Xero Review - why 4.3 stars?

Shlomi Lavi / updated: Mar 09, 2022

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What is Xero?

Xero is a cloud-based accounting software built for small businesses, accountants, and bookkeepers. The software offers features such as:

• Pay Bills: Xero provides a platform where end-users can track and pay bills on time. End-users can also get a clear overview of accounts payable and cash flow.
• Claim Expenses: This feature offers a simple way for end-users to manage their employee expense claims. With, Xero end-users can capture costs, submit, approve and reimburse claims, and view spending.
• Bank Connections: End-users can connect their bank to Xero and set up bank feeds. They can also make transactions flow securely straight into Xero each business day.
• Accept Payments: This feature helps end-users accept payments online and get paid up to twice as fast by connecting to Stripe, GoCardless, and others.
• Track Projects: Xero users can get invoices and get paid for jobs. They can also keep track of time, costs, and project profitability within the accounting system.

Xero is accounting software that started in 2006. The company is headquartered in Wellington City, Wellington, New Zealand. The company has a workforce of more than 3,500 employees. Forbes identified Xero as the Innovative Growth Company in the world in 2014 and 2015.

Who is it best for?

Xero is best for small businesses, freelancers and non-profit organizations. It can be used in industries that have to do with accounting, advertising, computers, Financial Service, Hospitality, Retail and Services. Xero would be great for startups and mid-size business that already have customers in many different countries. Most of Xero customers come from New Zealand.

Companies currently making use of this service are Workflowmax, Shopify and 31Three.com.

Main features and functionalities

Xero can help small businesses save more time on back-office processes and focus on giving higher value services. Other services like PayPal, Stripe, Bill.com and Expensify can easily be integrated to the software. Xero customers that rely on financial institutions like City National Bank should not have any problem feeding transactions directly into it.

What is the actual cost?

Xero offers three license pricing options which are Starter, Standard, and Premium. The Early plan begins at $12per month. The Growing plan comes at $34 per month. The Established plan comes at $65 per month.

The Starter plan comes with features such as Sending quotes and 20 invoices, Enter 5 bills, Reconciling bank transactions, Capturing bills and receipts with Hubdoc, Short-term cash flow, and business snapshot.

The Standard plan comes with everything in the starter plan, including Sending quotes & invoices, Short-term cash flow, and business snapshots.

The Premium plan comes with every feature in Standard, including Using multiple currencies.

ITQlick pricing score is 2 out of 10 (10 is most expensive). Access ITQlick pricing guide for Xero. You can also find here pricing information from Xero's website.

Pros

• Xero is a User-friendly accounting software even for non-accountants
• The software is preferable for accounting in small businesses
• Xero can integrate with other cloud-based systems such as Dext and Flowlens
• Provides real-time bank feeds and bank reconciliation
• A large variety of add-ons are available for users to pick

Cons

• Users sometimes complain of system glitches during usage
• Cannot create multiple entries from one company
• Cannot be used without an internet connection
• Not enough invoicing templates
• Does not support complex project tracking

How it stacks up?

Access a head to head analysis of Xero vs alternative software solutions.

Frequently Asked Questions (FAQs)

Is Xero right for you or your business?

Xero Is an accountant system built to change the game for small businesses. The accounting software connects people with the correct numbers anytime, anywhere, on any device. Xero targets accountants and bookkeepers and helps them build a trusted relationship with small business clients through online collaboration.