Xero

Overview

Xero is a cloud-based accounting software platform developed for small and medium-sized businesses. Launched in 2006, the platform offers tools for managing financial operations, including invoicing, bank reconciliation, payroll, and inventory tracking. Its core functionality focuses on automating routine accounting tasks, providing users with real-time financial insights through dashboards and reporting features.

The software is designed to simplify common accounting processes. For example, its bank reconciliation feature automatically imports and categorizes bank transactions, aiming to reduce manual data entry errors and save time. Xero also supports multi-currency accounting, which is beneficial for businesses operating internationally or dealing with foreign suppliers and customers. The platform's emphasis on online accessibility allows users to manage their finances from various devices and locations, facilitating collaboration with accountants and bookkeepers.

Xero is particularly suited for businesses that prioritize online invoicing and automated bank feeds. Its integration capabilities allow it to connect with various third-party applications, extending its functionality to areas like point-of-sale systems, e-commerce platforms, and CRM software. This ecosystem approach enables businesses to centralize their financial data and streamline workflows across different operational areas. The platform also includes features for managing fixed assets, expense claims, and project tracking, providing a comprehensive suite for financial management.

From a developer perspective, Xero offers a comprehensive API that allows for deep integration with other business applications. This enables developers to build custom solutions that automate data exchange, create custom reports, or extend Xero's existing features. The API covers various aspects of accounting, including contacts, invoices, payments, bank transactions, and payroll, making it a flexible tool for developers looking to integrate financial data into their applications or build specialized add-ons for Xero users. The availability of SDKs in multiple programming languages further simplifies the development process, providing pre-built libraries to interact with the API efficiently.

While Xero offers a broad range of features, its suitability depends on the specific needs of a business. For instance, businesses with complex enterprise resource planning (ERP) requirements might find more specialized solutions from vendors like SAP or Oracle, which offer broader ERP suites beyond core accounting. However, for small businesses seeking an intuitive, cloud-based accounting solution with strong integration capabilities, Xero presents a viable option. For a comparison of accounting solutions, one might consider reviewing how Xero compares against alternatives like QuickBooks Online for specific feature sets, as detailed in various accounting software reviews.

Key features

• Online Invoicing: Create, send, and track professional invoices, with options for recurring invoices and online payment acceptance.
• Bank Reconciliation: Automatically import bank and credit card transactions, categorize them, and reconcile accounts in real-time.
• Payroll Integration: Seamlessly integrate with Xero Payroll (or third-party payroll services) to manage employee payments, tax, and superannuation.
• Inventory Management: Track stock levels, manage purchases, and monitor sales of products and services.
• Expense Claims: Capture and manage employee expense claims, including receipt capture and approval workflows.
• Financial Reporting: Generate a range of financial reports, including profit and loss, balance sheets, and cash flow statements, with customizable options.
• Multi-currency: Handle transactions in multiple currencies, automatically converting and updating exchange rates.
• Fixed Asset Management: Track and manage fixed assets, calculate depreciation, and maintain an asset register.
• Projects: Track project time and costs, invoice for projects, and monitor project profitability.
• API and Integrations: Connect with over 1,000 third-party apps through its extensive API and app marketplace, extending functionality across various business operations. Developers can find detailed API documentation on the Xero Developer API reference.

Pricing

Xero offers several pricing plans tailored to different business needs, with variations based on region. The following table outlines the monthly pricing for plans in USD, as of May 2026. For the most current and localized pricing details, users should consult the official Xero pricing page.

Common integrations

Xero's API and app marketplace support integrations with a wide array of business applications, enabling extended functionality across various domains:

• Payment Gateways: Connects with services like Stripe, PayPal, and Square to accept online payments directly from invoices.
• CRM Systems: Integrates with platforms like Salesforce and HubSpot to synchronize customer data and streamline sales-to-accounting workflows. Developers can explore the HubSpot Companies API for integration details.
• E-commerce Platforms: Links to Shopify, WooCommerce, and other e-commerce solutions to automate sales data entry and inventory updates.
• Point-of-Sale (POS) Systems: Integrates with POS solutions to automatically record sales transactions and manage inventory.
• Time Tracking: Connects with tools like Deputy and TSheets for accurate time tracking and payroll processing.
• Inventory Management: Integrates with specialized inventory tools for advanced stock control and order fulfillment.
• HR and Payroll: Beyond Xero's own payroll, it integrates with various HR platforms for comprehensive employee management. Ceridian, for example, offers extensive payroll and HR solutions, which can be integrated through their Dayforce Payroll platform.

Alternatives

• QuickBooks Online: A widely used cloud accounting solution, often compared directly with Xero for small business needs, offering a similar range of features including invoicing, expense tracking, and reporting.
• FreshBooks: Focuses heavily on invoicing and time tracking, making it popular among freelancers and service-based businesses.
• Sage Accounting: Offers a suite of accounting and business management solutions, ranging from basic accounting to more comprehensive ERP systems.

Getting started

To begin integrating with Xero, developers typically need to register an application and obtain API credentials. The Xero API uses OAuth 2.0 for authentication. Here's a basic example in Python demonstrating how to make an authenticated call to retrieve a list of contacts, assuming you have already completed the OAuth 2.0 handshake and obtained an access token:

import requests
import json

# Replace with your actual access token obtained via OAuth 2.0
ACCESS_TOKEN = "YOUR_XERO_ACCESS_TOKEN"
TENANT_ID = "YOUR_XERO_TENANT_ID" # The Xero tenant ID (organisation ID)

def get_xero_contacts():
    url = "https://api.xero.com/api.xro/2.0/Contacts"
    headers = {
        "Authorization": f"Bearer {ACCESS_TOKEN}",
        "Xero-tenant-id": TENANT_ID,
        "Accept": "application/json"
    }

    try:
        response = requests.get(url, headers=headers)
        response.raise_for_status() # Raise an exception for HTTP errors (4xx or 5xx)
        contacts = response.json()
        print("Successfully retrieved contacts:")
        for contact in contacts.get("Contacts", []):
            print(f"  Name: {contact.get('Name')}, ContactID: {contact.get('ContactID')}")
    except requests.exceptions.HTTPError as http_err:
        print(f"HTTP error occurred: {http_err}")
        print(f"Response body: {response.text}")
    except Exception as err:
        print(f"An error occurred: {err}")

if __name__ == "__main__":
    get_xero_contacts()

This Python snippet uses the requests library to make a GET request to the Xero Contacts API endpoint. Before running this code, you would need to set up an application in the Xero Developer portal, configure your OAuth 2.0 credentials, and go through the authorization flow to obtain a valid ACCESS_TOKEN and TENANT_ID. The TENANT_ID identifies the specific Xero organization you are interacting with. The Xero documentation provides detailed guides on setting up OAuth and making your first API calls across various programming languages.