Xero Review
Last updated: 2026-07-11
Overview
Xero is a cloud-based accounting platform popular outside the US, especially in Australia, New Zealand, and the UK. Founded in 2006 in New Zealand, it serves over 3.5 million subscribers with strong multi-currency support, bank reconciliation, and a clean, modern interface.
Pros & Cons
Pros
- Better international support than QuickBooks (multi-currency, VAT, GST)
- More affordable — $15/mo (Starter) vs $38/mo (QuickBooks)
- Excellent bank reconciliation (auto-matching)
- Strong inventory management (on Standard plan+)
- Large app marketplace (1,000+ integrations)
- Cleaner, more modern interface than QuickBooks
Cons
- US payroll not built-in (needs third-party via Gusto)
- Fewer US bank integrations than QuickBooks
- Starter plan limits (5 invoices/bills per month, 20 bank transactions)
- Inventory management requires Standard plan ($42/mo)+
- No built-in time tracking (integrates with third-party)
Features
Xero's bank reconciliation is excellent — automatic matching of transactions with invoices and bills. Multi-currency support (Premium plan) handles 160+ currencies with live exchange rates. Inventory management (Standard plan+) tracks stock levels and costs. The project tracking feature tracks time and profitability per project. Xero's app marketplace has 1,000+ integrations including Stripe, PayPal, Gusto, and Zapier. The dashboard provides a real-time financial overview. Built-in payroll is available for Australia, New Zealand, and UK. For US payroll, integrate with Gusto. The main limitations are limited US bank integrations (fewer than QuickBooks), Starter plan limits (5 invoices/mo, 20 transactions), and no built-in time tracking.
| Free plan | ❌ No |
| Starting price | $15/mo (Starter), $42/mo (Standard), $78/mo (Premium) |
| Invoicing | 5/mo (Starter), unlimited (Standard+) |
| Bank reconciliation | ✅ Yes |
| Multi-currency | Premium plan |
| Payroll | Via Gusto (US), built-in (AU/UK/NZ) |
| Inventory | Standard plan+ |
| API access | ✅ Yes |
| Integrations | 1,000+ apps |
| Support | Email + 24/7 chat |
Pricing
Xero has three tiers: Starter ($15/mo — 5 invoices/bills per month, 20 bank transactions, reconciliation), Standard ($42/mo — unlimited invoices, bills, transactions, inventory), Premium ($78/mo — multi-currency, advanced business intelligence). A 30-day free trial is available. No free plan. The Starter plan is very limited — most businesses need Standard ($42/mo) for unlimited transactions.
Final Verdict
Xero is the best accounting platform for businesses outside the US or with international operations. Multi-currency, VAT/GST support, and a cleaner interface make it superior to QuickBooks for international use. For US-based businesses that need deep bank integration and payroll, QuickBooks is still the better choice. 4.5/5.
Frequently Asked Questions
Is Xero or QuickBooks better?
For US businesses, QuickBooks has better bank integrations and built-in payroll. For international businesses, Xero has better multi-currency, VAT/GST support, and is cheaper ($15/mo vs $38/mo). Both offer 30-day free trials — try both and see which interface you prefer.
Does Xero include payroll?
Xero has built-in payroll for Australia, New Zealand, and the UK. For US payroll, integrate with Gusto. QuickBooks offers built-in US payroll as an add-on ($45/mo + $5/employee).
Is Xero's Starter plan enough?
Probably not. The Starter plan ($15/mo) limits you to 5 invoices, 5 bills, and 20 bank transactions per month. Most businesses need the Standard plan ($42/mo) for unlimited transactions. Compare features at each tier before choosing.