Xero Pricing Tiers & Costs
A complete overview of Xero pricing tiers, additional costs, value for money, and how to pick the right plan for you. Plus, alternatives to consider and a side-by-side pricing comparison.
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Xero is an accounting software offering multiple pricing plans and subscription-based tiers. Xero provides accountants with tools to manage invoicing, purchase orders, bank reconciliation, and payroll efficiently.
Its pricing structure is often seen as more flexible compared to other offerings in the market. This guide covers everything you need to know about Xero pricing, plans, and costs to make an informed purchase decision with confidence.
How Much Does Xero Cost?
Xero’s paid plans start from $2 USD/month (for 3 months, then $20/month) and go up to $8 USD/month (for 3 months, then $80/month). A free version is available as a 30-day trial, which is best suited for new users looking to evaluate the software.
Xero Plans & Pricing Tiers
Here's an overview of the available Xero pricing plans:
| Plan Type | Price per Month | What’s Included? |
| Early | $2/month (for 3 months, then $20/month) | Send quotes and 20 invoices, enter 5 bills, reconcile bank transactions, capture bills and receipts with Hubdoc, multi-currency support, short-term cash flow and business snapshot. |
| Growing | $4.70/month (for 3 months, then $47/month) | All Early plan features, plus unlimited invoices, bills, bookkeeping, and bank transactions. |
| Established | $8/month (for 3 months, then $80/month) | All Growing plan features, plus access to multiple currencies, advanced reporting, project management and tracking, expense management, and inventory tracking. |
Let’s break down the available Xero plans a bit further:
Xero Early Plan
The Xero Early Plan is ideal for freelancers and small businesses needing basic accounting functions. It supports sending quotes, up to 20 invoices, and entering five bills monthly. This plan helps users easily manage simple financial tasks with features like bank reconciliation and receipt capturing. However, its limitations include a cap on invoices and bills, making it less suitable for rapidly scaling businesses.
Xero Growing Plan
The Xero Growing Plan suits small to medium-sized business owners that require more advanced accounting capabilities. It offers unlimited invoices, bills, and bank transactions, which is beneficial for businesses with higher transaction volumes. This plan effectively supports financial management processes without the constraints of the Early plan. However, it does lack multi-currency support and advanced reporting features.
Xero Established Plan
The Xero Established Plan is tailored for larger businesses. It includes all of the Growing plan features, with added multi-currency support, advanced reporting, projects, and expenses tracking. This plan is ideal for businesses with complex accounting needs and international transactions. However, its higher cost can be a downside for some companies.
Xero Pricing vs. Competitors
Xero is generally considered to offer average pricing in the accounting software market. With three pricing tiers, it provides flexibility to cater to different business sizes and needs.
Each plan includes core accounting functionalities, with additional features like multi-currency and advanced reporting available in higher tiers. Xero also offers numerous integrations without limiting them to premium plans.
Security safeguards are included across all tiers, ensuring data protection for all businesses. Overall, these features make Xero a balanced choice for companies seeking a reliable and feature-rich accounting solution at a low cost.
Comparison Chart: Xero vs. Alternatives
Wondering how Xero pricing compares to other accounting software? Here’s a comparison chart that breaks down the costs of other accounting software side-by-side:
| Tool | Best For | Trial Info | Price | ||
|---|---|---|---|---|---|
| 1 | Best for privacy-focused accounting solutions | Free trial + free plan available | From $15/month (billed annually) | Website | |
| 2 | Best for project management in agencies | 7-day free trial | From $9/user/month (billed annually) | Website | |
| 3 | Best for Amazon integration | 30-day free trial | From $13.50/user/month | Website | |
| 4 | Best for accounting and inventory management | Free trial + demo available | From $20/month | Website | |
| 5 | Best for user-friendly invoicing and bookkeeping | 30-day free trial + free plan available | From $15/month (billed annually) | Website | |
| 6 | Best for affordable accounting and payroll services | 30-day free trial | From $6/month (for 6 months, then $12/month) | Website | |
| 7 | Best for free accounting | Free plan available | From $20/month | Website | |
| 8 | Best for open-source financial management | Free trial available | From $8/month (billed annually) | Website | |
| 9 | Best for future financial forecasting | Free plan available | From $26/month (billed annually) | Website | |
| 10 | Best for automated bookkeeping for small businesses | 14-day free trial | From $20/month | Website |
Alternatives to Xero
Xero is a solid accounting software, but there are plenty of other options out there. Depending on your use case, budget, team size, and other factors, you might consider shopping around for a solution that’s better suited to your needs.
If you’re in the market for alternative accounting software options to Xero, here are a few worth checking out:
Our one-on-one guidance will help you find the perfect fit.
How to Choose the Right Xero Plan
When deciding which Xero plan to go with, you’ll want to consider the added value and potential drawbacks that come with each plan. Scrolling through long lists of features can quickly lead to confusion and uncertainty, so here are a few factors to keep in mind as you evaluate and assess your options:
Xero Scalability and Team Size
Before you begin your shopping spree, it’s important to consider Xero’s scalability and whether or not your chosen plan can grow with your company.
For example, solo entrepreneurs or freelancers with basic invoicing needs may find the Early plan sufficient, whereas small or medium-sized teams managing more transactions could benefit from the Growing plan.
On a similar note, larger businesses requiring multi-currency support, expense tracking, and advanced reporting would be better suited for the Established plan. You can start with a basic plan, but remember, as your team expands, upgrade your Xero plan to ensure continued access to the necessary features.
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Industry-Specific Xero Features
Along with scalability, also consider Xero’s industry-specific features. Do they meet your business needs?
Businesses focused on retail and ecommerce would benefit the most from Inventory Plus, an extra feature that’s available as an add-on. Similarly, companies handling multiple currencies may need the Established plan for added support, while service-based companies managing projects may need the Growing or Established plan.
Choosing the right plan ensures you always have access to the tools you need for the cost you want.
Xero Integration Capabilities
When buying a new software, it’s important that it connects with your existing tech stack to help improve efficiency.
Xero integrates with Shopify, Hubdoc, Stripe, Syft, HubSpot, Dext, Cin7 Core, Fathom, and more. It also connects to third-party tools like Zapier, allowing automation across apps, and offers an API for building custom integrations.
To help you find your required integrations, Xero offers users access to the Xero App Store, which houses hundreds of integrations—from accounting and ecommerce, to payroll and time tracking.
Xero Security Safeguards
Xero includes multi-factor authentication (MFA) for account access and encryption for data protection across all plans. The software’s bank connections use direct feeds to reduce manual entry risks.
Additionally, user roles and permissions help control access to sensitive information, which is useful for growing teams. These safeguards are included for all users, ensuring security at every level.
Xero Pricing FAQs
Here are answers to a few common questions about Xero pricing:
What additional costs should I anticipate with Xero?
With Xero, you may encounter additional costs depending on your business needs. These can include fees for add-ons such as payroll services or integrations with third-party applications. Some advanced features or additional user licenses may also incur extra charges. It's important to review your specific requirements to anticipate any additional costs.
Are there any discounts or promotions available for Xero?
Xero occasionally offers discounts or promotions, such as reduced rates for the first few months or special pricing for educational institutions and non-profits. Users can access these promotions by checking Xero’s website or contacting their sales team for current offers. It's advisable to inquire directly with Xero for the most up-to-date information on available promotions.
How often does Xero change its pricing structure?
Xero does not frequently change its pricing structure. The last significant change occurred when Xero adjusted its pricing to reflect additional features and enhancements. While changes are not common, users should monitor Xero’s announcements for any updates to pricing.
Does Xero offer a money-back guarantee?
Xero does not explicitly offer a money-back guarantee. However, they provide a 30-day free trial for new users to explore the software before committing to a paid plan. This trial period allows users to assess the software's suitability for their needs without financial commitment.
Can I switch my Xero plan after signing up?
Yes, you can switch your Xero plan after signing up. Xero offers flexibility in upgrading or downgrading plans as your business needs change. You can make adjustments through your account settings, ensuring that you have the right level of service for your current requirements.
Are there any penalties for canceling a Xero subscription?
Xero allows you to cancel your subscription without penalties. You can cancel at any time through your account settings. However, it's important to note that Xero does not provide refunds for unused portions of a billing period, so timing your cancellation appropriately is advisable.
Is Xero Good Value?
In my opinion, Xero offers strong value for small to mid-sized businesses needing flexible accounting software with ease of use and scalable pricing.
The Early plan is budget-friendly for freelancers but has limits on invoices and bill entries. The Growing plan removes these limits, making it a better fit for growing businesses. For larger teams that need multi-currency support, project tracking, and expense claims, the Established plan is the best choice.
Xero integrates with payroll, payment processors, and third-party tools like Zapier, which adds flexibility. The interface is user-friendly, and security features like multi-factor authentication ensure data protection. However, larger enterprises or businesses needing industry-specific accounting features may require more specialized software.
Verdict: Xero is a cost-effective choice for small and growing businesses that need scalable accounting features, strong bank account and software integrations, and secure data management.
Want to learn more about Xero? Check out their site for additional information.
From $1/month (for 6 months, then $20/month)
30-day free trial
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