About Xero
Beautiful cloud-hosted online accounting software for small businesses. Accessible anytime, anywhere.
Integrates well with adds on to provide more sophisticated reporting. Integration with AI products such as ReceiptBank and Approval Donkey also work well.
1099 reports are too limited. Tracking categories are too limited.
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Filter reviews (2,554)

Sara
Xero is great since it simplifies the accounting reporting process
Comments: The ability to keep tabs on 1099 forms and information on subcontractors is a great addition. With many permission tiers, an online accounting software is a great asset. It's incredibly straightforward to switch jobs. The time-tracking features are fantastic. Because of its user-friendliness and simplicity, Xero is a breeze to train new employees on.
Pros:
That Xero streamlines the process of generating financial reports like P&Ls and balance sheets is a major plus in my book. Cash flow can be monitored and controlled with little effort. This application is helpful since it makes it simple to keep tabs on and organize spending. Xero appears to make the task of reconciling bank accounts much less complicated.
Cons:
The use of tracking categories is a necessary evil in the projects module. It would be great if the projects section was integrated with other apps, such as Expensify. Having various rate cards within the projects section would also be helpful.
Lola
Alternatives Considered:
One of the best cloud accounting software around
Comments: Easy to use, intuitive interface, seamless integration. Just too expensive.
Pros:
Xero has a nice layout and is intuitive to use. Also integrates seamlessly with accountant - no more ugly spreadsheets! It's so helpful to be able to see my tax reports and balance sheets at a glance, throughout the year. I especially love the expenses app, where you can take photos of receipts with the phone camera, and the app will automatically log the expenses for you.
Cons:
Xero is expensive compared to other cloud accounting software out there. Nowadays, most business banking apps offer basic bookkeeping & expenses functions. Plus you can get FreeAgent - another very good accounting software - for free when signing up to a business account with Natwest or Royal Bank of Scotland. For the above reasons, I'd say Xero is no longer a top choice for small businesses or sole traders on a modest budget.
Thomas
Xero - Simple accounting software for small businesses
Comments: Xero allows us to run our accounts and manage staff expenses very simply and quickly. Overall it is a very easy system to use and has cut down a considerable amount of admin time. Overall it is positive, however, you can get caught out with the add on's needed to raise it from a very basic software.
Pros:
The interface is very simplistic. The headings are very clear and the day to day using of the software is very easy to teach to new staff. The expenses app allows individual staff members to load their own documents cutting down admin time considerably.
Cons:
A lot of the figures that you would like to see at quick glance like total spend with each supplier are not immediately apparent unless you run the correct search.
Phillip Sinothi
Alternatives Considered:
XERO: The all-in-one accounting solution
Comments: Xero is a comprehensive and user-friendly accounting software that offers a wide range of features for small and medium-sized businesses to efficiently manage their finances, automate accounting tasks, and gain insights from financial reports.With its automation features, Xero can help businesses save time and reduce manual errors, it also offers a wide range of features such as invoicing, expense management, receipt management and financial reporting, this allows for a more streamlined and efficient accounting process.However, like any software, it has some limitations, such as limited inventory management, and limited customization options, depending on the specific requirements of a business, these limitations may or may not be a significant issue. Therefore, businesses should thoroughly evaluate Xero's features and how they align with their specific needs before making a decision.
Pros:
Automation and EfficiencyXero offers a wide range of automation features such as bank reconciliation, automated invoicing, receipt management and an efficient expense management system which can help businesses to save time and reduce manual errors. Comprehensive Financial ReportingXero provides a wide range of pre-built financial reports such as balance sheets, income statements, and cash flow statements, which can help businesses to understand their financial performance, and make data-driven decisions.
Cons:
Limited inventory management Xero does offer some inventory management capabilities, such as tracking stock levels and generating reports, it does not have as many features as some dedicated inventory management software. So, for businesses that need advanced inventory management capabilities, Xero might not be the best option.Limited customization options.For example, some advanced features such as customizing financial reports and creating custom fields are only available on the higher-tier plans.

Courtney
It's a lot more fun to do accounting now
Comments: We can now monitor developments and spot patterns with ease. Superannuation contributions can be made straight from Xero, saving time and reducing the risk of missing any important deadlines. In general, Xero makes it easier to handle your financial accounts.
Pros:
We maintain track of all of our financial transactions, including payroll and cash flow, with the help of Xero. It greatly improved the bookkeeping's organization and clarity and made the process easier to handle. It takes a lot of the mystery out of keeping books and gives us quick access to vital financial statistics.
Cons:
For no apparent reason, bank feeds may lose connection at times. Possibly more visually appealing than mere numerical statistics would be the addition of accompanying graphical charts.
Nico
Accounting @ office or on the go? Xero hassles ;)
Comments: From using Excel as my go to software for all accounting needs, Xero has surpassed any expectation I thought I had. Would recommend Xero to everybody!
Pros:
1. The software has a easy to navigate interface2. Integrates well with other software to make effortless recordkeeping3. Can share access with your accountant to make life just easier
Cons:
1. Took a bit of getting the hang for setting up a CSV file for bank integration, but once I figured out how, it was smooth sailing
Adam
Alternatives Considered:
Xero - Business Made Easy
Comments: I have been using Xero for 6 years now and the team are always innovating and making tools easier to use while building out the features that make business sense.
Pros:
Easy to use software that makes business smoother
Cons:
If I have any Cons at all it's when I try to find a feature that should be obvious and find out people have been requesting it for years but the team are unable to circle back to fix or impliment. Minor gripe
paul
Alternatives Considered:
Xero an Accountants Tool.
Comments: Xero allows our accountant to do NZ GST easily.I tried quoting and invoicing from within Xero and it was not good enough for my requirements.So I now quote and invoice separately and duplicate that into Xero.
Pros:
Xero if easy and intuitive to use.You start using it and work out what your need to do and if required fix previous mistakes easily.
Cons:
I think it is a traditional accounting tool, accountants love it.If that is the objective, then more effort should go into making the data entry / user requirements aligned for business users not accountants.A business decides what to sell, quotes it, produces or orders in the goods and the invoices it.To decide what I want to sell, I always start with an Excel spreadsheet to work out a pricing model. This helps me find any gotchas with pricing - did I include all the costs, does this item need other items to make it work, is freight going to be significant and lastly is the buy pricing readily available.

Becky
I like Xero's financial reporting automation
Comments: Cash flows can be easily monitored and controlled. The tool's ease of use in keeping tabs on and managing my spending is a major plus. Xero makes it easier to reconcile your bank accounts. As a bonus to its user-friendliness, it has a wide variety of integration possibilities with other programs, making a wide variety of bookkeeping tasks much simpler to perform.
Pros:
I like that Xero streamlines the process of generating financial reports like P&Ls and balance sheets. This accounting tool is not only user-friendly, but it also provides a wide range of downloadable reports.
Cons:
As soon as a quotation or invoice is created in Projects, it would be great to have the number appended to the name, and it would be much more convenient if quotes and invoices could be immediately linked to a projects without the need for manual intervention.
Rahul
Alternatives Considered:
Effortless Bookkeeping
Pros:
The user interface is extremely simple and not overwhelming, especially for someone with no accounting background. As a startup founder, I juggle between different roles running my startup and Xero helps me keep on top of all my bookkeeping needs. The dashboard gives a clear picture of how we are performing as a company and managing the runway.
Cons:
I like the product in general except for payroll. Xero doesn't support payroll and relies on Gusto integration. Gusto is great but if you are a young startup just starting off, Gusto is a little expensive.
Cody
Alternatives Considered:
Easy to Implement and Manage Global Business, Low Customization Options
Comments: Kanopy has found Xero to serve its needs well, but ultimately we moved on and migrated to NetSuite years later. We still keep Xero though for 1 international subsidiary that we found to be advantageous not to migrate. The mature business with complex operations may not find all needs are met with Xero, especially if the desire is to integrate many other tools/software with the ERP in a bi-directional data flow.
Pros:
Xero serves well as an "out of the box" accounting system, not unlike Quickbooks. It also has more functionality and use internationally, making it a superior choice to QB if your business operates on a global, multicurrency basis. There are some solid automations which can be implemented with Xero as well, and the canned reporting generally suffices for the majority of basic financial needs.
Cons:
Xero lacks the open customization options that software like Netsuite or Dynamics offers. For a small business this will often be fine, but a scaling operation looking to automate many functions based on unique business needs may someday find they have outgrown Xero and need to undergo an (often painful) ERP migration.
ian
Alternatives Considered:
Pretty good, but in the end, more complicated than needed for two person practice
Comments: largely positive, but when they got rid of payroll, given my business of 2 employee/owner s-corp in a medical practice, with no retail/inventory, it made things a ton easier to just do my accounting in Excel. It was really the payroll that made this a no brainer for me.
Pros:
I loved the usability of this software. It was super easy to set up relatively sophisticated accounting with no accounting background. I thought the bank reconciliation was dynamite, and while they still had it, I loved the payroll. When I would eventually get triaged to tech support, the person was so patient, and so helpful it was really great, and they never seemed to mind spending a long time helping to fix some oddball problems that I'd made. Oh yes, loved it that they did the quarterly tax filings for me, but that also went away with the payroll
Cons:
One thing about this accounting software - when you have a question their first response is to tell you to have your accountant look at it. I was using this software as a replacement for an accountant, in order to save money, so that advice didn't help much. When you do a google for help, you run into a problem: Xero seems to be doing accounting software for all the english speaking countries,e.g. new zealand, australia, UK, USA and canada. each of these countries has different business formations/corporations, different taxation rules, etc, as well as meaningfully different accounting vernacular. I would end up mnost of the time getting somewhere only to realize I'd pulled up the UK instructions to solve a problem.
Monika
Alternatives Considered:
Xero for Business
Comments: I am happy, can be connected with my clients all the time, can prepare reports anywhere, anytime. I think the price for South Africa is a bit high
Pros:
I like the product is easy to use, no need high knowledge of accounting, the person who never was doing accounting can easily manage this product
Cons:
there is still missing a few things as inventory shall be a bit changed as people with two inventories in different places can not have two storages, there are few things that missing and can make it easier to work with
Leanne
Alternatives Considered:
Easy to deploy and use providing you have basic book-keeping knowledge
Comments: Solid and simple cloud accounting solution that is easy to navigate and customise. Great that our external accountants and legal support can access online as they need. Seems to be continuously evolving and its reassuring to see ongoing development of the product.
Pros:
Customisable dashboard is a time saver and ability to customise templates helps with consistency for our company branding. Customisation of user permissions means the bonus of staff being able to enter their own expenses which is a further time saver. Being able to work across multiple currencies now is a plus, albeit I wish we could manually adjust exchange rates being used.
Cons:
Many advanced features that are standard for longer established accounting software solutions are available, but as "bolt on" packages, so costs can escalate quickly if you need full "bells and whistles". Customer service response can be very slow compared to other cloud software providers we use - in the beginning they were responsive for engagement but over time they're clearly pushing all customers towards getting answers from their user community and/or through the Q&A section. I appreciate that customer service probably don't want to be wasting time with queries better addressed by professional book-keepers or accountants, but in our instance, as "advanced users", our customer service queries tend to be related to technical challenges with the product. It would be great of Xero could analyse the types of queries coming from their customers and perhaps have a priority helpline on offer for "low maintenance" subscribers.
Sherm
Alternatives Considered:
XERO reconciliation is an issue
Comments: 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.
Jinny
Alternatives Considered:
Worst Software I've ever used
Comments: Terrible. This is the worst software I've ever used. Do NOT buy this. It's been a terrible experience for me my company.
Pros:
I like this software WHEN it works. However, that's generally never the case. My bank feeds haven't been accurate since May of this year. That's five months without accurate transactions and reconciliation.
Cons:
This software would be good if it worked. I've gone five months without accurate reports and transactions. Xero blames it on "Yodlee" but never actually tells me that they've pressed Yodlee on this issue. I've had internal Xero employees tell me their [SENSITIVE CONTENT] doesn't care about small businesses and in my experience this is true. I would never recommend this software or company to anyone. The customer service is non existent. I think they have people there to help but when those people tell you the company doesn't care...there's not much you can do. They say they're good for small business but it seems like the [SENSITIVE CONTENT] feels exactly the opposite.
Iain
Alternatives Considered:
Very different to Sage 50
Comments: 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.
Elena
Alternatives Considered:
Xero has helped us transform and streamline our processes
Comments: Xero has streamlined our operations, and simplified our record keeping, and notification of when bills are due for payment or invoices due for collection. The dashboard is fantastic for an overall picture. The reporting tools are excellent, and the ease of use is so logical and straightforward, that it's simple l to self-teach even for a beginner. On top of that when you have any questions the how-to guides are thorough in themselves, and support is excellent and very quick to come back to you with an in depth answer.
Pros:
The ease of use is fantastic, and a beginner is able to self-teach quite easily with the fantastic guides and webinars that are available from Xero. The support is also exceptional and I have always had my queries answered in great detail and very quickly.
Cons:
My main issue was that I would like to be able to create different delivery addresses on invoices that have one invoice address but different delivery locations, as it's important to specify. To workaround we write it in the body of the invoice, however with previous systems we have been able to enter multiple delivery addresses, for one invoice address and select the required one each time.
Mitchell
Alternatives Considered:
The BEST Small Business Accounting Platform
Comments: Having used Xero since 2013, I am yet to find a better product. The software and the overall company have never missed a beat. They are continually adding features (see Hubdoc integration, transparent, have competitive pricing, and connect accountants with business (refer to Xerocon events).
Pros:
Xero has everything for startup companies and small businesses. Their software is 10 out 10 on user interface. It was born in the cloud and continues to exceed Quickbooks by a long shot. Most everything Quickbooks has added to its software in the past 10 years, is because Xero did it first.
Cons:
The software does not have a tax add-on when compared to Quickbooks (Intuit). They are plenty of integrations to solve this issue but it would be nice to have. Integrating bill payment is more difficult compared to Quickbooks as well.
Judah
Alternatives Considered:
Solid platform
Comments: So far, it has been amazing. I have little to no complaints. Everyone that I have moved to Xero have told me thank you.
Pros:
Xero is an accounting software that just works. I have used so many different platforms, and Xero has been the easiest and most reliable software I have found.
Cons:
1099 reports are too limited. Tracking categories are too limited. Support can phone it in when you first reach out to them, but if you set up a time to chat with someone they are extremely helpful.
Farhad
Alternatives Considered:
Perfect Accounting Software - Nothing Comes Close
Comments: Xero changed the face of accounting for our business. It has made accounting work far less painful than it used to be. And the true cloud-based setup makes it so much easier to access from anywhere.
Pros:
Ease of use - seriously. Nothing comes close. And trust me, I've tried a number of accounting software and they're all a nightmare to use unless you're an accountant.
Cons:
Customer support could be quicker, and phone support would help.
Jaco
Alternatives Considered:
Your businesses best friend!
Comments: I absolutely love Xero and advise all my clients to work on the software.
Pros:
I love the fact that Xero speeds up all day to day processes and awesome reporting!
Cons:
Some of the banks in my country does not have stable feeds, this makes it a bit difficult for bank rec's.
Fergus
Can't contact xero and more
Comments:
Can’t contact Xero
A little note for anyone out there looking to move to Xero Accounting. Xero will not allow you to contact them, except via their non customer friendly Xero Central. Xero will not take phone calls. Xero will not take emails. They don’t do “chat”. At all. Does that say enough about their customer service? This is just one of their many, many faults. Their customer service is genuinely the worst that I or anyone at our company have ever seen in a combined 200 years working with software packages. I strongly urge you, if you’re considering Xero as an accounting package, to think again and do your research first. They do not and will not listen to their customers. Don’t take my word for it, do your research and you’ll find out. There are dozens of requests to their product development and customer service, for VERY BASIC accounting functionality, some of which are ongoing for around 10 YEARS and despite hundreds of customers making the same request in some cases, they still choose to ignore it.
It’s hard to leave an accounting package, once you get involved but I promise you, that you will, once you see how terrible this company is, how little regard they have for paying customers, how silly some of the issues are and once you get the time to go through the whole change process again. Once again, I urge you to do your research and think again. I’ve spent the time writing this email in the hope that I can help someone to avoid the frustration and despair that we
Pros:
It has some good features but unfortunately they are overcome by the poor ones.
Cons:
There are so many negatives, it's hard to know where to start They can't be contacted so if you have a problem, you'll have it for a long time (or maybe forever) VAT retrun period can't be closed. So someone can amend an invoice or bill or add one in to a previous VAT period, which of course screws everything up You can't set a date for stock to arrive. When you make the order, the system assumest that it's now in stock! You can't save two customers with the same name! They will tell you to add a special character to duplicate names! Unbelievable but true! There are no delivery notes/packing slips. They tout a "workaround" but be warned, it's exactly 10 extra clicks so it's really not an option if you need this feature If you want to send a document after preparing it, first you have to save it, wait for it to save, it takes you out to a main screen, you have to click back into it and then send it (if you send directly, it will send a draft document only) Invoice, quotation, calendar functions are jumpy and extremely diffult to edit. This applies to all browsers, incognito modes, etc., it's just a really bad editor. If you enter a contact's account, system brings open documents to the top even if these are quotes which are no longer needed. Invoices, quotes, payments are then all muddled up together is it's very hard to see what you want. Extremely badly designed in this regard. If you create a Draft invoice, it takes a sequential number. This screws up your sequences.
Garreth N
Alternatives Considered:
Expensive But Good
Comments: 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.
Ryan
ACCOUNTANT WARNING DO NOT PARTNER - I was 2nd partner in Canada not a smart move heres why!
Pros:
Not much to say here anymore, they pretty much used to be good and totally lost faith.
Cons:
As an accounting firm I would be very cautious with using Xero or recommending it to clients. Outside of Xero billing for things that were supposed to be free, which after complaining they claim they will reconcile but I had to threaten with a lawyer to get that reaction. As an accounting firm it is a very risky move to partner with the Xero software platform. As a firm Your clients will know your using Xero and as a result will likely start to follow Xero using social media. When this happen your clients will receive advertisements about other Accounting firms partnered with Xero. The problem isn’t that you will loose your clients, but this makes you look really bad in front of your clients that you are recommending a software that recommends other accountants outside your firm. This actually happened to me in Canada, and the response of the Canadian Xero team was simply that they didn’t intend on these promotions to be received by the clients of my firm. They didn’t care, they didn’t apologize, they didn’t even acknowledge what they did was wrong, it was evident that they prioritized their growth over their existing partners, at least in Canada. Even The Canadian director of Xero comments where limited to telling me ” I understand that you need to make important decisions in the best interest of your firm”. To me this was a clear message that he doesn’t care. As a small business the software was historically leading, recently, many clients are having issues logging in