What is Xero?
By Riley Park · Last verified: October 2026
Xero is cloud accounting software for small and medium businesses: it connects to your bank, accountant, and other business apps, and every plan includes unlimited users with no per-user fees. It is made by Xero Limited, a publicly traded company that started in New Zealand in 2006 and reports 5 million customers in 180+ countries. US plans are Early ($27/mo), Growing ($59/mo), and Established ($97/mo). Verified on xero.com, October 8, 2026.
What is Xero and how does it work? You connect your business bank accounts, and Xero pulls in the transactions for you to match and reconcile. From there it handles invoicing and quotes, bills, cash flow forecasts, and reports, in a browser or the mobile app, and your accountant or bookkeeper works in the same file. Xero says it integrates with 1,000+ apps, and its AI assistant, JAX, which Xero calls an "AI superagent," automates routine tasks. Payroll is an add-on powered by Gusto, at $36 a month plus $6 per employee or contractor.
How much does Xero cost? Early is $27 a month but caps you at 20 invoices and 5 bills a month; Growing ($59) lifts those Early caps and adds budgets; Established ($97) adds multi-currency, project tracking, and expense claims. New US customers are currently offered 80% off the first 3 months. Inventory Plus is a paid add-on on Growing and Established, not available on Early.
Is Xero different from QuickBooks? Yes. They are separate companies and separate products: Xero comes from Xero Limited, QuickBooks Online from Intuit. The biggest practical difference is users: every Xero plan includes unlimited users, while QuickBooks Online caps users by plan (1, 3, 5, or 25). See QuickBooks vs Xero for the full comparison.
Is Xero like Excel? No. A spreadsheet holds whatever you type into it; Xero pulls in your bank transactions, keeps the books in a structured ledger, and produces standard reports such as profit and loss and the balance sheet.
Who makes Xero? Xero Limited, which started in New Zealand in 2006 and now reports 5 million customers in more than 180 countries. It is a publicly traded company and publishes its results to investors.
How does DDR rate Xero? DDR Score 8.44, Leader tier, among the five SMB accounting products DDR reviews: strongest for teams adding headcount, since no plan charges per user. Watch for the Early plan's caps and the lack of inbound phone support. Read the full Xero review.