See all your invoices, contacts, balances, financial information and accounts online. If you enjoy organization and numbers and have experience with bookkeeping, starting your own business offering this service might be a smart career choice. Keeping up with the records in your small business might be a task you are willing and able to tackle yourself. The system you choose to use doesn’t need to be complicated and the ledgers should be straightforward, especially if you have just a few or no employees. The most important parts of doing your own bookkeeping are staying organized and keeping track of the details.

• Just keep in mind that unlike the inventory feature in QuickBooks Online’s higher-tier plans, Xero doesn’t let users set up reorder points that flag when stock is running low.
• In the case of Xero accounting software, they release new product updates frequently, and they are already installed the moment that you log in.
• The tool also lets you adjust the time frame to see how your business has changed over time.
• Choose from more than 1000 apps including inventory, CRM and time tracking apps that seamlessly integrate with Xero.

Xero helps transform the data you enter into actionable information at every subscription level. A dashboard provides a summary of your business’s financial health, including total cash in and out, outstanding invoices and overdue bills. Another page dedicated to short-term cash flow charts how to generate ancillary revenue in your hotel or resort out how future bills and invoices can affect your bank balance over the next week or month. Includes project tracking tools in most expensive plan; has transaction tracking tags; lacks industry-specific reports; users with multiple businesses must pay for separate subscriptions.

Xero at a Glance

Given that there are several invoicing software on the market, it’s worth putting in some time to research your options before choosing one for your business. All three plans come with an optional add-on for payroll with Gusto for $40 per month plus $6 per month per person. Xero’s accounting software is highly rated among small businesses. Read our 2024 Xero review to find out if it’s the right solution for your business.

• With a free plan and paid plans starting at $20 per month, Zoho Books has plans for most budgets.
• You can add Gusto payroll to any plan for an extra $40 per month, plus $6 per month per person.
• Users can also upload files like bank statements to register the transactions in the books.
• Again, this feature can be set up for both invoices and bills and is done by accessing the Repeating tab in each respective category.
• While Sage does offer accounts payable, it seems you still have to manually pay bills from your bank account.
• This helps you see when all your bills are due and schedule batch payments accordingly.

Having these tools bundled into one plan can add value for employers. I’m particularly passionate about supporting small businesses to use more technology, and the right technology, to help them build a resilient business. With the addition of Ultimate, we now have more plans to suit the needs of small businesses at each stage of their journey, offering more choice, flexibility and value in their plan.

View all Xero features

It also can assist with your business’ collaboration — especially with anyone who doesn’t have access to your Xero account. Although this Xero trick can definitely save you time and simplify your process, you should still be very cautious about working in multiple organizations at once. Even with different browsers, it’s so easy to record a transaction in the wrong set of books, and you might not catch it until the end of the year. To access the demo company feature, click the list icon to the left of your company’s name on any page and select My Xero.

Try accounting software for everyday business

There’s also a separate time-tracking software—Sage Timeslips—and even a customer management tool called Sage CRM. While it might be nice to have all of these in one dedicated software, it’s nice you can pick and choose exactly which components would best benefit your business. Neither software includes payroll—but you can add it on for a price. Xero partners with Gusto Payroll, and costs start at an additional $40 per month plus $6 per employee per month. Sage has its own proprietary payroll offering, Sage People Payroll, but pricing is customized based on your company’s specific needs. Wave Accounting is a free accounting solution for very small service-based businesses, contractors, freelancers and consultants.

Xero and QuickBooks Online alternatives

We prefer Sage for very small businesses or freelancers that need help tracking their clients and invoices. But if you’re a bigger company that requires more functionality, Xero lets you manage your inventory and provide access to everyone in the company without extra fees. Sage is cheaper all around, and we definitely think it’s the better option for the base tier, especially for self-employed entrepreneurs and very small businesses. If you’re a bigger business, you might benefit from Xero’s higher tiers, which include more robust accounting features. Both accounting software products let users invite their accountants by email. If you’re located in the United States, though, there’s a better chance your accountant is familiar with QuickBooks Online than Xero.

At the very bottom of the next screen, you will see a link to Try the Demo Company. You can reset the demo company at any time, but you should be aware that any data you enter or import will automatically expire after 28 days. When reconciling books, Xero suggests likely matches between bank statement lines and transactions entered in the software. For example, if you have an entry for an invoice of $1,000 and a recent $1,000 deposit in your bank account, it might suggest matching these two transactions. Click the “OK” icon between the two to verify the match is correct. Our partners cannot pay us to guarantee favorable reviews of their products or services.

Useful features to run your business

Yes, you can, as Xero has Android and iOS mobile apps that allow you to access your account and manage your finances. Aside from those minor issues, the A/P management system is outstanding, easy to use, and comprehensive. Overall, we gave it a high score since it performs well in most of the A/P aspects we want to see in accounting software. Clicking this icon lets you quickly access a number of different functions such as creating a new invoice, contact, bill or purchase order.