Xero Accounting Software Review: Is Xero Worth it for the Price?

We have apps for payments, payroll, reporting, project management, and more. The best part is, everything syncs back to Xero – so you always have the right information at your fingertips. Xero simplifies everything from bookkeeping and bank reconciliation, to expense tracking, invoicing and more. With Xero’s accounting software for consultants you can claim expenses, set up bank feeds, collaborate with your accountant or bookkeeper all online. Many of the more advanced features are reserved for the most expensive plan. Xero’s best features, such as the expense management and multi-currency support feature, are only available if you opt for the Established plan.

Robust Data Protection Measures

Xero doesn’t offer built-in employee time tracking as part of its software. It does have project time tracking to help businesses understand how time is being spent on various tasks and ensure projects stay on budget and on schedule. Once you’ve tracked the time spent on a project, you can automatically generate invoices based on that tracked time, making the process much more efficient. I appreciate how easy it is to add new general ledger accounts and bank accounts. During the first few months of setting up your company in accounting software, you’ll do this a lot.

Set up your business credit card and bank accounts for recording transactions in Xero

• Xero uses OCR technology, automatically extracting necessary information like date amount, supplier name, and due date from the bills.
• Then find the quote you want to turn into an invoice, tick the checkbox next to it, and click ‘Create invoice’.
• Xero and QuickBooks can handle mundane chores, freeing you to focus on more pressing tasks.
• Tipalti also offers a product for easily and efficiently making global payouts like royalties, influencer and streaming payments, and ad network payments.

This gives Xero an edge over competitors that don’t offer such generous trial terms. However, if you don’t want to pay for the top-tier plan that includes Inventory Plus, Xero still offers basic inventory tools on all plans. These are helpful if you sell only in-store, invoice for sales and don’t need first-in, first-out valuation.

• It provides a comprehensive view of a company’s cash flow by presenting upcoming bills and outstanding invoices in a clear, tabular format.
• Xero is cloud-based accounting software that packs a real punch when it comes to features and functionality.
• It’s a page accountants must frequently access, which is why I was disappointed to see it looking so neglected.
• Sync Xero with software you already love or easily find and try new apps designed to save your business time and money at the Xero App Store.
• And once the job’s done, just turn the quote into an invoice in a few clicks – and give clients multiple ways to pay so you get the money sooner.

Enter bills

This can help the business managers to make sound financial decisions, which is key for business growth. The business managers should have access to transactions that detail how cash flows in and out of the business. The business managers also need to stay aware of how the business spends on different areas. Being aware of any pending bills from suppliers is also key for the smooth running of a business.

Bank Reconciliation

Account holders are able to customize online invoices to add a logo, accept payments instantly through the invoice, set automatic reminders for clients to pay and invoice directly from the Xero app. Xero processes payment through a payment gateway like Stripe, GoCardless and others. Keep in mind that these services charge a fee to process payments (usually around 2.9% plus 25 cents per transaction, though this varies by the payment processor). Business owners, freelancers and entrepreneurs often spend a large chunk of time on administration and accounting. Suited for small- and medium-sized businesses (SMBs), Xero is an affordable cloud-based accounting software system that streamlines these processes with plans starting at $20 per month.

Bookkeeper and accounting firm practice tools

• Knowing what money comes in and out of your business is easier with the Xero Accounting App.
• However, it has an active community forum and a collection of support articles that are beneficial to the users.
• If you’re a beginning, Xero has a whole set of videos available to help teach you the software.
• Tipalti automatically validates suppliers with TIN (taxpayer ID number) matching for fraud prevention and to ensure accuracy when your company prepares 1099-MISC and 1099-NEC forms at tax time.
• Yes, you aren’t required to have an accountant in most regions so you can certainly run your business without one.
• The user interface has a clean design, and it’s easily navigated.

Although Xero is a manual system for paying supplier invoices in accounts payable, it does offer Hubdoc to capture bills and receipts in all pricing plans. The Xero Established pricing plan adds multi-currency to the Growing plan which also enables online invoicing and sending quotes. When invoicing customers, your business can offer customers different payment methods, including pay by check, credit cards, debit cards, or ACH payments.

What is Xero accounting software and how does it work?

Xero offers close to 600 integrations with leading accounting tools, reporting platforms, bills and expense software such as Hubdoc and payment platforms such as Stripe. QuickBooks offers over 750 integrations, including platforms such as Dext, BILL, Expensify, Mailchimp and PayPal. With user-friendly dashboards and detailed reports, small business owners can view key financial information at a glance.

Now, this feature caught my attention as many accounting applications do not have it, and you need to manually download the bank data for reconciliation. To accept payments from clients, Xero allows you to connect to payment services without any monthly subscription. Your clients can make online payments using debit cards, direct debit using GoCardless, credit cards, and Apple Pay or Google Pay using Stripe. You can stay worry-free as Xero uses encryption and strong security measures to protect you against fraud. xero accounting It supports paperless expense tracking by letting your employees scan receipts and auto-filling claims from the scanned copy.

Do I need accounting software for my small business?

For example, you can create a list of loyal customers or customers in a specific state to offer promotional deals or send invoices in bulk. The Early plan costs only $12/month and is bookkeeping suitable for sole traders, new businesses, and the self-employed. It includes features such as invoices, quotes, bills, bank reconciliations, and short-term cash flow.

While live chat and general phone support are not available, the callback option ensures you are connected with the most knowledgeable team member for your issue. While the absence of live chat and direct phone support may be a drawback for some, the callback system and comprehensive support materials ensure that users are well-supported. Besides an overview of unpaid bills, expenses, and purchase orders, Xero displays bills in different categories, such as draft, waiting for approval, or Bookkeeping for Startups ready to be paid. I could organize the bills in folders and view bills on-screen while entering the data.