Xero Features Explained (2026)
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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.
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
$27 a month
20 invoices and quotes and 5 bills a month, 30-day cash flow forecast, Smart Document Capture, no per-user fees
Best for: Very small businesses with a handful of invoices a month
Growing
$59 a month
No invoice or bill limits listed, 60-day forecast, custom dashboards, 3 budgets, auto-reconcile included
Best for: Active small businesses that invoice regularly
Established
$97 a month
180-day forecast, KPIs and ratios, multiple currencies, project time tracking, international bill payments
Best for: Businesses with several currencies or projects
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