Ultimate Guide to Xero Accounting Software

In this guide, we’ll cover everything you need to know about Xero Accounting Software integration including market fit, pricing, features, and comparisons.

We’ve paired this article with a free e-Book to help companies bridge the gap between their accounting software or ERP system and AP processes. Download “The Last Mile of ERP – Payables Transformation Strategies.”

What is 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 NetSuiteMicrosoft 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. 

Which Types of Businesses Use Xero?

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. 

Xero accounting software users are in these industries:

  • Retail, eCommerce, and Amazon sellers
  • High tech 
  • Legal
  • Bookkeepers and CPA firms
  • Hospitality and Tourism
  • Restaurants
  • Construction
  • Creatives
  • Healthcare
  • Farming
  • Manufacturing
  • Real estate, and 
  • Franchising – franchisees and franchisors.
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How Much Does Xero Cost?

Choose a Xero pricing plan matching your business needs. The level of features varies with each of the Xero pricing plans for Early at $13 per month (with 20 invoices and 5 bills per-month limit), Growing at $37 per month, and Established businesses at $70 per month. The Xero Established plan adds multi-currency, expense capture and expense claim management, and project management time-tracking and cost-tracking. When combined with Gusto, the Xero Accounting Software system offers a payroll plan in the United States for $40 per month +  $6/person per month.

How Does AP Automation Software Integration Work With Xero? 

Xero Accounting Software integration with AP automation software uses a flat-file or API connection. Tipalti has flat-file integration with the Xero accounting system. The Tipalti add-on app automates and streamlines workflows for accounts payable and payments, offering multi-currency global mass payments using a choice of payment methods. Use Tipalti payables automation software through the Xero login.

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What Are The Primary Features and Advantages of Xero?

• 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.

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How to Implement & Use Xero?

Xero online accounting is easy to use and simple enough to implement on your own or with help from a bookkeeper or CPA with experience in your industry. Xero Central is a centralized source of customer support and learning information, including links to online topics and courses.  

Which Accounting Software or ERP Systems are Comparable to Xero?


QuickBooks Online

Comparing Xero vs QuickBooks, QuickBooks Online is an accounting software product that competes with Xero Accounting Software. Both software vendors add third-party integration apps to transform accounting software into a limited substitute for an ERP solution. QuickBooks Online is used by startups and small businesses with up to 25 users, depending on the plan level. Intuit QuickBooks also sells QuickBooks Desktop products that could appeal to users looking for an on-premises software solution instead of cloud.



Odoo cloud ERP system is used by companies of all sizes, beginning with startups. Odoo competes with Xero at the small business level. Users pay for the software apps (modules) they need, covering many business processes and functional areas.



Xero vs SAP Business One on-premises or cloud ERP software is a choice that companies doing a software evaluation can make. SAP Business One is for small businesses. SAP also sells the mid-market ByDesign product and top-tier ERP solutions for large enterprise companies.

INTEGRATE TIPALTI & Xero Accounting Software