Finance Tools
Xero
Cloud accounting for small business.
What it is
Xero is cloud accounting for small business, covering bank reconciliation, invoicing, payroll in some regions and reporting for your accountant. Bank reconciliation is where it is genuinely strong, and accountants generally know it, which lowers the cost of working with one. Payroll availability varies by country, so the answer depends on where you operate.
Xero pricing
Xero publishes 3 plans. Paid tiers start at $25/mo.
| Plan | Price | What the vendor’s page says |
|---|---|---|
| Early | $25/mo | Early $25/month regular price, $2.50/month for the first 6 months |
| Growing | $55/mo | Growing $55/month regular, $5.50 promotional |
| Established | $90/mo | Established $90/month regular, $9 promotional |
Prices read from the vendor's own pricing page on 2026-09-07. Vendors change plans without notice — check the source before you budget. Source
Cheaper alternatives to Xero — same category, ordered by verified starting price.
Key features
Bank reconciliation
Matches imported bank lines against invoices and bills.
Accountant collaboration
Gives an external accountant direct access to the ledger.
App marketplace
Connects payroll, inventory and payment tools to the ledger.
Strengths and trade-offs
What works well
- Bank feeds and reconciliation are strong
- Large ecosystem of add-ons
- Accountants generally know it
Where it falls short
- Pricing tiers limit invoice and bill counts
- Payroll availability varies by country
- Reporting customisation is limited
Who it is for
Small businesses that want their accountant working in the same system.
Pick it or skip it
Pick Xero if
- Small businesses that want double-entry accounting without an accountant on staff
- Trying it cheaply: new customers get 90% off for the first 6 months
- Businesses that will grow into bank reconciliation and multi-currency later
Skip it if
- You are budgeting from the advertised figure — $2.50/mo is promotional for 6 months; the Early plan is $25/mo after that
- You need a free tier; Xero has none
- Your volume is low: the Early plan caps how many invoices and bills you can enter
Our verdict
A solid choice where it is well supported locally. Check regional payroll coverage before committing.
Closest alternatives we track
Same category, ordered by verified starting price.
Frequently asked questions
- How much does Xero cost?
- Xero publishes 3 plans: Early at $25/mo, Growing at $55/mo, Established at $90/mo. Every figure is read from the vendor's own pricing page; the pricing section above shows the source sentence for each tier.
- Does Xero have a free plan?
- No free plan is listed on the vendor's pricing page. Xero is sold as a paid subscription.
- Who is Xero best for?
- Small businesses that want their accountant working in the same system.
- What are the closest alternatives to Xero?
- In the same category we track FreshBooks, QuickBooks and Wave. Each has its own review page with verified pricing, and the comparison links above show them side by side.
- What are the main drawbacks of Xero?
- The trade-offs we noted: Pricing tiers limit invoice and bill counts; Payroll availability varies by country; Reporting customisation is limited.
- When should you not use Xero?
- Skip Xero if: You are budgeting from the advertised figure — $2.50/mo is promotional for 6 months; the Early plan is $25/mo after that; You need a free tier; Xero has none; Your volume is low: the Early plan caps how many invoices and bills you can enter.
What we checked
- Public APIOffers a documented API you can build against.Yes
- Mobile appHas a native app for iOS or Android, not just a mobile website.Yes
- Open source / self-hostableSource is open and the tool can be run on your own infrastructure.No
- SSO (SAML)Supports SAML single sign-on on at least one plan.Yes
“Not checked” means exactly that — we have not verified it, and we do not guess.
Evidence and freshness
Status: Vendor pricing page verifiedReviewed: 2026-09-07
- Xero — Pricing plans ↗
Checked 2026-09-07 · Supports: Early $25/month regular price, $2.50/month for the first 6 months, Growing $55/month regular, $5.50 promotional, Established $90/month regular, $9 promotional, promotion is 90% off for the first 6 months for new customers, no free tier
Limit: The headline figures on the page are a limited-time promotion; the regular prices are recorded here as the real cost.
Compare Xero with alternatives
Tools that do the same job as Xero
Same job, different pricing. Verified starting price first.
More Finance Tools tools: see the full Finance Tools category
Work at Xero? Embed the verified-pricing badge
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