User Reviews Overview

About Xero

Xero is an accounting system designed for small and growing businesses. Xero connects small businesses with their trusted advisors and provides business owners with instant visibility of their financial position. As a web-based...

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Feature ratings

Value for Money
4.2
Features
4.2
Ease of Use
4.3
Customer Support
4.0

Browse Xero Reviews

2,469 of 2,469 reviews
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Kathryn
  • Industry: Arts & Crafts
  • Company size: Self Employed
  • Used Weekly for 1+ year
  • Review Source
Value for Money
5
Features
5
Ease of Use
5
Customer Support
5

5
Reviewed on 26/8/2019

Affordable professional level accounting software for small business

It's been easier to use Xero than I expected, but I had a nasty surprise at tax time when I realized the default accounts/descriptions for expenses did not correlate 1:1 to IRS categories. (I should have checked this more closely when I set up my accounts because it's a New Zealand company, and the previous product was local.) This means I will need to double-check all my transactions for 2018 and the IRS has my vastly overestimated tax payment until I can do that and file my return on an extension.

I've had a much better experience importing data from financial institutions because Xero uses a well-known importing service that is trusted by the institutions.

I like being able to match multiple invoices to bank deposits because I usually don't run to the bank for each check. This will be more valuable as my company grows.

I should probably find an accountant to assist me with this, but I haven't found an accountant who understands both craft businesses and Xero.

Pros

Professional double entry software at a very affordable price
Accommodates both cash and accrual accounting
Links to financial institutions to get transactions
Uses standard importer recognized by the financial institutions instead of just trying to log in remotely (and triggering fraud alerts)
Can match multiple invoices to a single deposit transaction imported from bank
Can keep using Xero as company grows

Cons

Pre-existing expense categories/descriptions don't map 1:1 with IRS definitions, so I'm having to go back to all my receipts to make sure expenses are entered in proper accounts because I didn't realize this when I switched
More difficult to focus on specific expense categories to check transactions
Have not been able to import historic data from previous app (possibly because it's not double entry) so I am still paying the subscription on that software to retain access to my data
No integration with Craftybase, so I have to enter supply purchases and customer invoices there independently

Alternatives Considered

Quickbooks Online

Reasons for Choosing Xero

Outright depends on importing data from financial institutions but they were extremely unreliable (apparently they don't use a standard importing service and my credit union kept flagging them as hackers for remote logins) and customer service kept giving me the runaround. It also isn't "professional" double-entry bookkeeping and can't be audited. Outright can't handle Cost of Goods Sold properly and requires manual workarounds. It can't generate professional reports needed when applying for loans.

Reasons for Switching to Xero

QuickBooks introduced a special product for Etsy integration, but early adopters had problems with data disappearing and no way to recover it. Otherwise, the cost of QuickBooks to cover the same features I use in Xero would have been very expensive; even a QB consultant told me it's overkill for a business of my size. I forget which other products I looked at, but Xero was recommended by several owners of similar businesses.
Warren
  • Industry: Information Technology & Services
  • Company size: 11-50 Employees
  • Used Weekly for 1+ year
  • Review Source
Value for Money
4
Features
5
Ease of Use
4
Customer Support
5

5
Reviewed on 5/1/2023

One of the best account GUIs on the market

The transition from our old accounting software to Xero was very straight forward. This was down to the great GUI provided by Xero.

Pros

The appearance of XERO makes the whole experience faultless. New users are able to quickly adapt to it and know what to do. It's incredibly intuitive. It is a fresh layout and, dare I say, fun to use.

Cons

The support, when required, isn't as great as we used to receive from Sage. I have no major grumbles about them, but they don't come across with the same level of customer service.

Alternatives Considered

QuickBooks Desktop Pro

Reasons for Choosing Xero

Our accountant was using XERO and recommended it to us.

Reasons for Switching to Xero

Mainly because our accountant uses it.
Dana
  • Industry: Computer Software
  • Company size: 2-10 Employees
  • Used Daily for 2+ years
  • Review Source
Value for Money
1
Features
1
Ease of Use
1
Customer Support
1

1
Reviewed on 9/12/2022

It used to be so good

It's been pretty horrible. They have some of the worst customer service I have ever seen with an enterprise software tool.

Pros

Originally, Xero offered a fully cloud-based accounting solutions. Unfortunately, it has completely degraded and can no longer serve basic functions.

Cons

Xero completely stopped integrating with our bank. It has been several months with no sign of a fix and very little communication. Our books are now a complete mess, we are not able to close out the year or file taxes. It will probably cost us a couple thousand dollars to manually do what Xero used to do automatically.

Top Xero Alternatives

karl
  • Industry: Retail
  • Company size: 11-50 Employees
  • Used Daily for 2+ years
  • Review Source
Value for Money
5
Features
4
Ease of Use
5
Customer Support
4

5
Reviewed on 9/11/2022

Great software for SMB

We came to Xero from Sage and has changed the way we manage our accounts, and helped the team be more productive.

Pros

customer service is great, even for an SMB like ours, we get good response times and knowledgeable people. the system is very easy to use and has great functionality for managing our sales and supplier invoices so that we can keep track of our cashflow accurately. Apps library is great and has everything that we need.

Cons

certain functionality around automation and AI is not there but can be added via connected apps.

Alternatives Considered

QuickBooks Desktop Pro and Quickbooks Online

Reasons for Choosing Xero

needed more functionality and fewer manual processes

Reasons for Switching to Xero

Allowed for a more flexible account and functionality was better than other solutions and better connected to other apps and services
Garreth N
  • Industry: Accounting
  • Company size: 11-50 Employees
  • Used Daily for 2+ years
  • Review Source
Value for Money
4
Features
4
Ease of Use
4
Customer Support
3

4
Reviewed on 25/12/2022

Expensive But Good

Overall it has saved time, mostly thru automation of bank accounts and bank rules. As with all software there is some frustration, but Xero are continually improving.

Pros

The software is easy to setup, easy to use, very transparent and well-supported by many accountants. It is designed with the end-user in mind, rather than the accountant. Depending on your package, it allows filing direct with IRD for GST and Payroll.

Cons

There is no phone support, only via a web portal. Some matters are not documented well in any of the Xero-supplied "how to" e.g. best practice for issuing dividends.

Alternatives Considered

MYOB Business

Reasons for Choosing Xero

Accuracy and time.

Switched From

Microsoft Excel

Reasons for Switching to Xero

Easier to use.
Mitesh
  • Industry: Real Estate
  • Company size: 51-200 Employees
  • Used Daily for 2+ years
  • Review Source
Value for Money
5
Features
5
Ease of Use
5
Customer Support
5

5
Reviewed on 14/1/2023

Xero is a dynamic and very productive accounting tool with powerful features.

Xero has been giving us the best experience when it comes to accounting. It gives us a platform loaded with all accounting functionalities that we need to solve our accounting needs in an efficient, secure and convenient way.

Pros

Xero is a fantastic accounting tool that combines all accounting functions into a single platform allowing one to do it all just from a single product. From billing, invoicing, expenses tracking, inventory, bookkeeping, financial reporting and all that from a single product. It provides very powerful analytics functions that helps analyze and have transparency on cash flow, track metrics and understand the financial health of your organization. It provides a fast and easy wat for tracking and paying bills as well as getting a very clear overview of accounts payable. It allows you to connect your account with your bank so as to make transactions faster. It has very effective security functions which keeps all data very safe from any security breaches.

Cons

There is no feature in Xero that i have found difficult to use. I have nothing that i have found in Xero that is not effective.

Rita
  • Industry: Telecommunications
  • Company size: 501-1,000 Employees
  • Used Daily for 2+ years
  • Review Source
Value for Money
5
Features
5
Ease of Use
5
Customer Support
5

5
Reviewed on 14/1/2023

Xero is one accounting product in the making, easy to use yet very powerful.

My overall experience using Xero has been productive and very effective. It makes accounting and bookkeeping such an easy task to achieve giving us the most reliable services for managing our financial activities.

Pros

Xero is an easy to use accounting product which makes it a suitable solution for accounting. It has a very reliable customer support team who are always readily available to offer the users with quality support every time they are needed. It has very powerful accounting functionalities including bookkeeping which helps keep all financial documents well organized and safe, billing and invoicing which makes creating and sending professional invoices easy and fast, financial reporting which helps understand the performance of the organization financially, budgeting and expenses tracking to monitor how your organization is spending so as to maintain the expenses within the budget.

Cons

There is nothing that i do like least about Xero. Am completely contented with all the aspects of this product.

Md mostakin
  • Industry: Computer Networking
  • Company size: 2-10 Employees
  • Used Daily for Free Trial
  • Review Source
Value for Money
5
Features
5
Ease of Use
5
Customer Support
5

5
Reviewed on 22/1/2023

Comprehensive and user-friendly accounting software

For small businesses searching for comprehensive and user-friendly accounting software, Xero is a solid choice overall. The connectivity possibilities are excellent, and it has many functions. They provide a free trial in addition to a fair price. Absolutely worth a look.

Pros

A cloud-based accounting program called Xero is made to make managing finances for small businesses simple. The software is simple to use and straightforward, making it simple to use even for individuals without a background in accounting. The software is feature-rich and has an intuitive interface that makes it simple to track spending, generate invoices, and handle payroll.

Cons

The flexibility of Xero to link with other apps, such banks and payment processors, makes it simple to import transactions and reconcile accounts. This is one of the app's notable features. Users of the program can access their financial information while on the road thanks to a mobile app that is also included.

Dunga Edmond
  • Industry: Mining & Metals
  • Company size: 51-200 Employees
  • Used Weekly for 6-12 months
  • Review Source
Value for Money
5
Features
5
Ease of Use
4
Customer Support
4

4
Reviewed on 9/1/2023

One of the best in the market

Been a joyful ride side switching from the previous system I was using

Pros

Hundreds of third party software integrations Simpler layout and very easy to use,also includes a mobile app.

Cons

The limitations on invoicing when using the entry level plan and it doesn't provide customers with a support phone number for quicker response when you stuck

Rajkumar
  • Industry: Accounting
  • Company size: 11-50 Employees
  • Used Weekly for 6-12 months
  • Review Source
Value for Money
N/A
Features
4
Ease of Use
4
Customer Support
N/A

4
Reviewed on 14/1/2023

Xero Accounting Software Review

Pros

It is very easy to use. It is most effective software to keep bookkeeping properly through their different accounting features. It has better accounting features Like; Payroll, Reconciliation, Payable and receivable so on.

Cons

Report generating is too limited otherwise it is nice to use .

Daniel
  • Industry: Accounting
  • Company size: 2-10 Employees
  • Used Daily for 2+ years
  • Review Source
Value for Money
4
Features
5
Ease of Use
5
Customer Support
4

5
Reviewed on 23/9/2022

Great online software for SMEs

It has been great software that helped many business to grow with up to date, online financial information.

Pros

Xero has been one of the first solutions for cloud bookkeeping and accounting and has successfully competed with the likes of Sage and QuickBooks. It has probably the most other software providers that link directly with Xero over APIs.

Cons

Over the years there were some features that were requested and it took a long time for them to be implemented, also more and more features are additional paid for addons.

Reasons for Choosing Xero

Clients were unhappy with existing software.

Reasons for Switching to Xero

It has the most connections with other apps, links with workpapers among other things.
Chris
  • Industry: Accounting
  • Company size: 2-10 Employees
  • Used Daily for 2+ years
  • Review Source
Value for Money
4
Features
5
Ease of Use
5
Customer Support
3

5
Reviewed on 10/8/2020

A leading software in it's industry

A beautiful piece of software that turns a once tedious chore, into an easy and intuitive process. I always recommend my clients to use Xero (if they can afford to) as I believe it makes the workflow much smoother and simpler for everyone involved.

Pros

As an accountant and bookkeeping business owner I have been using accounting software for well over 10 years. I have to say when Xero entered the market I was definitely curious as to what it could bring to the market. I believe Xero have captured a very nice niche of the industry with it's very business orientated user interface and simplisitic feel. It makes accounting somewhat fun for the business owner. The way that they have revolutionized the way the bank reconciliation is performed makes it easier for buiness owner and accountant/bookkeeper to work together. I love the comments functionality and the rules that can be set to repeating transactions. The AI in the bank reconciliation also has a very nice balance to it. It will allocate your transactions when you need it to, but not too aggressively - meaning you don't have to undo all the automatic allocations (unlike some other software like MYOB).

They also have a lot of resources to help business owners and financial professionals. In addition they make continual updates to their software to adapt to the times.

Cons

I think the biggest con of the software is the price tag. Many of my clients have found this to be a stumbling block, saying that the monthly subscription fee is too high for their business.

Other than the price, the only other con is the support is only via email (this is the last time I had an issue which was a few months ago). They do not have a support contact phone line (in Australia at least) - so response has to be via email (which may lead onto a call later if it cannot be resolved by email). Which takes longer to resolve the issues.

Alternatives Considered

QuickBooks Desktop Enterprise

Reasons for Choosing Xero

Functionality was much better and robust in Xero than in MYOB.

Switched From

MYOB Business

Reasons for Switching to Xero

As mentioned above, I prefer the functionality.
Ibrahim
  • Industry: E-Learning
  • Company size: 11-50 Employees
  • Used Daily for 2+ years
  • Review Source
Value for Money
4
Features
5
Ease of Use
5
Customer Support
4

5
Reviewed on 28/8/2022

Xero is changing the landscape of cloud accounting

My experience with Xero can be described as fulfilling, it has simplified my workflow and saved me a lot of time and effort, I no longer spend long hours at the office. This has also impacted positively on my health. I would recommend this software to everyone.

Pros

“It’s so clean to apply, even for non-financial human beings”

My financial institution transactions are robotically connect to Xero so I don’t have to manually input them myself.

I get my Financial statements the first week after the year end

Another charming issue of this software is that it is a great idea if a corporation is unfolded across a couple of places with personnel operating in various locations. The accountants from every location can get admission to the financial data of all branches at any moment irrespective of their vicinity or time.

As a world main provider of online accounting software program, Xero utilizes world-elegance cloud safety. Your data is appropriately saved in the cloud, and guarded from both Cyber criminals and perils like fire or flood.

Cons

The expenses tracking can be formatted to allow multiply currencies to be easily uploaded in batches or real time.

No integrated ‘Debtor Chasing’ function so companies will have to manually follow up on their unpaid invoices.

Quratulain
  • Industry: Information Technology & Services
  • Company size: 2-10 Employees
  • Used Weekly for 2+ years
  • Review Source
Value for Money
5
Features
5
Ease of Use
5
Customer Support
5

5
Reviewed on 18/2/2021

Best in Multi-currency accounting for SMB

Xero was the best choice back in 2015 (when no one gave multi-currency) and still is in 2021 (when there are some who do).

I have now added another company to Xero and cannot imagine shifting to another platform....ever.

Pros

With most clients abroads, we find its best to bill them in their local currency. Luckily for us, Xero is there to help sort our books out and keep them in order. It integrates with many bank feeds & popular wallets/fintechs like PayPal, Payoneer & TransferWise so accounts are upto date - always.

Another feature we really use is their tracking fields. Xero allows users to setup 2 tracking fields that can be added to invoices, expenses, bills and assigned to each line. This helps us keep track of project based work and has been our way since before Xero ventured into Project based accounting (that users need to pay additional fee for)

It also integrates with online payment gateways such as PayPal, Stripe, GoCardless, and a few others; thus payments are a breeze for clients.

As a non-accountant, Xero is easy to use even when you get into all the features it provides.

Cons

They have made some changes to their UI esp where invoices and expenses are concerned. Luckily for older users, expenses are still free however, for new users it isnt and each person filing expenses on it needs to pay a small fee. I think it should be free for a small number of users (atleast 2) and then charged.

Alternatives Considered

Quickbooks Online

Reasons for Choosing Xero

Freshbooks didnt give Multi-currency and it was causing problems with reporting

Switched From

FreshBooks

Reasons for Switching to Xero

There was no multi-currency in Quickbooks available. Bank feeds were also not there for some of the banks I wanted. For a similar price point Xero offered better features and a product that was easier to use for a non-accountant.
Andrew
  • Industry: Accounting
  • Company size: 2-10 Employees
  • Used Weekly for 1+ year
  • Review Source
Value for Money
5
Features
5
Ease of Use
5
Customer Support
5

5
Reviewed on 16/8/2021

Xero is the One

I am very satisfied to be building my practice on Xero. They have a good product with a good company behind it. They seem to really care about their advisors and see them as key to their business model. They have a great community and great support.

Pros

What I like most about Xero is its open-platform ethos. It's not one particular feature, it's the whole way that Xero approaches what it does, and it shows up all over the product. One small example is how easy it is to manually import bank transactions via CSV file, and then how easy it is to undo that import if it went wrong. It's less about features (although Cash Coding and Find & Recode are brilliant) and more about design choices.

Cons

I want them to hurry up and integrate Hubdoc into Xero itself. And when that happens, I want there to be a way to generate a report that shows which GL transactions don't have a source document.

Alternatives Considered

Accounting Power and Sage 50cloud Accounting

Reasons for Choosing Xero

Quickbooks treats their ProAdvisors the way Scar treats the hyenas in the Lion King. For Quickbooks, the advisor community will always be a means to an end. Their products are built for consumers, not professionals, and I expect they always will be.

Switched From

Quickbooks Online

Reasons for Switching to Xero

In the end, I decided that the ability to integrate apps was going to be determinative over the long term. Xero and QBO are way out in front when it comes to integration and I expect that as the market matures, they will end up with a Coke-and-Pepsi-level of market dominance. They may already be there. Early on, I tried to get someone to sell me Accounting Power and/or Sage 50, but neither company seemed organized enough to close the sale. I was looking for a software partner that I could build my practice on and Xero were the ones who showed me they wanted to be that and had a plan to make it happen.
Sherm
  • Industry: Marketing & Advertising
  • Company size: 2-10 Employees
  • Used Daily for 2+ years
  • Review Source
Value for Money
4
Features
3
Ease of Use
4
Customer Support
5

4
Reviewed on 20/8/2020

XERO reconciliation is an issue

Overall, it's a decent program, with all the bells and whistles you'd expect from a cloud based accounting program. Unfortunately working without being able to reconcile monthly made life too difficult. And not many accountants work with it, so that made it difficult to have professional eyes on my accounting.

Pros

I loved how easy it was to integrate XERO with my bank accounts and Paypal. XERO seamlessly connected and kept my balances up to date. I also liked how easy it was to invoice clients and connect invoices to Paypal or Stripe.

Cons

Unfortunately, the reconciliation process in XERO is a no-go for me. Rather than the Quickbooks and standard approach, where you do a monthly reconciliation against a bank statement, XERO had no such function. Once an item was matched up to a bank transaction, it was considered "reconciled." No option to close out a month and double-check transactions. I went back to QBO to get that feature.

Alternatives Considered

Quickbooks Online

Reasons for Choosing Xero

I wanted better connection with online banks. At the time, XERO performed that better than QB.

Reasons for Switching to Xero

I wanted better connection with online banks. At the time, XERO performed that better than QB. I have since switched to Quickbooks Online.
Iain
  • Industry: Industrial Automation
  • Company size: 2-10 Employees
  • Used Daily for 1+ year
  • Review Source
Value for Money
5
Features
4
Ease of Use
4
Customer Support
4

4
Reviewed on 1/11/2021

Very different to Sage 50

We moved from Sage line 50 to Xero, this has mainly been a positive experience. From our day-to-day usage, sending invoices, chasing debt, bank reconciliation it is very easy to use. Our accountant set up Dext to import receipts and expenses which means we spend much less time with data entry now and we are much more paperless than we were. The key driver for us was to work in a cloud based system that would integrate with other business management systems and Xero kept coming up as the one that plays nicely with lots of other services. Our managment accountant has taken a lot more convincing as the web-based interface can be a little more clumsy in some 'pure-accountancy' areas and getting the chart of accounts nicely presented has taken a bit of effort. Generally we're really happy with Xero and are also happy with the split that the CRM/MRP/ERP system is supported by that vendor leaving the accountancy to the accountancy experts.

Pros

Ease of use from a day-to-day perspective for a non accountant and integration with other cloud software such as Dext and Flowlens

Cons

We have had a couple of glitches where bank feeds have stopped working for periods of time, manual import of bank statements can take a few attempts to get right.

Alternatives Considered

Dynamics 365 Business Central

Reasons for Choosing Xero

Compatibility with CRM/ERP, Cloud system

Switched From

Sage 50cloud Accounting

Reasons for Switching to Xero

Ease of use, Established brand, Integrated Payroll, migration support, ongoing cost
Rowena
  • Industry: Accounting
  • Company size: 2-10 Employees
  • Used Daily for 2+ years
  • Review Source
Value for Money
4
Features
4
Ease of Use
5
Customer Support
4

5
Reviewed on 30/9/2021

It took me a while, but I am a Xero convert!

When I first began using Xero, I had heard a lot about it and was skeptical. Surely, no software could be so "all that"! I was introduced to it by a colleague who has converted the whole of her mid-size accountancy practice to it, and literally within a day and a half (which did include watching some of the short but very clear tutorial videos) I was not only up and running, but felt confident using it, finding my way around it, locating and fixing errors etc. It's literally that simple and straightforward. It's also incredibly stable - I think in 3 years it's only been offline (to my knowledge) 3 times, each for a very short period. I've also not found ANY bugs so far - almost unheard of! - and the support is fantastic, even though it's online.

Pros

Provided it's set up properly, Xero is probably the most friendly accounting software - to non-accountants that is - of any I've ever come across. Back in the 90's, MYOB revolutionised accounting software for small business, but Xero takes it to a whole new level, by removing so much of the data entry work that takes time, leaves room for errors and is in general a pain, when you'd rather be - you know, running your business. With Xero, it's up to the individual operator how much they want to automate their accounting transactions; if you want to, you can use the really powerful, but still simple tools to do a lot of the legwork for you. If you prefer to do it more manually, that's OK too - it's still simple and very quick and easy to use.

Cons

Xero is constantly adding and refining its software. Inventory control is an area I'd like to see strengthened, but that's already way ahead of where it was a couple of years ago. Similarly processing payments in advance. But these are relatively small niggles which for the majority of small businesses don't present any issue.

Alternatives Considered

MYOB Business

Reasons for Choosing Xero

I was contracting to an accountancy firm who had converted their entire practice to Xero.

Switched From

MYOB Business
Rino
  • Industry: Accounting
  • Company size: 201-500 Employees
  • Used Daily for 2+ years
  • Review Source
Value for Money
4
Features
4
Ease of Use
5
Customer Support
4

5
Reviewed on 24/6/2022

Xero - The Cloud Based Software of the future

Fantastic product with fantastic support and really meaningful input from the actual company staff

Pros

Xero's main benefit to us as a mid tier accounting firm is the ease of importing information. It supports multiple bank feeds on a reliable basis and its open API allows for the support of many add in apps

Cons

Being a non-technical software, it does sometimes give the impression of not being as robust in terms of ease of change of prior information. This can be overcome by locking down periods, one just has to remember to do this though.

Alternatives Considered

Sage 50cloud Accounting

Reasons for Choosing Xero

The capital development expenditure and size of Xero simply mean that it is outpacing other software in terms of speed of development, effectively future-proofing our practice.

Switched From

Sage 50cloud Accounting

Reasons for Switching to Xero

The main factors were cost and engagement with the Xero South Africa team
Amanda
  • Industry: Marketing & Advertising
  • Company size: 2-10 Employees
  • Used Daily for 2+ years
  • Review Source
Value for Money
4
Features
4
Ease of Use
4
Customer Support
N/A

4
Reviewed on 21/11/2022

Cumbersome Migration But Overall Highly Satisfied

It's a tool that I anticipate staying with for a very long time. It does everything we need it to! The one thing that is a personal pet peeve of mine is that we're billed extra each month because the company deals in two currencies.

Pros

Since our business model is fairly simple and streamlined, it's a perfect solution for reconciling the books and autogenerating the monthly expense reports. Other small business colleagues wait until the end of the month to see how the company is performing but with Xero, I can run that report at the click of a button at any time.

Cons

Adding new assets to the balance sheet was a cumbersome process and wasn't explained very well within the help documentation. However, now that it's been set up, running the depreciation is a simple click of a button.

William
  • Industry: Accounting
  • Company size: 2-10 Employees
  • Used Daily for 1+ year
  • Review Source
Value for Money
5
Features
3
Ease of Use
5
Customer Support
5

5
Reviewed on 29/8/2016

The best at what it does

Full Disclosure: I am an accountant and I recommend Xero to many of my clients. When the expectations are in alignment with the capabilities of the software, then everyone is happy. People get into trouble with ANY software when they jump in thinking they know what it does and are then disappointed. All accounting and ERP software has limitations and Xero is no exception, but what it does, it does well. It provides payables, receivables, bank reconciliation and general ledger as its core functionality. There is a very capable estimating/quoting/order/ process that ties into AR invoices smoothly. But, the requisition/purchase/inventory side is very, very basic. In fact there are no requisitions and the purchase orders are so limited that I recommend you not use them. The inventory is only what is needed to make the sales side functional. So, if you need strong inventory support, you have to use a third-party add-on designed just for this purpose.

Pros

What is good about Xero are 1) Real-time bank feeds and bank reconciliation - this is what scared the pants off of Intuit and forced them to develop new functionality. 2) Xero fully embraces and enables third-party developers to provide niche solutions that have rich interaction with Xero. 3) The features keep getting better and better quarter after quarter. 4) Perhaps my relationship as a partner skews this, but I've had nothing but excellent support from Xero. I can call someone if I have to, but I almost always get issues resolved through technical support in a timely fashion.

Some of my favorite add-ons for Xero are GeoOp for field services, Deputy which integrates its scheduling, time and attendance functions with Xero payroll, and Float which projects cashflow. The new reporting and the tags are fantastic.

Cons

There are some features I would like to see "sooner," but they are on the roadmap for "later." People jump on Xero because of the price without having a Xero consultant evaluate their suitability for the application - that can create an expectation gap, and that inevitably leads to an unhappy customer. I just hate it when people let their wallet do their thinking for them and then blame the software because it "doesn't do enough."

The payroll is fine. I spoke to the VP in charge of payroll development and he is all about improving the functionality, so it will continue to improve. What is there now is very well designed to be comprehensive and flexible, but there are situations where a third-party payroll like Gusto will make more sense for your organization. They are the first ones to suggest you look at solutions like Gusto, ADP, Paychex and others that integrate seamlessly with Xero.

It is annoying that the tags are limited to two categories, and this won't be revised until they have their design for job costing completed. No word yet on when that will be.

Paul
  • Industry: Accounting
  • Company size: 11-50 Employees
  • Used Daily for 2+ years
  • Review Source
Value for Money
5
Features
5
Ease of Use
5
Customer Support
5

5
Reviewed on 17/5/2017

Xero - Leading the way to making accounting much easier for small businesses

I have been a Xero certified advisor for 8 years and actually returned the accounting profession because of Xero after deciding to leave because I felt the industry didn't understand delivering value to clients. Xero has been a catalyst for increasing the speed of change in the industry towards a value proposition model. Although like any system success with does come down to using it properly and being prepared to spend the time to understand how it works and to make the most of it, but Xero has been built so intuitively and they have

Pros

Great design, intuitive, great support files and videos, invoicing features are very good, being able to add files to transactions is a big time saver, the fact that it is a full accounting system is great in its price range, although for more complex features you may need an add-on application for example full stock management and stock control.

Cons

The way the contacts database has been developed could be improved to make importing and exporting data easier, that has improved recently with the addition of client codes field. Also greater flexibility of controlling features a user can access would be great.

Kristen
  • Used Daily for 1+ year
  • Review Source
Value for Money
5
Features
5
Ease of Use
5
Customer Support
2

5
Reviewed on 10/11/2017

Fantastic! I finally have the tools from Xero to drive my company to its greatest potential.

Understanding the numbers! I'm finally educated about my own business, which sounds ridiculous, but so many business owners are creative dreamers that never look at the numbers. Even ones that are successful don't look at the numbers because they feel like it's not necessary - and that's the biggest lie in the world. It's so easy to share the reports with people at all levels in the company, and I feel a fantastic sense of control with the numbers because of Xero.

Pros

Cloud availability, choice between manual or automatic accounting, incredible reports, easy to print, beautiful, fun to use, don't have to be an accountant to use it, fantastic break-down of categories and overhead vs. cost of goods. Shows great percentages - growth overall, percentage of sales per category and percentage of expenses per category - easy to understand the nuts and bolts of your business with Xero and make quick changes to your business model when a problem arises.

Cons

Balance sheet leaves much to be desired - harder to figure out than the rest of the software and difficult to understand in conjunction with the profit and loss. It's not possible to see a comprehensive financial picture - perhaps what makes it so great for non-accountants is its simplicity makes it hard at times to get into the nitty gritty. The billing aspect of Xero is atrocious, just really, really bad. Invoices on "repeat" stay in a strange ticker until you command them to be sent, it creates a lot of problems. Definitely have a separate billing software if you use Xero, especially if your clients are on subscriptions. I wish it integrated better with a growth planning tool - integrates with CRMs fine but doesn't help you look into the next couple of years, or present a future picture to investors.

Becky
  • Industry: Marketing & Advertising
  • Company size: 2-10 Employees
  • Used Weekly for 2+ years
  • Review Source
Value for Money
4
Features
4
Ease of Use
4
Customer Support
N/A

5
Reviewed on 26/1/2019

Xero is an easy and economical replacement for Quickbooks

I spent quite a bit of time on the phone with the Xero sales rep when determining if I would switch from Quickbooks for Mac (because they decided to no longer support the version I was using). I was trying to decide between Quickbooks Online and Xero and in the end, Xero won.

Their price point was spot on and they offered the features I needed without being overly complicated or fancy (I am not an accountant and do not enjoy the bookkeeping / accounting aspect of my business). Xero makes it easy to manage my cashflow, expenses and revenue quickly and easily.

Pros

Xero offered a payroll option that was not expensive and easy to use. That combined with the ease of use and the cloud-based accounting is why Xero is my go to choice for small business accounting / bookkeeping.

Being able to connect your bank account with Xero and import transactions makes it much easier to keep your books up to date. I used to wait all month before entering my transactions into my checking account and it became a big pain in the butt. This is so much easier!

Cons

The fact that you cannot have more than one business in your Xero account is a real bummer. I happen to have more than one business but I'm not willing to buy a subscription for each business. I use one for my most active business for now.

Also, if you don't have payroll for awhile, you are no longer able to submit your tax forms as they are not generated, even though I still need to submit them to the taxing authority.

There is also a headache when it comes to adding in credit card processing fees to invoices for accurate cash accounting. It's awesome that Stripe is integrated and payments are automatically marked to their appropriate invoice, but to get the fee out of the invoice I have to delete the payment, edit the invoice to include the fee amount, and then add the payment back in.

Sam
  • Industry: Industrial Automation
  • Company size: 51-200 Employees
  • Used Weekly for 2+ years
  • Review Source
Value for Money
5
Features
3
Ease of Use
5
Customer Support
3

4
Reviewed on 20/9/2022

So good for so much, but useless for the rest

It was easy to set up and to configure things, it's cheap, but as soon as you are outside it's core functionality there is no help and usually no work arounds. It's designed for small or simple businesses. For us, we just about make it through, but in hindsight there may have been a better fit.

Pros

Xero is a very visually pleasing software, especially for Accounting software. It's easy to use (in general) and it definitely has a strong set of core features (invoicing, billing, etc.). The ease of setting up online payments and creating custom document templates is great. It integrates well with our ERP (Unleashed).

Cons

As soon as you step outside or to the edges of Xero competence there is nothing to help. I wasn't fully aware when we bought it, but Xero is really aimed at very small or very simple businesses. For instance, we deal with many customers who want invoices sent to one address and statements sent to another address, Xero can only handle one email per customer (I guess that's why they call them "Contacts"). As soon as you have an issue like this there is no response from Xero on the forums, despite lots of support/comments.

Alternatives Considered

Quickbooks Online

Reasons for Choosing Xero

Exchequer was very outdated, very expensive to update, and we needed a SaaS solution.
2,469 reviews