How much does Xero cost?

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Cloud Accounting
Partner & Head of Accounting
January 31, 2020
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Find out how Xero saves you more than just money

Xero is one of the biggest names in accounting software today. In this article we discuss the cost of using the platform, and the value of this service that goes beyond the cost of the program.

Liston Newton Advisory are a Xero Gold Partner. Contact us for a free consultation to discuss how migrating your accounting to Xero will enable you to streamline and grow your business.

A brief overview of Xero

Xero were the first truly cloud-based accounting software. Created in 2006, Xero is a dedicated accounting platform for small and medium-sized businesses. It’s designed to be easy to understand, easy to use, and to simplify your day-to-day accounting practices. Essentially, it’s designed to save you time.

What really separates Xero from its competitors, platforms like MYOB and Quickbooks, is that these were all originally built for desktop computers. This means that they have been slower to adapt to the full capabilities of the cloud.

While they may offer cloud options now, their origins in the desktop world leaves their performance lacking, and in our opinion they still haven’t caught up to Xero.

Xero understand their role is to add value to their users, so they spend many millions of dollars on their research and development each year. This means that its service and features continue to improve year on year.

Will they always be the best? We can’t predict the future. But while they still are, we will use and recommend Xero over all other platforms. Here's everything you need to know about the cost of Xero and what it means for you.

So how much does Xero cost?

The cost of Xero is based on how heavily you use its main features. This includes invoicing, entering bills, reconciling, and payroll. Understanding the true cost of Xero will require you sitting down with a certified Xero accountant and reviewing exactly what you need.

It comes in three pricing plans, designed to suit the needs of a wide range of businesses.

[th]Premium 5[/th]

  • Send 5 invoices and quotes
  • Enter 5 bills
  • Reconcile 20 bank transactions
  • Payroll: for 1 person


  • Send unlimited invoices and quotes
  • Enter unlimited bills
  • Reconcile unlimited bank transactions
  • Payroll: for 2 people


  • Send unlimited invoices and quotes
  • Enter unlimited bills
  • Reconcile unlimited bank transactions
  • Payroll for up to 5 people

Plus the additional extras of:

  • Automating your superannuation
  • Ability to handle multiple currencies


If you have more than five people on your payroll, you can add additional employees at $7 per person/month.

Xero’s other features

Xero features

Xero doesn’t just stop at payroll, invoicing, and reporting. There is a raft of other useful features available designed to benefit your business. The cost of Xero is also dependent on how many of the below features you wish to include in your package.

Xero Expenses

This optional extra allows you to easily track and manage your expenses digitally.

You can submit expenses using your mobile device to take a photo of the receipt and upload it to Xero, or by forwarding an invoice via email. This feature streamlines your record keeping, enabling you to easily record, file, and claim your expenses.

This comes at an additional cost of $5 per month.

Xero Projects

The basic subscription of Xero allows you to generate quotes, send invoices and payment reminders. Xero Projects allows you to track the specific profitability of a project within your business. For example, a builder could track the profitability of a particular house he is building.

This add-on is ideal for businesses who want to track the profit and loss of each project, and manage all its financials from one location.

This comes at an additional cost of $10 for one user per month, plus $7 for each additional active user per month.

Add-on integrations

Much like Apple, Xero also has an app store with hundreds of add-on integrations that enhance the platform even further. The integrations are built for specific industries like hospitality, professional services, trades, and retail, or for specific tasks such as debt collection or online payments.

Pricing for each app is typically paid monthly, and is in addition to the price of Xero.

There are some fantastic apps out there for a range of different businesses, all designed to help make your job easier.

Is it Xero worth it?

As you choose to add more features to your platform, the price of Xero and its associated add-ons can quickly add up. This means that Xero is no longer the cheapest player in the online accounting market.

The downside of this is that people often are turned away by the increasing costs of adding these features and benefits. But in doing this, they miss the most important point. These hyper-specific, incredibly useful features save you hours of your own time each month.

So you need to ask yourself the question: what’s the value to you of get back 10-15 hours of your time each month?

From a cost point of view, this value is likely in the thousands of dollars. But as a business owner, this frees up your time to spend it doing what you do best. Bookkeeping and payroll is quite often where your skills don’t add the most value.

So this time-saving benefit needs to be weight up against the additional $30-40 each month in additional costs, in order to get the full benefit of Xero and its features.

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