XERO Accounting Software Review
In a nutshell
Xero has earned its reputation among accountants for good reason. Originally from New Zealand, the platform now serves over 4 million subscribers globally and has become the default recommendation from many UK accounting practices. The software is designed with accountant collaboration in mind, making it ideal for businesses that work closely with external bookkeepers or accountants. The interface is clean and modern, and bank reconciliation is particularly well-designed with smart matching that improves over time. Multi-currency handling is strong for businesses trading internationally. Plans range from £16/month (Ignite) to £47/month (Grow), with all plans allowing unlimited users - a significant advantage over competitors that charge per seat.
Pros
- Unlimited users on all plans - no per-seat charges
- Extensive app marketplace with 1,000+ third-party integrations
- Full MTD compliance for VAT with direct HMRC submissions
- Excellent multi-currency support with daily exchange rate updates
- Smart bank reconciliation with AI-powered matching
- Strong accountant collaboration tools and practice management features
- Reliable mobile app with receipt capture and expense management
- Regular updates and feature improvements
Cons
- Pricier than competitors at feature parity; costs add up with payroll add-ons
- Entry-level plan (Ignite) has transaction caps - limited to 20 invoices/month
- Interface can feel cluttered; steeper learning curve for new users
- Invoice and report customisation options are limited
- Customer support is email-only (no phone support)
- Some users report occasional lag in support response times
Xero has earned its reputation among accountants for good reason. The platform is designed with accountant collaboration in mind, making it the default recommendation from many UK practices. MTD submissions are reliable, and the app marketplace offers extensive add-ons.
The interface is clean and modern. Bank reconciliation is particularly well-designed, with smart matching that improves over time. Multi-currency handling is strong if you trade internationally.
Best for: SMEs working with accountants, growing businesses, those needing multi-currency or extensive integrations
Limitations: Pricier than competitors at feature parity; some feel the learning curve is steeper