Xero Review: Pricing, Features, Pros and Cons
We compare Xero vs. Sage projecting income statement line items so you can decide on the perfect accounting solution for your needs. Xero helps transform the data you enter into actionable information at every subscription level. A dashboard provides a summary of your business’s financial health, including total cash in and out, outstanding invoices and overdue bills.
Xero’s pricing
One big drawback of Xero is that it doesn’t have a dedicated customer service phone number. If you want to talk to a human being, you have to submit a ticket and request a callback. However, Xero does offer 24/7 online support—a rarity in the accounting software field. You can also browse why are prepaid expenses considered an asset the Xero Central support database for articles and guides on your issues. Xero and Sage are two excellent accounting options for small businesses looking to get their finances in order. Both made our list of the best accounting software because of their invoicing capabilities and bank transaction reconciliation.
One-way phone support
But having the options available means there’s always likely a solution for your issues. You can sort by specific function or narrow down the options by industry. Some popular add-ons include Timely, Shopify, Stripe, PayPal and Airwallex. Zoho Books’ paid plans all come with free live chat and phone support. Sage 50 Accounting’s Cash Flow Manager tool is a helpful feature for people who want to better understand how future transactions could impact their business. The tool also lets you adjust the time frame to see how your business has changed over time.
You can also set automatic reminders so you don’t have to chase down your clients. Xero also uses Stripe as well as GoCardless, so it can take ACH debit payments as well. When reconciling books, Xero suggests likely matches between bank statement lines and transactions entered in the software. For example, if you have an entry for an invoice of $1,000 and a recent $1,000 deposit in your bank account, it might suggest matching these two transactions. Click the “OK” icon between the two to verify the match is correct.
NerdWallet’s accounting software ratings favor products that are easy to use, reasonably priced, have a robust feature set and can grow with your business. The best accounting software received top marks when evaluated across 10 categories and more than 30 subcategories. †Invoice limits for the Starter plan apply to both approving and sending invoices. Transactions initiated by app partners may automatically contribute to your invoice limit.
Can I pay for Xero annually?
- NerdWallet independently reviews accounting software products before determining our top picks.
- You can add Gusto payroll to any plan for an extra $40 per month, plus $6 per month per person.
- We encourage you to research and compare multiple accounting software products before choosing one.
- These reports help small business owners identify areas for improvement and make evidence-based decisions in real time.
While Sage does offer accounts payable, it seems you still have to manually pay bills from your bank account. Sage does have the upper hand against Xero when it comes to quotes and invoices, as well as multi-currency support. This can be great for freelancers doing a ton of business each month.
Early plan
Unlike Xero, QuickBooks allows unlimited invoices on the cheapest Simple Start plan — but limits you to 1 billable user what is the difference between adjusting entries and closing entries and 2 accountant firm users. If you need only 1 person to use the software but plan to send a high number of invoices and bills, QuickBooks may be a more cost-effective choice than Xero. In contrast to allowing unlimited users, Xero does limit you to one organization or business per subscription. In other words, if you need to do accounting for more than one business, you’ll need to purchase an account for each one. This is a real drawback for owners of multiple businesses or bookkeepers who work with multiple clients.
Another page dedicated to short-term cash flow charts out how future bills and invoices can affect your bank balance over the next week or month. Xero is a great option for large teams and small- to medium-sized businesses that need high-level accounting systems. It’s also a good fit if you want to integrate Gusto Payroll to your accounting platform.