Xero offers different versions of its accounting software to accommodate the varying needs of businesses. The three main versions of Xero are Xero Starter, Xero Standard, and Xero Premium. Each version comes with a different set of features, pricing, and limitations. Here’s a comparison of these Xero versions to help you choose the one that’s right for your business:
Xero Starter:
- Price: Xero Starter is the most basic and affordable version of Xero, often suitable for small businesses with minimal accounting needs. Pricing may vary by region, but it’s typically the lowest-cost option.
- Users: Xero Starter allows for a limited number of users, usually one or two, depending on your subscription.
- Invoicing: You can create and send invoices to customers, but the number of invoices may be limited.
- Bills: You can enter and manage bills, but there might be limitations on the number of bills you can process.
- Bank Reconciliation: You can reconcile bank transactions, but it may have limitations compared to higher-tier versions.
- Financial Reporting: Xero Starter provides basic financial reports, such as profit and loss statements and balance sheets.
- Payroll: Payroll functionality is typically not included in Xero Starter. If you need payroll, you’ll need to explore third-party integrations or upgrade to a higher version.
Xero Standard:
- Price: Xero Standard is priced higher than Xero Starter and offers more features and capabilities.
- Users: Xero Standard allows for more users compared to Xero Starter. The number of users may vary based on your subscription.
- Invoicing: With Xero Standard, you can send a higher number of invoices each month, making it suitable for growing businesses.
- Bills: You can manage a greater volume of bills in Xero Standard.
- Bank Reconciliation: Xero Standard provides enhanced bank reconciliation features.
- Financial Reporting: This version offers more advanced financial reporting options and customization compared to Xero Starter.
- Payroll: Depending on your region, Xero Standard may include basic payroll functionality. However, more comprehensive payroll features may require an additional subscription or integration.
Xero Premium:
- Price: Xero Premium is the highest-tier version and comes with the most extensive features, but it’s also the most expensive.
- Users: Xero Premium typically allows for the highest number of users among the three versions.
- Invoicing: You can send a substantial number of invoices each month, making it suitable for larger businesses with high transaction volumes.
- Bills: Xero Premium accommodates a significant volume of bills.
- Bank Reconciliation: Xero Premium offers advanced bank reconciliation features and greater transaction limits.
- Financial Reporting: This version provides robust financial reporting tools with advanced customization options.
- Payroll: Depending on your region, Xero Premium may include more comprehensive payroll features, such as automated tax filing and leave management.
Considerations:
- Your choice of Xero version should align with the size and needs of your business. Smaller businesses with fewer transactions may find Xero Starter sufficient, while growing businesses with more complex financial requirements may benefit from Xero Standard or Premium.
- Keep in mind that Xero’s pricing and feature offerings may change over time, so it’s essential to check the Xero website or contact Xero directly for the most up-to-date information.
- Additionally, Xero offers industry-specific versions for businesses in the construction and nonprofit sectors. These specialized versions may have tailored features to meet the unique needs of those industries.
- Explore the add-ons and integrations available in the Xero App Marketplace to further extend the functionality of your chosen Xero version based on your business’s specific requirements.
Before making a decision, thoroughly evaluate your business’s accounting needs, budget, and growth plans to determine which Xero version best suits your situation.
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