Xero Review - why 4.3 stars?

Xero Review
ITQlick Score: 94/100
ITQlick Rating: (4.3/5)
Pricing: 2/10 - low cost
Category: Core Accounting -> Xero
Ranking:Ranked 6 out of 137 Core Accounting systems
Company: Xero
Pricing: starts at $20 per month
Typical customers: Small businesses and start ups
Platforms: Desktop, Mobile, Cloud
Links: Xero pricing, Xero alternatives
Shlomi LaviShlomi Lavi / updated: Apr 29, 2021

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What is Xero?

Xero is a cloud-based accounting and finance software for small, start-up, and growing enterprises. It has invoice management, purchasing, bank reconciliation, and bookkeeping features which help businesses boost their cash flow. Xero started in 2006 and has now up to 5,000 employees. It specializes in creating accounting, banking, design, and billing software and is currently stationed at Wellington City, Wellington.

What is Xero rating? ()

The rating of Xero is 4.3 stars out of 5 and the total score is 94 out of 100. The ratings are based on our unbiased experts. Learn more in our rating methodology page

Who are Xero's typical customers?

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's customers come from New Zealand.

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

Is Xero the best Core Accounting?

Xero is ranked 6 out of 137 software in their category (Core Accounting systems).

What are their 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's customers that rely on financial institutions like City National Bank should not have any problem feeding transactions directly into it.

What are Xero's pros? (5 Pros)

  • Cheaper than other accounting and finance software
  • Highly customizable
  • Easy to learn and use
  • Provides real-time bank feeds and bank reconciliation
  • A large variety of add-ons are available for users to pick

What are Xero's cons? (2 cons)

  • Tags have limited categories
  • Cannot create multiple entries from one company

Who are their main alternatives?

FreshBooks is cloud-based accounting software for small businesses like Xero. FreshBooks pricing is at the same cost range as Xero. FreshBooks has automated billing, expense input, and notifications whereas Xero only has automated backup and scheduling. Both have currency conversion capability but FreshBooks lacks customer database, history, and segmentation which is important in customer management.

Both have excellent customer reviews online and are beneficial as an accounting system. Wave is a cheaper accounting software alternative for Xero because it is free. It serves small businesses with less than 9 employees only.

Wave is also supported in the web and as an iPhone and Android app like Xero. When features are being compared, Wave has almost all accounting, invoicing, receipt, and payroll processing features like Xero except for the ability to provide real-time data, customize reports, and API. Both have high vendor reputation online but Wave is a more practical choice only if the business has less than 9 employees.

What is the cost of Xero?

The cost of license starts at $20 per month. On top of the total cost of licenses which is easy to calculate - what is the REAL total cost of implementation? You need to add the cost of training, customization, data migration, and other "hidden cost". ITQlick pricing score is 2 out of 10 (10 is most expensive). Find here the REAL total cost breakdown for Xero

What should you ask Xero during a demo session? (65 questions)

Schedule a demo with Xero and access 65 must ask questions for the vendor while watching Xero in action. Visit the vendor's website here.

Is it the right software for you?

Xero fits small enterprises that are looking for economical yet fully functional accounting and finance software. Xero caters IT solutions to a wide range of industries like retail, non-profit, legal, Amazon sellers, Cafe, tourism, healthcare, farming, real estate, and more.

List of categories

Accounting & Finance
Fixed Asset Management
Recurring Billing
Billing & Invoicing
Budgeting & CPM
Check Printing
Core Accounting
Financial reporting
Fund Accounting
Payment Processing
Project Accounting
Recurring invoicing

List of features

Accounts Payable
Accounts Receivable
Billing & Invoicing
Budgeting & Forecasting
Fixed-Assets
Purchase Orders
Data Analysis Tools
Forecasting
Fixed Asset Management
Inventory Optimization
Supplier Management
Warehouse Management
Inventory Management

Xero Vs. Alternatives

ITQlick rating
Score
Pricing
License pricing
Functionality
Review
Compare
Xero
ITQlick rating
4.3/5
Score
94/100
Pricing
2/10
License pricing
$20 per month
Functionality
46
Review
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QuickBooks
ITQlick rating
4.2/5
Score
99/100
Pricing
5/10
License pricing
$12.50 per month
Functionality
7
Wave
ITQlick rating
4.4/5
Score
97/100
Pricing
5.6/10
License pricing
Pricing not available
Functionality
8
Review
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Zoho
ITQlick rating
4.4/5
Score
96/100
Pricing
2.4/10
License pricing
$10 per organizer/month
Functionality
9
Review
Compare
FreshBooks
ITQlick rating
4.5/5
Score
95/100
Pricing
2/10
License pricing
$4.50 per month
Functionality
28
Author

Shlomi Lavi

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Shlomi holds a Bachelor of Science (B.Sc.) in Information System Engineering from Ben Gurion University in Israel. Shlomi brings 15 years of global IT and IS management experience as a consultant, and implementation expert for small, medium and large size (global) companies.