Your Guide To Xero Plans In 2022
If you're one of the many Australian businesses looking to invest in cloud based finance software, then choosing one of the Xero plans simply makes sense.
As many small business operators know, diligent accounting is a necessary evil. While it’s no secret that Muro Accounting founders Michele and Canio have long been fans of fusing innovation and technology, even they were surprised at how introducing Xero had managed to revolutionize their business.
Muro officially jumped on the Xero bandwagon in 2017, but were first introduced to the software by Michele’s brother as early as 2011. Like many others in the accounting industry and their clients, Muro previously used MYOB and HandiSoft at the firm on a day to day basis, but found an increasing number of restrictions with how the software could integrate with other programs.
As such, Muro transitioned to using Xero in mid 2017, and began the process of migrating quite literally a decade worth of data across to the platform from MYOB. Today, the firm uses Xero HQ, Xero Practice Manager and Xero Tax for the day to day in house operations, along with Xero Payroll, WorkflowMax, HubDoc, Xeo Projects and Xero Expenses while managing the business side of things for some of their clients. As brand ambassadors, Michele and Canio have seen a notable increase in clients also moving to these systems, with queries linked to Xero plans and pricing becoming a regular occurrence.
The Key Differences Between The Xero Plans
In their own words, the team at Xero originally launched with the vision of changing the game for small businesses. Regarded as pioneers of cloud based software purely for accounting and bookwork management, Xero was founded across the ditch in New Zealand in 2006. They’ve managed to accumulate over two million subscribers worldwide over the years, so it’s evident that this new era of accounting just works.
For brands and businesses considering making the swap to this software, understanding the key points of difference between the three Xero plans and pricing is often where confusion can arise. Thankfully, choosing a plan that’s right for you has never been easier than it is in 2022.
Starter: $27 AUD Per Month - As the ideal for small scale operators and sole traders like creative industry professionals and small retailers, the starter plan allows users to generate up to twenty invoices and quotes per month, enter up to five bills, reconcile up to twenty bank transactions, payroll for one person, and capture bills and receipts with HubDoc. When the time comes, users can eventually upgrade to a plan with less limits on how Xero performs.
Standard: $54 AUD Per Month - Marketed as the most popular of the Xero plans, the standard option still has limitations linked to payroll performance and currency restrictions, but allows greater flexibility for an average small business. Monthly service limits have no restrictions on generating invoices and quotes, billing entries, bank reconciliations and receipts, but does cap payroll capabilities at a maximum of two staff members.
Premium 5: $67 Per Month - For full access to the technology on offer with Xero, users of the Premium 5 plan has all the limitless capabilities of the standard plan, with extra perks to consider including a multi currency functionality, auto superannuation management, and up to five team members on the staff payroll. While it does cost extra to add more people to the payroll function, it can be done per person and on request.
If you’re new to this software and are unfamiliar with the basic inclusions, it’s also important to note that all Xero plans and subscriptions include the following features:
Add anyone (such as team members and accountants) to your platform, choosing what each individual has access to
iPhone and Android apps, for easy access on the go
Connect to your bank accounts, so that you can streamline payments as well as see your latest transactions from inside the software
Create financial performance reports and budgets at any time
Integration with 800+ other business apps, for functions such as inventory and time tracking
24/7 Xero support, with regular software updates and upgrades every 3-6 weeks
SSL encryption, to keep your business information safe
In addition, users can also pay just $10 per month to access Xero’s highly regarded payroll system for up to four employees. Other optional extras to consider include Xero Expenses and Xero Projects, which can be added to any of the Xero plans for a discounted price each month. How it works is that both programs charge a fee on top of the payment plan for one user per month, plus an additional fee for each active user per month on top of that.
There’s no denying that brands and businesses of all shapes, sizes and sectors have done it tough over the course of the last two years. Whether you’re starting a business, purchasing an existing one, or even reevaluating where your current one stands - all inevitably require some form of financial know-how if you hope to successfully navigate your legal requirements as well as hitting your business goals. If finance isn’t your strong suit, then it might be time to consider outsourcing.
Partner With The Brisbane Finance Professionals
If understanding the legalities that surround your business or finances isn’t your strong point, then it may be reassuring to know that you’re not alone. In fact, many businesses (big and small) enlist the services of an accountant in order to free up their time while knowing that their financial obligations are already taken care of by the professionals.
Ultimately, the team at Muro believe that every business owner is an entrepreneur. However, accounting does not discriminate - finances break down barriers and are not territorial. If you would like to take a deeper look into your finances, please get in touch with us at Muro today to ensure that you’re on the right path for success.