Xero
Cloud-native accounting software popular with small businesses outside the US.
Xero Referral Code & Link
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Quick Summary
Xero provides bookkeeping, invoicing, and payroll for small businesses with a cloud-native design built from the start as a web application, rather than QuickBooks' evolution from desktop software. It has particularly strong adoption in the UK, Australia, and New Zealand, where it competes closely with QuickBooks for small business accounting market share.
Xero at a Glance
| Category | Accounting Software |
|---|---|
| Pricing model | Paid |
| Starting price | $15 /month |
| Platforms | Web, iOS, Android |
| Launched | 2006 |
| Headquarters | Wellington, New Zealand |
| Best for | Cloud-native accounting software popular with small businesses outside the US. |
| Community votes | 356 |
Pros
- Built cloud-native from the start, with a modern interface that feels less dated than legacy competitors
- Strong multi-currency support, well-suited to businesses with international transactions
- Unlimited users included on most plans, unlike QuickBooks' per-user-limited tiers
- Large third-party app ecosystem for industry-specific add-ons
- Particularly strong local support and features in UK, Australia, and New Zealand markets
Cons
- Starter plan's 20-invoice monthly cap is restrictive for businesses sending many invoices
- Less universally recognized by US accountants and bookkeepers compared to QuickBooks
- Payroll features and tax compliance are most mature in Xero's core markets (UK/AU/NZ), less so elsewhere
- Customer support quality has drawn mixed reviews relative to price point
- Migrating historical data from another platform can require real effort
Xero Pricing Plans
Official pricing as published by Xero. Verify current rates before purchasing.
Standard
$42 /month
- Unlimited invoices and bills
- Multi-currency support
- Payroll for up to 5 people
Xero’s “born in the cloud” design — built as a web application from its 2006 founding rather than evolved from desktop software like QuickBooks — gave it a cleaner, more modern starting architecture, and it has used that foundation to build particularly strong market share outside the US, especially in New Zealand, Australia, and the UK.
This review covers Xero’s core accounting features, its multi-currency strength, pricing, and how it compares to QuickBooks by region.
Cloud-Native From the Start
Unlike QuickBooks’ evolution from desktop software, Xero was designed as a web application from inception, giving it an architecture some users find more modern and consistent, without the legacy quirks of a product transitioning between fundamentally different technical foundations.
Strong Multi-Currency Support
Xero’s handling of multi-currency invoicing, transactions, and reporting is generally considered more native and capable than many competitors, a meaningful advantage for businesses regularly transacting internationally.
Xero Pricing Breakdown
Starter — $15/month 20 invoices and quotes per month, bank reconciliation, and basic reporting.
Standard — $42/month Unlimited invoices and bills, multi-currency support, and payroll for up to 5 people.
Premium — $78/month Multi-currency support at scale, expense claims, and project tracking.
Xero vs. QuickBooks
QuickBooks holds stronger market dominance and accountant familiarity in the US specifically, which matters significantly given how much small business accounting software choice depends on what an external bookkeeper or accountant already knows. Xero holds stronger market share and locally tailored compliance in the UK, Australia, and New Zealand, plus unlimited users on most plans versus QuickBooks’ per-user limits.
Who Should Use Xero
Small businesses in the UK, Australia, or New Zealand benefit from Xero’s strong local market presence, compliance features, and accountant familiarity in those regions.
Businesses with significant international transactions benefit from Xero’s comparatively strong multi-currency handling.
Who Should Consider Alternatives
US-based small businesses should weigh QuickBooks’ stronger US accountant familiarity heavily, since that practical consideration often outweighs feature-by-feature comparison.
Expert Verdict
Xero’s cloud-native architecture and strong multi-currency support make it a genuinely modern alternative to QuickBooks, particularly well-suited to businesses in its core UK/Australia/New Zealand markets or those with international transaction needs. The right choice ultimately depends heavily on region and existing accountant relationships.
International Pricing Notes
Xero pricing varies by region, with localized plans and currency pricing for the UK, Australia, New Zealand, and US markets specifically — users should select their local Xero site for accurate regional pricing.
Best Alternatives to Xero
1 alternatives listed. Looking for a Xero alternative? Here are the top options our community recommends, ranked by popularity and editorial score.
Quick comparison: Xero vs QuickBooks
| Feature | Xero | QuickBooks |
|---|---|---|
| Pricing | Paid | Paid |
| Platforms | Web, iOS, Android | Web, macOS, Windows, iOS, Android |
| Community votes | 356 | 456 |
The default small business accounting software for bookkeeping, invoicing, and payroll.
Frequently Asked Questions
Common questions about Xero, answered by our editorial team.
- Is Xero better than QuickBooks?
- Neither is universally 'better' — it depends heavily on region and accountant familiarity. Xero has stronger market share and locally tailored features in the UK, Australia, and New Zealand, with unlimited users on most plans. QuickBooks has stronger US market dominance and broader US accountant familiarity. Businesses should weigh their own region and their accountant's platform familiarity heavily in this decision.
- Does Xero include payroll?
- Yes, Xero's Standard and Premium plans include payroll for a limited number of people (5 on Standard), with the feature most mature and locally compliant in Xero's core markets — UK, Australia, and New Zealand specifically.
- Is Xero good for businesses with international transactions?
- Yes, Xero's multi-currency support is generally considered stronger than many competitors, handling transactions, invoicing, and reporting across multiple currencies more natively — a meaningful advantage for businesses with international customers or suppliers.
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