Given that Wave’s single paid accounting plan is cheaper than all the other alternatives we’ve listed here, and that it offers a forever free plan, this is absolutely the best option if you need to save cash. However, Wave’s features are more limited than many competitors in order to keep the price low, so it may not suffice for growing businesses. Once you’ve got your bank information in Xero, the software will help you match up your transactions for reconciliation (Figure B). Keep in mind that bulk reconciliation is not included with the cheapest Early plan, so you might have to pay to upgrade if you want this feature.
Xero VS FreshBooks
After a 30-day trial period, Xero will bill a monthly charge of $13 per month for the Early plan, $37 per month for the Growing plan and $70 per month for the Established plan. For free invoicing platforms, consider Zoho Invoice, Square Invoices or PayPal Invoicing, although these platforms provide fewer capabilities. Xero often gets praised for its robust feature selection by its customers, and we have to agree. Overall, Xero has a set of features that easily rival competitors like QuickBooks Online. However, we are disappointed that Xero lacks tax support, doesn’t have more advanced inventory (unless you purchase the how to calculate net assets in statement of activities and changes in net assets Inventory Plus add-on), and doesn’t have more invoice templates. Xero doesn’t provide a phone number on its customer support page, but a representative will call you if necessary.
Xero integrates with Gusto for payroll, which supports all 50 states and has added functionality such as health insurance and retirement support. Xero has a reputation for some of the strongest cloud security out there. Security measures include data encryption, two-step authentication, and 24/7 monitoring at multiple locations. Data is backed up daily across various servers, and regular security audits are performed. Xero used to offer strong customer support, and while there are still a ton of great support resources available, getting in touch with an actual representative is a lot more difficult.
This feature is available on all pricing plans; which I appreciate since some accounting software charges extra for mobile receipt capture. Employees can submit a reimbursement request as soon as their receipts are uploaded, and the business owner can track expenses totals by category as they are submitted (Figure C). The Growing plan costs $47 per month and includes unlimited numbers of invoices and bills. In addition to the features on the Early plan, the Growing plan includes bulk transaction reconciliation to speed things up. The Early plan costs $20 per month and lets users send up to 20 invoices and schedule up to 5 bills per month.
- NerdWallet independently reviews accounting software products before determining our top picks.
- We weigh each section differently to calculate the total star rating.
- The new plans are available from 1 July 2024 and Payroll Only, Starter, Standard and Premium plans will no longer be sold.
- 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.
- To keep things organized, Xero logs every action users make and compiles the history of every transaction.
Plans to suit your business
We also have a comprehensive and free How To Set Up Your Xero Account guide that teaches you how to use and optimize your Xero account. Wave is a solid choice for small businesses looking for free accounting software. All pricing plans cover the accounting essentials, with room to grow. Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Xero no longer offers built-in payroll, but it does integrate with Gusto Payroll.
One organization per account
FreshBooks has a deal running where you can save 50% for the next six months. With an overall score of 4/5 in this review, Xero is a good solution for mid-to-large-sized businesses in need of strong accounting features and multiple users. Take advantage of Xero’s free trial to see if this accounting solution is right for you. If you’re still on the fence, check out our picks for the best small business accounting software an invoice statement: how to write to compare your options.
FreshBooks charges $17 per month and QuickBooks charges $30 per month). However, the best option and price point will depend on the specific prepare the statement of cash flows using the indirect method capabilities and features you are looking for. Xero’s accounting software is highly rated among small businesses. Read our 2024 Xero review to find out if it’s the right solution for your business. Xero connects to more than 21,000 financial institutions around the globe, meaning the chances are very high you’ll be able to connect to your business bank accounts and automatically import transaction info. If your bank doesn’t already have a connection, you can import PDF statements.