# Xero

Xero (NZX/ASX: XRO) is cloud accounting software rated 4.4/5 on G2 (1,598 reviews) and 4.4/5 on Capterra (3,300+ reviews). Profile: pricing, revenue, leadership, integrations.

**Category:** Cloud accounting / small business finance  
**Vendor:** Xero Limited  
**Founded:** 2006  
**HQ:** Wellington, New Zealand (operational hubs in Melbourne, London, San Francisco)  
**Website:** https://www.xero.com  


## About

Xero is a cloud-based accounting platform for small and medium-sized businesses, built around a double-entry ledger, bank feeds, invoicing, payroll, and a marketplace of over 1,000 connected apps. It was founded in 2006 by Rod Drury and Hamish Edwards in Wellington, New Zealand, and listed on the New Zealand Exchange (NZX) in 2007 before gaining an Australian Securities Exchange (ASX) listing. Xero reported revenue of approximately NZ$2.0 billion for fiscal year 2025 (year ending March 31, 2025) and serves over 4.2 million subscribers globally, with its strongest markets being Australia, the United Kingdom, New Zealand, and the US. Sukhinder Singh Cassidy became CEO in February 2023, succeeding Steve Vamos. The product is particularly strong in the Australasia and UK mid-market accounting ecosystem, where it has built a large practice-led distribution channel through Xero's advisor partner program.

## Ratings

| Source | Score | Reviews |
|---|---|---|
| G2 | 4.4/5 | 1,598 |
| Capterra | 4.4/5 | 3,300 |
| Gartner Peer Insights | 4.3/5 | 74 |
| TrustRadius | 8.1/10 | 310 |

## Funding

Public company; raised ~NZ$700M in equity capital pre-IPO and via secondary raises post-listing

| Round | Amount | Date | Lead |
|---|---|---|---|
| Seed / Angel | NZ$1M | 2006 | Rod Drury and early angels |
| IPO (NZX) | NZ$15M | Jun 2007 | NZX public listing |
| Secondary raise | NZ$180M | Oct 2012 | ASX dual listing placement |
| Secondary raise | NZ$150M | Mar 2015 | Institutional investors including Matrix Capital |

## Viability

Very low risk. Xero is a publicly listed company on both the NZX and ASX with over NZ$2.0 billion in annual revenue and 4.2 million subscribers as of FY2025. The company returned to operating profitability in FY2025 after a deliberate investment phase. Its deep integration with accounting practices in Australia, the UK, and New Zealand creates high switching costs and sticky recurring revenue. The main watch-item for US buyers is feature parity: Xero's US product has fewer native integrations and less payroll depth than the AU and NZ versions, so US buyers should check marketplace availability for their specific stack.

## Pricing

Xero prices below QuickBooks on comparable tiers, but the Starter plan is narrow enough that most growing businesses quickly move up. The Starter plan at $25/mo limits you to 20 invoices and 5 bills per month, which sounds fine until your second month of real use. Growing at $47/mo removes those limits and adds multi-currency. Established at $78/mo adds expense claims, project tracking, and deeper reporting. Payroll, if you need it in the US, goes through Gusto at its own monthly cost. Compare the full-stack number against QuickBooks Plus, not just the headline.

| Plan | Price | Best for |
|---|---|---|
| Starter | $25/mo | Sole traders with low transaction volume: up to 20 invoices and 5 bills per month, bank feeds, basic reporting |
| Growing | $47/mo | Small businesses needing unlimited invoices and bills, bulk transaction reconciliation, multi-currency |
| Established | $78/mo | Growing teams needing expense claims, project tracking, deeper analytics, and multi-currency |
| Ultimate | $78/mo+ | Xero's highest plan, adding payroll for multiple employees depending on market |

## What reviewers say

_1,598 G2 reviews at 4.4/5 and 3,300+ Capterra reviews at 4.4/5, plus TrustRadius community threads and Xero community forums_

**Praised:**
- The bank reconciliation workflow is widely called the best in class for small business accounting: clean interface, smart matching suggestions, and minimal clicks to close out a day's transactions
- Xero's app marketplace breadth comes up constantly in positive reviews; the ability to connect inventory tools, e-commerce platforms, and point-of-sale systems without custom development is a genuine differentiator from QuickBooks at comparable price points
- Advisors and bookkeepers praise Xero's multi-client dashboard for managing several businesses from a single login, which makes it the default recommendation from many Australian and UK accounting practices

**Complaints:**
- Phone support is not offered on any plan; all support runs through a ticketing system and chat, which is frustrating when something breaks during end-of-quarter processing and reviewers want a human on the line quickly
- Payroll coverage is uneven by geography: the AU and NZ payroll modules are full-featured, but US payroll is handled through third-party integrations like Gusto rather than natively, adding cost and a data sync dependency
- Report customization is more limited than QuickBooks Advanced; reviewers who need complex multi-entity consolidation or highly formatted management accounts often reach Xero's ceiling and need to export to Excel

## Compliance

- **SOC 2:** Yes (SOC 2 Type II)
- **GDPR:** Yes
- **HIPAA:** No
- **SSO:** Yes (Google SSO on all plans; SAML available on Established plan)

## Integrations

- Stripe
- Shopify
- PayPal
- HubSpot
- Salesforce
- Gusto
- Dext (Receipt Bank)
- Vend (Lightspeed)
- Zapier
- A2X (for Amazon/Shopify sellers)

## FAQs

### Is Xero better than QuickBooks Online?

It depends on your location and stack. In Australia and the UK, most accountants default to Xero and its ecosystem is deeper. In the US, QuickBooks Online has broader name recognition, more native payroll options, and a larger ProAdvisor support network. Xero is often cheaper at comparable feature levels and has a cleaner reconciliation workflow; QuickBooks wins on US-based customer support accessibility and inventory management depth at the higher tiers.

### How much does Xero cost per month?

Plans run $25/mo (Starter) to $78/mo (Established) in the US. Payroll for US businesses is handled through Gusto integration, which adds its own monthly fee. Xero regularly offers promotional pricing for the first 3-6 months, so verify the ongoing price when you sign up.

### Does Xero have a free plan?

No. Xero offers a free 30-day trial with no credit card required. The lowest paid plan is the Starter tier at $25/mo, which has transaction-count limits that most businesses outgrow quickly.

### Who founded Xero?

Xero was founded in 2006 by Rod Drury (who later served as CEO until 2018) and Hamish Edwards in Wellington, New Zealand. It listed on the NZX in 2007 and gained an ASX dual listing in 2012.

### Is Xero SOC 2 compliant?

Yes. Xero holds SOC 2 Type II certification and supports GDPR. It does not offer HIPAA compliance, which is relevant for US healthcare businesses. SSO through Google is available on all plans; enterprise SAML-based SSO is available on the Established plan.


## Sources

- [G2: Xero reviews](https://www.g2.com/products/xero/reviews): rating 4.4/5, 1,598 reviews
- [Capterra: Xero](https://www.capterra.com/p/45366/Xero/): rating 4.4/5, 3,300+ reviews, sub-scores, pricing
- [TrustRadius: Xero](https://www.trustradius.com/products/xero/reviews): score 8.1/10, 310+ reviews
- [Xero Investor Relations: FY2025 annual results](https://www.xero.com/about/investors/): FY2025 revenue NZ$2.0B, 4.2M subscribers, operating profitability
- [Wikipedia: Xero (software)](https://en.wikipedia.org/wiki/Xero_(software)): founding, founders, NZX listing history, markets
- [Crunchbase: Xero](https://www.crunchbase.com/organization/xero): founding year, listing details, funding history
- [LinkedIn: Xero company page](https://www.linkedin.com/company/xero--beautiful-business/): employee count, HQ, specialties, CEO
- [Xero pricing page](https://www.xero.com/us/pricing-plans/): current plan prices: Starter $25, Growing $47, Established $78