Xero
The ledger. Connect banks, send invoices, pay bills by ACH, and invite your accountant at no extra seat cost.
Best for
US shops that want Xero as the ledger, unlimited users, and the freedom to pick expense and payroll apps around it.
Not ideal if
Shops whose CPA will only open QuickBooks, or teams that want cards, expenses, and travel on one vendor bill instead of Xero plus an add-on.
Standout
Unlimited users on every plan, plus a marketplace so the expense layer can change without replacing the ledger.
About Xero
Xero is the ledger. You connect US bank and card accounts so transactions land in Xero. You send invoices, enter bills (or let Smart Document Capture draft them from a file or forwarded email), match the bank feed, and set lock dates at period end. Profit and loss, balance sheet, and cash flow come out of the same organization. Invite your accountant or bookkeeper at no extra user fee.
It replaces QuickBooks Online. It does not sit on that file. Kick is the other replacement-ledger option in this directory, newer and cash-first. Wave stays a free cash file with less bill and 1099 depth. Zoho Books is another paid SMB ledger; Xero's difference is unlimited users on every plan and a large app marketplace (Ramp, Expensify, Zoho Expense, Gusto) so you pick the expense and payroll layer. Native employee expense and mileage claims sit on Established. Payroll is an add-on powered by Gusto, not a built-in tax engine.
People who stick want a cleaner weekly reconcile than QuickBooks and room for the owner, bookkeeper, and CPA on one subscription. The catch is the marketplace: you own category mapping, and you may still buy a dedicated expense app. Bookkeepers on public forums often prefer Xero's reconcile screen and still warn that some US bank feeds drop and need a reconnect.
What people who used it say
What they tend to like
Cleaner reconcile than QuickBooks
Bookkeepers point to the match screen and fewer clicks than QBO for the weekly feed.
Unlimited users, one file
Owner, bookkeeper, and CPA share the organization with no per-seat fee.
Pick the expense app later
The books stay in Xero while Ramp, Expensify, or Zoho Expense can change as the team spends.
What they hesitate about
US bank feeds drop
Third-party connections expire or stall; direct feeds are more stable. Gaps show up at reconcile.
Native expenses are thin
Xero Expenses is fine for basic claims. Dedicated tools still win for cards, policy, and travel.
US tax shops still expect QuickBooks
The file is solid; the local CPA bench is still QBO-first.
How it hits your books
- Replaces your ledger
- Yes
- QuickBooks Online
- No
- Xero
- Yes
- Multi-entity
- Partial
- Inventory
- Partial
- 1099s
- Partial
- Payroll
- Partial
You categorize the bank feed, match bills and invoices, attach documents, then set lock dates in Xero. Auto-reconcile is Growing and above. Expense claims (Established) post as bills you still pay and rec.
Invite the accountant with Advisor access, or export P&L, balance sheet, and trial balance. Xero does not e-file the income tax return. 1099 e-file is a partner app or Xero Payroll (Gusto).
Images
Features
Bank feeds and reconcile
Connect US banks and cards. Lines import daily. Early is match-it-yourself. Growing and Established add auto-reconcile (JAX). You still check the statement and lock the period in Xero.
Invoices, quotes, and Pay Now
Send branded invoices and quotes. Customers can pay online (Stripe fees apply). Early caps you at 20 invoices (approve or send; partner apps count). Growing and Established are unlimited.
Bills and free standard ACH
Enter bills, schedule them, and pay vendors. Standard ACH in USD is included on every plan. Same-day ACH, cards, and cross-border payments cost extra. Early caps you at 5 bills.
Smart Document Capture (Hubdoc)
Upload or forward bills and receipts. Xero drafts the bill and stores the file on the transaction. Included on Early, Growing, and Established.
W-9 collection and 1099 reports
Collect W-9s by link. Run 1099-NEC and 1099-MISC reports and the cash-payments-by-vendor view. Xero does not file your income tax return. IRS e-file of 1099s is via a partner app or Xero Payroll (Gusto).
Established extras: multi-currency, projects, claims
Established adds multi-currency, project time and cost, employee expense and mileage claims in Xero Me, a 180-day cash flow forecast, KPI ratios, and international bill pay. Growing stops at dashboards, scorecards, and 3 budgets.
Pricing
A 5-person shop past Early's 20-invoice / 5-bill caps pays $55/month on Growing (or $5.50/month for the first 6 months if it is a new US org on the current promo through 30 Sep 2026). No seat fees. Adding payroll is $36 plus $6 per person ($66 for 5 people). Established is $90 if you need multi-currency, projects, or native expense claims. From 1 Oct 2026 the list prices become Early $27, Growing $59, Established $97. Invoice payment fees and non-ACH bill pay are extra. A second legal entity is another subscription; the multi-organization discount starts to phase out on 1 Oct 2026.
Early
Sole props and new shops. 20 invoices, 5 bills. New US orgs can pay $2.50/mo for the first 6 months through 30 Sep 2026.
- Send quotes and 20 invoices
- 5 bills; reconcile bank transactions
- Smart Document Capture, W-9 + 1099 reports, sales tax
- 30-day cash flow forecast
- Free standard ACH bill pay
- Unlimited users
Growing
Past the Early caps. Auto-reconcile, unlimited invoices and bills, dashboards. New US orgs can pay $5.50/mo for the first 6 months through 30 Sep 2026.
- Unlimited invoices and bills
- Auto-reconcile bank transactions
- 60-day cash flow forecast, custom dashboards, 3 budgets
- Inventory Plus optional
- Xero Payroll, powered by Gusto, optional
- Unlimited users
Established
Multi-currency, projects, and native expense claims. New US orgs can pay $9/mo for the first 6 months through 30 Sep 2026.
- Everything in Growing
- 180-day cash flow forecast, KPIs, industry benchmarks
- Multi-currency
- Project time and cost
- Employee expense and mileage claims
- International bill pay
Xero Payroll (Gusto add-on)
Optional on Early, Growing, and Established. Not available to US mobile-app subscribers.
- Pay runs and tax filings in all 50 states
- W-2 and 1099 filing through Gusto
- Xero Me for employee pay stubs
- Two months free on the payroll product page
Integrations
Platforms
Audience
Pick something else instead of Xero
QuickBooks Online
Stay in QuickBooks Online if your CPA will only open that file, or you want Intuit payroll and sales-tax depth without adding Gusto and Avalara.
Kick
Pick Kick instead if you want a newer US replacement ledger with a year-end tax package, and you do not need Xero's accountant network or marketplace.
Wave
Pick Wave instead if you want free invoicing and a simple cash-basis file and you do not need Xero's bill, 1099, or marketplace stack.
Zoho Books
Pick Zoho Books instead if you already live in Zoho and want the ledger in that suite, not a Xero organization plus apps.