Xero connects to your bank and credit card accounts and imports data daily, so we really appreciate that it protects your sensitive business data with bank-grade encryption. Additionally, you can opt in to two-factor authentication to make your login more secure. If you add employees to your account, you can set user permissions to control the data they can access.

On the other hand, FreshBooks may be a better fit for freelancers and solopreneurs, as the capabilities are easier to navigate. It allows you to estimate and prepare quotes that you can convert into digital invoices. 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. Additionally, you can also keep track of your projects’ or jobs’ profit margins to avoid unnecessary overspending and losses. Although the Early and Growing plans essentially have the same features, the difference lies in the Standard plan’s capability to create and send an unlimited number of invoices.

Let us help you pick a plan

While Xero offers unlimited users, it compensates for that by significantly limiting the number of invoices and bills allowed on the Early plan (20 invoices and five bills). Most businesses will soon find themselves needing to upgrade to a more costly plan. The Xero pricing guide shows three plans, all of which accommodate unlimited users. That’s why Xero is our best ecommerce accounting software for companies that need to include multiple users in the program.

If using multiple currencies is a priority to you, consider other platforms that offer this capability at a lower cost. Zoho, for example, is accounting software with a free invoice platform that allows you to bill in multiple currencies. Also included in the Ultimate plan is Xero Analytics Plus, https://www.kelleysbookkeeping.com/ a set of tools to help small businesses gain a deeper understanding of how their business may be performing, and plan ahead. For small businesses wanting in-depth insights and advanced cash flow forecasting, Analytics Plus provides a greater overview of cash flow and financial performance.

Hubdoc is included in Xero Early, Growing and Established plans as long as it’s connected to your Xero subscription. All pricing plans are in GBP excluding VAT and cover the accounting essentials, with room to grow. FinancesOnline is available for free for all business professionals interested in an efficient way to find top-notch SaaS solutions.

We are able to keep our service free of charge thanks to cooperation with some of the vendors, who are willing to pay us for traffic and sales opportunities provided by our website. Jenny Chang is a senior writer specializing in SaaS and B2B software solutions. She has covered all the major developments in SaaS and B2B software solutions, from the introduction of massive ERPs to small business platforms to help startups on their way to success. Choosing among the Xero pricing plans all depends on the stage your business is currently in and your immediate plans. Are you just starting, in the process of expanding, or already established and leaning toward dealing with international clients and/or suppliers? Knowing and understanding your business’s current state and immediate plans is important as each package is designed with a specific business stage in mind.

Gusto payroll plays nice with Xero

As the industry standard, QuickBooks Online is ideal if you have a growing business with specific accounting needs — as long as you don’t mind taking the time to learn the program’s ins and outs. When reconciling books, Xero suggests likely matches between bank statement lines and transactions entered in the software. For example, if you have an entry for an invoice of $1,000 and a recent $1,000 deposit in your bank account, it might suggest matching these two transactions. FreshBooks charges $17 per month and QuickBooks charges $30 per month). However, the best option and price point will depend on the specific capabilities and features you are looking for. Given that there are several invoicing software on the market, it’s worth putting in some time to research your options before choosing one for your business.

1. This practice, however, can actually lead to more problems, such as human errors.
2. Hubdoc also integrates with many online banking apps to pull transaction data directly into Xero.
3. Transactions initiated by app partners may automatically contribute to your invoice limit.
4. Xero is a great option for large teams and small- to medium-sized businesses that need high-level accounting systems.
5. Although overall, it’s ideal for daily accounting, inventory keeping, and project management.

Xero bookkeeping can customize sales tax rates, automate calculations, and prepare sales tax returns. Yes, you can, as Xero has Android and iOS mobile apps that allow you to access your account and manage your finances. However, it is not the most comprehensive mobile app because it doesn’t allow you to generate reports, receive payments from customers, or record time worked. Check out our guide to the best mobile accounting apps for our top picks.

Inventory Tracking and Purchase Ordering

However, Xero is not suitable for all types of business, particularly those with very high transaction volumes. Let Xero take the guesswork out of choosing the right plan for your business needs in under 2 minutes. Receipts and bills can be uploaded to the Xero platform by taking photos or scanning them. Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you.

Best Accounting and Bookkeeping Apps for Small Businesses

Unlike many other accounting applications, Xero does not base its pricing on the number of individuals who need access. In our view, this is one of Xero’s key differentiating factors, making it a great choice for growing businesses rapidly https://www.quick-bookkeeping.net/ adding new employees. Except for a few minor inconveniences, we were impressed with Xero’s invoicing capabilities. Everything is done in the cloud, meaning you can edit invoices without the hassle of resending them to customers.

With the Growing plan, you can also keep track of an unlimited number of bills that you can access and pay from anywhere using any device. We also found that it’s impossible to combine multiple checks along with cash into a single deposit entry. Xero does provide an account to hold undeposited checks, but the feature doesn’t track when checks are removed and deposited and doesn’t allow cash to be added to the deposit.

Is Xero hard to learn?

Users are required to download the free Xero Projects app, which they can use to record time and costs and create invoices and reports. We especially like that this feature is free, although some time-tracking apps include additional functionality. Xero is a cloud-based, double-entry accounting software for small businesses not exceeding 2,000 transactions a month. It aims to improve bookkeeping processes like bank reconciliation and financial reporting.

The most accessible general feature is the user-friendly conversion balances window, which allows you to input your beginning balances while clearly distinguishing if you’re entering a debit or credit. Those who left a Xero review gave a lot of positive feedback and excellent ratings on third-party user review websites. Most cited that they switched to the platform because it’s easier to use than those of competitors while others mentioned that it integrates with third-party apps that they use in their business. Some negative reviews seem to focus on very niche features, like problems with forex translations and customization options. Hubdoc is included in Xero Starter, Standard, Premium and Ultimate plans as long as it’s connected to your Xero subscription.

If you must reorder inventory, you can easily create and send purchase orders and then convert the purchase orders to bills for payment or invoices for your customers. For complex inventory needs, advanced inventory integrations are available through the app https://www.online-accounting.net/ marketplace. Many business owners with a growth mindset prefer choosing an accounting software solution and sticking with it over the long haul. Compared to other software we reviewed, Xero stands out for meeting businesses’ needs in all growth phases.

The Early plan costs $15 per month and lets users send up to 20 invoices and schedule up to five bills per month (Figure A). Other features include reconciling bank transactions and capturing bills and receipts with Hubdoc. Xero offers more than 1,000 integrations – among the most of the accounting apps we reviewed. These apps include Square, Stripe, PayPal, Gusto, DEAR Inventory and Expensify. Integrations help growing businesses by allowing them to upgrade their digital infrastructure as they become larger. If Xero lacks a feature you need, or if you want to connect it to the other business systems and services you already use, you can probably find an add-on in the company’s app marketplace.

Xero only allows one organization per subscription, so if you need to do accounting for more than one business, you’ll need to purchase an account for each one. Xero partners with Gusto to add more HR functions, such as payroll services. With Gusto, you can onboard new hires, administer employee benefits, track hours and paid time off, run payroll, and automatically file payroll taxes. We really liked Xero’s unique History & Notes feature, which presents an activity report at the bottom of every transaction screen.