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About Xero

Xero is a beautiful online accounting software solution for small businesses, sole traders, and accountants in any industry.

Learn more about Xero

Pros:

Integrates well with adds on to provide more sophisticated reporting. Integration with AI products such as ReceiptBank and Approval Donkey also work well.

Cons:

1099 reports are too limited. Tracking categories are too limited.

Xero ratings

Average score

Ease of Use
4.3
Customer Service Software
4.0
Features
4.3
Value for Money
4.2

Likelihood to recommend

8.2/10

Xero has an overall rating of 4.4 out 5 stars based on 2,868 user reviews on Capterra.

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Filter reviews (2,868)

Rino
Rino
Partner in South Africa
Verified LinkedIn User
Accounting Software, 201–500 Employees
Used the Software for: 2+ years
Reviewer Source

Alternatives Considered:

Xero - The Cloud Based Software of the future

5.0 2 years ago

Comments: Fantastic product with fantastic support and really meaningful input from the actual company staff

Pros:

Xero's main benefit to us as a mid tier accounting firm is the ease of importing information. It supports multiple bank feeds on a reliable basis and its open API allows for the support of many add in apps

Cons:

Being a non-technical software, it does sometimes give the impression of not being as robust in terms of ease of change of prior information. This can be overcome by locking down periods, one just has to remember to do this though.

Edwina
Owner in New Zealand
Entertainment, 2–10 Employees
Used the Software for: 1+ year
Reviewer Source

Happy user

5.0 last week New

Pros:

The convenience and ease of use and I love how I can make the changes myself.

Cons:

The price is a little high for something I use myself.

Louise
Director in UK
Insurance Software, 2–10 Employees
Used the Software for: 2+ years
Reviewer Source

Xero upgrading from classic is a disaster

1.0 2 months ago New

Comments: Last month has been a nightmare

Pros:

I used to like the Classic

Cons:

Support staff and patronizing responses

Rebekah
Office Manager in UK
Information Technology & Services, 2–10 Employees
Used the Software for: 2+ years
Reviewer Source

Alternatives Considered:

Brilliant product

5.0 3 months ago

Comments: Really good, does what it says on the tin (so to speak!), perfect for our use case.

Pros:

Xero is very easy to use, it has a lot of useful features that make it stand out ahead of similar software

Cons:

There isn't much that I don't like, but maybe some more customisation to the interface would be nice, to make things cleared to see when needed or to remove bits I don't want to see.

Nceba
Accountant in South Africa
Staffing & Recruiting, 11–50 Employees
Used the Software for: 2+ years
Reviewer Source

A straightforward and brilliant Accounting and Bookkeeping Tool.

5.0 2 months ago New

Comments: I can easily generate financial reports with Xero.It is simple to create and send invoices with Xero.

Pros:

With Xero, I can easily generate employees payrolls.I can easily execute complex accounting and bookkeeping activities with Xero.It enables me to track and manage expenses.It is simple to pay and track budgets with Xero.

Cons:

Xero simplifies accounting activities hence I lack anything to complain.

Sharon
Project Manager and Business Development Associate in US
Construction software, 201–500 Employees
Used the Software for: 2+ years
Reviewer Source

Xero Works

5.0 2 months ago New

Pros:

It makes it a breeze to create, customize and send invoices online. Automation of repetitive accounting tasks saves time.

Cons:

The vendor has worked hard ever since 2019 to eradicate any bug that may arise.

Marily
Senior Accounts Receivable Analyst in US
Computer Software, 1,001–5,000 Employees
Used the Software for: 2+ years
Reviewer Source

Xero Insight

5.0 2 months ago

Pros:

Xero allocates all features that makes it easy to carry out repetitive accounting tasks automatically.

Cons:

No errors encountered for the past 6 months.

Pierpaolo
Digital Marketer in US
Information Technology & Services, 11–50 Employees
Used the Software for: 1+ year
Reviewer Source

My Experience With Xero

4.0 2 weeks ago New

Pros:

Xero has been very effective in handling accounting and tool is smooth too. Has all accounting features we need.

Cons:

No issues at all. Xero has amazing features.

Chelcie
Business Administrator HR in UK
Leisure, Travel & Tourism, 11–50 Employees
Used the Software for: 2+ years
Reviewer Source

Experience with Xero

5.0 last month New

Comments: So far, it does what we need in regards to accounting.

Pros:

Has a little more flex in options of set up for sales and bills than other accountancy platforms.

Cons:

There could be more features and better ways for reporting.

Mohammed
Mohammed
Director of oversight and review in Yemen
Verified LinkedIn User
Food & Beverages, 11–50 Employees
Used the Software for: Free Trial
Reviewer Source

Good for medium jobs

4.0 4 weeks ago New

Pros:

One of the interesting things is that the program has a good variety of reports and gives good results and analysis

Cons:

It takes some time to understand how it works

Gene
Senior Accountant in US
Accounting Software, 2–10 Employees
Used the Software for: 2+ years
Reviewer Source

Alternatives Considered:

Accounting Software Design for the Business Owner

5.0 4 years ago

Comments: Xero give me, an accountant, a tool to provide my clients with that effectively gives them a tool for keeping their daily records in an orderly fashion make my job easier at the end of each month.

Pros:

Xero have been designed to be used by non-account business folks. However, once the data has been listed an accountant has a great tool to use to finish the company financial records (Monthly, Quarterly & Annually). It is also priced at a rate that works for most business owners.

Cons:

I really do not know of any areas within the software that I can list as "Least" liked. I do not know of any significant problems which I believe need correcting.

Verified Reviewer
Verified LinkedIn User
Accounting Software, Self Employed
Used the Software for: 1+ year
Reviewer Source

Alternatives Considered:

Xero is an awesome bookkeeping solution for small business owners!

5.0 3 years ago

Comments: Xero is an awesome bookkeeping and accounting software solution for startups and small business owners. It is indeed a good match for business owners who know nothing about accounting in order to keep their books and to properly manage their finances. From my own experience, I found that Xero is very user-friendly and its accounting interface is streamlined, almost seamless, and uncluttered. The Demo Company is very useful as you can manipulate data without worrying about messing up vital information in your practice company. Xero’s accounting dashboard shows the snapshot of your business (i.e., bank balances and reconciling items, outstanding invoices, and bills, accounts on the watchlist, etc.) and fully customizable depending on your needs. Quickbooks had been the leader of accounting software for small businesses for quite some time but Xero is becoming more popular because of its competitive offering and value proposition. Xero’s starting plan is very affordable and you have the option to add-on some features depending on your need. It also offers a basic inventory and fixed asset management functionality in all of its plans, which is very cool! And the best thing about Xero is the unlimited users allowed to access the financial information.

Pros:

- Affordable and cost less for startups and small businesses - Includes fixed assets and inventory management in all of its plans - Very user-friendly especially during migration or conversion of data - Allows unlimited users - Friendly 24/7 customer support

Cons:

- Some countries lack a built-in payroll option. - Customized reporting options are still limited. I wish Xero can allow you to create your own report. - The contact list of customers and suppliers is mixed together and needs to set-up manually to organize.

ian
owner in US
Health, Wellness & Fitness, 2–10 Employees
Used the Software for: 1+ year
Reviewer Source

Alternatives Considered:

Pretty good, but in the end, more complicated than needed for two person practice

3.0 3 years ago

Comments: largely positive, but when they got rid of payroll, given my business of 2 employee/owner s-corp in a medical practice, with no retail/inventory, it made things a ton easier to just do my accounting in Excel. It was really the payroll that made this a no brainer for me.

Pros:

I loved the usability of this software. It was super easy to set up relatively sophisticated accounting with no accounting background. I thought the bank reconciliation was dynamite, and while they still had it, I loved the payroll. When I would eventually get triaged to tech support, the person was so patient, and so helpful it was really great, and they never seemed to mind spending a long time helping to fix some oddball problems that I'd made. Oh yes, loved it that they did the quarterly tax filings for me, but that also went away with the payroll

Cons:

One thing about this accounting software - when you have a question their first response is to tell you to have your accountant look at it. I was using this software as a replacement for an accountant, in order to save money, so that advice didn't help much. When you do a google for help, you run into a problem: Xero seems to be doing accounting software for all the english speaking countries,e.g. new zealand, australia, UK, USA and canada. each of these countries has different business formations/corporations, different taxation rules, etc, as well as meaningfully different accounting vernacular. I would end up mnost of the time getting somewhere only to realize I'd pulled up the UK instructions to solve a problem.

Leanne
MD in France
Staffing & Recruiting, 2–10 Employees
Used the Software for: 2+ years
Reviewer Source

Alternatives Considered:

Easy to deploy and use providing you have basic book-keeping knowledge

5.0 3 years ago

Comments: Solid and simple cloud accounting solution that is easy to navigate and customise. Great that our external accountants and legal support can access online as they need. Seems to be continuously evolving and its reassuring to see ongoing development of the product.

Pros:

Customisable dashboard is a time saver and ability to customise templates helps with consistency for our company branding. Customisation of user permissions means the bonus of staff being able to enter their own expenses which is a further time saver. Being able to work across multiple currencies now is a plus, albeit I wish we could manually adjust exchange rates being used.

Cons:

Many advanced features that are standard for longer established accounting software solutions are available, but as "bolt on" packages, so costs can escalate quickly if you need full "bells and whistles". Customer service response can be very slow compared to other cloud software providers we use - in the beginning they were responsive for engagement but over time they're clearly pushing all customers towards getting answers from their user community and/or through the Q&A section. I appreciate that customer service probably don't want to be wasting time with queries better addressed by professional book-keepers or accountants, but in our instance, as "advanced users", our customer service queries tend to be related to technical challenges with the product. It would be great of Xero could analyse the types of queries coming from their customers and perhaps have a priority helpline on offer for "low maintenance" subscribers.

Iain
Director in UK
Industrial Automation, 2–10 Employees
Used the Software for: 1+ year
Reviewer Source

Alternatives Considered:

Very different to Sage 50

4.0 2 years ago

Comments: We moved from Sage line 50 to Xero, this has mainly been a positive experience. From our day-to-day usage, sending invoices, chasing debt, bank reconciliation it is very easy to use. Our accountant set up Dext to import receipts and expenses which means we spend much less time with data entry now and we are much more paperless than we were. The key driver for us was to work in a cloud based system that would integrate with other business management systems and Xero kept coming up as the one that plays nicely with lots of other services. Our managment accountant has taken a lot more convincing as the web-based interface can be a little more clumsy in some 'pure-accountancy' areas and getting the chart of accounts nicely presented has taken a bit of effort. Generally we're really happy with Xero and are also happy with the split that the CRM/MRP/ERP system is supported by that vendor leaving the accountancy to the accountancy experts.

Pros:

Ease of use from a day-to-day perspective for a non accountant and integration with other cloud software such as Dext and Flowlens

Cons:

We have had a couple of glitches where bank feeds have stopped working for periods of time, manual import of bank statements can take a few attempts to get right.

Andrew
Creative & Managing Director in Australia
Marketing & Advertising, 11–50 Employees
Used the Software for: 2+ years
Reviewer Source

Alternatives Considered:

Xero makes finance so easy

5.0 2 years ago

Comments: Since starting with Xero over six years ago, we couldn't be happier. We've centralised all our financial activity into one platform, which is great for non-finance people like myself!

Pros:

Xero makes managing the finances for a business really straightforward. The user interface is intuitive and it centralises all my accounts information. One of my favourite features is the the dashboard, which is clear and customisable, and gives a great summary of the position position at any time. The software also integrates really well to other platforms for things like receipt capture and detailed business analysis.

Cons:

I'm really happy with how it performs, however, our bookkeeper still does some levels of manual reporting, which he finds easier in Excel, than in Xero. The integration of BA tools does negate this issue.

Ibrahim
Ibrahim
internal auditor in Nigeria
Verified LinkedIn User
E-Learning, 11–50 Employees
Used the Software for: 2+ years
Reviewer Source

Xero is changing the landscape of cloud accounting

5.0 2 years ago

Comments: My experience with Xero can be described as fulfilling, it has simplified my workflow and saved me a lot of time and effort, I no longer spend long hours at the office. This has also impacted positively on my health. I would recommend this software to everyone.

Pros:

“It’s so clean to apply, even for non-financial human beings” My financial institution transactions are robotically connect to Xero so I don’t have to manually input them myself. I get my Financial statements the first week after the year end Another charming issue of this software is that it is a great idea if a corporation is unfolded across a couple of places with personnel operating in various locations. The accountants from every location can get admission to the financial data of all branches at any moment irrespective of their vicinity or time. As a world main provider of online accounting software program, Xero utilizes world-elegance cloud safety. Your data is appropriately saved in the cloud, and guarded from both Cyber criminals and perils like fire or flood.

Cons:

The expenses tracking can be formatted to allow multiply currencies to be easily uploaded in batches or real time. No integrated ‘Debtor Chasing’ function so companies will have to manually follow up on their unpaid invoices.

Daniel
Accountant in Poland
Accounting Software, 2–10 Employees
Used the Software for: 2+ years
Reviewer Source

Alternatives Considered:

Great online software for SMEs

5.0 2 years ago

Comments: It has been great software that helped many business to grow with up to date, online financial information.

Pros:

Xero has been one of the first solutions for cloud bookkeeping and accounting and has successfully competed with the likes of Sage and QuickBooks. It has probably the most other software providers that link directly with Xero over APIs.

Cons:

Over the years there were some features that were requested and it took a long time for them to be implemented, also more and more features are additional paid for addons.

karl
Business and Change Manager in UK
Retail, 11–50 Employees
Used the Software for: 2+ years
Reviewer Source

Alternatives Considered:

Great software for SMB

5.0 last year

Comments: We came to Xero from Sage and has changed the way we manage our accounts, and helped the team be more productive.

Pros:

customer service is great, even for an SMB like ours, we get good response times and knowledgeable people. the system is very easy to use and has great functionality for managing our sales and supplier invoices so that we can keep track of our cashflow accurately. Apps library is great and has everything that we need.

Cons:

certain functionality around automation and AI is not there but can be added via connected apps.

Christopher
CTO in UK
Computer Software, 2–10 Employees
Used the Software for: 2+ years
Reviewer Source

Alternatives Considered:

The clean and clear accounting software

5.0 last year

Comments: Since I started using it, everything I have needed Xero for has been straightforward. It takes minutes to get a basic invoice setup and sent to a client, and not much longer to make a more advanced invoice. It is easy to connect to your bank account and reconcile incomings and outgoings. It is also easy to give your accountants access.Overall, Xero makes it easy for you to avoid mistakes, and very importantly it has plenty of functionality that will allow it to grow with a company, as you need more advanced features, they are there, often at little to no extra cost. Having Xero helped a lot when starting my business, by making handling my fiances and accounting clean and clear.

Pros:

Xero provides a clean and straightforward experience. It has plenty of features for most use cases, but provides functionality that is easy for anyone to use from small business owners up. The integrations they provide, both with Open banking, and allowing you to give your accountants access, make it a breeze to correctly handle your finances and avoid time consuming mistakes come the end of the tax year.

Cons:

Having used Xero for many years, there is not much that I have found that I don't like about the system. Sole traders may find the 20 invoice a month restriction limiting, but that only applies to the Starter subscription. The prices of the others are more than reasonable to validate upgrading which gets you unlimited invoices. On occasion there will be bank feed issues, at which point you might be left wondering why your balances don't match. Finding out there is an issue with the feed from your particular bank is not obivous, but can be found by clicking through to their "Why is this different" page. From my experience this is the only con, and it is quite minor.

Sherm
Creative Marketing Genius | Small Business Marketing Expert in US
Verified LinkedIn User
Marketing & Advertising, 2–10 Employees
Used the Software for: 2+ years
Reviewer Source
Source: GetApp

Alternatives Considered:

XERO reconciliation is an issue

4.0 4 years ago

Comments: Overall, it's a decent program, with all the bells and whistles you'd expect from a cloud based accounting program. Unfortunately working without being able to reconcile monthly made life too difficult. And not many accountants work with it, so that made it difficult to have professional eyes on my accounting.

Pros:

I loved how easy it was to integrate XERO with my bank accounts and Paypal. XERO seamlessly connected and kept my balances up to date. I also liked how easy it was to invoice clients and connect invoices to Paypal or Stripe.

Cons:

Unfortunately, the reconciliation process in XERO is a no-go for me. Rather than the Quickbooks and standard approach, where you do a monthly reconciliation against a bank statement, XERO had no such function. Once an item was matched up to a bank transaction, it was considered "reconciled." No option to close out a month and double-check transactions. I went back to QBO to get that feature.

William
CEO in US
Accounting Software, 2–10 Employees
Used the Software for: 1+ year
Reviewer Source

The best at what it does

5.0 8 years ago

Comments: Full Disclosure: I am an accountant and I recommend Xero to many of my clients. When the expectations are in alignment with the capabilities of the software, then everyone is happy. People get into trouble with ANY software when they jump in thinking they know what it does and are then disappointed. All accounting and ERP software has limitations and Xero is no exception, but what it does, it does well. It provides payables, receivables, bank reconciliation and general ledger as its core functionality. There is a very capable estimating/quoting/order/ process that ties into AR invoices smoothly. But, the requisition/purchase/inventory side is very, very basic. In fact there are no requisitions and the purchase orders are so limited that I recommend you not use them. The inventory is only what is needed to make the sales side functional. So, if you need strong inventory support, you have to use a third-party add-on designed just for this purpose.

Pros:

What is good about Xero are 1) Real-time bank feeds and bank reconciliation - this is what scared the pants off of Intuit and forced them to develop new functionality. 2) Xero fully embraces and enables third-party developers to provide niche solutions that have rich interaction with Xero. 3) The features keep getting better and better quarter after quarter. 4) Perhaps my relationship as a partner skews this, but I've had nothing but excellent support from Xero. I can call someone if I have to, but I almost always get issues resolved through technical support in a timely fashion. Some of my favorite add-ons for Xero are GeoOp for field services, Deputy which integrates its scheduling, time and attendance functions with Xero payroll, and Float which projects cashflow. The new reporting and the tags are fantastic.

Cons:

There are some features I would like to see "sooner," but they are on the roadmap for "later." People jump on Xero because of the price without having a Xero consultant evaluate their suitability for the application - that can create an expectation gap, and that inevitably leads to an unhappy customer. I just hate it when people let their wallet do their thinking for them and then blame the software because it "doesn't do enough." The payroll is fine. I spoke to the VP in charge of payroll development and he is all about improving the functionality, so it will continue to improve. What is there now is very well designed to be comprehensive and flexible, but there are situations where a third-party payroll like Gusto will make more sense for your organization. They are the first ones to suggest you look at solutions like Gusto, ADP, Paychex and others that integrate seamlessly with Xero. It is annoying that the tags are limited to two categories, and this won't be revised until they have their design for job costing completed. No word yet on when that will be.

Afzal
Director in UK
Retail, 2–10 Employees
Used the Software for: 1+ year
Reviewer Source

Effortless Accounting with Xero, but at a Price

5.0 11 months ago

Comments: I have been using Xero for accounting for quite some time now, and overall, I am quite satisfied with the software. The best thing I like about Xero is how easy it is to use. The interface is intuitive, and the software is designed to be user-friendly, even for those who are not accounting experts. It makes managing my financials a breeze and saves me a lot of time. The software has a wide range of features and integrations that allow me to keep my business finances organized and up to date.However, the one thing that I do not like about Xero is its pricing. It is quite expensive compared to other accounting software in the market. While I understand that Xero offers a lot of features, I believe that the pricing could be more affordable, especially for small businesses like mine.Overall, Xero is a great accounting software that is easy to use and has a lot of features that can help streamline your business finances. While the price may be a bit steep for some, I believe that the benefits it provides are worth the investment.

Pros:

I have been using Xero for accounting for quite some time now, and overall, I am quite satisfied with the software. The best thing I like about Xero is how easy it is to use. The interface is intuitive, and the software is designed to be user-friendly, even for those who are not accounting experts. It makes managing my financials a breeze and saves me a lot of time. The software has a wide range of features and integrations that allow me to keep my business finances organized and up to date.

Cons:

However, the one thing that I do not like about Xero is its pricing. It is quite expensive compared to other accounting software in the market. While I understand that Xero offers a lot of features, I believe that the pricing could be more affordable, especially for small businesses like mine

Jacquie
Program Manager in US
Computer Software, 11–50 Employees
Used the Software for: 2+ years
Reviewer Source

This is a self-taught product

3.0 6 months ago

Comments: From day one, I was absolutely on my own setting this up. We were a new company and did not have anything to import from another product. There was no, and still is no, customer support at all. There is a help center where you can search and search to find an answer to your question(s). As long as the product is working, you will do ok once you figure it all out. However, if something stops functioning, it may be months before it gets fixed. This made it very difficult for me to be able to do month-end, quarter-end and year-end reconciliations and reporting. The product worked for a couple weeks in the month of January which caused multiple duplications that had to be worked through then the product stopped working again for about another month. I don't care what the cost of a product is, if you can't use it because of their product defects, what is it truly worth? It cost my employer more money to pay me to work through all this than if I had done it all manually on spreadsheets.

Pros:

After six years of use, I am comfortable using Xero when it is working.

Cons:

Read your reviews on the customer service aspect of this product. It doesn't matter how well a product is rated when there is zero customer service. All the negatives you read about their customer service are TRUE. We have used Xero for 6.5 years and it was six years before I ever got to message with what seemed to be a human. There is no phone number to call nor is there live chat. You can submit a customer support ticket but good luck getting a timely response or a response at all. You can ask the "community" for help but a reply from the Xero community may never come.

Fergus
General Manager in Ireland
Construction software, 11–50 Employees
Used the Software for: 2+ years
Reviewer Source
Source: SoftwareAdvice

Can't contact xero and more

1.0 4 years ago

Comments: Can’t contact Xero
A little note for anyone out there looking to move to Xero Accounting. Xero will not allow you to contact them, except via their non customer friendly Xero Central. Xero will not take phone calls. Xero will not take emails. They don’t do “chat”. At all. Does that say enough about their customer service? This is just one of their many, many faults. Their customer service is genuinely the worst that I or anyone at our company have ever seen in a combined 200 years working with software packages. I strongly urge you, if you’re considering Xero as an accounting package, to think again and do your research first. They do not and will not listen to their customers. Don’t take my word for it, do your research and you’ll find out. There are dozens of requests to their product development and customer service, for VERY BASIC accounting functionality, some of which are ongoing for around 10 YEARS and despite hundreds of customers making the same request in some cases, they still choose to ignore it.
It’s hard to leave an accounting package, once you get involved but I promise you, that you will, once you see how terrible this company is, how little regard they have for paying customers, how silly some of the issues are and once you get the time to go through the whole change process again. Once again, I urge you to do your research and think again. I’ve spent the time writing this email in the hope that I can help someone to avoid the frustration and despair that we

Pros:

It has some good features but unfortunately they are overcome by the poor ones.

Cons:

There are so many negatives, it's hard to know where to start They can't be contacted so if you have a problem, you'll have it for a long time (or maybe forever) VAT retrun period can't be closed. So someone can amend an invoice or bill or add one in to a previous VAT period, which of course screws everything up You can't set a date for stock to arrive. When you make the order, the system assumest that it's now in stock! You can't save two customers with the same name! They will tell you to add a special character to duplicate names! Unbelievable but true! There are no delivery notes/packing slips. They tout a "workaround" but be warned, it's exactly 10 extra clicks so it's really not an option if you need this feature If you want to send a document after preparing it, first you have to save it, wait for it to save, it takes you out to a main screen, you have to click back into it and then send it (if you send directly, it will send a draft document only) Invoice, quotation, calendar functions are jumpy and extremely diffult to edit. This applies to all browsers, incognito modes, etc., it's just a really bad editor. If you enter a contact's account, system brings open documents to the top even if these are quotes which are no longer needed. Invoices, quotes, payments are then all muddled up together is it's very hard to see what you want. Extremely badly designed in this regard. If you create a Draft invoice, it takes a sequential number. This screws up your sequences.