How Much Does Xero Accounting Software Cost? A Simple Breakdown for Small Business Owners

If you're a small business owner looking for reliable, user-friendly accounting software, you've probably come across Xero. Known for its cloud-based platform and small business focus, Xero offers robust features to handle everything from invoicing and bank reconciliation to payroll and inventory. But before diving in, the big question is: What does Xero accounting software cost?

In this blog post, we'll break down Xero’s pricing, what each plan includes, and whether it’s worth it for your business.

Xero Accounting Software Cost: Plans & Pricing (2025)

Xero currently offers three main pricing tiers:

1. Early Plan – $15/month

Best for freelancers, solopreneurs, or very small businesses.

Includes:

• Send up to 20 invoices and quotes

• Enter 5 bills

• Reconcile bank transactions

• Short-term cash flow and business snapshot tools

2. Growing Plan – $42/month

Ideal for small businesses with regular transactions.

Includes everything in Early, plus:

• Unlimited invoices and quotes

• Unlimited bills

• Bulk reconcile transactions

3. Established Plan – $78/month

Great for growing or more complex small businesses.

Includes everything in Growing, plus:

• Multi-currency support

• Project tracking

• Advanced analytics

• Expense claims

• Manage and track payroll (if available in your region)

Click here to view Xero’s latest pricing plans and get one month free.

Add-Ons That May Affect Your Total Cost

Xero’s base pricing is competitive, but certain add-ons or third-party integrations can increase your overall spend:

• Payroll with Gusto (U.S. only) – Starts at $40/month + $6/month per person

• Inventory management tools

• Time-tracking apps

• CRM integrations

Why We Like Using Xero

At Thriveway, we recommend Xero to many small business clients — and here’s why:

• Cost-Effective: With plans starting at just $15/month, Xero is accessible for most small businesses, and the Growing plan offers excellent value for unlimited invoices and bills.

• Flexible Features: Whether you're tracking expenses, reconciling bank accounts, creating new GL's, or managing projects, Xero scales with your business. It's ideal for both new startups and growing teams.

• Robust Like QuickBooks—But It’s Not QuickBooks: Xero offers similar power and functionality to QuickBooks Online without the same branding or pricing structure. It’s a refreshing alternative that still meets all your accounting needs.

Cloud accounting is not merely a passing trend but the definitive future of finance management. Businesses that harness the cloud’s capabilities position themselves for greater success and efficiency. That’s why we’ve partnered with Xero accounting software to offer our customers incredible value: 90% off Xero for the first 6 months.

Frequently Asked Questions About Xero Accounting Software Cost

1. Does Xero offer a free plan?

No, Xero doesn’t offer a permanent free plan. However, you can access one month free when you sign up through this link, which gives you time to test the features before committing.

2. Can I switch between Xero plans later?

Yes! Xero makes it easy to upgrade or downgrade your plan at any time based on your business needs. Your data remains intact, so there’s no disruption.

3. Is payroll included in the Xero pricing?

Payroll is not included in the base Xero subscription for U.S. users. You can integrate Xero with Gusto, starting at $40/month + $6 per employee.

4. Are there discounts for annual billing?

Xero typically charges month-to-month, but they occasionally offer discounts or promotions. Check this page for the latest offers and incentives.

5. What happens if I exceed the limits on the Early plan?

If your business grows beyond 20 invoices or 5 bills per month, you’ll need to upgrade to the Growing plan to avoid disruption. Xero will notify you when you’re close to the limit.