Xero is a accounting & finance tool for Small businesses, offered as paid ($27/mo). Founded in New Zealand in 2006. Popular alternatives include Zoho Books, Paraşüt, Expensify.
About Xero
Xero is cloud accounting software founded in 2006 in Wellington, New Zealand by Rod Drury. It is one of the largest small business accounting platforms in the world, with particularly strong market share in the UK, Australia and New Zealand, and a growing presence in North America and other regions.
Xero covers bank feeds and reconciliation with smart matching suggestions, invoices and quotes with online payments, bills and expenses, purchase orders, inventory, fixed assets, projects, multi-currency accounting and a wide range of reports. Hubdoc is included for capturing receipts and bills, and payroll is built in for countries such as the UK, Australia and New Zealand, while US payroll runs through partners like Gusto. All plans include unlimited users, and an app marketplace with more than a thousand integrations connects Xero to e-commerce, payments, CRM and inventory tools. Plans are tiered by invoice volume and features, with multi-currency on the top tier. In October 2025 Xero completed its acquisition of Melio, a US accounts payable platform, to strengthen its position in the United States, and AI features are being added to automate routine bookkeeping.
Xero fits small and medium-sized businesses outside the US and companies that want many people, including their accountant, to access the books. QuickBooks Online remains the default in the US, FreshBooks and Wave suit very small service businesses, and Zoho Books is a strong budget option. Turkish businesses need a local solution such as Paraşüt for e-fatura and e-arşiv compliance.
Key features of Xero
- Bank reconciliation with smart matching
- Invoices, quotes and online payments
- Bills, expenses and Hubdoc document capture
- Multi-currency accounting (Established)
- Projects, inventory and fixed assets
- Analytics, short-term cash flow and reporting
Pros and cons
Pros
- Unlimited users on all plans
- Excellent reconciliation experience
- Strong in UK, ANZ and international markets
- Large app ecosystem
Cons
- Early plan limits are tight
- US payroll requires integrations
- Multi-currency only on the top plan
- Reporting customization is limited
Xero pricing
Xero uses a paid model. A 30-day free trial is available.
| Plan | Price | Includes |
|---|---|---|
| Early | $27 / mo | 20 invoices, 5 bills; 90% off first 6 months until Nov 2 2026 |
| Growing | $59 / mo | Unlimited invoices and bills |
| Established | $97 / mo | Multi-currency, projects, analytics |
Source: www.xero.com · checked on Oct 20, 2026
How Xero compares in Accounting & finance
- Rank by votes
- #1 / 22
- Starting price
- $27
- Free alternatives
- 0
0 votes from members
38% above the category median ($20/mo)
Free or open-source tools in Accounting & finance
Xero ranks #1 of 22 accounting & finance tools by community votes and is priced above most tools in the category.
Common use cases
- 1UK or Australian small business with an accountant
- 2International company invoicing in multiple currencies
- 3Agency tracking project costs
- 4E-commerce reconciliation with Stripe and Shopify
Best for
Small businesses outside the US and teams with many users who need books access.
Not ideal for
Very small freelancers (Wave, FreshBooks) or Turkish e-invoice compliance (Paraşüt).
Integrations
- Stripe
- PayPal
- Shopify
- Gusto
- Dext
- Hubdoc
- Square
- HubSpot
- 1,000+ apps
Our take
Xero is the best general-purpose cloud accounting tool outside the US. Unlimited users alone make it better value than QuickBooks for many teams.
FAQ
- What is Xero?
- Xero is a Accounting & finance tool: Cloud accounting popular outside the US.
- How much does Xero cost?
- Xero uses a Paid model; paid plans start at $27 per month.
- What are the best alternatives to Xero?
- Community-listed alternatives to Xero include Zoho Books, Paraşüt, Expensify.
- Does Xero have a free trial?
- Yes, Xero offers a 30-day free trial.
- What does Xero integrate with?
- Xero integrates with Stripe, PayPal, Shopify, Gusto, Dext, Hubdoc and more.
- Which platforms does Xero support?
- Xero is available on web, ios, android.
- Who is Xero for?
- Small businesses outside the US and teams with many users who need books access.
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