Why change?

Xero have channelled over $100 million into their cloud accounting platform over the last two years, made hundreds of product updates, and added powerful new features and integrations. Because Xero lives online, these updates and new features are delivered automatically (unlike the clunky and expensive upgrades required for desktop software), and so many of them may have gone unnoticed by many.

And it’s not just talk – Forbes ranked Xero as the World’s Most Innovative Growth Company in 2014 and 2015, and they were BRW’s Most Innovative Company in 2014. So they’ve now reached a point where their prices no longer reflect the value of the service (and what’s to come).

What are the new Xero pricing plans?

From 2 June 2016, pricing plans for all new and existing subscribers will be:

The biggest change is to the standard plan, where the limit of payroll employees reduces from five to one. For businesses with two to five employees, they’ve introduced a Premium 5 plan. Premium 5 has up to five payroll employees and the advanced features of auto-super and multi-currency, for $60 per month.

If you’re on a standard plan and do a pay run for more than one employee in May, you’ll automatically be switched to the Premium 5 plan on 2 June. Otherwise, you’ll remain on the standard plan.

Existing and new premium plans will increase by $10 per month. If you’re on Premium 10 solely for multi-currency and don’t do a pay run in May, you’ll be moved to the Premium 5 plan on 2 June and won’t have a price increase.

No matter how this pricing change affects you, it’s a great time to review your needs and make sure you’re on the Xero plan that best fits your business.

Like to know more?

For more information about the price changes, you can see Xero’s answers to FAQs, contact the Xero support team [email protected] and of course feel free to get in touch with us if you still have further questions or need help.

Lloyd Priddle

Lloyd has had a very successful career as an accountant, director and author for almost 40 years. Holding post-graduate qualifications in Business, Lloyd has specialised in Business Development, and worked with the Queensland Government and local councils on numerous occasions through association with AusIndustry and the SBAS Natural Disaster Assistance Program. He is also board member of a number of commercial and not-for-profit entities.