If you’re a bigger business, you might benefit from Xero’s higher tiers, which include more robust accounting features. 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. If you own multiple small businesses, or you’re a bookkeeper working with multiple clients, a competitor like QuickBooks that allows multiple companies per subscription might be more cost-effective for you. Xero offers a built-in integration with Hubdoc, a tool that extracts the data from bank statements and financial documents and uploads it into the system based on rules that you specify. Xero also has a mobile app, Xero Expenses, that allows you to snap pictures of receipts and create an expense instead of having to manually enter all the information. Xero doesn’t provide a phone number on its customer support page, but a representative will call you if necessary.

Apps like Stripe, GoCardless, Vend, and Shopify connect seamlessly and sync data with Xero. Which is why you’re not seeing a lot of AI in the technical capabilities of these accounting applications. Even with all the hubris around the “transformative impact” of AI, what’s telling to me is that these new AI «features» really aren’t featured very much in these companies products. Because there really aren’t any, at least none that would make a difference to the accountants using these products. For example, the £15 starter plan gives you a monthly limit of 20 invoices and quotes, 5 bills, while the £30 plan contains unlimited invoices and bills. If a small business is looking to take on some of the accounting tasks themselves, then Xero is a cloud-based accounting software made for those small businesses.

Plans to suit your business

Zoho Books offers a forever free plan of its accounting and invoicing software, which sets it apart from competitors, in addition to five paid plans that start at $15 per month. Helpful features include quote sharing with clients, facts on the specific identification method of inventory valuation multiple payment options and auto-charging for recurring transactions. For VIP Service, it’s an additional $50 per year and comes with one-to-one training, a dedicated support team and early access to new features.

• Most accounting software programs include features for invoicing, tracking payments and managing inventory.
• The platform prioritizes simplicity, ensuring that even those with minimal accounting experience can maintain accurate and organized records.
• Neat offers document management specifically tailored for those who want an organized and streamlined method without the complications of traditional software.
• This means that FreshBooks is a good choice for small businesses that need to send more invoices than the Xero basic plan allows and need more users than the QuickBooks basic plan allows.
• Further MTD rules will be introduced around income tax returns in April 2026 and 2027.
• In addition, the AccountEdge Hosted option provides remote access from any device, offering flexibility to businesses.

This efficiency translates to tangible savings, with the potential to cut monthly client management costs significantly. FreshBooks is a good choice for small business owners who want easy-to-use accounting software. The software is also a good fit for service-based businesses, such as consultants, web designers and photographers. Xero provides multiple layers of protection for the personal and financial information you entrust to Xero accounting software.

Accounting software for your small business

We like Xero for businesses with lots of employees, as they can take advantage of the unlimited number of collaborators. With its straightforward accounting software, QuickBooks is an easy favorite amongst freelancers, and not just because many of them bundle it when filing their own taxes with its tax software. Looking at Xero vs. Sage, you can see they stack up quite well. Because both software come with a 30-day free trial, you’ll have plenty of time to give each a test run before committing. However, there are some key features missing from Sage, including bill pay and time tracking. While Sage does offer accounts payable, it seems you still have to manually pay bills from your bank account.

Is Sage similar to Xero?

This means that QuickBooks is a good choice for businesses who only need one person to use the software but need to send a high volume of invoices and bills per month. In addition to billing and invoicing capabilities, Xero goes one step further by providing financial and accounting reporting features (Figure B). Options include a 1099 report, a balance sheet report, aged receivables report, aged payables report, inventory report and more.

Are you on the search for an accountant or bookkeeper in Dallas?

It allows you to pay and manage multiple bills through Xero using your preferred bank account. You can now create and send online invoices from your phone device as soon as you’ve finished a job. Those days are gone when businesses used Excel spreadsheets to track all incomings and expenses, and then create invoices in a Word Document.

However, Xero does offer 24/7 online support—a rarity in the accounting software field. You can also browse the Xero Central support database for articles and guides on your issues. Xero offers a highly guided setup process that walks you through every aspect of the software with pop-up windows and tutorials (Figure C). It also provides a demo company account that allows you to practice on dummy data. Customers who are brand new to accounting software will especially benefit from this level of help. The Xero app store offers more than 1,000 prebuilt connections that integrate with third-party apps.

We strive to give you a review on as many products as possible, but there will be products not included on the market. The review is our opinion, but it does not constitute advice, recommendation or suitability for your financial circumstances. Check out the Xero App Store to find, try and buy business apps that connect to Xero online accounting software and make running your small business even easier.