Xero Accounting Review: Pros, Cons, Pricing

Managing business finances can be overwhelming, especially when you’re trying to keep track of invoices, payroll, expenses, and reporting. Over the past few years, I’ve personally tried multiple accounting software solutions for my small business, and Xero has consistently stood out as one of the most versatile and user-friendly platforms. In this detailed review, I’ll share my hands-on experience using Xero, exploring its features, pricing, pros, cons, integrations, and how it compares to competitors, so you can decide if it’s the right choice for your business.

Tags: xero, xero accounting, xero payroll, xero pricing, xero for small business, xero invoicing, xero integrations

What Is Xero?

Xero is a cloud-based accounting software designed for small to medium-sized businesses. Unlike traditional desktop-based accounting programs, Xero allows you to access your financial data from anywhere, on any device with an internet connection.

Over the years, I’ve used Xero to manage my business finances remotely, which has been a game-changer. Instead of being tied to a single computer, I can check invoices, reconcile bank transactions, and generate reports from my laptop, tablet, or smartphone.

Some of Xero’s core features include:

Invoicing and billing
Payroll management
Bank reconciliation
Financial reporting and dashboards
Project tracking
Multi-currency support
Integration with hundreds of third-party apps

You can learn more about Xero directly from their website: Xero Accounting.

My Experience Getting Started With Xero

When I first signed up for Xero, I was a bit apprehensive. I had tried other software before, but the interfaces felt cluttered and unintuitive. Xero’s setup process was surprisingly smooth:

Account creation – Signing up took just a few minutes.
Business setup – I entered my business name, tax details, and bank accounts.
Dashboard exploration – Within an hour, I had a clear view of my cash flow, invoices, and upcoming bills.

The first thing I noticed was how clean and user-friendly the dashboard is. Unlike other software where everything feels buried in menus, Xero provides a high-level snapshot of your business’s financial health, which is perfect for busy business owners.

Suggested image: Xero dashboard screenshot (showing cash flow, invoices, and bills)

Xero Pricing Plans

Xero offers three main pricing plans to cater to different business sizes and needs:

1. Early Plan – $25/month

Ideal for sole traders or very small businesses, this plan includes:

Sending invoices and quotes
Entering bills
Reconciling bank transactions
Capturing receipts

Limitations: You can only send up to 20 invoices or quotes per month, which may not be enough for fast-growing businesses.

2. Growing Plan – $55/month

Designed for growing businesses, this plan removes the invoice limit and allows unlimited users. It includes:

All Early Plan features
Unlimited invoices and bills
Bulk reconciliation

This plan is the one I personally started with, as it matched my growing e-commerce business needs without overwhelming costs.

3. Established Plan – $90/month

Perfect for larger or complex businesses, it includes all features from the Growing Plan plus:

Multi-currency support
Expenses claims
Project tracking
Advanced reporting

If you’re running multiple projects or dealing with clients overseas, this plan is a solid investment.

Pricing link: Xero Pricing Plans

Pros of Using Xero

Based on my experience, here are the main advantages of Xero:

1. User-Friendly Interface

Xero’s dashboard is intuitive. Even without accounting knowledge, I was able to generate invoices, track expenses, and reconcile my bank in minutes.

2. Unlimited Users

Unlike some competitors that charge per user, Xero allows unlimited users on all plans. This has been a huge advantage for my remote team. Everyone can access the data without extra costs.

3. Cloud-Based Flexibility

Being cloud-based means I can manage my business finances anywhere, anytime. I’ve even checked invoices while traveling for business, which wasn’t possible with desktop accounting software.

4. Strong Integrations

Xero integrates with over 800 third-party apps. For example:

Shopify Xero integration – Automatically syncs sales and payments
Stripe Xero integration – Tracks online payments seamlessly
Zapier Xero integration – Automates repetitive tasks

Suggested image: Diagram showing Xero integrations (Shopify, Stripe, Zapier, HubSpot)

5. Robust Reporting

Xero provides real-time financial reports like profit & loss, balance sheet, and cash flow. These reports are essential for understanding business performance.

Cons of Using Xero

No software is perfect. Here are some challenges I faced with Xero:

1. Learning Curve for Advanced Features

While the basics are easy, features like project tracking and multi-currency management took me some time to learn. You might need to refer to Xero’s tutorials or support for advanced usage.

2. Limited Phone Support

Xero primarily provides online support. During urgent issues, I found that waiting for responses through chat or email could be slow.

3. Pricing for Small Businesses

For very small businesses or sole traders, Xero’s pricing may feel higher than simpler software options. But considering the features, the cost is justified if you need a comprehensive accounting system.

Xero Features in Detail

Invoicing

Xero’s invoicing system is simple yet powerful. I can create professional invoices with my business logo, set recurring invoices, and track when clients view or pay them.

Suggested image: Xero invoice template screenshot

Payroll

Managing payroll for my team has been easier with Xero Payroll. The software handles:

Employee payments
Tax calculations
Leave management
Direct deposits

Tip: If your business is in the U.S., check if Xero Payroll is available in your state, as features can vary.

Bank Reconciliation

Xero automatically imports bank transactions, making reconciliation quick. I can match payments to invoices in seconds, reducing manual work significantly.

Project Tracking

For client-based projects, Xero allows me to:

Track time and expenses per project
Generate project-specific reports
Monitor profitability

This feature was a game-changer when I started offering freelance services in addition to my core business.

Multi-Currency Support

With international clients, Xero’s multi-currency support saves me headaches. Payments, invoices, and reports can all be tracked in multiple currencies.

Integrations

Xero works with dozens of tools I already use:

Shopify – Sync online store orders
Stripe – Automate payment tracking
HubSpot CRM – Track invoices within CRM
Zapier – Automate workflows

These integrations save hours of manual data entry every month.

Xero vs QuickBooks vs Sage

I’ve used QuickBooks and Sage in the past, and here’s how Xero compares:

Feature	Xero	QuickBooks	Sage
Pricing	$25–$90/month	$25–$150/month	$10–$100/month
Users	Unlimited	Limited by plan	Limited by plan
Integrations	800+ apps	600+ apps	300+ apps
Payroll	Optional in plans	Included in plans	Optional
Mobile App	Strong	Moderate	Moderate
Cloud Access	Full	Full	Partial

Verdict: Xero offers better scalability for growing teams and integrates more seamlessly with e-commerce platforms than QuickBooks or Sage.

Real-Life Use Cases

Here’s how Xero helped me in different scenarios:

E-Commerce Business: Syncing Shopify and Stripe helped automate invoicing and sales tracking.
Freelance Projects: Project tracking allowed me to bill clients accurately and monitor profitability.
Remote Team Management: Unlimited users enabled my team to manage expenses and submit timesheets remotely.

Tips for Getting the Most Out of Xero

Take advantage of tutorials: Xero offers free training and webinars.
Use integrations: Automate repetitive tasks with Shopify, Stripe, and Zapier.
Monitor reports regularly: Weekly reviews of cash flow and expenses can prevent surprises.
Start with a free trial: Xero offers a 30-day free trial to test all features.

Final Verdict

Xero is a robust, cloud-based accounting solution suitable for small to medium businesses, freelancers, and e-commerce owners.

Pros:

User-friendly interface
Unlimited users
Strong integrations
Cloud accessibility
Comprehensive features

Cons:

Learning curve for advanced features
Limited phone support
Slightly higher pricing for small businesses

For businesses seeking a scalable, feature-rich accounting system, Xero is a top choice. Personally, it has streamlined my accounting, saved hours of manual work, and given me clarity on business performance I never had before.

Suggested image: Xero multi-currency dashboard or project tracking screenshot

XERO ACCOUNTING REVIEW 2025: PROS AND CONS; PRICINGS