Xero is a cloud accounting software that provides a range of features and tools to help businesses manage their finances more efficiently. It offers bank reconciliation, invoicing, reporting, and expense claims. It also has purchase orders, inventory tracking, and project management tools, making it a comprehensive solution for businesses. This article will look closely at the pricing system of Xero and the features that it provides.
How Much Does Xero Cost?
Xero offers simple and flexible plans designed to meet businesses’ specific needs at different stages of growth. Companies interested in the platform can request a free 30-day software trial to experience the system before committing to any subscription. Xero provides three distinct service levels:
- Xero Early ($13 per month): Ideal for individuals working independently as sole traders, new businesses, and those who are self-employed
- Xero Growing ($37 per month): Suitable for small businesses that are expanding
- Xero Established ($70 per month): Perfect for companies that have been existing for quite a while and are running successfully
Note: Xero offers a 75% discount on all plans for the first three months of subscription. This limited offer will end on April 18, 2023, at 11:00 pm Pacific Time.
If you are looking for a business solution to help manage projects, timesheets, expenses, and documents, check out AceProject. It is an affordable solution with pricing not on a per-user basis.
Xero Early Plan ($13 per month)
The Xero Early plan provides essential accounting features for small businesses and sole traders with basic needs. Its user-friendly interface offers streamlined functionality and intuitive navigation, making it ideal for users without extensive accounting experience. This plan eliminates the complexity of advanced financial management tools, focusing on core accounting essentials that help small operations manage their finances efficiently without overwhelming features or complicated processes.
INCLUDED IN EARLY:
- Invoicing: Create, send, and approve 20 professional invoices and unlimited customer quotes.
- Bills Management: Enter up to 5 bills to keep track of accounts payable that have come in, to schedule which ones are due when, and which ones you are paying and when.
- Bank Reconciliation: Automatically import and categorize bank transactions, making it easy to reconcile accounts.
- Hubdoc Integration: Capture bills and receipts, store documents online, and sync transactions seamlessly with your Hubdoc subscription.
- Short-term Cash Flow and Business Snapshot: Get a real-time overview of business finances and short-term cash flows, and plan up to 30 days ahead.
- Mobile App: Access your Xero account from your mobile device, making it easy to manage finances on the go.
- Inventory: Track inventory levels, manage stock orders and bills, and get real-time inventory updates.
- Reporting: Includes formulas for comparison and calculations to generate and customize a range of accounting and financial reports.
- Accept Payments: Receive online payments and accelerate your payment processing time twice as fast via Stripe, GoCardless, and additional payment providers.
- Purchase Orders: Manage purchase orders to streamline the sales process.
- Bank Connections: Establish a connection between your bank and Xero, configure bank feeds, and transmit transactions safely and directly.
- Manage Xero Contacts: Manage your contacts effortlessly and view all the particulars of a customer’s or supplier’s sales, invoices, and payments consolidated in a single location.
- Sales Tax: Calculate sales taxes for transactions automatically and employ reports to prepare sales tax filings.
Xero Growing Plan ($37 per month)
The Xero Growing plan delivers advanced accounting features for expanding businesses needing comprehensive financial management tools. It streamlines business processes while enhancing financial reporting and management capabilities. With seamless third-party app integration, this plan offers flexibility for growing teams requiring enhanced functionality that goes beyond basic accounting. It’s designed specifically for businesses that have outgrown simple accounting needs and require more sophisticated tools to manage their financial operations effectively as they scale.
EVERYTHING IN EARLY, PLUS:
- Invoicing: Create, send, and approve unlimited professional invoices to customers. This removes the 20-invoice restriction from the Early plan, allowing growing businesses to handle increased customer volume without billing limitations or additional per-invoice costs.
- Bills Management: Enter unlimited bills to track accounts payable, schedule due dates, and manage payment timing. This upgrade from the Early plan’s 5-bill limit enables growing businesses to handle more suppliers and complex payment workflows efficiently.
- Bulk Reconcile Transactions: Cash coding helps you reconcile transactions in batches rather than individually. This time-saving tool streamlines the reconciliation process for businesses with higher transaction volumes, improving efficiency and reducing manual data entry work.
Xero Established Plan ($70 per month)
The Xero Established plan offers a comprehensive range of features for established businesses that require sophisticated financial management tools and reporting capabilities. It includes multi-currency invoicing and payments, expense claims, and project management, making it suitable for companies with complex financial requirements. The enhanced reporting makes it a powerful option for larger teams that require more granular financial reporting and analysis.
EVERYTHING IN GROWING, PLUS:
- Multi-Currency Support: Process transactions in various international currencies seamlessly. Essential for businesses operating across borders, enabling global commerce while automatically handling exchange rates and currency conversions for accurate financial reporting and international client billing.
- Project Management: A Comprehensive project tracking system monitors time allocation and expense distribution across multiple projects. Ensures accurate client billing through detailed project cost analysis, resource management, and automated time tracking for enhanced profitability and transparency.
- Expense Claims: Streamlined employee expense submission and approval workflow eliminates manual paperwork. Employees can photograph receipts, submit claims digitally, and managers can approve expenses remotely, improving efficiency while maintaining proper expense tracking and reimbursement processes.
- In-depth Analytics: Advanced financial insights through Xero Analytics Plus subscription upgrade. Monitor cash flow forecasts, analyze key performance indicators, track business financial health metrics, and generate comprehensive reports for strategic decision-making and improved business performance.
Note: Payroll with Gusto costs $40 per month. It is an optional add-on to handle payroll calculations, manage deductions, and pay your employees. It can also streamline compliance processes and sync all updated information with your Xero accounts.
Conclusion
Xero offers competitively priced plans that deliver excellent value for businesses of all sizes. The software effectively meets diverse business needs while helping enterprises manage finances more efficiently. With reasonable pricing structures and comprehensive features, Xero provides an affordable accounting solution that scales with growing businesses across different industries and operational requirements.
However, the pricing plans are subscription-based, and businesses must pay a monthly fee to access the software. Some companies may find the ongoing cost of using the software a barrier. Nonetheless, the features and benefits of using Xero can outweigh the cost to make it a worthwhile investment. If you want to make sure that Xero will be suitable for your business, read our Xero Pros and Cons article for additional information.
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- The Pros and Cons of Using Xero Software
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Daniel Raymond, a project manager with over 20 years of experience, is the former CEO of a successful software company called Websystems. With a strong background in managing complex projects, he applied his expertise to develop AceProject.com and Bridge24.com, innovative project management tools designed to streamline processes and improve productivity. Throughout his career, Daniel has consistently demonstrated a commitment to excellence and a passion for empowering teams to achieve their goals.