Hey there! So I’ve been using Xero for my small business accounting for about a year now, and I thought I’d share my honest thoughts about whether it’s actually worth all the buzz it’s getting in 2025.
Like most of you, I started out dreading the whole accounting thing. Spreadsheets gave me nightmares, and I was spending way too many Sunday evenings trying to figure out where my money was going. Sound familiar?
What’s Xero, anyway?
Xero is basically a cloud accounting platform that’s built for small businesses and freelancers like us. It handles all the boring stuff—invoicing, reconciling bank transactions, tracking expenses, and even payroll if you need it.
The big selling point for me was that it’s designed for normal humans, not accountants. I can actually understand what I’m looking at!
The cool new stuff they added this year
I’ve noticed some pretty helpful updates in 2025:
Their AI got smarter with this “Smart Reconciliation Assistant” that basically learns how you categorize transactions and starts suggesting matches. Saves me about an hour every week!
The cash flow forecasting is something I check almost daily now. It takes into account your actual invoices and bills to show you where your bank balance is headed. No more “will I have enough to pay everyone this month?” panic.
And the mobile app is finally good enough that I can create invoices while waiting for coffee. The receipt scanning feature means no more shoebox of receipts (my accountant thanks you, Xero).
Features nobody told me about (but I love)
After poking around for a while, I found some hidden gems:
The “Find & Recode” tool is a lifesaver when you mess up. Last quarter I categorized about 30 software subscriptions incorrectly, and I fixed them all in about 2 minutes instead of having to edit each one.
If you work with international clients like I do, the multi-currency thing is amazing. I can invoice in euros or pounds, and Xero handles all the conversion headaches.
Setting up recurring invoices for my retainer clients changed my life. The money just shows up in my account now, like magic, because Xero automatically sends the invoices and reminders.
The Projects feature helps me figure out which clients are actually profitable and which ones are secretly costing me money. Turns out my biggest client was my least profitable—who knew?
Why I’m sticking with Xero
I’m not usually loyal to software—I’ll jump ship the moment something better comes along. But Xero has me pretty committed for these reasons:
It’s made for humans, not accountants: The interface doesn’t assume I know accounting jargon or processes. Drag, drop, match, done.
Automation that actually works: Before Xero, I spent 8-10 hours a week on bookkeeping. Now it’s more like 15 minutes a day, mostly just approving what the system suggests.
I finally understand my business finances: The reports don’t make my eyes glaze over. I can see exactly how much profit each project brings, which expenses are creeping up, and whether I can afford that new equipment I’ve been eyeing.
It grows with you: When I started, it was just me. Now I have a team of five, and Xero scaled perfectly without getting more complicated.
It plays nice with my other tools: My payment processor, e-commerce platform, CRM, and inventory management all connect seamlessly. No more manual data entry or reconciliation headaches.
The not-so-great stuff
To be fair, it’s not all perfect:
The learning curve is real: It took me about two weeks of confusion and some choice words before everything clicked. Worth it, but be prepared.
Support is mostly DIY: When something goes wrong, you can’t just call someone. Their chat and email support is good, but sometimes you just want to talk to a human who can fix your problem now.
Pricing shock after promo: The 90% off for 6 months is amazing, but when month 7 hits and your credit card gets charged the full amount… ouch. Budget for it.
What it costs in 2025
Here’s the deal with pricing:
- Starter: $29/month (or $2.90/month for first 6 months with their promo) – Good for freelancers
- Standard: $46/month (or $4.60/month for first 6 months) – This is what I use for my small business
- Premium: $69/month (or $6.90/month for first 6 months) – For when you need payroll or multi-currency
Pro tip: Use code TAKE4625 to get that 90% discount for the first 6 months. That’s what I did, and it gave me time to make sure it was worth the investment before committing to the full price.
Is Xero Worth it?
s It Actually Worth It?
Here’s my honest take after using Xero for a year:
Absolutely yes—if you:
- Value your time (and sanity)
- Want to make decisions based on actual data instead of gut feelings
- Are tired of wondering where your money is going
- Need to look professional with invoicing and client communications
- Want to avoid hiring a bookkeeper for as long as possible
Bottom line: Is Xero worth it in 2025?
For me, absolutely yes. It’s like hiring a part-time bookkeeper for a fraction of the cost.
It’s perfect if:
- You hate accounting but need to do it anyway
- You want to make better decisions based on your actual numbers
- You’re growing and need something that can grow with you
| Criteria | Score (out of 5) |
|---|---|
| Ease of Use | ⭐⭐⭐⭐☆ |
| Automation | ⭐⭐⭐⭐⭐ |
| Reporting | ⭐⭐⭐⭐☆ |
| Value for Money | ⭐⭐⭐⭐⭐ |
| Support | ⭐⭐⭐⭐☆ |
I give it 4.7/5 stars overall. It’s not perfect, but it’s pretty darn close for a small business like mine.
If you’re on the fence, they offer a 30-day free trial with no credit card required. You can cancel anytime, so there’s really no risk in giving it a shot.
Hope that helps with your decision! Let me know if you have any questions about my experience with Xero.
