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This article will tell you everything you need to know about the costs of moving to Xero. 


Xero Pricing

Any number of superlatives could be used to describe the shift that has occurred in the last 5 years with the development of disruptive cloud accounting applications for small business, but ultimately this shift can best be described as revolutionary.

The move to cloud accounting software has resulted in reduced software costs as well as inherent time and cost savings from the software itself. There are few software examples that typify this change as well as Xero's accounting software.

Xero Costs

Xero is a New Zealand based company that has grown to over 600,000 subscribers internationally with over 425,000 paying customers in Australia and New Zealand alone.

Xero offers cloud based accounting software starting at just $25 a month, targeted at meeting the needs of small and medium businesses at a price they can afford. If you’re considering a new accounting package, and Xero is a consideration (as it rightfully should be), but want to know what you get for your money, read on for our complete review of the xero australia pricing structure.


How Xero's Pricing Delivers Great Value

To understand how Xero can deliver such a competitive price for such a comprehensive product, you must first understand its business model.

Xero, like most cloud based software solutions charges on a monthly fee basis and therefore relies on scaling its business effectively to keep prices low for a substantial customer base as mentioned above.

Xero's pricing structure is tiered (see below) so that you pay based partially on payroll employees as well as other key features specific to the size of an organisation. In that way, a small business with one or two employees pays significantly less per month than a larger firm.

Xero Pricing

There are no expensive licensing fees or need to purchase recurring packages each time a new starter comes on board, just the low monthly rate based on how many users you have and what features you desire.

Utilising cloud software means that you only get charged for what you use, there is never excess capacity you are paying for and you don’t pay for features that you don’t use.  


Key Features That Impact On Xero Subscription Pricing Plans 

If all of the above sounds compelling at a high level, then the comparison below will provide the necessary detail to help you make the right decision.

There are 3 key features that change as you ascend the hierarchy of options that determine your monthly subscription fee: 


1. Number Of Payroll Employees

The first and most important feature, is the number of employees whose payroll information you wish to process from Xero. The most basic package allows for a single employee to be paid and accounted for in Xero, while the largest package allows for up to 200.

This feature acts as a kind of per user basis to scale the price in line with the size of the organisation, but still allows non-payroll employees access without increasing the price. The payroll feature in Xero makes using a book keeper or accountant to track and pay employees almost redundant. Costs involved in processing payment to employees are drastically slashed in terms of hours needed freeing the business owner up for other tasks.   


2. Automatic Employee Superannuation

Second, is automatic employee superannuation, which allows the employer to process and manage all superannuation contributions to an employee from Xero with reduced risk or error and far greater accuracy.

As you process the pay runs for employees, the system will track and make payment to their superannuation funds as needed. This feature reduces the double handling of employee super contributions separate to pay and tax and is available on most Xero packages.  


3. Multi Currency

Finally, if you do business with other customers or suppliers located across the globe, your life can be made significantly easier with the use of Xero’s multi-currency option.

Allowing the business to record transactions made in up to 160 different global currencies saves time and effort with Xero making necessary conversions as you enter data. Again, this is available on the majority of plan options within Xero’s pricing scheme.  


Free Xero Features

The above features influence the price of the Xero plan that you need, but so much of the benefit comes from what you get as standard across the range of plans. 

This includes, but is not limited to: 

  • Free unlimited bank reconciliations on all plans (except the starter plan) which enables you to link your bank accounts to Xero for real time reconciliation of your Xero transactions to your bank transactions. A feature that drastically reduces time spent in ensuring transactions between the two are congruent and balanced. Bank feeds will flow in to your Xero software and can be reconciled with the click of a button. Concurrently, the system will remember and prompt you to reconcile similar transactions based on your transaction history – further saving you time.  
  • Free iPhone and Android apps to access your business information on the move. This mobility can provide the ability to record expenses as they occur in the field by simply photographing receipts. It also allows employees to apply for leave and sick days remotely for your approval.  
  • Automatic backups and software updates that keep your data safe and secure while adding new features without you needing to do anything. Similarly, there are no hidden software upgrade fees for changes to the system. These will occur without costing your money or disrupting your business.  
  • The ability to invite unlimited non-payroll users to the system or your accountants and book keepers in to the system. If you have business advisers or partners who need access, you don’t pay any more for them to help you run your business.  
  • High level SSL security is the cornerstone of the Xero platform with best security being utilised to keep your financial data safe and secure. Running your business can be done with piece of mind.
  • Pay now integrations with Paypal, Eway, Stripe and more are available for only their setup and transaction fees from each of those organisations. This can drastically reduce the time it takes you to get paid with click and pay functionality on your invoices to clients and real time feedback on the payment.  

 You can read more about Xero's features here.


Xero Pricing Plans

Xero's pricing plans changed on 2 June 2016. To find out more, read our article on the June 2 change for xero pricing and plans. We have updated the below pricing plans to reflect these changes.

Now that the features, key constants and variations are understood, we can explain what you get in each plan for the price.  


Xero Starter: $25 per month (AUD incl. GST) 

As the name suggests, the starter plan is the entry level designed for a sole trader business or someone with a single employee. Ideally suited to a growing, small business or someone operating a small side-business.

This plan cost is minimal at $25 a month and comes with most features, but with limits. It is the only plan with a limit on the number of invoices, quotes and bills that can be processed in Xero. Likewise, you can only reconcile 20 bank transactions in Xero and have payroll capacity for a single employee.

Most small businesses will quickly reach the limit of this plan if they transact on a daily basis. The plan does not include automatic superannuation, although with a single employee this is probably inconsequential.

A great option to begin using Xero and work through the processes or for a growing business. 


Xero Standard: $50 per month (AUD incl. GST) 

Xero Standard allows for a payroll employee to be managed within Xero and unlike the started plan, it has no limits on transactions such as quotes, bills, invoices or bank reconciliations.

This is a great advantage for a small business transacting day to day with multiple clients. We have employed this business for trade services firms as well as small retailers with great success.


Xero Premium 5: $60 per month (AUD incl. GST) 

Our team’s favourite for small business for the very reason that it has all of the standard features of the preceding options with the addition of automated super to save you time and the ability to transact in multiple global currencies.

This is in keeping with the needs of managing up to 5 payroll employees with ease. Xero has been very clever in understanding its client base to ensure the features mirror their likely needs.

It is suitable for most small businesses across various industries with it’s additional options.

As a rule, if you have more than 3 or 4 staff on your payroll, the extra $10 a month to get Xero automated superannuation payments is worth the small outlay for the ease of use and peace of mind.


Xero Premium 10, 20, 50 and 100: $70, $80, $90 and $100 (AUD incl. GST) respectively: 

The maths gets very simple from here with the only variation in what you pay extra for being the number of payroll employees.

Xero has kept the pricing very sharp so that it does not become exponentially more expensive to run your business with up to 100 staff. 

The Premium 20 allows for up to 20 payroll employees, the Premium 50 allows up to 50 payroll employees and the Premium 100 allows up to 100 payroll employees – pretty straight forward.

Each has exactly the same set of features as any of the other premium bundles. If you have need for between 100 and 200 payroll staff, you simply pay $2 a month more per employee over 100.  

As can be seen above, the Xero pricing plans are clear, well thought out and uncomplicated, helping you as a business owner make a simple and reliable decision that benefits your business.  


So Now You Know Which Xero Pricing Plan Is Right For Your Business, What Other Costs Are There?


Xero Cost: Converting/Migrating Your Current Accounting System To Xero

If you currently use an accounting software that has your data locked in, and you wish to convert to Xero, you don’t have to wave all that historical information goodbye with the change.

Important data, information and historical records can be exported from your current system and converted into your new Xero system with relative thanks to Xero's partnership with a number of companies to provide this service.

People Considering Xero Pricing Plans

We strongly reccomend taking advantage of one of the conversion options to save time in setting up your Xero account as well as importing historical data that is still relevant to your organisation.

The conversion really breaks the back of getting you and your business ready to transact using Xero. Xero has partnered with 3 main companies to offer reliable, inexpensive and uncomplicated conversions of your data from your outgoing accounting package and into Xero.

These 3 companies offer conversions for those currently using MYOB, Quickbooks or Reckon systems to Xero, with the price being dictated by the level of historical information you wish to bring into your Xero package.

For those converting from MYOB to Xero (the most prevalent of conversion types), you have the greatest number of options to choose from in terms of the number of package options and choice of providers.

For Quickbooks and Reckon users, your choice of provider and service is more limited. Conversions for MYOB come for free from JetConvert for basic data conversion and limited customising.

Refer to the overview below for more detail on each option available to you based on your current software. 

If you want more information about each Xero conversion service to ensure you make the right choice, how much it costs and what accounting software they support, then check out our Converting to Xero - Complete Guide to Xero Conversion Add On Services.


Overview Of Xero Conversion Services

Jet Convert

Converts Reckon | MYOB to Xero

Price: Free for basic conversion including up to 2 financial years history | Source file Chart of Accounts | Items | Contacts  |  Payroll set up. Extra fees for custom Chart of Accounts and monthly comparision balances.

MYOB file types support: Any .MYO or .MYOX file on windows. If you have MYOB for Mac you can convert to files to windows (or Jet Convert will do it for a fee). Free service only for Windows MYOB AccountRight files less than 800mb. 



Converts MYOB | Reckon | Quickbooks to Xero

Price: From $199 to $499

File types: Any MYOB file except Version 11 files. Only basic conversion available for version 11. Quickbooks files supported



Converts MYOB to Xero

Price: From $250 (plus $35 per month of data converted)

MYOB file types: All


Xero 'Pay Now' Invoice Payment Options

If you struggle to manage debtors and use your accounting package (or would like to) to invoice your clients then Xero's pay now integrations are worth serious consideration. 

Xero enables your client's to pay their invoices as soon as they are emailed to them by including a 'pay now' button which can be configured to take credit card payment via an integration with one of the processing businesses partnered with Xero.

Xero Payment Options

The integration for most of these partners is free to setup and charges are only processed as you receive monies from your clients - meaning you only pay for what you receive payment for. 

The choices include big names like Paypal along with E-Way, Stripe and DPS Payment Services and the key differences lie in their payment pricing strategy.

The pricing strategies are based on value and/or volume of transactions that your business processes each month.

For example, PayPal charges 2.6% of the transaction value at the high end of its domestic transaction pricing structure, but as the value of your transactions increases, PayPal charge a lower percentage rate. PayPal, Stripe and E-way have no lock in contracts so you can make changes if and when you wish, whereas DPS charges a low monthly fee, but this requires you sign a contract of between 3 and 24 months.

It is worth evaluating each of these options in more detail to find the best payment service for your business, read our Xero Payment Add Ons comprehensive review and price comparison.


Professional Help - Xero Partner Costs

Setup And Implementation Costs

While you can setup and implement Xero on your own, most business owners will want to ensure that their Xero is setup correctly for their business needs and that they have professional advice on tap.

Finding the right Xero partner to take care of the burden of migrating, setup and implementation helps businesses make a smooth transition.

There are numerous Xero partners available across Australia, most will charge an upfront fee to implement Xero for you. This can range from $500 to many thousands depending on the Xero Partner and the size of your business. 

Xero expert partners Zrilo, recognise that small businesses need flexiablity and value. As such we have flexible pricing for our setup services which can include conversion of your old accounting package, consulation phone call to answer your questions, and a basic setup to ensure your Xero is implemented correctly from the start.

For expert implementations custom to your business needs, Zrilo offers a low monthly subscription starting at $99 per month with no upfront costs or contracts. The subscription also includes full and unlimited Xero training and support for your business for as long as you have the subscription.


Xero Training And Support Costs

Access to quality training and support will ease your transition to Xero, ensure your are efficent at using the app and help you make the most of all of Xero's great features.

Xero provides around the clock and unlimited email support, which is great, but is not instantaneous or personal and sometimes you just want to pick up a phone and get a quick answer.

Having someone you rely on to ensure you never lose time waiting on  Xero email support , have quick access to expert knowledge and knowing that your supported if something goes wrong is very reassuring.

As with implementation many Xero partners will offer training and support services as well, these are usually sold as packages where you get a certain time restricted amount of support and training.

Xero offers a very compeling product with great features and pricing, started your journey toward running a leaner better business with Xero.




Topics: Xero, Accounting Software