Accounting online with Xero will protect your data through multiple layers of security, such as encryption. If you’re looking for an accountant who specializes in Xero, you can search for an accounting advisor through their website by location and industry. Use Xero to work with your employees, bookkeeper, or accountant online, even if you’re on opposite sides of the world. Support is provided through Xero’s standard channels, including email and an extensive knowledge base. Makes it incredibly easy to share data across the org and since the query is visible it is always clear what the source of truth is. It limits breakage and enables fast automation of regular analyses.

Who Uses Xero Accounting Software?

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. Unlimited users and advanced features make this cloud accounting software platform a good fit for many small businesses. However, Wave’s features are more limited than many competitors in order to keep the price low, so it may not suffice for growing businesses.

New Xero data shows signs that sales decline is stabilizing for US small businesses

It also integrates with over a thousand apps, meaning if you can’t find a native feature you need, you can likely add it on. The included mobile app is great for checking accounting reports or invoices on the go. And with time tracking as an option on higher plans, you can easily keep records of time spent on tasks. We like Xero for businesses with lots of employees, as they can take advantage of the unlimited number of collaborators. The Xero Accounting app is an additional way for your small business to access key features of Xero.

Best Free Accounting Software for Small Businesses of 2024

Xero’s pricing structure is an excellent fit for growing businesses. Unlike many competitors, Xero’s pricing and plans are based on features instead of user numbers. In fact, all of Xero’s plans support unlimited users, which is great for expanding businesses. Xero also integrates with over 1,000 third-party business apps – among the most depreciated cost: definition calculation formula example integrations of any accounting software package we reviewed. As a business moves into higher-growth phases, it will likely require more integrations to scale up and keep things running smoothly. The Xero Accounting mobile app works in tandem with the Xero accounting software so you can run your small business online from anywhere.

Xero can be easier to use for beginners, as it has a user-friendly layout. Work smarter and faster online with business clients if they’re using Xero. Request, store and manage accounting working papers and workflows; plus receive and respond to queries. Easily share access and collaborate with your team, your clients, and with Xero support. See the big picture faster with all your tools in one place and your client data in a single database.

Invoices & Estimates

Xero, on the other hand, offers unlimited users for all plans. This can be helpful if your company is growing fast, or you simply want the reassurance that there’s no limit to how many people can be part of the team. The other appeal of the software was that each plan came with unlimited users, access to every Xero feature, and payroll.

While it claims it has 24/7 online support, what it really means is that it has an online community you can ask questions in. If you need to speak with a person, you can only do so between 9 a.m. Just a few minutes a week spent approving pre-matched items ensures your data is up to date. As Xero is connected to your bank, transactions are pulled through automatically. Xero remembers the last time you categorised a transaction, so you can simply click ‘OK’ if you want it to go to the same category. Nailing down your terms of payment can help you to improve your cash flow.

A shrinking in sales declines indicates improvement may be on the horizon. Fathom focuses on providing clear, actionable insights through its reporting and analysis tools. We’ll explore their strengths, weaknesses, and how they can elevate your financial reporting game.

1. The number of users is also technically unlimited, but FreshBooks does charge an extra fee of $11 per user per month.
2. Sage’s accounts payable features are good, as they show you your current cash in, cash out and balance totals.
3. Xero and Sage’s main selling point is their intuitive invoicing systems.

FreshBooks offers unlimited time-tracking in its lowest-tier Lite plan, whereas Xero users would have to opt into the highest-tier Established plan for that feature. In the Early plan, the least expensive subscription, you can send up to 20 invoices and schedule up to five bill payments only. That can be limiting, even for freelancers and sole proprietors. For unlimited invoicing and bill-paying capacity, you’ll need to upgrade to the Growing plan. Xero lets new customers sign up for a 30-day free trial to test out its features. You can add Gusto payroll to any plan for an extra $40 per month, plus $6 per month per person.

The number of users is also technically unlimited, but FreshBooks does charge an extra fee of $11 per user per month. In contrast to allowing unlimited users, Xero does limit you to one organization or business per subscription. In other words, if you need to do accounting for more than one business, you’ll need to purchase an account for each one. This is a real drawback for owners of multiple businesses or bookkeepers who work with multiple clients. In the battle of Xero vs. Sage, both come out on top for different uses. We prefer Sage for very small businesses or freelancers that need help tracking their clients and invoices.

Its lower-tiered plans require users to pay for their own plan. They keep the language simple which is great for users who don’t know accounting terminology. 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.

All of Xero’s plans come with inventory management so business owners can track what’s in stock and which products are selling. After your free trial ends, you can choose the plan that best suits your needs. If you need payroll, you can add Gusto’s cloud-based payroll software to any of the plans. If you purchase either the Growing or Established plan, you can add Xero’s inventory management system for an additional $39/month. The Established plan is best for businesses that have been around for a while or companies that do business internationally. With this plan businesses can pay and get paid in multiple currencies, track projects, claim expenses, and access customized analytics and predictions.

The quote form includes multiple fields, enabling you to provide a thorough description of everything your estimate entails. Xero makes it easy to create estimates by breaking down jobs into billable chunks and attaching written details, images, or documents (such as legal agreements) to the quote. Plans are affordable, starting at $13 per month, but no free plan. Includes tools that help automate the reconciliation process, along with a global search function; has a simple layout and a customizable dashboard.

Sage 50 Accounting’s Cash Flow Manager tool is a helpful feature for people who want to better understand how future transactions could impact their business. The tool also lets you adjust the time frame to see how your business has changed over time. You can also scroll through Xero’s default chart of accounts and customize it as needed, or import an already existing chart of accounts. If you have a list of customers and suppliers, you can import that, too. When reconciling books, Xero suggests likely matches between bank statement lines and transactions entered in the software. For example, if you have an entry for an invoice of $1,000 and a recent $1,000 deposit in your bank account, it might suggest matching these two transactions.

Due to its scalability and cost-effectiveness, Xero is a great choice for growing businesses. Because it supports unlimited users, it facilitates employee collaboration and allows them to quickly submit expenses and send invoices. Xero also grows with your company, integrating with your email, customer relationship management (CRM), or point-of-sale platforms to help streamline operations even further. Other affordable, easy-to-use accounting software such as QuickBooks Online and Freshbooks have limits on the amount of users they support or charge extra for additional users. Xero supports unlimited users, which is great for businesses that have multiple team members who need to access their accounting information. FreshBooks starts at $19 per month after the signup discount and incorporates standout features like team roles and time tracking on all plans.

Saves me so much time to focus on real issues instead of manually updating sheets. With online invoice payments through Stripe and GoCardless, you can accept payments by card or direct debit. Hi Taylored Books – thanks for your feedback and explaining how the app is adding value to your business. Regarding app 4 solutions to business cash flow problems stability – we are constantly monitoring and addressing performance issues to ensure our customers get the best mobile experience with Xero. Integrates with more than 750 apps and offers live, in-house bookkeeping add-on. Entry-level plan limits bills and invoices to five and 20 per month, respectively.

Getting started is the most difficult part, and it’s this learning curve that lowered our ease of use rating to 3.8/5. Once you’ve got your bank information in Xero, the software will help you match up your transactions for reconciliation (Figure B). Keep in mind is it canceled or cancelled that bulk reconciliation is not included with the cheapest Early plan, so you might have to pay to upgrade if you want this feature. I wish it was included in all plans, because manually reconciling one transaction at a time is very tedious for many businesses.

We recommend working with an accountant or bookkeeper, preferably one with Xero experience, when you make the move to Xero online accounting software. With your accounting software and data stored online in the cloud, you can access your up-to-date accounts anywhere there’s an internet connection. Your Xero data is backed up regularly and protected with multiple layers of security. If you can’t justify the $90-per-month QuickBooks Online Plus plan, you won’t get inventory management, because QuickBooks Online’s lower-tier plans don’t come with it. This could be a real shortcoming for small online retail businesses, for instance, that need to keep track of their products and the materials used to make them.