Our verdict · 8.5/10 Excellent
An excellent alternative to QuickBooks, particularly outside the US or when multiple people need access. Check transaction limits on the entry plan.
Key takeaways
- Best for: Teams wanting unlimited users.
- Strongest area: Integrations & ecosystem (9.0/10). Weakest: Support & reliability (7.8/10).
- Price: From around $20–29 / month — free trial available.
- Watch out for: Entry plan transaction limits.
What is Xero?
Xero is a cloud-first accounting platform popular in the UK, Australia and New Zealand and increasingly in the US. Unlimited users on all plans, a tidy reconciliation experience and a large app marketplace make it a favourite of many accountants and growing teams.
Xero is made by Xero and is reviewed here as a accounting tool. It is priced on a subscription basis, and our editorial score is 8.5 out of 10, calculated from six weighted criteria.
Who it’s for — and who should skip it
Choose Xero if
- Teams wanting unlimited users
- UK, AU and NZ businesses
- Businesses with app-heavy workflows
Not for you if
- High-volume invoicing on the entry tier
- Complex US payroll inside one tool
Key features
Match transactions quickly with suggestions.
Send invoices and track payables.
Trade in many currencies on higher plans.
Hundreds of connected apps.
- Gusto
- Shopify
- Stripe
- HubSpot
- Square
Pros & cons
What we like
- Unlimited users on every plan
- Clean reconciliation workflow
- Strong app marketplace
- Multi-currency on higher tiers
Watch out for
- Entry plan transaction limits
- Support is mainly online
- Some reporting needs add-ons
Pricing & true cost
| Plan | Indicative price | Notes |
|---|---|---|
| Starter | ≈ $20 / mo | Limits on invoices and bills |
| Standard | ≈ $40 / mo | — |
| Premium | ≈ $55 / mo | Multi-currency |
Pricing watch-out: Entry plans can limit invoices and bills per month.
Contract questions to ask before you sign
- Does the plan auto-renew, and how many days’ notice do you need to cancel?
- Is the advertised price for annual billing? What is the month-to-month price?
- Is the first-year price a promotion? What will renewal cost, and is it capped?
- Is there a minimum number of seats, or a charge for inactive users?
- Are onboarding, implementation or premium-support fees extra?
- How do we export all our data if we leave, and in what format?
General questions for any vendor — not findings about this product. Build a full checklist with our requirements builder.
Indicative USD pricing, last checked October 30, 2026. Vendors change prices and promotions often — always confirm on their website. Model your own numbers with our SaaS TCO calculator.
Score breakdown
| Criterion | Weight | Score | Points | |
|---|---|---|---|---|
| Features & fit | 25% | 8.7 | 2.20 | |
| Ease of use | 20% | 8.6 | 1.70 | |
| Value for money | 20% | 8.4 | 1.70 | |
| Support & reliability | 10% | 7.8 | 0.80 | |
| Security & privacy | 10% | 8.4 | 0.80 | |
| Integrations & ecosystem | 15% | 9.0 | 1.40 | |
| Overall | 100% | Weighted for business software products | 8.5 | |
Security & compliance facts
| Item | Status | Question to ask Xero |
|---|---|---|
| Multi-factor authenticationStops most account takeovers from reused or phished passwords. | Not verified by us | Can admins enforce MFA for every user, on every plan? |
| Single sign-on (SAML/OIDC)Lets you remove a leaver’s access everywhere from one place. | Not verified by us | Is SSO included on the plan we are buying, or only on enterprise tiers? |
| SOC 2 Type II reportIndependent audit of the vendor’s security controls — often required by larger customers. | Not verified by us | Can we see your current SOC 2 Type II report (under NDA if needed)? |
| ISO/IEC 27001 certificationInternational standard for running an information-security programme. | Not verified by us | Which legal entity and services does your ISO 27001 certificate cover? |
| GDPR data processing agreementNeeded if you handle personal data of people in the EU/UK. | Not verified by us | Do you offer a signed DPA and list your sub-processors? |
| HIPAA business associate agreementRequired before US healthcare businesses store protected health information. | Not verified by us | Will you sign a BAA, and on which plans? |
We have not yet verified these items for Xero against a primary source, so we don’t claim them either way. Check Xero’s trust or security page and ask for documents in writing.
Before you buy any accounting tool
Check Xero against the same list we use for every accounting tool — and confirm each point on the plan you intend to buy, not the top tier.
- Supported bank feeds for your accounts
- Invoicing with online payments
- Sales tax / VAT handling for your regions
- Accountant or bookkeeper access
- Reports: P&L, balance sheet, cash flow
See every ranked option in Accounting Software.
Xero alternatives
Pick an alternative by what matters to you
- CheaperZBZoho Books≈ $15/mo vs $20/mo at 10 users (cheapest paid plans, indicative)
- Has a free planZBZoho BooksXero has no free plan; Zoho Books does
Computed from our published scores and indicative pricing for tools in the same category as Xero. Scores are editorial; see the methodology.
Editor’s picks
The accounting platform most US accountants already know.
Invoicing-first accounting for freelancers and service businesses.
Head-to-head comparisons
Featured in: Best Accounting Software for Small Business, Best Accounting Software for Freelancers, QuickBooks vs Xero vs FreshBooks vs Wave
Review history
- Scored under methodology v2.0 (six weighted criteria, computed overall score).
Xero FAQ
Does Xero limit users?
No — all plans include unlimited users.
Does Xero have a free plan?
No, Xero does not offer a permanent free plan, but a free trial is available. Pricing starts at From around $20–29 / month (indicative).
Who is Xero best for?
Xero is best for: teams wanting unlimited users; UK, AU and NZ businesses; businesses with app-heavy workflows.
How is the Xero score calculated?
The 8.5/10 overall score is a weighted average of six sub-scores — features & fit, ease of use, value, support & reliability, security & privacy, and integrations — using the published weights for software products. Affiliate relationships have no input. See our methodology page for the full rubric.
What are the best alternatives to Xero?
Popular alternatives include QuickBooks Online, FreshBooks. See our comparisons for side-by-side verdicts.