Xero Review

Pros

• Unlimited users
• Numerous integrations
• Suited for large businesses
• Advanced features
• Double-entry accounting

Cons

• Steep learning curve
• Poor customer support
• May be expensive for smaller businesses
• Some features limited to the most expensive plan

What Is Xero?

Xero is cloud-based accounting software that has given QuickBooks a run for its money since 2006. Xero is a robust accounting solution with sophisticated accounting features, ample reports, 1,000+ integrations, and unlimited users. Unlike QuickBooks Desktop, Xero also has the mobility and modern UI of cloud-based software.

While Xero has a lot going for it, pricing increases, a lack of built-in payroll, and limited features on its least expensive plans are potential issues. Additionally, customer support has gone downhill since our last review. Still, despite the price ruling out the software for some small businesses, Xero has a lot to offer for medium and large businesses or those in need of multiple users.

Xero Pricing

Xero used to offer incredibly scalable pricing. The other appeal of the software was that each plan came with unlimited users, access to every Xero feature, and payroll.

Xero no longer includes payroll — although a paid Gusto add-on is available — and it has limited some features (such as expenses and multicurrency support) to its most expensive plan. Unlike some of its competitors, there are very few add-ons. These factors lowered our pricing score for Xero to 3.7/5.

Each plan still offers unlimited users and live bank feeds, so businesses can download, categorize, and reconcile their transactions as usual.

Xero offers three different pricing plans. Payments are made monthly. There are no annual contracts, so you can cancel your subscription at any time (although you must give a 30-day notice of your cancellation).

Xero offers a free 30-day trial and even has a demo company set up already, so you can explore the software before you buy it. Xero offers discounts for nonprofits and owners of multiple companies. Xero has been known for offering discounts in the past, so be sure to check the company’s website to see if it’s having a sale.

Here’s what you get with Xero’s new pricing structure:

Xero Early Plan

Xero’s Early Plan costs $15/month and includes:

• 20 invoices and quotes
• 5 bills
• Bank reconciliation
• Bill & receipt capture
• Cash flow analytics
• W-9 & 1099 management
• Sales tax calculations
• Contact management
• Inventory management
• Live bank feeds
• Online payments
• Purchase orders
• Document storage
• Reports
• Unlimited users

Xero Growing Plan

Xero’s Growing Plan costs $42/month and includes everything in the Early plan, plus:

• Unlimited invoices and quotes
• Bill management
• Bulk reconciliation

Xero Established Plan

Xero’s Established Plan costs $78/month and includes everything in the Growing plan, plus:

• Expense claims
• Project management
• Multicurrency support
• Advanced analytics

Extra Xero Costs & Fees

Xero no longer offers built-in payroll, but it does integrate with Gusto Payroll. Plans start at $40/month plus $6/month per employee.

Xero also has a new add-on called Xero Inventory Plus. This can be added to a Growing or Established plan for $39/month.

Is Xero Easy To Use?

Xero has an attractive, modern UI. While the software is well-organized, it does have a steep learning curve (not as steep as QuickBooks, but it is more difficult to learn than other cloud-based options). It takes quite a while to explore all of the features it has to offer, but once you get acquainted with the software, Xero is fairly easy to use. Getting started is the most difficult part, and it’s this learning curve that lowered our ease of use rating to 3.8/5.

Xero tries to throw you as many bones as possible by adding a video or help article to the top of every page you open. If you need some extra assistance in finding features or understanding the software, Xero also offers a help center. We also have a comprehensive and free How To Set Up Your Xero Account guide that teaches you how to use and optimize your Xero account.

To get the most out of your software, Xero has 1,000+ integrations to choose from. If this isn’t enough, Xero also integrates with Zapier, connecting the software to hundreds of additional add-ons. Some Xero integrations are country-specific, so make sure they are compatible before you make any additions or purchases. Xero also offers API for developers.

Xero Features

Xero often gets praised for its robust feature selection by its customers, and we have to agree. Overall, Xero has a set of features that easily rival competitors like QuickBooks Online. However, we are disappointed that Xero lacks tax support, doesn’t have more advanced inventory (unless you purchase the Inventory Plus add-on), and doesn’t have more invoice templates.

Still, Xero’s feature set is strong, leading to our rating of 4.1/5.

Here are more details about some of Xero’s key features:

Xero Customer Service

Xero used to offer strong customer support, and while there are still a ton of great support resources available, getting in touch with an actual representative is a lot more difficult.

Xero has never offered phone support and has relied on email support. It may take a day or two to get a response to your email, but there are plenty of other forms of support available. Despite a few shortcomings, we rated Xero 4.7/5 for its customer support.

Here are the ways you can reach Xero:

• Email: Contact Xero by email with questions.
• In-Software Help: Whenever you open a feature in Xero, you’ll find a video or an article explaining exactly what that feature is and how to use it. There’s also a help button in the top right-hand corner that will pull up relevant articles from Xero’s help center. Unfortunately, Xero removed the ability to chat with Xero representatives directly in the software.
• Help Center: Xero has a comprehensive help center called Xero Central with how-to articles and common troubleshooting issues. Xero Central also encompasses the Xero community, so you can view comments and questions from other users, and you can suggest new features.
• Guides: Xero offers a ton of business guides, covering everything from invoicing and bank reconciliation to depreciation and more.
• Xero TV: Xero TV offers hundreds of videos explaining how to use the software. It’s one of the best support resources Xero offers and is a great help to new users.
• Podcasts: If 700+ videos are not enough for you, you can check out the Xero podcasts, featuring digital marketing strategy advice and CEO talks.
• Training: Xero U is a training program offered by the company, which includes online courses, such as a “Getting to Know Xero” class.
• Blog: The Xero blog is well-developed and features business news, advice articles, ideas for success, and more.
• Social Media: Xero has Facebook, Twitter, YouTube, and LinkedIn accounts.

Xero Reviews

Reviews from users and accountants are primarily positive. Xero receives 4.4/5 stars on Software Advice (based on over 3,000 ratings), 4.3/5 stars on G2 (based on over 690 ratings), and 8.5/10 stars on TrustRadius (based on over 740 ratings). We took all user feedback into account when rating Xero 4.3/5 for its user reviews.

Negative Xero Reviews & Complaints

In the past, Xero received predominantly positive customer reviews. While there are still a large number of positive reviews, there are some negative reviews to keep in mind. Here are some of the recurring issues, according to Xero users:

• Mobile app functionality
• Pricing increases
• Steep learning curve
• No phone support
• Slow responses to emails

Positive Xero Reviews

Here are the most common reasons users like the software:

• Easy to use once you learn the ropes
• Robust feature set
• Good reporting
• Numerous automations
• Strong accounting
• Mobility of cloud-based software
• Numerous integrations

Is Xero Safe?

Xero has a reputation for some of the strongest cloud security out there. Security measures include data encryption, two-step authentication, and 24/7 monitoring at multiple locations. Data is backed up daily across various servers, and regular security audits are performed. Xero also boasts an impressive record of 99.97% uptime.

How Does Xero Compare To Other Accounting Software?

Final Verdict: Is Xero Worth It?

Xero is robust, cloud-based software with strong accounting, ample integrations, and some great features. It offers tons of automations to save your business time, such as automatic sales tax lookup, group invoicing, and default email templates. Plus, Xero supports unlimited users at no additional cost — a rarity in the accounting software world.

That said, the software does have its drawbacks. There is limited tax support, limited invoice templates, no built-in payroll, and a steep learning curve. Multiple pricing increases over the years have driven up the cost of the software, and customer support isn’t the best.

However, there are a few things to keep in mind. Xero integrates with Gusto for payroll, which supports all 50 states and has added functionality such as health insurance and retirement support.

Xero has also added projects. This doesn’t forgive the fact that some features are limited to the most expensive plan, but considering that Xero offers unlimited users, the Established plan could very well still be cheaper for your business than QuickBooks Online if you have multiple users.

With an overall score of 4/5 in this review, Xero is a good solution for mid-to-large-sized businesses in need of strong accounting features and multiple users. Take advantage of Xero’s free trial to see if this accounting solution is right for you. If you’re still on the fence, check out our picks for the best small business accounting software to compare your options.

Accounting Software Review Methodology

We spend hours researching and evaluating each accounting software system we review at Merchant Maverick, placing special emphasis on key characteristics to generate our ratings.

When rating accounting and invoicing software, we use a 47-point rubric that looks at pricing, ease of use, features, customer service, and user reviews. We weigh each section differently to calculate the total star rating.

• Pricing: 30% of the total star rating
• Ease Of Use: 20% of the total star rating
• Features: 30% of the total star rating
• Customer Support: 15% of the total star rating
• User Reviews: 5% of the total star rating

Each section is further broken down into granular, weighted subsections, in which we examine specific attributes like relative cost, number of subscription tiers, data import, invoicing tools, quotes and estimates, client portal availability, bookkeeping support options, and the usability of the software interface. We also ensure that the software offers most standard accounting features and reports, awarding higher rankings to those that provide advanced services, like tax filing.

Read more about how we rate accounting software.

The Merchant Maverick Seal of Approval 🏆

Xero	Visit Site

After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Xero for yourself.

The Merchant Maverick Seal of Approval 🏆

Xero	Visit Site

After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Xero for yourself.