Ultimate Guide to Xero Accounting Software

Xero is cloud-based small business accounting software for startups, 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. Xero has a SaaS subscription pricing model. The company, Xero, is based in New Zealand.

Xero Accounting Software automates bookkeeping and accounting. Xero’s online Accounting Software includes a chart of accounts, general ledger, financial reporting, bank account reconciliation, cash flow management, bill capture and receipts with Hubdoc, purchase orders, customer quotes, order management, invoicing, accounts receivable, inventory management, accounts payable, and business management.

In Xero, your business can set up user roles with Limited, Standard, or Administrator access. Then you can grant specific additional permissions to a user for more Xero functions or abilities. 

Xero allows unlimited users for scalability as a company grows. But a subscriber’s users could hit informal monthly transaction limits or speed slowdowns. These are indicators of when it’s time to upgrade your growing business to mid-range ERP software like Sage Intacct,  NetSuite, Microsoft Dynamics 365, or the SAP ERP product for SMBs called ByDesign. 

Xero cloud Accounting Software is accessible on either Windows or Mac computers. The Xero Accounting mobile app can be used on Apple iOS and Google Android mobile devices. 

Small businesses, business owners, bookkeepers, accounting firms, and non-profits use Xero. Xero software appeals to companies with global customers, enabling multi-currency features in the Established plan. 

• Low-cost

• Unlimited users included in every plan 

• “Established” plan supports Multi-currency

• Bank Reconciliation
 
• Bookkeeper and accounting firm practice tools

• Simple integration with LivePlan software and many other third-party apps.

Every Xero pricing plan is low-cost. Xero accounting prices aren’t based on the number of users, although adding Gusto payroll includes an extra $6 per person charge besides the added monthly subscription cost. Xero Accounting Software allows unlimited users.

Xero provides automatic bank account reconciliations. A Xero Central support article for Bank Reconciliation describes the bank account reconciliation process: 

“The aim of bank reconciliation in Xero is to match each statement line in the bank account to an existing transaction in Xero, or create a transaction during the reconciliation process. Statement lines are the bank transactions imported from your bank account via a bank feed or they’re manually imported. When they’re in your online banking, they’re referred to as bank transactions, then when they’re imported into Xero we call them bank statement lines.”

Bookkeepers and accountants use Xero software in their practice and offer simple Xero Cashbook or Xero Ledger to their clients through a Xero partner plan. Bookkeeper and accountant tools include Xero HQ to centralize practice and client data, dashboards, and customizable reporting with report templates. Xero Practice Manager and Xero Workpapers enhance productivity. Bookkeepers and accounting firms also receive a free subscription to the Xero premium plan. 

Xero users can seamlessly integrate Salesforce or other CRM software, supply chain software, and payables automation software third-party add-ons to increase Xero efficiency, features, and capabilities. 

Xero accounting data is connected and syncs to LivePlan software in real-time. Use Xero accounting data to create business plans and budgets, reports, infographics, and dashboards with the LivePlan app in the Xero app marketplace. Spreadsheets like Excel aren’t needed.