Xero is a cloud-based accounting platform for small to mid-size businesses — providing invoicing, bank reconciliation, payroll, expense management, and reporting through a clean, modern interface. Popular in Australia, New Zealand, and the UK where it competes directly with QuickBooks Online, Xero's strength is its extensive partner ecosystem of 1,000+ apps and a large accountant network that recommends it to clients. Its bank feed reconciliation, multi-currency support, and project tracking make it well-suited for service businesses and companies with international operations.
Cloud accounting software for small businesses — a modern, user-friendly alternative to QuickBooks with strong international capabilities.
Best for: Small businesses and freelancers outside the US (UK, Australia, New Zealand especially) that want clean cloud accounting with unlimited users and strong international currency support
- Free trial
- $29 / month
4.4/5 ratingEditorial score 83/100xero.com
The editorial note
What to know about Xero
Is it right for you?
Who Xero suits
Choose it if
- Small businesses and freelancers outside the US (UK, Australia, New Zealand especially) that want clean cloud accounting with unlimited users and strong international currency support
Look elsewhere if
- US-based small businesses wanting the largest accounting professional ecosystem — QuickBooks Online has significantly deeper penetration among US accountants and bookkeepers, making it easier to find local support and outsource bookkeeping in the American market
What you get
Key features
- Double-entry accounting
- Bank feed reconciliation
- Invoicing and quotes
- Expense claims
- Project tracking
- Multi-currency
- Financial reporting
- Xero App Marketplace
Works with
Integrations8
What it costs
Pricing
| Plan | Price | What it includes |
|---|---|---|
| Starter | $29 / monthBilled monthly | 5 invoices/month, 5 bills/month, bank reconciliation, basic reports — small business |
| Standard | $46 / monthBilled monthly | Unlimited invoices & bills, payroll (1 user), bank feeds, expense tracking, quotes |
| Premium | $62 / monthBilled monthly | Multi-currency, 5 payroll users, advanced analytics, inventory, project tracking |
Prices are recorded from the vendor's public pricing page and can change. Check before you buy.
The trade-off
Pros and cons
Pros
- Unlimited users on all plans — no per-user pricing unlike QuickBooks which charges per user
- Strong bank reconciliation with smart rules that learn and auto-categorize recurring transactions
- Project tracking links time, expenses, and invoices to projects for accurate profitability reporting
- 1,000+ integrations in the Xero App Store cover payroll, inventory, CRM, and industry tools
- Multi-currency support on higher plans handles international invoicing and payments cleanly
Cons
- Payroll is a paid add-on in most countries — not included in the base subscription like some competitors
- More expensive than Wave for equivalent features for micro-businesses with simple needs
- Customer support requires submitting a case — no phone support available on standard plans
- Learning curve for users coming from desktop accounting software like QuickBooks Desktop
Quick read
At a glance
- Category
- Finance & Business Services
- Pricing model
- Subscription
- Entry plan
- $29 / month
- Free plan
- Not listed
- Free trial
- Available
- Website
- xero.com
Head to head
Xero compared
The verdict
Our take on Xero
Xero is the best accounting software for small businesses outside the US, particularly in the UK, Australia, and New Zealand where it's the market leader. The unlimited users model is a genuine pricing advantage over QuickBooks. For US-based businesses, QuickBooks Online has a deeper accountant ecosystem and more US-specific integrations — but Xero is worth evaluating if you invoice internationally or want a cleaner interface.
Editorial review
From the journal
Editorial review of Xero
Xero is the best accounting software for small businesses outside the US, particularly in the UK, Australia, and New Zealand where it's the market leader. The unlimited users model is a genuine pricing advantage over QuickBooks. For US-based businesses, QuickBooks Online has a deeper accountant ecosystem and more US-specific integrations — but Xero is worth evaluating if you invoice internationally or want a cleaner interface.
Where this appears
Mentioned in
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