We researched and analyzed dozens of the best accounting and invoicing software solutions to help small businesses choose the ideal accounting software for their needs. Our information sources included the company’s website and software demos. Additionally, we studied user reviews for independent opinions on the software’s pros and cons. When looking for the best accounting software for growing businesses specifically, we focused on pricing tiers, the number of integrations, and the breadth of features and tools.
Because its pricing plans are not based on the number of employees, Xero can easily accommodate various development stages and the changing small business accounting needs accompanying business growth. We recommend Xero for companies that are rapidly adding employees and don’t want to worry about the number of people at the organization using the product. Xero is a cloud-based accounting software product that’s easy to use and integrates with more than 1,000 apps.
With Xero, you can add an unlimited number of users to your account at each subscription level. This is a notable feature for accounting software; often, lower-tier plans allow fewer users while only higher-tier plans allow unlimited users. The Early subscription is tailored for solopreneurs and business owners who are just getting started. You’re able to send 20 quotes and invoices per month, enter five bills, https://www.quick-bookkeeping.net/ reconcile bank transactions, capture bills and receipts with Hubdoc and view a short-term cash flow and business snapshot. Xero includes extensive features that make it suitable to handle complex accounting processes for small- and medium-sized businesses as well as larger ones. The software makes it easy to pay bills, claim expenses, accept payments, track projects, manage contracts, store files and more.
Xero Accounting Software Review: Pros, Cons
Additionally, all data from your bank transactions that have been transferred to Xero are ready to be reconciled with receipts, bills, and invoices. Another essential feature included in this plan is the app’s capability to capture bills and receipts using Hubdoc, Xero’s data capture tool. The purpose of Hubdoc is to reduce the manual data entry process by capturing all necessary information from bills and receipts and extracting and publishing all data in the Xero platform. With digital copies on hand, it is easier to manage bills and financial statements and organize them by folders and by using tags. All captured documents are also automatically kept in cloud storage and file sharing systems like Dropbox. You can access Xero-certified independent accountants and bookkeepers or accounting firms when you visit Xero’s Advisor Directory.
It also has bank rules and cash-coding features to make the reconciliation process easier and faster. Growing businesses will need to automate many tasks if they want to become large enterprises, and Xero’s smart reconciliation tools can help with that. It provides a comprehensive view of a company’s cash flow by presenting upcoming bills and outstanding invoices in a clear, tabular format. Whether you have its basic or most advanced plan, the Xero app supports unlimited users for real-time collaboration between your employees, accountants, and financial advisors. Xero is a great QuickBooks alternative for budget-conscious small businesses.
- Xero’s robust mobile app functionality was superior to many other accounting solutions we evaluated.
- Once you sign up, Xero provides several guided tutorials to acquaint you with its tools, such as connecting your business bank account, adding customers and creating invoices.
- It allows three users for its Essentials plan ($55 per month) and 25 users for its top plan, the Advanced ($200 per month).
- It would be nice to have an option for a recurring expense to be deducted from your checking account automatically.
- Monitoring the time and cost spent on jobs or projects is also made easier using the built-in timer and location-based tracking on the Xero app.
You can email invoices directly from the software; Xero integrates with PayPal, Stripe, Square and other payment processors, so you can accept payments online. One cool feature is that Xero lets you schedule recurring invoices (or “repeating invoices”) by setting the send date, frequency and end date. Automatic payment reminders encourage customers to pay on time, saving you from following up and dealing with unpaid invoices. You can set the software to send reminders before the payment is due or when it’s past due; you can also set up the system to email your customers’ receipts after receiving and recording payments.
Next Up in Business
Alternatively, you can capture transaction data from a PDF downloaded from your bank’s website. The robust features from Xero’s Hubdoc make it a potential alternative to Neat’s software, which also focuses on document scanning. We feel Hubdoc’s ability to sync transactions with Xero will prove particularly useful for business owners that deal with a lot of paperwork. Xero helps transform the data you enter into actionable information at every subscription level.
Small businesses, accountants and bookkeepers locally and across the world trust Xero with their numbers. With more small businesses now using digital tools to run their business, https://www.online-accounting.net/ many are looking for ways to become more efficient as they grow. A fantastic trait of small businesses is that they can be very agile in adapting and responding to change.
Xero is not free, though it does provide a free trial of the software for 30 days. Wave, Zoho Books, and ZipBooks are a few of our top picks for free accounting software. Moreover, you can set rules to categorize every transaction and match them with each receipt, bill, or invoice. In this way, you no longer have to manually check every transaction and match them with bill payments. Xero’s bank reconciliation feature also helps detect if there are deleted, duplicated, and missing transactions by simply running a bank reconciliation summary report.
Despite some criticism I have about Xero, I feel they are a strong billing and invoicing software. The customization capabilities is probably the best out of all online accounting software. It’s best to judge accounting software based on what you need it to do, rather than what it can be capable of doing. Instead, you can integrate a payroll add-on called Gusto, recommended for up to 100 employees. It’s a full-service option with unlimited, automated payroll runs and direct deposit. Beyond basic accounting functions, Xero also allows you to manage your inventory, as well as create and send purchase orders on the go.
Xero Editor’s Rating:
But one of the major differences between SMEs and large corporations is that the latter have the capability to invest in sophisticated accounting software solutions. From vendor creation to recording of payments, Xero can help in keeping your billing system https://www.kelleysbookkeeping.com/ organized. It also has an outstanding PO system to convert POs into bills, track unpaid bills, record e-payments, and apply vendor credits. The chart of accounts has default accounts set up, but you can modify existing accounts or add new ones.
Over 3.95 million subscribers use Xero
However, as the need arises, you may hire a Xero-certified accountant to help you keep your books of accounts accurate and organized. The Fit Small Business editorial policy is rooted in the company’s mission, which is to deliver the best answers to people’s questions. This serves as the foundation for all content, demonstrating a clear dedication to providing valuable and reliable information. Our team leverages its expertise and extensive research capabilities to identify and address the specific questions our audience has—and this ensures that our content is rooted in knowledge and accuracy.
Xero is considered a quality QuickBooks alternative because of its mobile app availability, accounting and invoicing features, and international invoicing capabilities. FreshBooks offers unlimited time-tracking in its lowest-tier Lite plan, whereas Xero users would have to opt into the highest-tier Established plan for that feature. All three plans come with an optional add-on for payroll with Gusto for $40 per month plus $6 per month per person. ††Hubdoc is included in Xero Starter, Standard and Premium plans as long as it’s connected to your Xero subscription. Your use of the Xero services is subject to the Xero Terms of Use and your use of the Hubdoc services is subject to the Hubdoc Terms of Use. Explore Xero accounting software and its tools for small businesses, accountants, and bookkeepers.
Buy the growing plan
Xero is a cloud-based, double-entry accounting software tool that is designed with small businesses in mind. More than 3.5 million users all over the globe use Xero to manage their billing and invoicing each month. In this Xero accounting software review, we’ll break down the pros and cons to help you figure out whether Xero is the right accounting tool for your needs. Additionally, Xero offers a 30-day free trial, so you and your employees can try out the software before you buy it. Not every accounting software provider offers a free trial, so we appreciate this feature.