Xero Review: A Powerhouse for Experienced Accountants

Xero has long been promoted as a robust accounting solution tailored for professionals. However, our recent in‐depth testing reveals a platform that, despite strong functionality in specific areas, struggles with an outdated interface and convoluted workflows.

In this Xero review, we detail its key features, usability, pricing structure, and how it measures up against competitor accountancy software – all supported by our latest testing and research.

Xero Review: Overview

Xero offers extensive financial tools, from advanced expense management to extensive integrations via its secure client portal. Here’s what we think is worth highlighting at a glance before we get into our full Xero review.

Xero Review: Key Features

Let’s dive into the key features that make Xero tick, starting with its essential invoicing and quoting tools.

Invoicing and quoting

Xero’s invoicing and quoting tool is designed to automate billing processes, support recurring invoices, send payment reminders, and even track invoice views – all of which are critical for efficient cashflow management.

We found invoicing and quoting fairly easily accessible by clicking on the “Business” tab dropdown on the top, static navigation bar.

From there, you can find a “New Invoice” or “New Quote” button to open up an entry form where you can set recurring parameters (such as automated sending and payment reminders based on set criteria), attach payment links, and add client details. Whenever you send an invoice, you can see if clients have viewed it. Meanwhile, if you are using Xero’s Comprehensive or Ultimate plans, you’ll have multi-currency support for both invoicing and quoting, too.

As a result, Xero scored perfectly for its recurring invoice setup – matching QuickBooks and Zoho Books as a leader in this area, and ahead of competitors like FreshBooks (no multi-currency support), Clear Books (no viewing when clients have read invoices), and Sage (no ability to send payment reminders to clients who have not paid their invoice). 

Xero can be configured to take invoice payments in multiple ways. Namely via debit/credit cards (Visa, Mastercard, and American Express), Apple Pay, Google Pay, and Klarna via the payment processor Stripe, as well as bank transfers (BACS) and PayPal wallets. To receive these funds, you can add an unlimited number of bank accounts, too.

However, while all features are present and correct, we did find QuickBooks allows more granular customization. For example, QuickBooks lets users modify invoice templates by editing field placements, fonts, and colours, whereas these visual adjustments aren’t possible with Xero.

Similarly, while Xero supports multi-currency invoicing and automated reminders, it requires manual intervention for some elements (like tax code assignments) compared to Zoho Books, which automates all multi-currency handling.

Tax preparation

The tax preparation feature in Xero is responsible for accurate tax calculations, VAT returns, and keeping you compliant with HMRC.

We found we could successfully perform tax calculations as and when needed, though manual setup is required to assign VAT codes for things like stock products and specific contacts so that you can get the correct tax applied on invoices and quote estimates.

Xero automatically updates tax codes when changes occur but we’d argue this isn’t as comprehensive of an approach compared to rule-based updates or fully automated tax configurations possible on Zoho Books where you can set criteria for applying tax rates automatically.

Still, Xero supports a broad range of tax types, including income tax, although it also lacks tools for tax forecasting and planning (albeit, only FreeAgent offers this from the accounting software we’ve tested).

Journal entries

Xero’s journal entry functionality is designed to accurately record and reflect all financial transactions in the general ledger. The system automatically posts every journal entry – whether created manually or imported via CSV – meaning all records are updated in real-time without requiring additional verification.

While Xero supports basic documentation of transactions effectively, we would argue its ease of use in this area is slightly lower than competitors such as QuickBooks and Zoho Books. Both offer CSV and XLS imports along with memory for detailed account codes and pricing. Xero’s approach is more basic, in remembering frequently used codes by simply filling out relevant titles, and users with high data entry volumes might find QuickBooks or Zoho Books more appealing.

Project time tracking

Xero’s time-tracking feature allows for easy tracking of your billable hours and integrates them into invoicing so that your project cost assessments are accurate.

You can locate the time entries section under the Projects tab of the main navigation bar. From there, simply clicking the timer button in the top-right corner will begin time-tracking. It’s clearly labelled and requires minimal clicks to get going. You can also enter hours manually. This is similar to QuickBooks and Zoho Books, but Xero’s ability to pause/resume or start over instantly is a major benefit (there are a few extra steps with those other two accounting software providers).

You will need to have projects and tasks created in Xero before starting the timer for the total minutes to be saved to those respective pieces of work, but otherwise you should face no issues with its functionality. Thereafter, you’ll be able to monitor project progress and ongoing costs in one place and then convert time and cost entries into billable items within the invoicing system upon completion.

It’s notable that previously, any Xero plan could use projects as an add-on. However, the current plan lineup only allows Ultimate customers to use projects. This may be an issue for small businesses who find projects an essential part of their workflow, although given Xero’s extensive integrations – which we’ll detail shortly – there are other options for you to integrate into your workflow if the Ultimate plan is price-prohibitive.

Financial planning and visibility

Xero’s Financial Planning and Visibility features are designed to give businesses a clear, real‐time view of their financial health. These tools help users monitor cash flow, forecast future financial performance, and make informed budgeting decisions, all crucial for strategic planning and long-term growth.

From the main Dashboard, users can view a short-term cash flow snapshot displaying current cash balances, upcoming receivables, and pending bills. Xero’s layout in this area is rated highly by users, with the dashboard providing an intuitive snapshot of current financial status, making it easy for businesses to quickly grasp their financial position upon logging into Xero.

Separately, you can also adjust forecasting parameters and set up budget scenarios directly within the reporting tools to tailor insights to your business needs. Meanwhile, for users on the Comprehensive and Ultimate plans, the Analytics Plus add-on provides advanced predictive analytics based on historical data.

While QuickBooks can be configured to give system alerts for potential cash shortfalls or surpluses, unlike Xero, the latter outperforms QuickBooks overall for this area since it offers deeper, more actionable insight into inventory management (Xero has tracking of fixed assets, only available in the QuickBooks Advanced plan, and automatically calculates values, including depreciation or amortisation, unlike QuickBooks).

Expense management

Xero’s expense management tools are designed to simplify capturing and tracking business outgoings. The platform handily allows users to upload receipt images directly via mobile or desktop interfaces. In other words, all expense claims are supported by visual documentation, which should mean reduced manual data entry and fewer errors.

One of Xero’s standout features is its integrated mileage tracking, which automatically calculates travel expenses at a standard rate of £0.45 per mile. This not only saves time but also helps forge consistency across the organisation, which is especially beneficial for businesses with significant travel-related expenditures.

Competitors like FreshBooks don’t offer tools for receipt uploads or automated mileage calculations, meaning you might face more manual input with it than Xero. QuickBooks does offer robust receipt capture, but its mileage tracking is not standardised like Xero, nor as seamlessly integrated into invoices and quotes.

Integrations and AI/Automation

Xero’s Operational Efficiency features are engineered to streamline daily accounting tasks by leveraging extensive integrations of over 1,000 third-party apps covering areas including CRM, inventory management, bank feeds, payroll, and more. QuickBooks has the next highest total, with over 750, while all the other platforms we tested had far fewer than 100 ready-made integrations, showing Xero’s excellence in this area.

Xero is also a leader in terms of AI-powered automation across areas of its software, such as expense categorisation and bank reconciliation. Its AI functions help minimise time spent manually entering data by automatically suggesting categorisations, sending reminders, and even predicting cashflow trends based on historical data, reducing the need for manual input.

Xero Review: Pricing Plans Explained

Xero offers four pricing tiers aimed at different business sizes and needs. Currently, the prices for each plan are discounted by 90% for six months when you buy Xero before 31 March 2025.

Plan breakdown

In the table below, we have included these sale prices, as well as their standard cost, alongside what features you receive and any additional extras you can purchase with each plan:

For our most up-to-date and detailed pricing information, please visit our Xero Pricing page.

Xero Review: Help & Support

Xero offers free, unlimited online support 24/7 as part of every subscription.

Users are encouraged to start by searching Xero Central for help articles and learning courses that address common questions and issues. In our testing of Xero, we found these tools useful for several specific tasks, as long as you knew exactly what to search to find the right assistance.

If the self-service resources don’t resolve the problem, you can contact support directly through the help icon in the upper right-hand corner of your Xero interface.

When you click this icon, simply enter your query; if the suggested articles aren’t sufficient, you can submit a detailed case via a form. You can attach files (up to 5MB each) to illustrate issues, and even grant temporary access to your organisation so that support staff can view and troubleshoot the problem directly.

Although Xero does not offer a direct support phone number, its website says that it will call you back if needed. All requests are directed to the team best suited to address the issue, and you can expect an initial response within about two hours. This robust, structured support process ensures that users receive consistent, secure assistance, reinforcing Xero’s commitment to helping organisations resolve issues promptly and maintain smooth operations.

Xero Review: Alternatives

When comparing Xero to other accounting software, several key points emerge. Let’s take an overview of what competitor accountancy options can offer before we detail our thoughts on Xero’s main rivals.

When comparing Xero to other accounting software, several key competitors emerge:

➡️ QuickBooks: Offers a more modern, intuitive interface with a “big green button” design that many of our testers found visually appealing and easier to navigate than Xero. We also found it comes with highly responsive customer support, and relatively similar pricing (a cheaper starter cost, but a potentially higher cost if you upgrade to its most advanced plan).

However, when it comes to financial planning and operational efficiency, QuickBooks can be more basic. For example, its cash flow forecasting tools provide only a general overview, whereas Xero’s dashboard delivers a detailed, real-time snapshot with advanced forecasting parameters to adjust budget scenarios and cashflows more accurately. Xero is, of course, the top choice for integration options, too. To see how they compare in detail, read our Xero vs QuickBooks comparison.

➡️ Zoho Books: Provides excellent automation and strong reporting tools at an affordable price, appealing to small and medium-sized businesses looking for modern software. Zoho Books’ focus on automation and affordability (it has one of the cheapest accounting software starting prices around) positions it as a direct competitor for businesses seeking simplicity without sacrificing functionality.

Namely, we liked its rule-based tax automation based on specific criteria, such as customer location or product category (with Xero you’ll have the default option automatically or need to change it individually for every customer or product).

Still, we’d argue Xero has superior financial planning capabilities, alongside its more extensive integration network, that might still make it a better choice for larger, more complex organisations depending on your requirements.

➡️ FreshBooks: Another option known for its simplicity and ease of use, FreshBooks may be more suitable for freelancers and small businesses focused on basic invoicing and expense tracking.

Although some testers praised Xero’s expense management, like its direct receipt uploads, mileage tracking at £0.45 per mile, and flexible currency options, FreshBook’s cleaner, more streamlined display with fewer fields to complete will be appealing to businesses that don’t need Xero’s advanced features. You can compare them directly in our Xero vs FreshBooks comparison piece.

Methodology: How We Reviewed Xero