Xero Review 2025: Pricing, Features, Pros & Cons, Ratings & More

Xero is a cloud-based accounting software designed for small to medium-sized businesses. It provides a comprehensive suite of financial tools that make managing business finances seamless and efficient. Xero’s features include invoicing, expense tracking, bank reconciliation, payroll, and real-time financial reporting. Its user-friendly dashboard offers clear visibility into cash flow and financial health, enabling businesses to make informed decisions quickly.

In addition to core accounting functions, Xero integrates with numerous third-party applications, allowing users to customize the platform to their business needs. Its mobile app supports on-the-go management, ensuring users can send invoices, capture receipts, and review financial data from anywhere. This versatility and Xero integration capability make the software a highly adaptable solution for growing businesses aiming to streamline their financial operations.

What’s new in Xero?

Based on our Xero review, we observed several updates that enhance user experience and streamline financial management. The latest is the new 'Client Insights' feature within Xero HQ, providing accountants and bookkeepers with a consolidated view of their clients' financial data. This tool aids in identifying clients who may benefit from additional support or advisory services, facilitating timely and informed conversations. 

The Xero Accounting app has also seen significant improvements. Users can now search, sort, and filter statement lines during bank reconciliation, making it easier to locate specific transactions while on the move. Additionally, the app allows for seamless sharing of invoices across various platforms, such as Messages and WhatsApp, enhancing flexibility in managing invoices remotely. 

Inventory management has been optimized with new filtering options in Xero Inventory. Users can filter items by type—tracked or untracked—and customize columns to display preferred information. These enhancements simplify the tracking of stock levels and ensure accurate inventory records. 

Our Xero review also highlights its expanded payment options, where users can simply click 'Tap to Pay', allowing businesses to accept payments directly through their smartphones. This addition provides more flexibility in payment processing and helps improve cash flow management. 

Xero offers a range of pricing plans tailored to different business needs, with each plan providing specific features and scaling options. All Xero pricing plans are billed monthly and include essential accounting tools, with the flexibility to add users and functionalities as your business grows. This Xero pricing structure allows businesses to select a plan that aligns with their current requirements and upgrade as their operations expand.

Starter - $29 USD per month

• Send up to 20 invoices and quotes
• Enter up to 5 bills
• Reconcile bank transactions
• Capture bills and receipts with Hubdoc
• Access short-term cash flow and business snapshot tools

Standard - $46 USD per month

• Unlimited invoices and quotes
• Unlimited bill entries
• Reconcile bank transactions
• Capture bills and receipts with Hubdoc
• Access short-term cash flow and business snapshot tools
• Bulk reconcile transactions

Premium - $62 USD per month

• All Standard plan features
• Use multiple currencies

Additional costs may apply for optional features:

• Claim Expenses: Starting from $4 per month
• Track Projects: Starting from $7 per month
• Analytics Plus: Optional add-on

Xero offers a free 30-day trial, allowing potential users to explore the platform's capabilities before committing to a subscription. This trial includes access to all features, enabling businesses to assess which plan best suits their needs.

What Sets Xero Apart

In crafting this Xero review, our research team found that the software provides an all-in-one, cloud-based accounting solution designed to simplify and streamline financial management for small to medium-sized businesses. Xero uniquely integrates with a multitude of third-party applications, enhancing its capabilities beyond traditional accounting software. The platform’s extensive feature set encompasses invoicing, bank reconciliation, payroll, expense management, and reporting, all tailored to offer a comprehensive view of a business’s financial health.

In our Xero review, we observe its intuitive interface that supports seamless collaboration with multiple users. The software is built with scalability in mind, ensuring that as businesses grow, they can customize their financial management needs with added functionalities. Its cloud-based nature means that users have real-time access to their financial data from any device, boosting productivity and enabling business owners to make informed decisions on the go.

Xero also supports efficient automation of various tasks, such as transaction matching and bank reconciliation, which helps reduce manual work and errors. This automation saves time and keeps finances accurate and up-to-date. Additionally, users can customize aspects of the platform, including reports and invoice templates, to better align with specific business processes and branding. 

Here are some Xero pros and cons to consider:

• Multi-Currency Support: Xero offers robust multi-currency accounting features, allowing businesses to transact in over 160 currencies with automatic exchange rate updates, ideal for businesses with international operations.
• Comprehensive Reporting: Users can generate detailed and customizable reports, such as profit and loss statements, balance sheets, and cash flow reports, to gain better insights into financial performance.
• Mobile App Functionality: Xero’s mobile app is highly functional, enabling users to manage key financial tasks, including bank reconciliation, expense capture, and invoicing, while on the move.
• Built-In Collaboration Tools: Xero’s real-time collaboration features allow accountants and team members to work together seamlessly within the platform, improving communication and reducing back-and-forth interactions.
• Security Measures: Other Xero reviews highlight how Xero employs robust security protocols, including two-step authentication, to protect user data and financial information.

• Limited Customer Support: Our Xero review notes that the platform lacks a direct customer support phone number, which may be a drawback for users seeking immediate assistance. 
• Feature Limitations in Entry-Level Plan: The Starter plan imposes restrictions on the number of invoices and bills, which may not suffice for growing businesses. 
• Additional Costs for Advanced Features: Some advanced functionalities, such as expense tracking and project management, require additional fees. 

Xero offers a comprehensive suite of features designed to streamline accounting and financial management for businesses, making it a top choice for those looking for efficiency and flexibility:

• Invoicing: Xero allows businesses to create and send professional invoices that reflect their branding. Users can set up automatic payment reminders to reduce late payments and improve cash flow. Additionally, clients can make payments online directly from the invoice, simplifying the payment process and encouraging prompt transactions. 
• Bank Reconciliation: Xero connects seamlessly with a wide range of bank accounts to automatically import and categorize bank transactions. This feature simplifies the reconciliation process by matching bank statement lines with transactions entered in Xero, helping users keep their financial records accurate and up-to-date. 
• Expense Management: Managing expenses is effortless with Xero’s expense capture tools, which enable users to submit claims, attach receipts, and track reimbursements. The software supports efficient approval workflows, ensuring that expenses are reviewed and approved promptly. 
• Project Tracking: Our Xero review highlights its project tracking capabilities, allowing businesses to monitor the profitability of specific projects by tracking time, expenses, and labor costs. Users can create quotes and convert them into invoices directly within the platform, providing a seamless process from planning to billing. 
• Inventory Management: Xero’s inventory management tools help businesses maintain optimal stock levels by tracking product quantities and movements. Users can manage purchase orders and receive notifications when inventory levels are running low, ensuring that stock shortages do not impact sales. 

This Xero review highlights that the software brings a wealth of functionality to the table, extending beyond basic accounting software capabilities. Xero delivers solutions that support various business needs, including invoicing, project management, and financial reporting, positioning it as more than just an accounting tool.

Enhanced Financial Visibility

Xero provides real-time access to financial data through its cloud-based platform, allowing business owners to monitor cash flow, track expenses, and view financial reports from any device with an internet connection. This immediate visibility enables proactive financial management and informed decision-making. 

Streamlined Collaboration

With unlimited user access, Xero facilitates seamless collaboration among team members, accountants, and bookkeepers. Users can assign specific roles and permissions, ensuring that each team member has appropriate access to financial information, which enhances efficiency and accuracy in financial management. 

Automation of Routine Tasks

Xero automates various accounting tasks, such as bank transaction imports, invoice reminders, and expense categorization. This automation reduces manual data entry, minimizes errors, and saves time, allowing business owners to focus on strategic activities. 

Scalability for Growing Businesses

Xero's flexible platform grows with your business, offering features that cater to both small startups and expanding enterprises. This Xero review highlights that as your business needs evolve, Xero provides advanced functionalities like multi-currency support, inventory management, and project tracking to accommodate increased complexity. 

Integration with Third-Party Applications

Xero integrates with over 1,000 third-party applications, including CRM systems, payment processors, and e-commerce platforms. This extensive integration ecosystem allows businesses to customize their accounting system to fit specific needs, enhancing overall operational efficiency. 

To fully leverage Xero’s capabilities and ensure your business reaps maximum benefits, consider implementing the following expert strategies:

• Invest Time in Customization

Personalizing your Xero account can significantly enhance its utility. Explore customization options such as tailoring invoice templates to reflect your brand identity and setting up dashboards to display critical financial metrics like revenue, expenses, or cash flow. These features provide insights at a glance and help streamline workflows specific to your business needs.

• Leverage Third-Party Integrations

Xero’s ability to integrate with over 1,000 third-party applications allows you to extend its functionalities. Whether using CRM systems like HubSpot or e-commerce platforms like Shopify, connecting these tools to Xero creates a unified ecosystem. Check out this comprehensive resource on the best accounting software for small business to understand how various tools can complement Xero for optimal results.

• Prioritize Automation Features

Automate recurring tasks such as invoice reminders, payroll submissions, and bank reconciliations. These automated features not only save time but also reduce the likelihood of human error, ensuring your financial records are consistently accurate and up to date.

• Regularly Revisit User Permissions

As your business grows, it’s vital to review and adjust user roles and access levels within Xero. Assigning permissions appropriately minimizes security risks and ensures employees only interact with facets of the platform relevant to their responsibilities.

• Schedule Financial Health Reviews

Use Xero’s real-time reporting tools to conduct weekly or monthly reviews of your business’s financial health. Applying this practice helps identify trends, monitor cash flow, and make data-driven decisions early, preventing potential financial missteps.

Maximizing Xero’s robust features requires an adaptive approach tailored to your business processes. By integrating its advanced tools into your workflows, you can simplify financial management and support sustainable business growth.

What Other Financial Tools Should I Consider Alongside Xero?

When evaluating Xero for your business needs, it's essential to consider a comprehensive suite of financial tools to ensure all aspects of financial management are covered. For instance, investing in robust payroll software) can significantly enhance your business's financial operations, especially if you have a large team or complex payroll requirements. Additionally, exploring other financial management solutions can provide a more holistic approach to managing your business's finances, ensuring that you have the right tools for tasks such as budgeting, forecasting, and compliance management. By integrating these tools with Xero, you can create a streamlined financial management system tailored to your business's unique needs.

This Xero review highlights that the software is particularly well-suited for small to medium-sized businesses (SMBs) due to its user-friendly design, affordability, and comprehensive range of accounting tools. Its scalability ensures that it remains useful as a business expands, transitioning smoothly from startups to larger operations. 

Businesses in service-based industries, such as consulting, marketing agencies, and legal practices, benefit significantly from Xero’s project tracking and invoicing capabilities. Retailers and e-commerce businesses also find Xero advantageous because of its inventory management features and extensive third-party integrations that streamline point-of-sale and supply chain operations.