Xero is a popular cloud-based accounting software tailored for small to medium-sized businesses, offering a comprehensive set of tools to streamline invoicing, bookkeeping, and financial reporting. Understanding its pricing is crucial for any business considering making the switch or starting fresh with online accounting. With multiple tiers and add-ons available, prospective users often wonder: how much does Xero really cost?
TL;DR (Too Long; Didn’t Read)
Xero offers three main pricing plans—Early, Growing, and Established—ranging from $13 to $70 per month. Each plan caters to different business needs based on size and complexity. Optional features like payroll, project tracking, and expense management may incur additional costs. Overall, Xero provides flexibility to grow with your business, but costs may add up depending on the features you need.
Xero Pricing Plans: An Overview
Xero structures its pricing into three primary subscription levels designed to accommodate businesses at different stages:
- Early Plan: Best for sole proprietors and new startups
- Growing Plan: Ideal for small businesses experiencing steady growth
- Established Plan: Suited for mature, expanding businesses requiring advanced features
1. Xero Early Plan – $13/month
The Early Plan is Xero’s entry-level option designed for freelancers, contractors, and micro-businesses. At $13 per month, this plan encompasses the essentials but places some limits on transactional usage.
- Send up to 20 invoices and quotes
- Enter up to 5 bills
- Reconcile bank transactions
- Capture receipts with Hubdoc
This plan is ideal for businesses with low transaction volumes and simpler accounting needs.
2. Xero Growing Plan – $37/month
The Growing Plan steps things up for businesses with more regular transactions. Priced at $37 per month, it removes the limitations on invoices and bills while retaining the functionality available under the Early Plan.
- Unlimited invoice and quote sending
- Unlimited bill entries
- Bank reconciliation
- Short-term cash flow and business snapshots
This plan is most suitable for small businesses that need more freedom in transaction management without diving into advanced functionalities yet.
3. Xero Established Plan – $70/month
The most comprehensive option, the Established Plan, is priced at $70 per month. It includes every feature the Growing Plan offers, plus advanced capabilities.
- Multi-currency support
- Project tracking
- Expense management tools
- Advanced analytics
Companies with international clients, employees submitting expenses, or those needing to manage profitability by project will find value in this plan.
Optional Add-ons and Extra Costs
Beyond the core pricing plans, Xero offers optional add-ons. These can result in higher overall monthly fees, depending on your business requirements.
Gusto Payroll Integration – Starts Around $40/month + $6/employee
For U.S.-based employers, Xero integrates with Gusto Payroll. While it is an external service, the integration is seamless, letting users handle payroll directly within Xero’s interface.
Pricing starts at around $40/month for the base and an additional $6 per active employee. It includes automatic tax filing, employee self-service, and benefits administration.
Xero Projects – $7/month per user
Project tracking is vital for many service-based businesses. Xero Projects enables time tracking, costing, and profitability analysis for each project.
- Cost: $7/month per user
- Available only on: Growing and Established plans
Expense Management – $4/month per user
Efficiently track and reconcile employee expenses with Xero’s Expenses tool. This feature includes receipt capture, mileage claims, and approval workflows.
It costs an extra $4/month per active user and is only available with the Established Plan.
Discounts and Free Trials
Xero frequently offers promotional pricing, especially for new customers. Discounts of up to 75% off for the first few months are common, making it an affordable way to start using the platform.
Additionally, Xero provides a 30-day free trial on all its plans. This makes it easy for businesses to evaluate whether the software aligns with their accounting needs before committing financially.
Is Xero Worth the Cost?
Given its features and scalability, Xero delivers strong value for many small and medium-sized enterprises. The flexibility of its plans ensures that business owners can select a plan that aligns with their growth and complexity.
Key reasons businesses find it worth the investment:
- Accessible from any device with an internet connection
- Regular updates and cloud backups
- Strong accountant and bookkeeper integrations
- Clean, intuitive interface for users without accounting backgrounds
While additional features like payroll and expenses incur extra fees, the core offerings already provide a full spectrum of essential financial tools.
Conclusion
Xero’s pricing is competitive within the online accounting software market. By offering three main tiers and several optional add-ons, it allows businesses to tailor a package that matches operational demands and budget limits. With flexible plans, robust functionality, and excellent support, Xero proves itself to be a worthwhile accounting partner for many companies.
Frequently Asked Questions (FAQ)
- Q: Does Xero offer a free trial?
A: Yes, all plans include a 30-day free trial with full access to features. - Q: Is there a discount if I pay annually?
A: Xero only offers monthly billing in most regions; however, promotional offers may include multi-month discounts. - Q: Can I switch between plans?
A: Yes, you can upgrade or downgrade your plan at any time through your account settings. - Q: Does Xero support multiple users?
A: Yes, all plans support multiple users without additional charges, although some features like Projects and Expenses charge per active user. - Q: What currencies does Xero support?
A: Multi-currency support is available only in the Established plan, which includes real-time exchange rate updates. - Q: Are there hidden fees?
A: No hidden fees, but optional integrations (like payroll) and advanced features (like project tracking) involve extra costs.
