Xero leverages AI and other automated tools to simplify, organize, and accelerate accounting tasks, making it a smart choice for businesses that need multiuser access. Xero lets you accept payment from your customers using multiple methods, increasing the chance of getting paid on time. It also supports accepting payments directly from the online invoice and reduces the time spent chasing payments.

• Xero allows multiple users to access the system simultaneously, making it easy for your accountant or team to collaborate on financial tasks.
• For a bank that does not support a direct feed connection with Xero, it enables bank data import in OFX, QIF, QBO, QFX, or CSV format for smooth operations across various institutions.
• Xero’s expandability through add-on support is a key feature that enhances its versatility.
• Find out more about Xero’s commitments to data protection and data security.
• However, Xero is not suitable for all types of business, particularly those with very high transaction volumes.
• Xero and QuickBooks Online have a lot of similarities, as both have strong features and numerous integrations.

The Best AP Automation for Xero in 2025

• A designated and fully-trained employee may teach functional areas of Xero to other employees who will be users.
• It provides real-time financial insights, automates key tasks, and simplifies expense management, making it easier for businesses to manage their finances effectively.
• The main app has an abbreviated dashboard that displays your most important numbers.
• Check their website to see what’s included in each tier before making a final selection.
• You’re able to send 20 quotes and invoices per month, enter five bills, reconcile bank transactions, capture bills and receipts with Hubdoc and view a short-term cash flow and business snapshot.
• Xero leverages AI and other automated tools to simplify, organize, and accelerate accounting tasks, making it a smart choice for businesses that need multiuser access.

It lets you reimburse expenses, track spending, and manage expenses wherever you are. Connect Xero to apps, integrations, and financial services to make it easier to run your small business. Supplier and contractor record templates are identical to customer record templates. For contractors, you can create reports that feed into integrated Xero apps to create 1099s normal balance at tax time. You can also send links to contractors that take them to the W-9 forms they must complete. Mode, a fast-growing analytics company, gives its clients access to data that helps them move at warp speed.

Intuit QuickBooks Online

This allows businesses to focus on strategic projects rather than routine accounting tasks. We’ll examine the platform’s core capabilities to uncover how Xero empowers businesses to streamline processes, gain real-time financial visibility, and make more informed strategic decisions. Xero is cloud-based accounting software for startups, small businesses, growing companies, and established companies. Although Xero isn’t an ERP for complete enterprise resource planning, third-party add-on software integrations extend its functionality and range of business processes. The mobile app works with Xero accounting software to help you run your small business from anywhere.

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Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. what is xero The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication.

👍 Simple user interface

The software appeals to companies with global customers, enabling multi-currency features in the Established plan. Xero lets you manually set up your business credit cards with related bank accounts for making payments. With an unlimited number of users included in its pricing plans (excluding optional Gusto payroll), your business doesn’t need to pay more initially or as it grows. Overall, Xero remains a top-tier accounting solution for many SMBs globally.

• Grow your business by connecting to suppliers and customers overseas – and use Xero to keep your paperwork in order, cutting time on admin.
• Still, Xero’s feature set is strong, leading to our rating of 4.1/5.
• Unlimited users and advanced features make this cloud accounting software platform a good fit for many small businesses.
• Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.
• Together, Ramp and Xero transform accounting from a chore into a strategic advantage, giving your business the clarity and control you need.
• You can add users to your Xero Accounting Software account and assign them different roles like Accountant, Bookkeeper, etc.
• The invoicing system also tracks invoice status, helping businesses monitor payments and manage cash flow effectively.

That includes the chart of accounts, invoices, bills, contacts and fixed assets. For a smooth transition and best results, we recommend working with an accountant or bookkeeper, preferably one with Xero experience, when you make the move to Xero cloud accounting software. Founded in New Zealand in 2006 by Rod Drury, Xero was born from the need for https://www.bookstime.com/articles/in-kind-donations more accessible accounting software. Its cloud nature means you can access your financial data securely from anywhere with an internet connection, enabling flexibility and efficient collaboration.

Xero allows you to track inventory, but it lacks the flexibility of QuickBooks Online. Xero’s dashboard provides a good launching pad for the experience. It displays the charts and numbers you need at the beginning of a work session, like account balances, bill and invoice status, and total cash in and out. You can drill down here to see underlying transactions and create new ones. The finance team had to manually track down receipts, reconcile transactions, and upload them into Xero, creating an unsustainable workflow for a fast-paced company. This flexibility not only helps businesses save time but also enhances the overall efficiency and creates a connected, customized ecosystem tailored to their operations.

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Users can easily monitor Inventory movement, update item details, and view the impact on financials. Today’s leading accounting platforms offer standard security features like data encryption, secure credential tokenization and more. While human error will always play some role in security breaches, you can be confident in your accounting platform when it comes to keeping your information safe.

Xero plan pricing and features

It’s great for budgeting, expense tracking, and time tracking, and it comes with unlimited users. Each month, Xero sends you a link to your subscription invoice with easy ways to pay for your accounting software. You can pay it using Visa or Mastercard debit or credit cards, or by direct debit.