Xero Review: Pros, Cons, Features & Pricing
Having spent years working with a variety of accounting tools, I’ve seen how the right software can transform how a business manages its finances. Xero stands out as a modern, cloud-based accounting software designed with simplicity and usability in mind, especially for small businesses, freelancers, and retail operations that need reliable bookkeeping without the complexity of traditional systems.
This in-depth Xero review will walk you through the tool's pros and cons, features, ideal use cases, and more to guide your decision-making process and help you decide if it's right for your specific accounting needs.
Xero Evaluation Summary

- From $2/month
- 30-day free trial
Why Trust Our Software Reviews
Xero Overview
Xero simplifies your accounting tasks with its user-friendly interface and robust features, making it a top choice for small business owners.
pros
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Automatic bank feeds save you time by reducing manual data entry.
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Its robust reporting tools give you clear insights into your business's financial health.
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Xero's intuitive interface makes managing finances easy for you and your team.
cons
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Invoice and report customization options are restrictive.
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Advanced features may require additional training for effective use.
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Some users report occasional lag in customer support response times.
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How We Test & Score Tools
We’ve spent years building, refining, and improving our software testing and scoring system. The rubric is designed to capture the nuances of software selection and what makes a tool effective, focusing on critical aspects of the decision-making process.
Below, you can see exactly how our testing and scoring works across seven criteria. It allows us to provide an unbiased evaluation of the software based on core functionality, standout features, ease of use, onboarding, customer support, integrations, customer reviews, and value for money.
Core Functionality (25% of final scoring)
The starting point of our evaluation is always the core functionality of the tool. Does it have the basic features and functions that a user would expect to see? Are any of those core features locked to higher-tiered pricing plans? At its core, we expect a tool to stand up against the baseline capabilities of its competitors.
Standout Features (25% of final scoring)
Next, we evaluate uncommon standout features that go above and beyond the core functionality typically found in tools of its kind. A high score reflects specialized or unique features that make the product faster, more efficient, or offer additional value to the user.
We also evaluate how easy it is to integrate with other tools typically found in the tech stack to expand the functionality and utility of the software. Tools offering plentiful native integrations, 3rd party connections, and API access to build custom integrations score best.
Ease of Use (10% of final scoring)
We consider how quick and easy it is to execute the tasks defined in the core functionality using the tool. High scoring software is well designed, intuitive to use, offers mobile apps, provides templates, and makes relatively complex tasks seem simple.
Onboarding (10% of final scoring)
We know how important rapid team adoption is for a new platform, so we evaluate how easy it is to learn and use a tool with minimal training. We evaluate how quickly a team member can get set up and start using the tool with no experience. High scoring solutions indicate little or no support is required.
Customer Support (10% of final scoring)
We review how quick and easy it is to get unstuck and find help by phone, live chat, or knowledge base. Tools and companies that provide real-time support score best, while chatbots score worst.
Customer Reviews (10% of final scoring)
Beyond our own testing and evaluation, we consider the net promoter score from current and past customers. We review their likelihood, given the option, to choose the tool again for the core functionality. A high scoring software reflects a high net promoter score from current or past customers.
Value for Money (10% of final scoring)
Lastly, in consideration of all the other criteria, we review the average price of entry level plans against the core features and consider the value of the other evaluation criteria. Software that delivers more, for less, will score higher.
Core Features
Invoicing
Xero lets you create and send professional invoices quickly. You can track payments in real time, helping you manage cash flow efficiently.
Bank Reconciliation
Automatically import and categorize your bank transactions. It saves you time and reduces errors by matching transactions with your records.
Expense Tracking
Capture and track expenses effortlessly with Xero's mobile app. This keeps your financial records organized and up-to-date.
Financial Reporting
Generate detailed financial reports with ease. It provides insights into your business's performance, aiding better decision-making.
Payroll Management
Process payroll smoothly and comply with tax requirements. You can handle employee payments and deductions without hassle.
Inventory Management
Keep track of stock levels and manage inventory efficiently. This feature helps you avoid overstocking and stockouts, optimizing your inventory.

Ease of Use
Xero’s user-friendly interface makes it a breeze for you and your team to navigate. Its intuitive design minimizes the learning curve, allowing you to quickly access core features like invoicing and expense tracking. Users appreciate how easy it is to manage finances without getting bogged down in complex menus. Automatic bank feeds and simple reconciliation processes enhance efficiency, letting you focus on what matters most—growing your business.

Integrations
Integrations include Hubdoc, Stripe, Syft, Xero Inventory Plus, Shopify, Xero Practice Manager, HubSpot CRM, Xero Analytics Plus, Xero Workpapers, Gusto, PayPal, and Square.

Xero Specs
- API
- Billing/Invoicing
- Budgeting
- Calendar Management
- Contact Management
- CRM Integration
- Expense Tracking
- External Integrations
- Forecasting
- Inventory Tracking
- Payment Gateway Integration
- Payroll
- Supplier Management
Xero FAQs
How does Xero ensure data security and compliance?
Does Xero integrate with third-party applications?
Is Xero suitable for my industry-specific accounting needs?
Can I access Xero on my mobile device?
How often does Xero update its software?
Does Xero offer support for multiple users?
How customizable is Xero’s reporting?
How easy is it to switch to Xero from another accounting software?
Can Xero handle my business’s payroll needs?
Can Xero handle multiple currencies?
What's Next
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