Xero Features Explained (2026)
The accounting system most accountants already know, so working with yours gets easier. Some light configuration required. Setup takes 3 hours.
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Quick answer
Xero is cloud accounting software for small and growing businesses. It covers invoicing, bank reconciliation, bills, and reporting, with automatic invoice reminders on all plans. US pricing in 2026 runs $25 (Early), $55 (Growing), and $90 (Established) per month. It has no free tier, and its main strength is deep accountant support and a large app marketplace.
Xero key features — what each one means for your business
6 features — each explained as a specific business outcome, not a technical specification.
Bank reconciliation
Matches bank transactions to invoices and bills automatically.
Automatic invoice reminders
Chases overdue invoices on all plans.
Financial reporting
Dashboards and reports for cash flow and performance.
Bills and expenses
Track what you owe and manage expense claims.
App marketplace
Connects to a very large range of business apps.
Accountant access
Your accountant logs into the same live books.
These features in practice
4 real workflows Xero users run using these features. Users report saving 4-6 hours/week on average.
Features Xero does NOT have
Knowing what Xero cannot do is as important as knowing what it can. If you need any of these, a different tool may be the better fit.
Which Xero plan includes these features?
Xero has 3 plans. Not every feature below is available on every tier — here is exactly what each plan unlocks.
Early
$25/mo
Up to 20 invoices and 5 bills a month, reconciliation, reminders
Growing
$55/mo
Unlimited invoices and bills, dashboards, financial health tools
Established
$90/mo
Adds multicurrency, projects, expense claims, deeper analytics
Xero saves 4-6 hours/week. Does your current setup?
Your first live workflow can be running in 3 hours. Start free.