Xero Review

Full featured, easy to use accounting software fit for any SME.

Xero is accounting software that is used by many companies because the application combines ease of use, low pricing, and flexibility all in one product. However, is this the right choice for your business? In this article, we’ll provide an in-depth review of all aspects of Xero to help you ensure that it’s the right choice for your business.

Table Of Contents

What Is Xero?

Xero is a cloud-based accounting software that handles all aspects of bookkeeping, including invoicing and expense management. It even offers a payroll option add-on. It’s primarily designed for small business owners looking to manage their finances online without hassle or having to spend a ton of time learning accounting processes.

Pros of Xero

  • Intuitive and User Friendly
  • Covers Basic Bookkeeping and Accounting Functions
  • Integrates with Other Applications
  • Easily Convert Quotes To Invoices

Cons Of Xero

  • Lack of Customization for Quote Templates
  • Difficult To Add New Accounts
  • Slow Customer Service

Ease Of Use

Xero is one of the most accessible accounting programs to use on the market. The user interface is exceptionally intuitive, and it only takes a few clicks to get started with entering transactions into your books. In addition, it works on any browser instead of manually downloading a bulky program, allowing you to use the program from your location of choice. Plus, you can download the mobile iOS and Android application, allowing you to use most functions through a smart device.

Once you’ve signed up for an account with Xero, you’ll only need to follow eight steps in order to get your account set up, including information such as your transaction categories, connecting your bank, entering balances, adding unpaid bills and invoices, as well as matching transactions.

This process is easy to get through, with guides helping you through each step to ensure your account is set up quickly and efficiently. However, you will need to make sure to have all of your banking information ready before starting the signup process, as you won’t be able to set up your account without it.

Support And Customer Service

The application features ton of online learning resources to help businesses get started, including in-product information, help articles, user guides, and an online community where you can ask any questions. Plus, you’ll be eligible to signup for product training with Xero, which will walk you through the set-up process, go over special features of the program, and answer any questions.

If your question still can’t be answered, Xero offers e-mail support. However, this is only during specified hours and can take anywhere from 24 to 48 business hours to get a response. In addition, they don’t currently offer any type of live support, which can be a negative, especially if your need help right away.


If you’re unsure about the program, they offer a 30-day free trial, which allows you to access all add-ons and features of the application. You don’t need a credit card, and you can either set up your own company in Xero or use their example company to test out every feature. If you like it after the trial, you’re able to upgrade to a paid plan, which will keep all of the data you’ve already entered about your business.

Xero offers three different plans, depending on how big a company you have and what type of features you need. This includes:

  • Early: The early plan is $11 per month and is perfect for self-employed or new businesses with one or two employees. With this plan, you’re able to send quotes and 20 invoices, enter five bills, reconcile bank transactions, capture bills as well as see a short-term cash flow and business snapshot.
  • Growing: The growing plan is $32 per month and is perfect for businesses that have more than two employees or are rapidly increasing business. This plan includes everything from the early plan, as well as unlimited invoices, quotes, bills, and bulk reconcile transactions.
  • Established: The established plan is $62 per month and is perfect for established or bigger businesses. This includes all of the features of the growing program plus multiple currencies options, tracking projects, claim expenses, and advanced insights.

Each plan offers an additional add-on of Payroll with Gusto for only $39 per month.


There is not much customization allowed through the application. While there are basic features you can edit, including adding your bank accounts or creating projects, you won’t be able to customize your homepage or re-organize content as other applications allow you to do. Xero offers the same layout for all clients, dividing features into four different tabs, including Business, Accounting, Projects, and Contacts.

Tools and Features

Tons of different features can be accessed from the Xero application, such as bill payment, inventory management, invoicing, project management, expense management, and more. Each feature can be found under the four primary tabs on the menu bar.


Xero is a complete online accounting application that can handle the needs of any small business, and due to its mobile compatibility, it’s easy enough for anyone on your team to learn. It connects directly with your bank account, allowing your financial information to sync up with the platform easily. You’ll be able to track expenses, accept payments, categorize payments into different categories, knock out payroll, and pay bills all in one place.

At any time, you’ll be able to pull up reports about inventory, accounting, sales, tax, and purchases. Once tax time comes around, you’ll be able to quickly send out 1099s to any contractors you work with, as well as track your business metrics.

Bill Management

Setting up bills in Xero is fast and easy. You’ll be able to sync them with your account so that they populate automatically whenever a new bill comes in, as well as send out reminders for due dates.

The Bill Manager will keep all of this information organized by letting you categorize the type of expense it was (like rent, utilities, and payroll) as well as whether or not it was paid.


Creating an invoice is simple with Xero. You can create an invoice by either finding a customer that is already in your system or creating a new contact. In addition, the invoice system is professional-looking, allowing you to add a personal logo or other branding information to your invoice. Once you’ve created an invoice, you can export it and send it via your mobile device, print it out, or download it to your desktop.

You’ll also be able to look up any invoices by their number or name, as well as check your sales overview screen to see how many customers haven’t paid or who is past due.

Inventory Management

Basic inventory management is offered through Xero. You can set the current stock levels of your company when you initially set up your profile. From there, your inventory will decrease every time you make a sale and increase when you purchase additional stock. This will allow you to track your inventory accurately.

Import Contacts

If you’re migrating from another accounting software, Xero will import your contacts so that they don’t get lost in the process. This is a great feature for small businesses that need to maintain their previous customers or clients and want to keep them within the system.

Track Projects

Xero allows you to track how profitable your projects are as well as the amount of time and money spent on a specific task. You can even track payments, quotes and create invoices throughout the project to help you stay on course.

Application Integration

One favorite feature of many users is the ability to integrate with other applications. Xero can integrate with more than 700 third-party apps for features such as CRM, time tracking, payroll, and e-commerce.

Should You Use Xero?

If you’re looking for an easy-to-use, professional accounting application that can handle the needs of any small business and is designed to be used by anyone on your team – Xero is a great option. In addition, the integration available with hundreds of third-party applications makes it easy for small businesses that have little or no experience with accounting to get started.

If you already have an experienced accounting team, they can still find that Xero is helpful for their organization. It allows teams to access client records quickly, collaborate with other teammates, as well as automate tasks to make the process more efficient for your team.

Xero might not be the right application for you if you’re looking for complete customization in all your business features or if you need constant customer service assistance to help you with the application.

Overall, Xero is an excellent platform for small businesses to put everything in one place. Plus, with their 30-day free trial, it allows your team to see if Xero is the right business solution without having to make a monetary commitment.