Xero

Your business supercharged: Beautiful accounting software for small businesses.

by xero · Financial Close & Accounting

Executive Summary

Xero is a cloud-based accounting software designed for small businesses and their advisors, offering automated financial management, real-time insights, and seamless collaboration. It provides key business value by simplifying tasks like bank reconciliation, invoicing, and expense tracking, enabling businesses to gain better control over their finances and drive growth. A key differentiator is its focus on unlimited users across all plans and the increasing integration of AI and machine learning for automation and predictive insights.

Use Cases

  • Automated bank reconciliation and transaction categorization for accurate bookkeeping.
  • Streamlined invoicing, payment tracking, and automated reminders to improve cash flow.
  • Comprehensive financial reporting and analysis for real-time business health insights.
  • Efficient expense management and tracking for better financial control.
  • Payroll processing and compliance for managing employee payments.
  • Project tracking, budgeting, and profitability analysis for service-based businesses.

Features

Visibility

  • Customizable Accounting Dashboard: Provides a real-time overview of key financial metrics, including bank balances, invoices, bills, and cash flow, with the ability to customize widgets.
  • Real-time Financial Data: Access up-to-date financial information from anywhere, enabling informed decision-making and collaboration with advisors.
  • Short-Term Cash Flow Forecasting: Tools to forecast cash flow, helping businesses manage finances effectively and plan for future liquidity.
  • Business Analytics (Analytics Plus): Offers advanced analytics and reporting capabilities to check financial health, track metrics, and gain deeper insights into business performance.

Intelligence

  • Automated Bank Reconciliation: Uses machine learning to automatically match bank transactions with accounting records, significantly reducing manual effort and improving accuracy.
  • AI-Driven Expense Categorization: AI automatically categorizes expenses based on past patterns and behavior, simplifying expense management and tracking.
  • Predictive Cash Flow Insights: Provides insights and forecasts based on historical data to help predict future cash flow, identify trends, and make informed financial decisions.
  • Automated Invoice Reminders: Automatically sends reminders to customers for upcoming or overdue invoices, helping to improve cash flow and reduce late payments.

Support

  • Unlimited Online Support: Free and unlimited online customer support available through Xero Central, including help articles and guides.
  • Xero Community & Forums: An online community for users to swap ideas, discuss new tech, get help with problems, and share tips with peers.
  • Product Training & Certification: Offers product training and certification programs for users and advisors to become Xero experts.
  • Phone Support (Callback): While not inbound, Xero offers phone support via callback for issues that cannot be resolved online.

Technical Specifications

Architecture
Cloud-native SaaS, Microservices
Deployment
Cloud/SaaS
Authentication
SSO, MFA, OAuth 2.0, OpenID Connect
API Available
Yes
MCP Server
Yes

Infrastructure

  • AWS
  • Azure
  • Rackspace

AI/ML Stack

  • Machine Learning
  • NLP

Integrations

  • Stripe
  • GoCardless
  • Hubdoc
  • Dext
  • Gusto

Security & Compliance

Certifications: SOC 2 Type II, ISO 27001:2022, PCI DSS v4.0, SAQ A

Encryption: Industry-standard encryption for data at rest and in transit

Pricing

Model
Tiered subscription (per month), unlimited users
Starting Price
US pricing: Early $25/month, Growing $40/month, Established $70/month
Target Customer
SMB
Contract Type
Monthly (auto-renewing)
Free Trial
Yes, 30 days (credit card required)

About xero

Xero is a New Zealand–founded company that provides cloud-based accounting software for small businesses and their advisors. Their platform offers invoicing, payroll, bank reconciliation, and integrations with a wide ecosystem of apps to help automate financial workflows.

Founded: 2006 · Headquarters: Wellington, New Zealand · Employees: 1000+ · Public