Xero

Score7.9 out of 10

783 Reviews and Ratings

What is Xero?

Xero is an online accounting software product for small businesses and personal finance. Its features beyond general ledger and double-bookkeeping include quotable invoicing, bank reconciliation, purchase order and expense management, and tax management. Third party apps can extend its features further.

Categories & Use Cases

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Electronic tax filing
The software provides a full electronic interface for the filing of repeatable taxes, such as payroll or sales tax.
Category average: 8.6
Journals and Reconciliations
Automate and synchronize ledgers and processes
Category average: 8.9
Standard reports
The software offers pre-built reports with metrics standard to the category.
Category average: 8.5

Centralized Rules Framework
Integrate disparate ERP and transactional systems into single ERP instance
Category average: 8
Configurable Accounting
Configure accounting rules and segments for each chart of accounts
Category average: 8
Enterprise Accounting
Create accounting for disconnected ERP and non-accounting source systems
Category average: 8.1

Sam Zurcher

Advisor in Finance and Accounting at CFG (1-10 employees employees)

Use Cases and Deployment Scope

We use Xero as our accounting tool. We don't have any 1099 employees or contractors so our business is pretty straightforward. We just want to know what our margins are, what our revenue and expenses are so that we can keep track of our progress and then file for taxes at the end of year.

Pros

Sync's to our payroll (Gusto)
Easy to read reports
Adding Expenses and Sales

Cons

1099 functionality
More in depth accounting reports

Return on Investment

reduced time spent on accounting
improved reporting to see our real time number

Usability

Alternatives Considered

QuickBooks Desktop Enterprise

Other Software Used

Gusto

Ben Clifford View profile

Founder & Managing Director at erjjio (1-10 employees employees)

Use Cases and Deployment Scope

We use Xero to invoice our clients, track our financial data and submit reports to HMRC. We also use integrations with our bank feed and payment processors (Stripe and GoCardless), in order to reconcile transactions and automate recurring payments from our clients, either using a saved credit card or Direct Debit.

Pros

Recurring invoices
Detailed financial reports
Integrations with 3rd party tools
Customer payment automation

Cons

Easy customisation of invoice design
User-friendliness / learning curve

Return on Investment

It helps me to delegate and automate a lot of work
However it also means I have to rely on having professional support

Usability

Alternatives Considered

Wave Accounting

Other Software Used

Basecamp, Hubstaff, Typeform, Google Workspace, Intuit Mailchimp

David Davis View profile

Director in Professional Services at BeyondPossible PTY LTD (1-10 employees employees)

Use Cases and Deployment Scope

It is our financial system of record, all transactions are done via Xero. All bank recons, VAT/PAYE reporting, budget management, annual reports etc. Invoicing, follow-ups etc.

Pros

Budgeting
Reconcilliation
Statutory Reports

Cons

Dashboard customization.
Balance Sheet and Income Statement View Customization.

Return on Investment

Esase of reconciliation saves me time.
Balance sheet and Income statement oversight, saves time.
Negative - removed the payroll functionality as part of the offering, now I have to spend more with a third party vendor for a basic payroll.

Usability

Alternatives Considered

Odoo Accounting

Other Software Used

n8n

Lee Redpath

COO in Finance and Accounting at Sayers Wealth (11-50 employees employees)

Use Cases and Deployment Scope

We use Xero as our general ledger, expense and payroll platform. It produces invoices and is used as a management tool for executives to manage the financial position of the firm.

Pros

Reports
Invoices
Bank account reconciliation

Cons

The charging model is a bit complex and requires you to purchase too many add-ons
The platform needs an overhaul from a look and feel perspective - this hasnt been upgraded in years

Return on Investment

Saves time for the bookkeepers
Reduces errors caused by manual intervention (through automation)

Usability

Other Software Used

Claritysoft

Verified User

Manager in Finance and Accounting (11-50 employees employees)

Use Cases and Deployment Scope

We use Xero as our accounting software for A/P, A/R, Bank accounts, etc. We also use it for financial reporting and helping us to keep on top of where our business is financially. Xero continues to add products, such as payroll, to help our business run efficiently. It has helped us have an in time view of our financials and with the new syft it is even better.

Pros

Accounts Payable
Financial Report - Being able to create our own reports
Good customer support
Excellent support of small to mid size businesses
Financial dashboard for up to the minute picture of company
Bills available to streamline a/p process

Cons

Accounts Receivable - there is no capability of adding finance charges on late invoices. This is a HUGE problem.
Reports - it is great to be able to create your own reports but it is a little difficult to figure out how to use it.
Checking - Our credit union business side is not able to download to Xero. This is a burden in keeping on top of finances throughout the month.

Return on Investment

It has saved considerable time in entering data for A/P and A/R
It has given us the opportunity to customize reports that can be shared with our employees - keeping them informed of the health of the organization