Make It Easy On Yourself

A Xero package takes the tedium out of doing the bookwork.

- Anthony O’Brien

Not withstanding a net loss of $NZ82.5 million ($76 million) in 2016 and a share price that has plunged by more than 50% from its March 2014 peak of $42.10, Xero has arguably been at the vanguard of cloud-based accounting solutions for a decade. From a standing start in 2006, it has gained 1 million subscribers worldwide. In comparison, its competitor MYOB, which launched over 25 years ago, services around 1.2 million businesses in Australia and New Zealand.

Fee structure

Xero is far from the cheapest service. If you’re seeking an entry-level accounting solution, Xero’s Starter plan costs $25 a month. This enables a small business or start-up to send customers five invoices or quotes a month, enter five bills and reconcile 20 bank transactions. It allows for a payroll of one person. MYOB’s Starter plan also costs $25 a month, while the best price for a start-up business is Reckon One, which has a $5 monthly subscription.

For those who’ve been in business a bit longer, the most popular plan offered by Xero is Premium 5. For $60 a month, a business can send unlimited invoices and quotes. There’s also unlimited bill entry, bank reconciliations and payroll for up to five employees.

Foreign currencies