Reviewed on 03/11/2019
Absolutely love Xero
Comments: Xero has allowed us to get a real, detailed view on the financial situation within our company from one place. With a comprehensive setup, it can provide real value from day one.
Pros: Xero has transformed our financial management and provides us with all the real time data we could imagine, and where it lacks, integrations take over. While more "accountancy" friendly than some of the more simple products, once you work with your accountants to get this right, you won't regret it. The detail, features and holistic approach to managing company finances means that we are using this every day and with pleasure.
Cons: The interface is being updated, and it is needed as it is a little old fashioned in its design. That said, it is clean and clear and otherwise we love everything about Xero.
Reviewed on 15/09/2019
Super Simple Accounting Software for Small to Medium Sized Businesses
Comments: As a small business our main priority is to keep our monthly book keeping tasks simple and quick. Since moving to Xero from MYOB we have found a significant reduction in our book keeping time input. We are NOT accountants or book keeping experts and Xero as an accounting system has definitely made this part of our business much more efficient. We are guided by our accountant as how best to use the software and have been able to develop a simple client - accountant relationship with Xero being the main conduit of information between us.
Pros: As a small business we found Xero to be a simple and very cost effective solution for all our accounting - book keeping needs. Xero is very easy to set up with your accountant and reduces the time you need to spend on book keeping tasks each month. With automatic bank feeds the time we need to reconcile our accounts each month is minimal. The audit trail features mean any issues that arise can be quickly found and fixed. Being able to notate any transactions enables our accountant to quickly respond to our queries. As a small business keeping our external accountant costs down is very important to us and by using Xero means the time our accountant has to actually spend on our accounts is less and therefore so are the invoices we receive from him!
Cons: Some of the automatic accounts Xero suggests you reconcile to are not correct so it is important to double check each transaction before reconciling. We had issues setting up some of the automatic bank feeds and still have one bank account that will not process the feeds so we need to enter those transactions manually. When uploading a file of transactions we also had some issues and found it quicker just to manually enter them into the software.
Reviewed on 26/08/2019
Affordable professional level accounting software for small business
Comments: 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.
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
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
Reviewed on 04/03/2019
Xero makes reconciling fun
I use Xero in two roles in my life, one as an employee and the other for the accounting software for my husband's business.
In my work New Zealand schools use this software as it is relatively easy to learn, quite intuitive and uses cloud accounting, enables document uploads for accountants to view etc. Once well set up it is also fast to use on a day to day basis.
At home I assist my husband to reconcile our business transactions for our accountant. We don't have to go in to the accountant's office or email invoices etc as we can upload them to Xero for him to see. You can set up the dashboard to get an overall view of your business and how much money is owed to you, and bills you owe, how you are tracking month to month, and the balances of your accounts you have linked to Xero.
I like the ease of reconciling because once you get set up and code a few items it remembers them for next time for a faster job (you still have to check them to see if they are correct first).
I find it fun and satisfying to reconcile in Xero as it is quite visual, you see several lines waiting to be reconciled and then as you work through the transactions, coding them and clicking on the middle button, they disappear. Setting up bank rules is also a huge benefit, as they get coded automatically, ready for you to just hit the green 'ok' button. You can use this for your usual bills for example, electricity bill, local cafe, cell phone bill, internet charges. Although it does take time to set bank rules up to make sure all details are accurate, it saves time in the long run.
I like the fact that customers can upload documents into the files section of Xero and their accountant can see these documents immediately to work on them or code them.
I also like the search function as you can search for a particular number, or the first few letters of a name or business to find relevant transactions.
Being able to generate invoices and email them direct from Xero is great as it saves time.
It is not the software's fault exactly, but because reconciling is so easy there is a temptation to accept what Xero suggests for a transaction and reconcile to this account, instead of pausing and really checking if the code is the best one.
Xero is first and foremost a business accounting software, so the reports it can generate may not be exactly what other users of the software need, like schools for example, who may need a Xero add-on to get what they most need in regards to reports.
Reviewed on 15/08/2018
Xero truly puts powerful data in the hands of small business owners
Pros: I have been using Xero for a good number of years now and can only recommend it! The usability is fantastic, the ability to see really clearly how the accounts work is groundbreaking in its field. I love the bank reconciliation and the bank feeds. The automation of data is actually fun and linking it into the add-ons can make life a lot easier and save time and money. It is a great way to keep things simple and clear. I love the advisor features, that you can't break it (although you can make a real mess if not careful). For me the biggest benefit is the clarity of the data and the ability to drill down into virtually anything. Don't use Xero in super complex scenarios and I would recommend that you employ a proper XERO accountant - who actually knows how to use Xero and uses the data when using it though or you will end up paying twice - once for entering the data to xero - and again when the accountant pulls it out into their own software. Overall I would absolutely recommend Xero for people who are more serious than working in spreadsheets but who are turning over £50k-£3m+ with a fairly simple process.
We have found that Xero does not work well in all scenarios but there are work arounds - the bigger the business and the more complex the processes the less it suits but then if you are bigger/more complex you should arguably be using something else!
Support is not awesome! It can take time and you are often met with unhelpful suggestions. There has been an increased number of 'blips' in the software in more recent months and the support has been almost useless in those cases and I have had to find workarounds. Conversation/instant message support should surely be on the cards?
Another thing that I don't like is the highly evangelical nature of the conferences! It borders on the cultish and if you are not 'in' then you are definitely 'out'! I have not found there to be any benefit to being on the 'directory' for that same reason.
Reviewed on 04/04/2018
Great, intuitive and easy to use bookkeeping software, lacking for accountants, NO customer services
Comments: It is so easy to use but support has to come from Accountants who are not customer service or techies and who are not adequately compensated for their efforts. It is enjoyable to use and definitely does the basics very well.
Pros: For bookkeeping, small and medium-sized businesses this software is a dream. It is the most intuitive and easiest to use of all the accounting software that we reviewed. As an accountant, it is easy to fix user errors and mis-postings. There is a proper audit trail and safety checks built in. There are so many time-saving features like find and recode, repeating bills/invoices/journals, bank rules. The move toward AI is exciting too.
Cons: The reports aren't GAP or IAS compliant so it is no good for reporting, final accounts production or tax. To get accountants interested and recommending Xero in the early days, they promised accountants that Final Accounts Production and Corporation Tax software was in their development queue but it never materialised and they burnt a lot of bridges with accountants when they announced that they had dropped FAP plans. This is why Quickbooks are getting such a big foothold and stealing market share from Xero. The software is expensive for what it is and you can get a lot more and better for your money with FreeAgent and QuickBooks. The biggest let down for Xero is that there is no telephone support, at all. Not even call back. You have to email and if you are on the opposite side of the world from New Zealand, it can take a full day to get an inital response and if there is any misunderstanding or info required, it can take days to get your problem resolved. This is really useless and a deal breaker for serious businesses. Another major failing in Xero is the number of times that the Bank Feed just doesn't work. This is outwith Xero's control and so it can often take months to resolve. This is amateur and best and negligent at worst.
Reviewed on 17/05/2017
Xero - Leading the way to making accounting much easier for small businesses
Comments: 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.
Reviewed on 29/08/2016
The best at what it does
Comments: 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.
Reviewed on 10/11/2017
Fantastic! I finally have the tools from Xero to drive my company to its greatest potential.
Comments: 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.
Reviewed on 25/07/2019
One stop Accounting solutions for Small to Medium organisations.
- Brilliant design and straight forward full accounting system yet detailed enough to allow user to create management reports.
- It allows direct bank feed letting the book-keepers not to worry about importing bank statements and processing detailed bank reconciliations.
- It also integrates with third party softwares to import direct feed which helps automation possible helps save time.
- It also offers partner programs for external book-keepers and accountants to work on different client books which is a new features other softwares have failed to offer.
- Great price.
- Payroll function is capable to deal with straight forward payroll matters. when dealing with complex calculation, Xero seems limited in its functionality.
- The tracking categories are limited to only two lists. It would have been great if it would have had an option to increase the number of categories to suit individual need.
Reviewed on 12/10/2019
Good Accounting Software, but lack decent reporting and live chat support
Comments: We switched from QBO to Xero due to several issues with QBO. However, the migration to Xero is clunky as you have to use a middleman called MoveMyBooks - Xero will pay for up to 2 years books to be moved but any more you must pay. But, things like Employees, Payroll, Expenses etc will not be migrated so you end up spending weeks manually (Yes, Manually) created Expenses yourself all over again in Xero. Very painful and cost my business thousands for false advertising a simple switch,
Pros: Easy to use, easy to input data and there's often little popup boxes to explain what elements are. It's cloud managed, so no need to download any software or store anything locally.
Cons: Support is a bit, there isn't a live chat support like there is with competitors and it lacks the aesthetics of products like Quicbooks and the same level of reports.
Reviewed on 26/01/2019
Xero is an easy and economical replacement for Quickbooks
Comments: 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.
Reviewed on 13/09/2018
Xero or MYOB?
Xero & MYOB. I love them both - for different reasons. If you're a MYOB lover, do not be afraid of the transition. Simply view Xero as different and you'll be fine. Don't expect to find things in the same dropdown tabs - as it's a different set-up. Once you're familiar, you'll love the ease of use.
Very user friendly, not overcrowded on your pages with too much writing, easy to see information (card files for clients) all on one page - very easy to read and find the information you're after.
Give Xero a try - I know you won't be disappointed.
Love the ease of access. We have a team based in Australia, India, & South America - so the online platform is brilliant.
As a previous MYOB user (& lover of MYOB), I was surprised with the ease of transition from MYOB to Xero.
I also really enjoy how easy it is to link client card files noting the company directors, primary contacts, banking details etc. Very easy to view all the information in one place! Love being able to send the BAS' from Xero as well with a click of the button, and being able to modify & tweak great templates is a MUST.
One thing that is very challenging, is if the Xero team are not getting back to you as promptly as you need, there is NO phone number to talk to someone. This (for the accounting industry) can be a big let down at times. Normally, the Customer Help is very prompt.
Still trying to find an adequate solution so that if I upload a file in my XPM, the rest of my team can view these files. Despite trying and following Xero's suggestions, my team members are still not able to view the documents I've uploaded. We'll get there in the end I'm sure.
Reviewed on 05/05/2018
I used Xero for reviewing clients' invoices and checking our collectibles.
Brent lionel M.
Pros: I used to be the marketing and accounts assistant for Expert360, and use Xero together with our accountant based on Pakistan. Xero makes it easy for us to send an invoice to our corporate, medium and small business clients. It allows us to view the overdue invoices, which enables us to follow-up on those payables. We were able to see the money that we had collected and the money that still needs to be collected. It also allowed us to track the payables to our consultants. Over all, Xero is an easy-to-use accounting software. It's user-friendly functions and features allows you to instantly view the cash flow of your business.
Cons: One thing that I noticed on the platform is it doesn't allow to create multiple entries from one company. Like we have client A and they have lots of projects with us. We wanted to create like client A1, A2, A3 in the contacts info so that we know who's the one in-charge for each project. But our accountant told us that it would appear in the invoice as client A1, A2, and A3 in the invoice instead of just client A only. He said it would create confusion on the person in-charge for the payments since it's not their usual company name. We contacted Xero about that and they said they will work on the feature and hopefully it will be added in the future. Where you can entire Client A with someone as the contact person and Client A with someone as the contact person. The last time I know you can really just create one contact entry for each client.
Reviewed on 19/07/2018
Overall great. Recently, shocking!
Pros: Overall, it's a good product. Easy to use. Simple UI though quite dated. It does everything we need it to plus more.
Cons: Until recently, there wasn't much I didn't like. I probably couldn't name anything, apart from the somewhat dated UI - but that's a stretch. Recently however, Xero have taken a core feature (Expenses) and starting selling it as an add-on, on top of the monthly subscription fee. Expenses as you may know, and would expect, is 'included' in the monthly subscription and formed part of the core software. There was no additional charge. They've recently updated the Expenses feature (which they should be doing anyway) and now believe that because they've updated it, that warrants it being pulled from core and sold separately as an add-on. As a current subscriber, I signed up for the all inclusive package. Having features ripped from the core package and charged for in addtion to the monthly subscription is not on. Especially when no discount or reduction of the monthly subscription cost was offered. As a SaaS provider, any and all future updates, regardless of how big or small they are, should form part of the monthly subscription. Choosing an accounting package is a big decision and once you're committed, it's difficult and often costly to change. With Xero now employing this kind of model, I'd caution anyone considering Xero to think again, think hard. Today it's Expenses, tomorrow it could be something else. These disgusting tactics employed by Xero are unacceptable.
Reviewed on 06/09/2019
Best for MultiCurrency Needs
Pros: I love how easily it helps me keep my accounts in order. I've done some complex book keeping / accounting for one firm as well as some extremely simple work for another with this. It works well with both. Their support is really great. They reply quickly and have some great documentation as well.
Cons: They have started some spin-offs from their product at a per user license fee. I think this way it can quickly become costly for some new users. Luckily i've been using this for over 5 years now, hence I don't come under such restrictions.
Reviewed on 19/07/2015
Overall great, but one flaw to be vary of
Comments: I have been using Xero for a couple of years now and am very happy with it. I was with MYOB but had a bad experience when they upgraded their systems to include cloud computing. I have had a look at their new systems, and while they are much improved and worth exploring for someone starting from scratch, I will still stick with Xero.
Pros: My accountants use it extensively so it makes my work and their work integrate so easily which ultimately saves money. Reconciliation is a very labour intensive exercise and Xero cuts a huge amount of time out of this process. On its own it is quite cheap too. I have an expensive plugin (Tradegecko), but the functionality of that pays for itself. Xero creates the framework of my entire business system.
Cons: If you have a business where you have a large number of transactions coming in for the same value, e.g. if you have magazine subscriptions all for $5 a month each then Xero is not a good option, at all. I did have this problem and it was a total pain. I have corresponded extensively with Xero on this issue and they do not see it as a priority and have said directly that they have no intentions on making improvements. This surprises me as their customer service is generally quite good. There is quite a large thread on the support forums on this topic. If this is a potential issue for you then here is my advice. Set up a trial account with Xero and MYOB and test both for this important reconciliation feature. If you know what you are doing it shouldn't take too long (or ask someone who knows what they are doing). These systems change and evolve so quickly that by the time you read this review one of them might have improved their system. MYOB has been beaten badly by Xero in the past few years but from what I have seen (I recently exhibited next to them at a show) they have come a long way since I stopped using their system.
Reviewed on 23/05/2019
the best accountant of the clouds do not fail you.
Comments: Xero is a software that meets my expectations and needs since it is easy to use, configure and can encode some elements such as search functions to locate some particular numbers, business or relevant transactions and multiple key features such as the panel that is can customize and presents a beautiful user interface with graphics for bank accounts has a unique billing template and can be customized and you can easily create quotes and even turn them into purchase order invoices, Xero is a competent accounting management system that works according to the rules and priorities of my company.
Pros: xero is a rosbusta accounting software with complex functions also has the mobility and the modern interface of unlimited users one as employee and others for the software of comtabilidad in our businesses and is relatively easy to use and learn enough you can see documents Once they are properly configured allows us to see and consilir our transsations without having to go to the office of the comtable or be or sending mailing or bills as they can be loaded into the system of xero as well can be configured the part of contror to obtain A general overview of your business can also be functional for medium and large companies since they are well developed and offer you a solid and comprehensive functions.
Cons: I like this software from xero but lately the customer service has been noticed down and in some of the plans the cost is too high for some companies peueñas.
Reviewed on 08/12/2018
A great option
As a firm we switched to xero almost a year ago, and it transformed the way we approach accounting services for clients - for the better.
Our own internal accounting became a lot easier and smoother, with the greater collaboration that we needed.
But it also changed our clients that we switched over to xero, from other cloud accounting software or traditional desktop software
There isn’t a lot of cloud accounting software today that can handle the more complex businesses as well as xero.
The automatic bank feeds (they are adding new direct bank feeds constantly),
the integrations with over 700 third party applications
Automatic invoice reminders
Ability to do flexible budgeting and forecasting in xero and report on it
Tracking Categories and reporting on a Category is super easy
Fixed asset register is included and easy depreciation allocation
Unlimted users (great basic permissions - more flexibility lacking)
There is constant updates and upgrades with a solid product improvement pipeline
Would love a third tracking category
It doesn’t have a delivery note option (although through a complex process you can create one)
Customer statements doesn’t include the standard days outstanding buckets as expected, e.g. debt due currently, 30 day, 60 days etc
Customer prepayments doesn’t appear as credits/negative balances on statements - very confusing to customers
You can’t delete a contact once created (very easy to create a contact), only archive
Would have loved for finance lease (amortisation table) reporting to be set automatically
Reviewed on 07/03/2018
This has revolutionized our bookkeeping and reduced our accounting fees.
Comments: Save time, greater control over my business, fewer errors, save money, more visibility of overall financial health of business. Allows me to work remotely.
Pros: I have no bookkeeping background and was able to easily learn how to use Xero. My business partner and I can login from anywhere in the world and get an up to date picture of our finances, pay invoices, review reports, check profitability and more. Our year end process is much faster and streamlined and we feel like we have much more control over our business. We have integrated data from our POS system (Touch Bistro) using the Shogo Integration tool and allows us to track sales by category alongside costs. We have also integrated Payment Evolution with Xero so we can run payroll and make EFT payments to suppliers directly. Invoices are closed out automatically and remittance notices provided saving time, money and keeping our suppliers happy.
Cons: Some of the reporting features don't show the information that I need - for example the sales tax report. I also find it frustrating that I can't integrate my online banking with Xero - we use a credit union so this might be the bank's issue. Some of the navigation is not great. For example the search feature can be a little fussy and when you complete an action you don't get returned to the page you left.
Reviewed on 05/12/2016
Xero is awesome, albeit expensive when running multiple entities
We've moved from another software 4 years ago and have not looked back. Bank feed setup is easy, recon is a
breeze. There are lots of add-ons which can assist with specific needs and there are tons of integrations with sales force and other big guns.
The only issues I see is pricing. If you run multiple entities (i.e. for service companies or trusts) the subscription cost adds up quickly. This is because the most basic plan is essentially useless (5 bank transactions a month... if that's all you need, you don't run a business). Compared to emerging competitors pricing is very high.
Another issue, if you rely on it, is email support only. While responses come back within 1 to 3 days, players like Intuit have live chat support, which is amazing at their price point.
All in all, Xero is a solid solution for us though and while we've moved some (nonpayroll) entities off it and onto QuickBooks, it remains our accounting mainstay for the core operations entity. Hope this helps.
easy to use
ticks all boxes for SME accounting
price, in particular, once you need multiple add-ons
email support only
slow load times (this should be fixed once they moved from Rackspace to AWS apparently)
Reviewed on 09/01/2018
Perfect replacement for Quickbooks - Highly Recommended
I've used Intuit Quickbooks since 1995. I used to upgrade it about every 10 years, and eventually went with a monthly subscription to take advantage of upgraded features, notably auto-connecting with my online bank accounts. Unfortunately, QB would not connect with Paypal so I decided to abandon it.
I searched for a replacement, checked out FreshBooks (which really isn't an accounting program, it's just an invoicing program -- sort of useless) and came upon Xero. I signed up for a free demo account and really liked it particularly because it connects to my bank and Paypal seamlessly. I like it for its reporting, and easy to get at everything that I need. I run a marketing agency and it's just about a perfect fit. Easy email-invoicing, with easy connections to online payments through Paypal (Quickbooks tries to force you to use their merchant account). I set up my clients one at a time as I invoice them each month, email the invoice (with a PDF attachment) with a link to pay with a card, and the software tracks the payment and credits the client's account immediately.
Cons: One of the downsides of using XERO vs Quickbooks is that finding accountants that can handle the files is relatively rare. And I'm wondering if it will connect with tax prep software with no problems. (That was ONE saving grace of Quickbooks is that it would import your financials into their tax prep program).
Reviewed on 17/08/2018
Complete true accounting online
Comments: Prior to Xero I was using a PC-based app. It lacked any connectivity and all data had to be manually imported and exported. I needed to automate as much of my day-to-day business operations as possible, and Xero was a big part of that. It integrates with my CRM and time-tracking app, and takes in my online payment processing. Reconciliation takes a minute or two every couple of days. It has enabled me to reduce my after-hours office time significantly.
Pros: Xero is a new-generation online accounting app built from the ground up for online usage. The interface is mostly intuitive and easy to navigate. The underlying framework is true double-entry accounting with all the power that provides, but you don't have to go there to get daily work done, as a rule. There is a vast array of integrations available to add leverage to your company dataflow. Support is good and rarely needed. The app is very well documented and supplies detailed help articles for most operations.
Cons: The pricing is not bad but I feel it is a little high for a one-person business. They offer a time-tracking add-on but it is an additional 50% of the app cost per month, and this is a feature many competitors throw in for free. Like all web-based apps, your enjoyment in using it will depend in part on the quality of your internet connection.
Reviewed on 28/01/2019
Good software, terrible support and company
Comments: General use of the software is good. The company and technical support made me consider going back to Quickbooks online. Instead I switched to Freshbooks. Great technical support. They answer within 4 rings. Very knowledgeable and patient. 10 out of 10 for support.
Pros: I previously used quickbooks pro, but found their product too expensive and the support was also not very good. I switched to Xero, because of the price and the quality of the software
Cons: Support is only via email. They initially respond within the promised time frame, but 9/10 times the answer is not relevant to the question asked. It's like they don't read the question, or the initial techs are inexperienced. So after wait on average 4 hours for a response, you have to wait long for a reply to any subsequent answer, which is 9/10 times not relevant to the question. So, in my experience you have little if no support for the software. Then, mid year they suddenly drop their payroll feature off their software and announce you can run your payroll through this other company. Wonderful. Suddenly the total cost of accounting has now doubled because Xero didn't decrease their price and it now costs the same amount again to run payroll. A company that does this in my opinion does not show much integrity.
Reviewed on 22/11/2018
One of the absolute cutting edge, super-easy on the eyes, full function bookkeeping apps
Accounting and bookkeeping are my business, so being able to demo such an aesthetically pleasant app that integrates so well is a real boon. Clients take immediately to the UI and we've genuinely had a 90% on-board rate with Xero. We've tried other Apps, but we won't be working with any other software. There's really there's nothing out there we'd rather recommend.
I have found their CS to be first rate, (despite my Account Manager statement), and this end of any accounting SAAS is absolutely vital.
Xero has set the standard for over a decade and it's a testimony to their Devs that they're growing steadily despite their giant competition.
Smooth-running and numerous integrations with other essential business management apps
Reasonably priced for small business
Has integrated inventory and billing through PayPal and Stripe
Cons: I'm a very loyal user and my company has grown up shoulder-to-shoulder with Xero's growth. There's very few wrinkles from an accountant's POV. I find startup clients sometimes get confused with the "Easy-to-Use-And-Setup" spiel - it certainly is for a bookkeeper familiar with the app! In general, the dashboard apps in this industry can belie their many-layered nature.