Cloud accounting for small business. Automate banking, invoicing, and more
Visit WebsiteThe Bottom Line
Entry price
Paid plans only
Biggest pro
Clean interface
Biggest con
Limited US payroll
TL;DR - Xero
- Xero is cloud accounting software for small businesses
- It provides invoicing, bank reconciliation, and financial reporting
- Offers paid tiers
What is Xero?
Available on: Web, iOS, Android
Pros & Cons
Pros
- Clean interface
- Strong bank feeds
- Good for accountants
Cons
- Limited US payroll
- Fewer integrations than QuickBooks
Ratings Across the Web
Xero holds an aggregate rating of 4.4 out of 5 from 5,150 reviews across G2 and Capterra, last checked August 28, 2026.
Ratings aggregated from independent review platforms. Learn more
Key Features
Pricing Plans
30-day Free TrialPricing checked Aug 24, 2026
Early
$15/month
- Send 20 quotes and invoices
- Enter 5 bills
- Reconcile bank transactions
- Capture bills and receipts with Hubdoc
Growing
$42/month
- Send invoices and quotes
- Enter bills
- Reconcile bank transactions
- Bulk reconcile transactions
- Capture bills and receipts with Hubdoc
Established
$78/month
- Send invoices and quotes
- Enter bills
- Reconcile bank transactions
- Bulk reconcile transactions
- Capture bills and receipts with Hubdoc
- Use multiple currencies
- Track projects
- Claim expenses
Is Xero worth the price?
Xero's pricing is fair for small businesses, with the 'Early' tier at $15/month offering essential features.
The 'Growing' tier at $42/month provides unlimited transactions, which is a good value for growing businesses. The 'Established' tier at $78/month is suitable for businesses needing advanced features like multi-currency and project tracking.
Hidden Costs & Gotchas
Limited transactions on 'Early' tier
No free tier available
Potential add-on costs for specific integrations
How Xero Compares to Competitors
Compared to QuickBooks Online, Xero's 'Growing' tier at $42/month is competitive with QuickBooks' Plus plan (around $85/month, often discounted) offering similar features. For very small businesses, Wave Accounting offers a free basic service, which Xero lacks, making Xero's $15/month 'Early' tier an entry-level paid option.
Reviews
Review Xero, get a free AI guide
Share your experience and we will send you Improve Your Thinking Patterns Using ChatGPT, free.
Across 5,150 verified user reviews on Capterra, G2
Add your hands-on experience using the offer above to help the next buyer.
Best Xero Alternatives
Top alternatives based on features, pricing, and user needs.
IRS-approved online platform for filing 1099, W-2, and 1098 forms.
Small business accounting software
Accounting software for small businesses
All-in-one open-source business management software with a vast app ecosystem.
Comprehensive accounting as part of the Zoho ecosystem
AI-powered financial close and account reconciliation platform.
IRS-authorized e-filing for 1099, W-2, 94x, and more forms with AI-powered compliance.
AI agents that automate the full order-to-cash lifecycle
Still deciding?
Most buyers shortlist 2 or 3 tools before committing. Pull a side-by-side comparison or browse the full alternatives shortlist below.
Explore More
Xero FAQ
How does Xero streamline financial operations for small businesses?
Which teams benefit most from using Xero?
How is Xero priced?
Can Xero handle international business transactions?
What kind of integrations does Xero offer?
How does Xero compare to QuickBooks regarding integrations?
What are the primary limitations of Xero?
Source: xero.com