Xero New Pricing Plans: Everything You Need to Know

Introduction

Xero, the cloud-based accounting software, has long been a favourite among New Zealand businesses for its robust features and user-friendly interface. On 12 September 2024, Xero rolled out new pricing plans designed to better support a variety of businesses while also implementing price increases across its existing plans. Here’s a comprehensive breakdown of what Xero offers, how it can help your business, and what to expect from the new pricing structure.

What is Xero?

Xero is an online accounting software platform that enables businesses to manage their finances from anywhere. With features like invoicing, bank reconciliation, payroll, and expense tracking, Xero simplifies the accounting process for small to medium-sized businesses. It’s especially popular in New Zealand for its intuitive interface and seamless integration with local banks and payment services.

How Xero Can Help Businesses in New Zealand

For Kiwi businesses, Xero provides the following benefits:

Accessibility: Being cloud-based means you can access your accounts anytime, anywhere.
Time-saving Features: Automate repetitive tasks like invoicing and bank reconciliation.
Collaboration: Share access with your accountant or team members in real time.
Compliance: Stay on top of New Zealand's tax requirements, including GST filing.

New Pricing Plans Overview

Xero’s new pricing plans are designed to cater to businesses at different stages of growth. Here’s a breakdown:

1. Ignite Plan - $35 NZD per month

Ideal for: Start-ups and small businesses just beginning their accounting journey.
Features:
1. Send quotes and up to 20 invoices.
2. Enter up to 5 bills.
3. Reconcile bank transactions.
4. Track and file GST returns.

2. Grow Plan - $75 NZD per month

Ideal for: Self-employed individuals and growing businesses.
Features:
1. Send quotes and invoices.
2. Enter bills (5 included).
3. Payroll for one person (additional users at $5/month).
4. Claim expenses and mileage for one user (additional users at $5/month).

3. Comprehensive Plan - $99 NZD per month

Ideal for: Businesses with employees that need integrated payroll services.
Features:
1. Send invoices and quotes, track bills, and reconcile bank transactions.
2. Payroll for up to 5 people.
3. Capture bills and receipts with Hubdoc.
4. Track and file GST returns.

4. Ultimate Plan - $113 NZD per month

Ideal for: Larger businesses with advanced needs.
Features:
1. Comprehensive accounting, payroll, and forecasting tools.
2. Payroll for up to 10 people, with additional users at $1/month.
3. Advanced cash flow predictions with Analytics Plus.
4. Track projects for up to 10 users, with additional users at $7/month.

Price Increases

Existing customers on the previous Starter, Standard, and Premium plans will experience the following price increases:

Starter: $33 to $35 NZD
Standard: $71 to $75 NZD
Premium: $94 to $99 NZD
Ultimate: $105 to $133 NZD

These plans will soon be discontinued as Xero transitions to the new plans. This change reflects Xero’s commitment to enhancing its service offerings while ensuring businesses have access to essential tools for effective financial management.

Additional Updates

Migration to New Plans: Current users will be transitioned to the new plans over the next few months, with an expected completion by March 2025.
No More Separate Add-Ons: Features like payroll, projects, and analytics will be included in the new plans, simplifying the pricing structure for users.
Multi-Currency Support: All plans allow for multi-currency transactions, a valuable feature for businesses dealing with international clients.

Conclusion

Xero’s updated pricing plans aim to provide Kiwi businesses with the tools they need to thrive in a competitive market. While the price increases may come as a surprise, the enhancements in service and functionality are designed to justify the changes. Whether you’re just starting out or looking to scale, there’s a Xero plan that can support your journey.