New Changes to Xero Plans and Pricing

Effective Date: 1 July 2024

Xero, the cloud-based accounting software provider, has announced big changes to their plans including restructuring their old plans to simplify things. However there are some increases in pricing for equivalent plans. See here for xero’s announcement.

The biggest part of these changes seem to be based around payroll with the payroll only plan being obsolete and the lower end plans no longer supporting payroll. The entry level plan that includes payroll is now $70 per month which includes only 1 employee.

In this blog post we’ll try to explain the changes based on the information provided by Xero.

Rollout Stages

1 July 2024

Xero is launching three new streamlined business plans and making changes to the ultimate plan. Premium plan subscribers will be moved to the equivalent ultimate plan based on their payroll tier.

Payroll only, Starter, Standard, GST Cashbook and Premium plans will no longer be sold moving forward from this point.

Xero will be in touch with a minimum of 60 days notice for the migration of other plans to their new equivalent.

March 2025

Xero intends to move all subscribers to the new plans by March 2025.

New Pricing Overview:

  • Payroll Only: $20/month (previously $15/month) – will no longer be available after the xero migration process.
  • Starter: $35/month (previously $32/month), no longer includes payroll
  • Standard: $70/month (previously $65/month)
  • Premium 5: $90/month (previously $85/month) will be moved to Comprehensive plan.

Ultimate Plans (all premium plans 10 and above will be moved to their ultimate equivalent):

  • Ultimate 10: $115/month (previously Premium 10 at $95/month or Ultimate 10 at $115/month)
  • Ultimate 20: $145/month (previously Premium 20 at $125/month or Ultimate 20 at $135/month)
  • Ultimate 50: $200/month (previously Premium 50 at $175/month or Ultimate 50 at $180/month)
  • Ultimate 100: $245/month (previously Premium 100 at $220/month or Ultimate )

Key Feature Changes/Minimum plan for features

  • Starter Plan: Will no longer support payroll.
  • Ultimate Plans: Enhanced features to support growing businesses, with more advanced capabilities for managing finances, payroll, and business insights.
  • Payroll: The minimum amount per month now for any business with payroll is $70 per month (grow plan) which doesn’t include auto super
  • Auto Super: The minimum plan that includes auto super will be $90 per month (comprehensive plan) with payroll up to 5 people.

The updates will take effect on 1 July 2024 and will be reflected on subsequent invoices. Existing discounts and promotional codes will remain valid until their expiration.

We have gathered the plan comparisons from the Xero distributed pdf to view easily.

For more details, visit Xero’s pricing update page.

New Xero Features

In some positive news from Xero, they have had recently is the ability to reconcile transactions at 50 per page instead of 10 and also added the ability to filter these items. This change has certainly helped efficiency with bookkeeping.

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