Xero

What it is

Category DescCloud-based accounting software (accounting/ERP) providing financial management, bank reconciliation, invoicing, expense tracking, reporting, and job cost tracking. ↗

Target UserSmall to medium-sized businesses, including residential and commercial trade contractors, subcontractors, sole traders, and construction business owners. ↗

OwnershipPublicly traded company listed on the Australian Securities Exchange (ASX: XRO). ↗

Founded Year2006 ↗

Pricing & cost

Pricing ModelSubscription-based per company (organization) billed monthly, featuring flat-rate pricing tiers that include unlimited users. ↗

Typical CostPublic tier pricing for U.S. companies is billed monthly per organization: Early plan at $25/month (limited to 20 invoices/quotes and 5 bills), Growing plan at $55/month (unlimited invoices and bills), and Established plan at $90/month (adds multi-currency, project tracking, expense claims, and advanced analytics). Payroll is available as an integration via Gusto starting at $49/month base plus $6/employee/month. ↗

Api Or Integration FeesAPI access is available for connected applications, but third-party apps from the Xero App Store charge their own subscription fees. Effective March 2, 2026, Xero introduced a developer API pricing model with tiers ranging from $0/month (Starter, 5 connections) to ~$22 USD/month (Core), ~$155 USD/month (Plus), and ~$895 USD/month (Advanced), plus data egress overage charges (~$1.50 USD per GB). Some third-party integrators charge a ~$2.50/month surcharge to cover Xero API connection costs. ↗

Implementation CostThere are no mandatory implementation or onboarding fees charged directly by Xero. Self-serve onboarding is free, including 90 days of assistance from a Xero Coach. Custom data migration or setup through third-party certified accounting partners incurs separate consultant fees. ↗

API & data access

Has ApiYes ↗

Api TypeREST (OAuth 2.0 authentication, JSON and XML request/response payloads, OpenAPI/Swagger specifications available). ↗

Api Access GatingTiered commercial pricing model (Starter, Core, Plus, Advanced, Enterprise). Free Starter tier supports up to 5 connected organizations; higher tiers charge monthly fees and metered data egress overage charges ($2.40 AUD / ~$1.50 USD per GB). Premium endpoints (such as the Journals API and Xero Practice Manager API) require the Advanced tier (~$895 USD / $1,445 AUD per month) and use-case approval. ↗

Api LimitationsRate limits are set to 60 requests per minute per organization, 5 concurrent requests, 10,000 requests per minute app-wide, and daily limits of 5,000 calls/day per organization (1,000/day on the Starter tier). Maximum POST payload size is 3.5 MB (~50 items per request recommended). Selected endpoints like Journals are restricted to the Advanced tier. API data is explicitly prohibited from being used to train AI or machine learning models. ↗

Data Export OptionsManual exports from individual modules (Contacts, Invoices, Bills, Chart of Accounts) into CSV or Excel files. Financial reports (General Ledger, Trial Balance, Profit & Loss) export to Excel, PDF, TXT, or Google Sheets. General ledger data can also be exported via Accounting Settings. There is no native single-click full account export or automated scheduled export feature built into the user interface. ↗

Native AI features

Ai Features SummaryXero offers native AI and automation features centered on core accounting, invoicing, bank reconciliation, and cash flow forecasting, alongside an in-product AI copilot and an official Model Context Protocol (MCP) server. Key features include 'Just Ask Xero' (JAX), a conversational AI assistant announced in June 2024 (beta August 2024) and expanded to an 'AI financial superagent' in September 2025; JAX automatic bank reconciliation (global beta late 2025); Hubdoc smart document capture and AP data extraction (GA); and an official Xero remote MCP server (`mcp.xero.com/mcp`). Xero does not provide native AI dispatching, field scheduling, estimating, or CSR call handling for trade contractors, relying instead on third-party marketplace integrations. ↗

Ai DispatchXero has no native AI-powered dispatching, field worker scheduling, estimating, or CSR/call handling features. Trade and construction contractors requiring dispatch or field service management must integrate third-party applications (e.g., ServiceM8, Jobber, or Dispatch) via the Xero App Store or API middleware. ↗

Ai FinanceXero's native AI and automated financial capabilities include: 1. JAX Conversational Invoicing & Quotes (Announced June 2024, Beta August 2024, expanded September 2025): Generates and edits draft invoices or quotes via natural language prompts across Xero, WhatsApp, and email. 2. JAX Smart Automatic Bank Reconciliation (Beta rolled out late 2025): Automatically matches and reconciles bank statement lines using rules, transaction history memory, and aggregated cross-platform matching models. 3. Hubdoc / Smart Document Capture (GA): OCR and machine learning extract data from supplier bills and receipts, automatically coding them into Accounts Payable. 4. Analytics Plus (GA): AI-driven cash flow predictions forecasting up to 90 days out based on recurring bills and historical transaction patterns. ↗

Ai Assistant Or McpXero offers both a native AI assistant and an official MCP server: 1. Just Ask Xero (JAX): An AI assistant announced at Xerocon London in June 2024, released in beta in August 2024, and updated to an 'AI financial superagent' platform in September 2025. It allows users to query financial metrics, draft invoices, create quotes, and execute accounting tasks via natural language. 2. Official Xero MCP Server: Xero maintains an official Model Context Protocol server (remote HTTP endpoint `https://mcp.xero.com/mcp` and open repository `XeroAPI/xero-mcp-server`). It enables MCP-compatible AI clients (such as Claude Code, Cursor, and VS Code) to authenticate via OAuth and perform read/write queries against Xero financial reports, invoices, contacts, and transaction records. ↗

Integrations & ecosystem

Accounting IntegrationsAccounting Systems: Xero operates primarily as the central cloud accounting/general ledger system. Direct synchronization between Xero and competing accounting systems (e.g., QuickBooks, Sage Intacct, Foundation) is generally not direct/native, but facilitated via third-party migration or multi-entity consolidation tools (e.g., Dataswitcher).. Field Pm Systems: Buildertrend, Buildern, Procore, Corecon, ServiceM8, Tradify, Planyard, simPRO, Jobber, Xero Projects. Native Vs Third Party: Field and PM system integrations are primarily third-party integrations developed by field/PM software vendors using Xero's API, though Xero provides its own native light project/job tracking module called Xero Projects. ↗

MarketplaceHas Public Marketplace: Yes. Marketplace Name: Xero App Store. Has Partner Directory: Yes. Partner Directory Name: Xero Advisor Directory. Details: Xero features a public, searchable marketplace containing over 1,000 certified third-party integrations organized by industry (including construction and trade) and functionality. ↗

Unified Api SupportSupported: Yes. Providers: Merge.dev, Apideck, Codat, Rutter. Details: Xero is widely supported by unified API platforms such as Merge.dev, Apideck, and Codat, which provide normalized Accounting API endpoints to sync invoices, chart of accounts, payments, bank feeds, and contacts across systems. ↗

Accounting fit & implementation

Certified PayrollXero does not support certified payroll or Davis-Bacon prevailing wage reporting natively. It relies on third-party payroll software or app integrations (such as Gusto or Points North) to manage prevailing wage calculations and generate certified payroll reports (Form WH-347). ↗

Accounting MethodXero natively supports both cash-basis and accrual accounting methods, allowing contractors to toggle accounting bases and run financial reports on an accrual basis. ↗

Wip Poc SupportXero supports Work in Progress (WIP) tracking and the percentage-of-completion method for revenue recognition natively (and via Xero Projects), though contractors with complex job-costing or over/under billing needs frequently pair it with third-party construction integrations. ↗

Implementation TimeOnboarding and migration to Xero typically take between a few days to 2 to 4 weeks, depending on data cleanliness, historical volume, and business complexity. ↗

Requires ImplementerXero does not require a paid implementer or VAR; small businesses can self-onboard. However, complex migrations and construction-specific workflows frequently utilize paid certified Xero advisors or partner consultants. ↗

Adoption & market position

Market PositionXero is a leading global cloud-based accounting platform and a primary challenger to QuickBooks in the U.S. small-to-medium business (SMB) and trade/construction contractor market. It offers job costing, project tracking, invoicing, and bank reconciliation tools tailored for contractors, alongside an ecosystem of third-party integrations with specialized construction management software. ↗

Customer ScaleXero serves over 4.9 million total subscribers globally, with accelerating U.S. market expansion that added 110,000 new U.S. customers in FY26. ↗

MomentumXero is viewed as a modern, growing cloud-native platform rather than a legacy system contractors migrate away from. In FY26, Xero reported 31% operating revenue growth to NZ$2.8 billion (~$1.7B USD) and AMRR growth of 37% to NZ$3.3 billion, bolstered by U.S. growth, generative AI capabilities ('Just Ask Xero'), and M&A integration with U.S. B2B payments provider Melio. ↗