Xero: The best cloud accounting software for small businesses outside the US
✓ Best for: Small businesses in the UK, Australia, and New Zealand needing clean cloud accounting✗ Not for: US-based businesses (QuickBooks has better US payroll and tax integration)
Affiliate disclosure: Some links on this page are commission-bearing. We may earn if you buy after clicking, this never changes our editorial verdict. Read our full disclosure.
Xero's clean UI, unlimited users on every plan, and deep bank reconciliation make it the accounting software of choice for 3.5 million businesses. In Australia, UK, and NZ, it's the clear market leader.
Unlimited users on all plans, no per-user fee for accounting access
Bank reconciliation is the fastest and most accurate tested
800+ integrations including Stripe, PayPal, and industry-specific tools
Xero Expenses and Projects included on higher plans
Excellent mobile app with receipt capture
Watch out for
US payroll integration is weaker than QuickBooks
Inventory management basic compared to MYOB
Starter plan limits transactions (20 invoices, 5 bills per month)
Category scores
Scored breakdown
Ease of Use
8.8/10
Value for Money
8.6/10
Features
8.2/10
Integrations
8.6/10
Customer Support
8.4/10
Overall SaaSpare Score8.4/10
📊
Bottom line
Xero is the best accounting choice for non-US businesses
For businesses in AU, NZ, and UK: Xero is the best accounting tool available. The unlimited-user pricing model is particularly strong for growing businesses that add staff. US businesses should evaluate QuickBooks first for its superior payroll and tax filing integrations.
Xero has unlimited users and is better in Australia, UK, and NZ. QuickBooks has better US payroll, more advanced inventory, and stronger US accountant support. In Australia: Xero. In the US: QuickBooks.
Does Xero do payroll?
Xero Payroll is included on Starter and Standard in select countries (AU, NZ, UK, US). For complex US payroll: integrate with Gusto. For AU/NZ: Xero Payroll is comprehensive.
Is Xero Starter enough for small businesses?
For freelancers and very small businesses: Starter at $29/mo covers basics but limits you to 20 invoices and 5 bills per month. Most growing businesses quickly need Standard ($46/mo) for unlimited transactions.
Can my accountant use Xero?
Yes, Xero was built with accountants in mind. All plans include advisor access. Your accountant gets their own login without using a seat. Xero HQ connects accountants to all their clients in one dashboard.
Is Xero secure?
Xero uses TLS encryption, two-factor authentication, and 256-bit AES encryption for data at rest. Data is backed up across multiple data centres. SOC 2 Type II certified.
Not sure Xero is right for you?
Compare Xero vs every alternative
Answer 3 questions, get a shortlist of tools that fit your team size, budget, and workflow.
X