Xero
Cloud accounting built for the person doing the books, not just the accountant.
- Finance
- Productivity
- from $25/mo
Xero is a cloud accounting platform covering invoicing, bank reconciliation, expenses, payroll integrations and reporting, aimed at small businesses and the accountants who serve them. Its defining commercial decision is unlimited users on every plan, which changes the economics for any business where more than one person touches the books.
Xero: the short answer
Every line below is drawn from facts verified on 9 August 2026.
- What it is
- Cloud accounting built for the person doing the books, not just the accountant
- Best for
- Small businesses outside the United States
- Starts at
- Early from $25/month
- Free option
- No free plan, 30 days trial
- Biggest strength
- Unlimited users on every plan, unlike per-seat rivals
- Biggest drawback
- Early plan's 20-invoice cap is restrictive for most real businesses
- Closest alternative
- QuickBooks Online - The stronger choice in the US, where accountant familiarity dominates
- True annual cost
- from $300 a year at the cheapest paid tier
Xero at a glance
| Best for | Small businesses outside the United States, Companies where several people need accounting access, Businesses working closely with an accountant or bookkeeper |
|---|---|
| Category | Finance, Productivity |
| Starting price | Early from $25/month |
| Free plan | No |
| Free trial | 30 days |
| Pricing model | subscription |
| Company | Xero Limited |
| Founded | 2006 |
| Headquarters | Wellington, New Zealand |
| Founders | Rod Drury, Hamish Edwards |
| Platforms | Web, iOS, Android |
| Public API | Yes |
| Browser extension | No |
| Mobile apps | iOS + Android |
| Self-hosting | No |
| Affiliate programme | No |
| Data source | Vendor pricing page and public records |
| Last checked | August 2026 |
Xero pricing
Prices below were read from the vendor's own pricing page on 9 August 2026. Pricing model: subscription. Free trial: 30 days.
| Plan | Price | Billing | Notes |
|---|---|---|---|
| Early | $25 | per month | Limited to 20 invoices and 5 bills per month |
| Growing | $55 | per month | Unlimited invoices and bills, bulk reconciliation |
| Established | $90 | per month | Adds multi-currency, expenses and project tracking |
What Xero actually costs over a year
A monthly price is not the same thing as a monthly contract. These are the plans above multiplied out to twelve months, per seat or unit where the plan is charged that way.
| Plan | Monthly | Over 12 months |
|---|---|---|
| Early | $25 | $300 |
| Growing | $55 | $660 |
| Established | $90 | $1080 |
Which Xero plan should you buy?
| Your situation | Recommended | Why |
|---|---|---|
| You issue very few invoices | Early | $25 a month, capped at 20 invoices and 5 bills. That cap catches people out, so count first. |
| You invoice regularly | Growing | $55 a month with unlimited invoices and bills. The working tier for most businesses. |
| You trade in several currencies or track projects | Established | $90 a month, adding multi-currency, expenses and project tracking. |
| You have several people needing access | Any tier | Unlimited users are included on every plan, which is the main structural advantage over QuickBooks and FreshBooks. |
| You are a US business with a US accountant | Consider QuickBooks Online instead | Accountant familiarity in the US is a real cost saving. |
| You only need invoicing | Consider Wave instead | Free, and adequate if you never need more. |
Verdict by who you are
Business outside the United StatesYes
Better international coverage than QuickBooks, and bank feeds work properly in more countries.
Company with several people touching the booksYes
Unlimited users on every plan. On FreshBooks each extra person is $11 a month, which changes the comparison entirely.
US business with an external accountantCompare first
Xero is good, but most US accountants work in QuickBooks and that familiarity has value.
Sole trader issuing a handful of invoicesCompare first
Early's 20-invoice cap is restrictive at $25. Wave is free if invoicing is genuinely all you need.
Should you buy Xero?
Buy Xero if…
- Small businesses outside the United States
- Companies where several people need accounting access
- Businesses working closely with an accountant or bookkeeper
Do not buy Xero if…
- US businesses whose accountant only works in QuickBooks
- Very high transaction volumes on the entry plan
- Organisations needing genuine ERP capability
Key features
- Unlimited users on every plan
- Automated bank feeds and reconciliation
- Invoicing with online payment acceptance
- Bill capture and accounts payable
- Multi-currency accounting on Established
- Project tracking and time recording
- Fixed asset register built in
- Very large app marketplace for adjacent tools
Integrations
- Stripe, GoCardless and PayPal
- Shopify and WooCommerce
- Gusto and other payroll providers
- Hubdoc for document capture
- Xero API and over a thousand marketplace apps
Xero screenshots
Captured by us in August 2026 at 1440px, unedited. Interfaces change, so these show the product as it looked on the date we verified this profile. Vendors localise pricing by visitor region, so a pricing screenshot may display a different currency to the USD figures recorded above.
Our assessment
Xero's design assumes a business owner will use it, not only an accountant, and it shows in the reconciliation flow and the general clarity of the interface. Unlimited users on every plan is the quiet differentiator: adding a bookkeeper, an office manager and your accountant costs nothing, where per-user competitors charge for each. The important constraint is at the bottom, where the Early plan's 20-invoice limit is far tighter than it sounds and pushes many businesses to Growing almost immediately. Outside the US it is frequently the better product; inside the US, accountant familiarity still tends to decide it.
What works in Xero
- Unlimited users on every plan, unlike per-seat rivals
- Clean interface that non-accountants can actually operate
- Strong bank feeds and reconciliation, particularly outside the US
- Large app marketplace covering payroll, inventory and payments
What doesn't
- Early plan's 20-invoice cap is restrictive for most real businesses
- Payroll is handled by partners in many regions rather than natively
- Weaker US accountant network than QuickBooks
- Reporting is capable but less flexible than some rivals
EveryAny Decision Score
Scored by dimension rather than averaged into one number, because the trade-offs are the useful part. 3 of these 8 dimensions are calculated from verified facts by published formula; the rest are editorial judgement, labelled as such. How each score is calculated.
- Cost position2/10
derivedentry tier at $25 a month against a category median of $23 across 5 comparable tools
- Portability5/10
derivedpublic API
- Subscription flexibility6/10
derivedfree trial, subscription, monthly billing
- Feature depth8/10
editorialeditorial judgement, reviewed at last check
- Ease of learning8/10
editorialeditorial judgement, reviewed at last check
- Collaboration9/10
editorialeditorial judgement, reviewed at last check
- AI capability6/10
editorialeditorial judgement, reviewed at last check
- Professional adoption9/10
editorialeditorial judgement, reviewed at last check
What leaving Xero would cost
moderate lock-in
Calculated as 10 minus a portability score of 5, built from four signals (self-hosting, a public API, open-source licensing and a documented export path) . Xero scores on: public API. Formula.
Xero competitors and alternatives
| Alternative | Why you might pick it instead |
|---|---|
| QuickBooks Online | The stronger choice in the US, where accountant familiarity dominates. |
| FreeAgent | Well suited to UK freelancers and contractors, often free with a bank account. |
| Wave | Free accounting for very small businesses with simple needs. |
Unlimited users is the real differentiator
Every Xero plan permits unlimited users with role-based permissions. Compare that with QuickBooks Online, where Simple Start is one user and Essentials is three, and the comparison changes shape. A business with an owner, a bookkeeper, an office manager and an external accountant pays nothing extra on Xero and upgrades twice on QuickBooks.
The Early plan trap
Early is $25 a month and capped at 20 invoices and 5 bills per month. That sounds workable and usually is not: a business invoicing weekly across a handful of clients passes it quickly, and bills accumulate faster still. Treat Growing at $55 as the realistic starting price unless you genuinely invoice a handful of times a month.
Geography decides more than features
In the UK, Australia, New Zealand and much of Europe, Xero is the default and accountants expect it. In the US, QuickBooks holds that position, and handing a Xero file to an American accountant creates friction that no feature advantage overcomes. Ask your accountant before choosing, because their familiarity is worth more than any comparison table.
Watch the introductory discounts
Xero runs heavy promotional pricing, frequently showing figures like $9 or $5.50 for the first months against standard rates of $25 and $55. Those are acquisition offers. Budget the standard price, because the discount expires long before your accounting needs change.
Xero questions, answered
- Is Xero worth it?
- Xero's design assumes a business owner will use it, not only an accountant, and it shows in the reconciliation flow and the general clarity of the interface.
- How much does Xero cost?
- Early from $25/month. The cheapest paid tier we recorded works out at $25 a month, or $300 over a year. Verified against the vendor's pricing page.
- Does Xero have a free plan or free trial?
- Xero has no free plan. A free trial is available: 30 days.
- What is the best Xero alternative?
- It depends on the job. QuickBooks Online: The stronger choice in the US, where accountant familiarity dominates. FreeAgent: Well suited to UK freelancers and contractors, often free with a bank account. Wave: Free accounting for very small businesses with simple needs.
- Can I self-host Xero?
- No. Xero is a hosted service only, so your data lives on the vendor's infrastructure.
Provenance and freshness
When each fact was last checked
- Pricing ·
- Plans ·
- Free trial
- Features
- Platforms
- Integrations
- Affiliate programme
- Company details
What has changed
-
August 2026
- Pricing and invoice caps verified
- Added plan picker and verdicts
Sources & verification
Facts on this page were read from the sources below on the dates shown. Where a vendor does not publish a figure, we record it as not disclosed rather than estimating it.
- Xero pricing plans - checked 9 August 2026
Spotted something out of date? Email [email protected] and we will re-check it. Corrections are logged on the page.
