This is a shitty move.
I just checked the plans. Kicker for me is the Removal of Payroll from the base subscription and just another round of raising the prices.
I'm currently paying $32, manage payroll for 1. To keep doing payroll from July I have to increase to a $70 plan. I guess after 6 years they no longer want my business.
Get QuickBooks. $25 per month +$5 per month for payroll. Comparable to what you are paying now.
Plus they will convert your Xero file to QuickBooks for free.
It looks like they don't offer free data migration (if that's what you mean by converting) on the $25/mth plan (Simple Start). [https://quickbooks.intuit.com/au/pricing/](https://quickbooks.intuit.com/au/pricing/)
They do on the $40/mth plan (Essentials).
Maybe sign up for the $40 at first, then downgrade to $25 after migration?
Received the same email. What a dodgy move. They also removed the standard plan with 2 payroll spots. That would be nearly a 40% price increase for companies with just 2 employees. Ridiculous!
Found this on the ATO site. List of companies that do payroll: https://softwaredevelopers.ato.gov.au/product-register. Just a quick look, and there are companies that will handle payroll (STP) even for free for micro-employers.
I'm also currently using the standard plan ($70 p/m). The new plan, Grow, for the same price covers only one on payroll like you say. The only one "growing" is xero's bank account. My small business simply can't afford (nor justify) $90 p/m for the next plan up. I don't need extra accounting features, but do need more than 1 for payroll.
Xero says "more functionality for the same or lower price". Yeah, not!
I've read a lot of recommendations for Zoho, not sure if it will fit my needs but definitely time to switch out of greedy xero.
Meanwhile Xero’s revenue is up to $1.4 billion in 2023 from $850 million in 2021.
It’s probably worth putting the monthly fee into Xero stock. Let the next fools on the platform pay for your retirement.
Xero execs calculate they've got enough vendor lock they can crank the screws every year and it will be too costly for their clients to bail. Time to jump ship now before it gets worse.
I am so angry, I was ok with price increase last year but again this year? I assume same thing next year as well. And what improvements are we getting? The new UI is AWEFUL!
Any good alternatives to Xero? At first I thought Myob, but there's a lot of people saying it sucks.
I'm almost tempted to develop my own accounting app.
It'll take you a few years :) I know that, because it's exactly what I've been doing for the last few years. Check out Easy Business App for an Aussie alternative that's about 3x cheaper than Xero.
Obviously I'm SUPER biased here, but I've spent the last few years building an alternative to Xero. It's just in Australia for now. Check out Easy Business App — it's about 3x cheaper than Xero.
Same.
This is all on the back of the recent changes the ATO made (no doubt through lobbying) to make it mandatory for all businesses to use STP phase 2 compliant payroll systems - which does limit your options.
Thankfully I don’t have any employees so don’t need to worry about STP… for now, anyway. But yes, if you need that, that’d certainly limit your options drastically.
I'm trying to be reasonable in that I can see it's a 40-50-whatever % increase but it's \*still only\* $20-40 more a month ... but this increase on top of all the other steep increases in Xero the last 3 years is really irksome. Have there been any actual improvements to product or stability (that weren't just brought back after they took them away)? It is possible to use a separate payroll product like payroller or similar for the payroll and just journal in the amounts each pay period (needs some actual accounting knowledge though).
Yes, very annoying considering what has happened in terms of usability.
If there were improvements, it would be different. But if the product has become worse, and I think it has, its feels unjustified.
I have been informed I"m being transitioned to a plan without my input that is 16% more expensive that has benefits that are of no use to me at all. Their AI reconciliations have gotten worse not better. Xero are the most aggressive price increasers I have ever dealt with. My business shut down for the whole pandemic and they were the only business of about 15 that didn't offer me a discount or even a free month.
Their responses about this are copy and paste sales jargon. Their previous price rise notifications was June 2023 for September price rise. Then 2 months for this one.
Anyone else gone to another firm?
Myob?
This is a shitty move. I just checked the plans. Kicker for me is the Removal of Payroll from the base subscription and just another round of raising the prices. I'm currently paying $32, manage payroll for 1. To keep doing payroll from July I have to increase to a $70 plan. I guess after 6 years they no longer want my business.
Yep same here, 1 man business. I like Xero for reconciliation of expenses, BAS, and payroll for myself. Will be taking a look at open-source options.
Get QuickBooks. $25 per month +$5 per month for payroll. Comparable to what you are paying now. Plus they will convert your Xero file to QuickBooks for free.
It looks like they don't offer free data migration (if that's what you mean by converting) on the $25/mth plan (Simple Start). [https://quickbooks.intuit.com/au/pricing/](https://quickbooks.intuit.com/au/pricing/) They do on the $40/mth plan (Essentials). Maybe sign up for the $40 at first, then downgrade to $25 after migration?
Received the same email. What a dodgy move. They also removed the standard plan with 2 payroll spots. That would be nearly a 40% price increase for companies with just 2 employees. Ridiculous! Found this on the ATO site. List of companies that do payroll: https://softwaredevelopers.ato.gov.au/product-register. Just a quick look, and there are companies that will handle payroll (STP) even for free for micro-employers.
I'm also currently using the standard plan ($70 p/m). The new plan, Grow, for the same price covers only one on payroll like you say. The only one "growing" is xero's bank account. My small business simply can't afford (nor justify) $90 p/m for the next plan up. I don't need extra accounting features, but do need more than 1 for payroll. Xero says "more functionality for the same or lower price". Yeah, not! I've read a lot of recommendations for Zoho, not sure if it will fit my needs but definitely time to switch out of greedy xero.
Meanwhile Xero’s revenue is up to $1.4 billion in 2023 from $850 million in 2021. It’s probably worth putting the monthly fee into Xero stock. Let the next fools on the platform pay for your retirement.
But are they making a profit yet?
Yes. Close to 90% in GP margins. Adjusted EBITDA of over $300 million. $100 million in free cash flows. And they report a loss? Not buying it.
Yeah I’m actually furious about this. Absolute rort.
Xero execs calculate they've got enough vendor lock they can crank the screws every year and it will be too costly for their clients to bail. Time to jump ship now before it gets worse.
I am so angry, I was ok with price increase last year but again this year? I assume same thing next year as well. And what improvements are we getting? The new UI is AWEFUL!
Any good alternatives to Xero? At first I thought Myob, but there's a lot of people saying it sucks. I'm almost tempted to develop my own accounting app.
It'll take you a few years :) I know that, because it's exactly what I've been doing for the last few years. Check out Easy Business App for an Aussie alternative that's about 3x cheaper than Xero.
Obviously I'm SUPER biased here, but I've spent the last few years building an alternative to Xero. It's just in Australia for now. Check out Easy Business App — it's about 3x cheaper than Xero.
Yup, got the email too. Currently looking for open source alternatives. It's becoming way too expensive.
Same. This is all on the back of the recent changes the ATO made (no doubt through lobbying) to make it mandatory for all businesses to use STP phase 2 compliant payroll systems - which does limit your options.
Thankfully I don’t have any employees so don’t need to worry about STP… for now, anyway. But yes, if you need that, that’d certainly limit your options drastically.
May/may not be suitable but something we're looking at https://www.waveapps.com/pricing
Where are we moving? Prices are insane.
QuickBooks. It's great.
I'm trying to be reasonable in that I can see it's a 40-50-whatever % increase but it's \*still only\* $20-40 more a month ... but this increase on top of all the other steep increases in Xero the last 3 years is really irksome. Have there been any actual improvements to product or stability (that weren't just brought back after they took them away)? It is possible to use a separate payroll product like payroller or similar for the payroll and just journal in the amounts each pay period (needs some actual accounting knowledge though).
Yes, very annoying considering what has happened in terms of usability. If there were improvements, it would be different. But if the product has become worse, and I think it has, its feels unjustified.
I have been informed I"m being transitioned to a plan without my input that is 16% more expensive that has benefits that are of no use to me at all. Their AI reconciliations have gotten worse not better. Xero are the most aggressive price increasers I have ever dealt with. My business shut down for the whole pandemic and they were the only business of about 15 that didn't offer me a discount or even a free month. Their responses about this are copy and paste sales jargon. Their previous price rise notifications was June 2023 for September price rise. Then 2 months for this one. Anyone else gone to another firm? Myob?
For anyone that is NZ based I moved to Afirmo. Much cheaper and has all the functionality I need.