Popular small-business accounting app, with AI that sorts expenses and chases invoices.
Legal, Finance & HR
Xero
Online accounting for small businesses, with an AI helper, JAX, that does the busywork.
4.0our rating
PaidFrom $27/moWorks with Claude Code
Quick take
- The standard accounting tool for small businesses in Australia, New Zealand and the UK, and most accountants already know it.
- JAX, the built-in AI, matches bank transactions, does data entry and flags issues so your books stay current.
- The official Claude connector lets you ask Claude about your live numbers. It can read your books but can't change anything.
- US plans cost $27, $59 or $97 a month after recent price rises. Australian plans run from A$37 to A$250 a month, with payroll included from Grow up.
- The cheapest plan caps you at 20 invoices a month, so most businesses end up on the middle plan.
What is Xero?
Xero is online accounting software for small businesses. You connect your bank, and every transaction flows in so you can match it to an invoice, a bill or a category. From there you send invoices and quotes, take card payments on them, pay bills, track GST or sales tax, and see your profit and cash flow at any time. Your accountant logs into the same file, which is a big reason so many Australian, New Zealand and UK businesses use it.
JAX (short for Just Ask Xero) is the AI built into it. Xero says it handles routine jobs like matching bank transactions, data entry and chasing invoices, flags things that look wrong, and answers questions about your numbers. There's also an official Xero connector for Claude, so you can ask Claude things like "which customers owe me the most?" and get answers from your live books, with links back to the report in Xero. The connector can only read. It can't create, approve or pay anything.
The catch is price. US plans went up a lot and now run from $27 to $97 a month, and the cheapest plan in each country caps you at 20 invoices a month. In Australia, payroll is built into the plans, so the plan you need depends on how many people you pay. In the US, payroll is an add-on run by Gusto.
Who's using it, and who it's for
- Small businesses
- Sole traders
- Accountants
- Bookkeepers
- Tradies
Small businesses, sole traders and their accountants, especially in Australia, New Zealand and the UK.
Key features
Bank feeds and reconciliation
Your bank transactions flow in daily, and Xero suggests a match for each one so you can approve it in a click.
Invoices and quotes
Send branded invoices with a pay-now button, and set automatic reminders for anyone who pays late.
JAX AI
Xero's AI handles routine bookkeeping, spots problems in your data and answers questions about your business.
Bills and expenses
Snap receipts and bills, let Xero pull out the details, and pay suppliers from inside Xero.
Reports and cash flow
Profit and loss, balance sheet and a cash flow forecast up to 180 days ahead, depending on your plan.
Claude connector
Connect Xero to Claude and ask about profit, cash, invoices and customers, with links back to the source in Xero.
How we rate it
4.0 / 5
Our rating
From using the tool ourselves. The average of the five scores.
- Ease of use
- 4.0
- Features
- 4.5
- Output quality
- 4.0
- Value for money
- 3.5
- Speed & reliability
- 4.0
How quickly someone non-technical gets value from it.
How completely it covers its own job, and how well the pieces fit together.
How good the results are before you fix them.
What you get for the price, including the free plan.
How fast it is and how often it falls over.
Xero pricing
Early (US)
$27/mo
New businesses with only a few invoices a month.
- 20 invoices and 5 bills a month
- Bank reconciliation and receipt capture
- 30-day cash flow forecast
- Our pick
Growing (US)
$59/mo
Most small businesses with regular sales and bills.
- Unlimited invoices and bills
- Automatic bank matching
- 60-day cash flow forecast
- Budgets and custom dashboards
Established (US)
$97/mo
Businesses with projects, staff expenses or overseas customers.
- Multiple currencies
- Project time and cost tracking
- Staff expense and mileage claims
- 180-day cash flow forecast
Australian plans
From A$37/mo (Ignite) to A$250/mo (Ultimate 50)
Australian businesses, priced by how many people you pay.
- Ignite A$37 and Grow A$78 for the basics
- Comprehensive A$107 with payroll for 5 people
- Ultimate A$143 to A$250 with payroll for 10 to 50 people
- GST, BAS and super built in
Which plan should you pick?
In the US, start on Growing unless you send fewer than 20 invoices a month. In Australia, pick the plan that covers the number of people on your payroll. New customers get a large discount for the first 3 months, so check the current offer before you buy.
Prices in USD unless noted, checked 3 November 2026. Vendors change plans often, so confirm on their site before you buy.
Best use cases
Ways Xero can slot into your week.
- 1
Reconcile the bank in minutes
Open Xero once a week, approve the suggested matches and only deal with the few it can't place.
- 2
Chase unpaid invoices automatically
Turn on invoice reminders so late payers get a polite nudge without you writing an email.
- 3
Ask Claude about your numbers
Connect Xero to Claude and ask "what were my biggest expenses last quarter?" or "who owes me money?" in your own words.
- 4
Get BAS ready for your accountant
Keep GST coded as you go, so your accountant can lodge your BAS straight from the same file.
How it fits your tech stack
Pros and cons
Pros
- Accountants in Australia, New Zealand and the UK already know it
- Bank feeds and suggested matches cut bookkeeping time
- No per-user fees, so your whole team and accountant can log in
- Huge app marketplace for payments, inventory and payroll
- Official Claude connector for asking questions about your books
Cons
- US prices rose sharply, to $27 to $97 a month
- The cheapest plan caps invoices at 20 a month
- The Claude connector can only read, not create or change anything
- US payroll is an extra $36 a month plus $6 per person
- JAX's claims of fewer mistakes come from Xero, not independent tests
Xero alternatives
The closest alternatives to Xero in the library, best rated first.
Ramp
4.5
Best for giving staff company cards with spending limits
Compare with Xero
Gusto
4.1
Best for Running US payroll and payroll taxes
Compare with Xero
DataSnipper
4.0
Best for vouching and tick-and-tie in Excel
Compare with Xero
Paradox
4.0
Best for booking interviews automatically
Compare with Xero
Why it made the list
It's one of the two most used small-business accounting tools in the world, and its JAX AI and official Claude connector make it one of the easiest to use with AI.
Xero FAQ
How much does Xero cost?
There's no free plan. Paid plans start at $27/mo. Prices checked 3 November 2026 against Xero's pricing page.
Is Xero free?
No. There's no free plan. Paid plans start at $27/mo.
What is Xero best for?
Xero is best for keeping your books up to date without a full-time bookkeeper, sending invoices and getting paid faster and GST, BAS and payroll for Australian businesses. Small businesses, sole traders and their accountants, especially in Australia, New Zealand and the UK.
What are the best Xero alternatives?
The closest alternatives are Ramp, Gusto, DataSnipper and Paradox. Ramp is best for giving staff company cards with spending limits.
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