Xero

Beautiful accounting software for small businesses

From $25/mo

About Xero

Xero serves over 4.6 million subscribers globally, making it one of the most popular cloud accounting platforms in the world. The platform covers core accounting functions including invoicing, bill management, bank reconciliation, expense claims, inventory tracking, multi-currency support, and financial reporting. Xero recently introduced JAX, an AI financial agent that automates routine tasks like creating and sending quotes and invoices, while delivering actionable business insights via Xero, WhatsApp, SMS, and email. All plans include unlimited users at no extra cost (no per-user license fees), real-time financial insights, Hubdoc for bill and receipt capture, and W-9/1099 management for US businesses. The Early plan starts at $25/month but limits invoices to 20 and bills to 5 per month. Higher tiers unlock unlimited invoicing, performance dashboards, KPI analysis, multi-currency, project tracking, and 180-day cash flow forecasting. Key limitations include the restrictive Early plan caps, lack of built-in payroll (requires Gusto integration in the US), and no annual billing discount.

Key Features

Cloud-based double-entry accounting with real-time reporting

Unlimited users on all plans (no per-user fees)

JAX AI agent for automated tasks and financial insights

Bank reconciliation with auto-reconcile (beta)

Invoicing and quoting with online payment acceptance

Bill management and Hubdoc receipt capture

Multi-currency support (Established plan)

Project tracking and expense claims

1,000+ app integrations (Gusto payroll, Stripe, Shopify)

W-9 and 1099 management for US tax compliance

Pros & Cons

Pros

• Unlimited users included — no per-seat charges
• Clean, intuitive interface praised by accountants
• Strong integrations ecosystem with 1,000+ apps
• 30-day free trial with no credit card required
• Excellent mobile app for iOS and Android
• AI agent (JAX) for automating routine financial tasks

Cons

• Early plan severely limits invoices (20) and bills (5) per month
• No built-in payroll — requires third-party integration (e.g., Gusto)
• Multi-currency and project tracking locked to Established plan ($90/mo)
• No annual billing discount available
• Inventory management is an additional paid add-on
• US version has fewer features compared to AU/NZ/UK editions

Best For

Small businesses and sole traders needing simple cloud accounting Freelancers and self-employed professionals Accounting firms and bookkeepers managing multiple clients Construction and trades businesses needing mobile invoicing Retail businesses wanting integrated POS accounting