Xero uses double-entry accounting, but it’s mostly done behind the scenes. Business owners on Xero’s Growing or Established plans can purchase Inventory Plus for an additional $39/month. With Inventory Plus businesses can reconcile payouts, integrate with eCommerce https://www.online-accounting.net/average-accounts-receivable-calculation/ platforms, and fulfill up to 1,500 orders per month from multiple sales channels. To get started with capturing and storing data, users can navigate to Xero’s Organization menu to either set up a new Hubdoc organization or connect an existing Hubdoc account.

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Xero’s pricing compares favorably with other accounting software we reviewed. Popular alternatives, such as FreshBooks and QuickBooks Online, cost at least $18 monthly without introductory discounts. In contrast, Xero’s entry-level plan is slightly less expensive, at $15 per month. One cool new Xero feature is its beefed-up Inventory Plus management system.

Xero’s July 2024 plan changes a costly problem for small business

Because its pricing plans are not based on employee numbers, Xero can easily accommodate various development stages and the changing small business accounting needs accompanying business growth. We recommend Xero for companies that are rapidly adding employees and don’t want to worry about the number of people at the organization using the product. If you’re on a tight budget, then check out Wave Accounting, which offers a forever free Starter plan — yes, you read that correctly! Xero, FreshBooks and QuickBooks all offer 30-day free trials and extensive features for online support, including a live chat, email support and a knowledge base. All three of these offer the ability to scale their accounting for larger businesses and both Xero and QuickBooks offer specific training for accountants. These companies offer Gusto integration for the same price—$40 per month and $6 per month per person.

How we’re bolstering Xero Payroll in NZ for customers

FreshBooks has a deal running where you can save 50% for the next six months. We appreciate that Xero includes time tracking in all its plans (see the screenshot below from our demo). This contrasts with many alternatives, such as QuickBooks, that offer time tracking only on more expensive plans or as an add-on. Users are required to download the free Xero Projects app, which they can use to record time and costs and create invoices and reports.

However, Xero is the better choice if you want more advanced features and support for unlimited users, as additional users are only available for a fee if you use FreshBooks. However, they were not as comprehensive as what we found in our review of QuickBooks Online. Phone support is not available immediately; you must contact customer service first via email or live chat. However, the upside is that Xero does not leave users hanging with long wait times. Instead, the company will call you back at a time convenient for you. New users can access a free 30-day trial, which doesn’t require a credit card for sign-up.

1. Xero has been known for offering discounts in the past, so be sure to check the company’s website to see if it’s having a sale.
2. All you need to do is use a different browser for each organization.
3. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities.

These reports help small business owners identify areas for improvement and make evidence-based decisions in real time. Xero doesn’t offer as many pre-built reports compared to Xero alternatives such as QuickBooks. The Xero Accounting mobile app works in tandem with the Xero accounting software so you can run your small business online from anywhere. Keep track of your unpaid and overdue invoices, bank account balances, profit and loss, cash flow and bills to pay – plus reconcile bank accounts and convert quotes to invoices. Many of the household accounting software names, such as QuickBooks, Xero and Zoho Books, can be classified as integrated accounting software solutions.

Gusto is a platform that automates payroll filing for all 50 states in addition to automating payroll taxes, deductions and filings and providing employees with the platform to view pay stubs and W-2s online. Xero’s online accounting software is designed how the face value of a bond differs from its price to make life easier for small businesses – anywhere, any time. Get access to all of Xero including add-ons like Xero Projects and Xero Expenses. Use the demo company to try things out, or enter your own business details and data to try it out for real.

This function is perfect if you need to complete accounting tasks or other work outside of Xero. It also can assist with your business’ collaboration — especially with anyone who doesn’t have access to your Xero account. Xero connects to more than 21,000 financial institutions around the globe, meaning the chances are very high you’ll be able to connect to your business bank accounts and automatically import transaction info. If your bank doesn’t already have a connection, you can import PDF statements.

The paid plan offers more competitive online payment processing rates, too (starting at 2.9% per transaction vs. the free plan’s 2.9% + $0.60 per transaction). To find startup accounting software that will best serve your business at any stage, consider scalability as well as strong customer support. You will also want to choose software that uses the accrual basis accounting method for recording https://www.online-accounting.net/ transactions. Here are NerdWallet’s picks for the best small-business accounting software, including why we selected each product, monthly price details and features checklists for easy product comparisons. We’ve also included a couple of solutions that nearly made our list and a few products you can skip. Xero is our pick for the best accounting software for growing companies.

In this Xero accounting software review, we’ll break down the pros and cons to help you figure out whether Xero is the right accounting tool for your needs. NerdWallet independently reviews accounting software products before determining our top picks. We collect the data for our software ratings from products’ public-facing websites and from company representatives. Information is gathered on a regular basis and reviewed by our editorial team for consistency and accuracy.