What is Xero accounting software and how do you use it?

Xero handles invoicing, bank reconciliation, expense tracking, payroll (in supported regions), and financial reporting. It has a large app marketplace with hundreds of integrations for inventory, payroll, CRM, and e-commerce. The interface is clean and generally considered more modern than QuickBooks.

Xero introduced an "advisor" model that gives accounting firms a dedicated portal to manage all their client accounts in one place. This has made it particularly popular with accounting practices that recommend it to all their clients. The practical advantage for business owners is that their accountant is usually already familiar with the platform and can provide better support.

Xero pricing starts around $15/month for a basic plan and goes up to $78/month for the Business plan. Unlike some competitors, Xero charges per invoice sent on lower tiers - which can be limiting for active businesses. Most features require the mid-tier plan or above.

Xero has raised its prices multiple times in recent years. If you are comparing current prices, check the Xero website directly rather than relying on older reviews. The invoice limit on the Starter plan has been a consistent source of frustration for growing businesses who find themselves upgrading plans earlier than expected.

If you are comparing Xero to other options, Note.now offers full double-entry accounting, bank feeds, invoicing, and free accountant access at a comparable or lower price. Unlike Xero, Note.now does not limit invoices on any plan. Both offer free trials so you can test before committing.

The comparison that matters most is your specific workflow. If your accountant strongly prefers Xero, the productivity benefit of staying on the same platform may outweigh the price difference. If your accountant is flexible, run the numbers and trial both tools with real data before deciding.