Xero: accounting software for sole traders and the self-employed
Online accounting with invoicing, bank feeds and receipt capture, sold with different plans in each country
Xero is online accounting software for small businesses and the self-employed. Your bank transactions flow in, you match them, and your invoices, bills and receipts sit in the same place.
Where it works: we read Xero's sites for the United States, the United Kingdom and Ireland, each with its own plans. Xero runs other regional sites, but the pages we read do not give a full list, so check the site for your country.
Who is Xero for?
Small businesses, and people working alone. The US site has a page for "the self-employed" and talks about one-person businesses and sole proprietors. The Irish site speaks directly to "sole traders and freelancers". If you bill a few clients a month and want clean books, you are in scope.
Features
- Bank reconciliation: bank feeds pull your transactions in every day, with suggested matches.
- Invoicing: branded invoices, online payments and automated reminders.
- Receipts: capture by photo through the mobile app and Hubdoc.
- Taxes: sales tax on invoices, and 1099 and W-9 tools in the US.
- Apps: third-party apps connect through the Xero App Store.
Xero pricing in 2026
Prices checked on the official site in October 2026, per month, before any introductory offer.
United States, in US dollars:
- Early: $27, with 20 invoices and 5 bills.
- Growing: $59, with unlimited invoices and quotes.
- Established: $97, with multiple currencies and project tracking.
United Kingdom, in pounds, excluding VAT: Ignite at £18, Grow at £39, Comprehensive at £55 and Ultimate at £70.
Introductory offers are short-lived, so check them on the site. For any other country, check your regional pricing page.
Why we recommend Xero
We recommend it if you want proper accounting rather than a simple invoicing tool, especially if an accountant works on your books. The weak point to know about: there is no free plan on the US and UK pages, and the US Early plan's limits of 20 invoices and 5 bills can be short for an active freelancer.
Xero or another solution?
QuickBooks is the closest comparison. FreshBooks leans more towards invoicing and client work, and Wave has a free plan in the US and Canada. If you bill abroad, Wise Business is worth a look for your multi-currency payments.
Strengths and weaknesses
Strengths
- Dedicated pages for the self-employed, sole traders and freelancers
- Daily bank feeds pull your transactions into Xero
- Invoices with online payments and automated reminders
- Receipt and bill capture through Hubdoc
Weaknesses
- No free plan on the US and UK pricing pages
- The US Early plan is capped at 20 invoices and 5 bills
- Plans, names and prices change by country, and Xero's US site gives no list of countries
Frequently asked questions about Xero
Xero is online accounting software. It covers bank reconciliation, invoicing, bills, receipt capture, reports and a mobile app.
Xero has dedicated pages for the self-employed. Its Irish page is aimed at sole traders and freelancers, and its US page at one-person businesses and sole proprietors.
We read Xero's US, UK and Irish sites, each with its own plans. Xero has other regional sites, but the pages we read give no full list, so check the site for your country.
In October 2026, the US plans list at $27, $59 and $97 a month. The UK plans list at £18, £39, £55 and £70 a month, excluding VAT. Both exclude any introductory offer.
We found no free plan on the US and UK pricing pages. Both mention a one month free offer, so check the current terms on the site.
Alternatives to Xero
What we would use instead, in the same category.
