned above.
All three plans come with an optional payroll add-on with Gusto for $40 per month plus $6 per month per person. Gusto is a platform that automates payroll filing for all 50 states, in addition to automating taxes, deductions, and payroll submissions and providing employees with the platform to view pay stubs and W-2s online.
Xero’s billing features allow you to create and customize an invoice for clients, and then accept credit card, debit card, or wire transfer payments within the invoice itself. Account holders can customize invoices online to add a logo, accept payments instantly through the invoice, set automatic reminders for customers to pay, and invoice directly from the Xero application. Xero processes payment through a payment gateway such as Stripe, GoCardless, and others. Note that these services charge a fee for processing payments (typically around 2.9% plus 25 cents per transaction, although this varies by payment processor).
Other Benefits
If you are looking for an accountant specializing in Xero, you can search for an accountant advisor through their website by location and industry.
Fine Print
Note that the ability to use multiple currencies in the software and invoice is limited to the company’s highest level of $70 per month. If using multiple currencies is a priority for you, consider other platforms that offer this capability at a lower cost. Zoho, for example, is an accounting software with a free invoicing platform that allows you to invoice in multiple currencies.
How Xero Stacks Up
| Xero | FreshBooks | QuickBooks | |
|---|---|---|---|
| Starting Price (Monthly) | $25 | $13.60 | $9 |
| Free Trial | 30 days | 30 days | 30 days |
| Free Version | No | No | No |
| Maximum Users | Unlimited | 1 – $10 per month for each additional user | 1 |
| Number of Clients | Unlimited | 5 | Unlimited |
| Quote and Invoices | 20 per month | Unlimited | ✓ – With Simple Start plan ($25/month) |
| Track Miles | ✓ | ||
| Customizable Features | Good | Good | Excellent |
| Customer Support | Phone and email support, live chat, knowledge base, and help center | Phone and email support, live chat, knowledge base and help center | Live chat, video tutorials, phone and email support |
Since there are several invoicing programs on the market, it’s worth spending some time researching the options before choosing one for your business. We’ve compared Xero with its competitors to help you in your search.
Xero, FreshBooks, and QuickBooks offer 30-day free trials and extensive online support features, such as live chat, email support, and a knowledge base. All three offer the ability to scale their accounting for larger firms and both Xero and QuickBooks offer specific training for accountants. These companies offer integration with Gusto for the same price: $40 per month and $6 per month per person. On the other hand, FreshBooks may be more suitable for freelancers and solopreneurs, as the capabilities are easier to navigate.
QuickBooks limits the number of users who can use the account. It allows three users for its Essentials plan ($55 per month) and 25 users for its top plan, Advanced ($200 per month). Xero, on the other hand, offers unlimited users for all plans. This can be useful if your company is growing rapidly, or you simply want the peace of mind that there is no limit to the number of people who can be part of the team.
Xero has the most affordable tier, $13 per month. FreshBooks charges $17 per month and QuickBooks $30 per month). However, the best option and the best price will depend on the specific functions and features you’re looking for.
Is Xero Right for You or Your Business?
Xero is a great option for large teams and small to medium-sized companies that need high-level accounting systems. It’s also a good choice if you want to integrate Gusto Payroll into your accounting platform. However, for freelancers, consultants, and solo entrepreneurs who are primarily looking to send invoices, receive payments, and track revenue, consider some of the free programs available, such as Zoho Invoice, Square Invoices, and PayPal Invoicing.
FAQ’s
How does Xero handle VAT or GST calculations and reporting?
Xero’s accounting software is designed to handle VAT (Value Added Tax) and GST (Goods and Services Tax) calculations seamlessly. It automatically applies the appropriate tax rates to transactions, generates VAT/GST reports, and facilitates easy filing and compliance with tax authorities, saving you time and reducing the risk of errors.
Does Xero offer a mobile app, and what features are accessible on-the-go?
Yes, Xero offers a mobile app compatible with iOS and Android devices. The app provides access to key accounting features, including invoicing, expense tracking, bank reconciliation, and financial reporting. You can manage your finances on-the-go, capture receipts using your phone’s camera, and stay informed about your business’s financial health from anywhere.
How secure is Xero, and what measures are taken to protect sensitive financial data?
Xero prioritizes the security of your financial data. It uses bank-level encryption to safeguard data during transmission and storage. Additionally, Xero employs multi-factor authentication to prevent unauthorized access to your account. Regular security audits, intrusion detection, and continuous monitoring ensure that your data remains safe from potential threats.
Can Xero handle payroll for businesses with employees in different states or countries?
Yes, Xero’s payroll add-on with Gusto is designed to handle payroll for businesses operating in multiple states or countries. Gusto automates payroll tax filing and compliance for all 50 U.S. states and can process international payrolls with support for various currencies and tax regulations.
Does Xero offer training resources for businesses transitioning to their software?
Yes, Xero provides extensive training resources, including video tutorials, webinars, online guides, and a knowledge base. Additionally, Xero offers in-person or virtual training sessions, along with support from certified Xero advisors, to help businesses smoothly transition to the platform and optimize their accounting processes.
Mike DaVinci HighTechBlogging.com
Mike DaVinci is a skilled content writer with a talent for storytelling. He specializes in creating captivating narratives that engage readers and leave them feeling inspired. His writing has been featured in various publications, including magazines, blogs, and business websites. Mike’s particular interest in human interest stories allows him to uncover the heart of any story and convey it to his readers in an emotional and authentic way. He believes that storytelling is a powerful tool for connecting with people and inspiring positive change in the world.
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