Xero’s new pricing package

September 29th, 2009 at 9:00 am by David Farrar

I’ve been a shareholder in from its initial float (and before they had any customers!) but only been using it in my own business for six months or so.

We were using MYOB and as I had paid for that software, I was a bit resistant to going to a monthly subscription but my business manager, Anna, actually convinced me of the benefits after she had used it elsewhere. So we went ahead and subscribed at $49/month.

I can’t describe how great it has been. The synchronization with online banking has saved hours of time, but most of all I can just login to Xero from anywhere in the world and see what bills have been paid or need authorisation, what invoices are going out to our clients etc, and most of all our profitability.

Xero have announced to the share market yesterday, and are advertising the changes – a new pricing model. Currently it is $49 a month for everyone, but now there are three options:

  1. $29/mth – ideal for contractors and freelancers with a small number of transactions
  2. $49/mth suited to most business
  3. $64/mth for businesses that need multi- currency conversion

Xero is keen on feedback from readers, especially those who are freelancers, contractors or in a small business, about how you currently do your accounts (do you just use spreadsheets), what features you most want, is the new price level attractive and is the transaction limit okay?

Details of the packages have been blogged by Rod Drury.

Xero’s product manager (Andrew Butel) and communications manager (Helen Matterson) will be part of the conversation, and I expect Rod D will pop his head in also!

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13 Responses to “Xero’s new pricing package”

  1. Mike Collins (166 comments) says:

    I am interested in speaking offline with either Andrew or Helen. Appreciate a call on 027 449 2103 when free.

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  2. campit (467 comments) says:

    As a small business owner that currently uses Quickbooks, it isn’t the pricing that is an issue, but the conversion of historic Quickbooks accounts and transaction data into Xero. Is there a tool to do this?

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  3. getstaffed (9,186 comments) says:

    I’ve used Xero for quite a while now, as primary users for my own business accounts as also as a trustee of a charitable organisation. Its bank rec is awesome for high transaction businesses and the distributed report access is great for the trust as it (when combined with Skype) allows us to meet virtually.

    I know Rod personally, and have worked with him since the early 1990’s. This service is an itch he’s always wanted to scratch, so it’s great to see this vision being realised and the Xero team building an internationally competitive business.

    It started with an idea, can-do attitude, risk appetite and determination. None of these are particularly rare commodities so let’s support Xero and all other Xero-like businesses that can help NZ tap new sources of income.

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  4. Jared (4 comments) says:

    My business has used Xero for over two years now and all that use it love the software. Overall I think the changes are a great idea. Although I suspect the transaction limits (on small) might be a little low (too small) and a tad convoluted. I assume though they have done their research and their is a market for such a pricing structure.

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  5. fizzleplug (72 comments) says:

    “As a small business owner that currently uses Quickbooks, it isn’t the pricing that is an issue, but the conversion of historic Quickbooks accounts and transaction data into Xero. Is there a tool to do this?”

    To the best of my knowledge they are updating a lot of Xero to be able to accept CSV imports, but for all my clients that have run Quickbooks in the past, I advise keeping the program for individual transaction reference and moving forward on Xero. It is easy enough to put in balances for comparative purposes without having to load all the individual transactions.

    Edit: yay for forgetting how to quote on forums. I’ve been spending too much time working and not enough time trolling obviously.

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  6. David Farrar (1,895 comments) says:

    Oh soft limits – that is a great idea. One would yell abuse at the system if it stopped you invoicing someone as it was the 6th invoice of the month. But just having the limit as something to monitor is a much better way of doing it.

    Some months I can be up to a dozen invoices so I’ll stay with the medium package.

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  7. simo (150 comments) says:

    If its online – who owns the data them or you? It has appeal to convienence etc, but a backup of your data is useless without their platform to use it on. Please read the fine print folks………… Also, getting the historical data across is a SOB. A CSV file is Ok to import into your new software, but you still have to use the old software to get historical invoicing and history. MYOB charge $295+GST to get your data out of their software using ODBC drivers – and thats without the history!!!!

    There are too many blind alleys in online accounting, a few court precendents are needed to set the ground rules

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  8. RodD (12 comments) says:

    Hi Simo

    We’re all for conspiracy theories.

    Moonlanding – faked
    9/11 – clearly faked

    Nothing mysterious about who owns your data. You do. It’s yours. We are entrusted to look after it really really well.

    What blind alleys? Court precedents for what?

    Don’t let the shadows get you,

    Rod

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  9. Thrash Cardiom (298 comments) says:

    We moved our business to Xero in June. It’s an excellent product. One of our clients has also moved to it on our recommendation and is very pleased with the move. We also took advantage of the $10.00 per month for non-gst organisations and moved our personal finances to it as well. Previously we were using MYOB for the business and GnuCash for our personal accounts.

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