Xero Software Review

San Francisco, CA
Deployment Model:
Free Trial:
1.2 million subscribers
Download Comparison Guide

Xero At A Glance

Good: Affordable for small businesses, no hidden fees.
Bad: Not available in all 50 states, not intended for larger businesses, no full-service payroll option.
Bottom Line: Web-based solution for businesses that want to run their own payroll in a more efficient way.

Product Overview

Xero is an online accounting software for small businesses. However, it does have a payroll component, which is the focus of our review.

Xero Payroll is for small businesses that want something more efficient than manual payroll. Not only does the user run payroll from an easy-to-use solution, but companies also have a choice of checks or direct deposit. The software also lets employees view their pay stubs and history, and track time and attendance via a built-in timesheet.

Xero Payroll is integrated with Xero’s accounting solution, so businesses get the benefit of managing payroll and other finances with one solution.


We’ve indicated some of the common features of Xero Payroll above. However, here are some of the other features:

  • Automatic calculations of taxes and list all taxes on a single page (all user has to do is select the payment type)
  • Automatically updates software when tax changes occur
  • Works with any pay schedule (bimonthly, monthly, weekly)
  • Ability to customize paystub layout, including company logo
  • Availability of W2 and 1099 forms at year end
  • Built-in time sheets (users can review time sheets by employee or by time period; employees can also track their hours)

  • Benefits Management?
  • Direct Deposit?
  • Employee Self-Service?
  • Mobile Functionality?
  • Payroll Processing?
  • Reporting?
  • Tax Management?
  • Time & Attendance?

Target Market

Xero targets its software to small businesses in all industries.

We’ve listed 10 of its customers below:

  • Community Education Partnerships
  • CoreLogic, LLC
  • Francis Consulting
  • Made4Baby
  • MonacoLange
  • NetPotential
  • Peter Jackson Plumbing
  • SilverStripe
  • 31Three.com
  • Three Babes Bakeshop

Download Now: The Payroll Software Buyer's Guide

Choosing a Payroll Software Solution is all about finding the right fit. Our report will walk you through the process and help you make a smart purchasing decision. Download Now


Xero offers a free trial for 30 days. Users can simply sign up online. There is no lengthy implementation process, as with traditional on-premise solutions.

Xero offers training via its “Xero U” platform. Xero U is a collection of short webinars on various topics, such as payroll, reporting and working with add-ons. Users will also get an introductory look at Xero.

The company also gives users access to “Xero 101” with several how-to video tutorials.

Customer Service & Support

As part of the subscription package, Xero offers unlimited support. Users can contact the company via email or the Xero Business Help Center, where they can also search through the FAQs and other information.

There is also a Community section where users can engage with other users about Xero.


Xero offers three main monthly subscription pricing tiers: Starter, Standard and Premium.

Starter – The Starter plan costs $9 per month and doesn’t include payroll or multi-currency features. However, it offers:

  • Ability to send five invoices and quotes
  • Ability to enter five bills
  • Reconciling 20 bank transactions

Standard – The Standard plan costs $30 per month and includes unlimited invoice and quote sending, bills and bank transactions. Users can also process payroll for up to five employees.

Premium – The Premium plan supports multi-currency as well as payroll for 10, 20 or 100 employees. There is separate pricing for this plan that depends on the number of employees for payroll processing:

  • Payroll for up to 10 employees: $70 a month
  • Payroll for up to 20 employees: $90 a month
  • Payroll for up to 100 employees: $180 a month

Regardless of plan selected, Xero offers 24/7 support, product updates every three to six weeks, mobile app, integration to over 600 applications and secure SSL encryption.


Xero Payroll is only available in 36 states but not all states offer electronic payroll services. The list of states is available here.

Also, the company doesn’t provide full-service payroll. Companies looking for this option should check out Patriot Software or Intuit Quickbooks Payroll.


Xero Screenshot 1
Xero Screenshot 2
Xero Screenshot 3


Xero is a New Zealand-based Software-as-a-Service company that offers accounting solutions to small businesses. Its mission is to allow small businesses to “thrive through better tools, information and connections.”

Xero has offices in New Zealand, Australia, the United Kingdom and the United States, employing more than 1,200 people worldwide.

Xero offers integration to over 600 apps for functions, such as HR, CRM, inventory, point of sale and document management, to name a few.

Download Vendor Comparison Guide
Send feedback or corrections to feedback@betterbuys.com.

Related Solutions

User Reviews

  • User Rating
  • No Rating Yet!
  • 0%
  • (0) No reviews yet!

No Rating Yet!


  • Features
    User: 0%
  • Ease of Use
    User: 0%
  • Ease of Implementation
    User: 0%
  • Support
    User: 0%

No one has rated this yet, be the first! No one has rated this yet, be the first!

Write a Review