Are You on the Right Xero Plan?

It’s easy to set up a Xero subscription and never look at it again. But your business changes over time, and your plan should keep up with it. We often see clients sitting a tier or two above what they actually need, paying for features and payroll slots that go unused. With Xero’s prices also set to rise from 1 July 2026, now is a sensible time to check that your plan still fits.

The good news is that working out the right plan usually comes down to just a few questions about how you run your business.

What actually decides your plan

Most of the cost difference between Xero’s plans comes down to four things:

• How many people you pay through payroll (count everyone, including casuals). This is the single biggest driver.
• How many invoices and bills you process each month. The entry-level plan has caps; the others don’t.
• Whether you invoice or pay in foreign currencies.
• Whether you need to track profitability project by project.

If none of these have changed since you signed up, there’s a fair chance you’re on the wrong plan.

The four plans at a glance

All prices are in AUD and include GST. Every plan includes bank feeds and reconciliation, GST tracking and BAS lodgement, Hubdoc for capturing bills and receipts, automated superannuation, and unlimited users (so adding us as your accountant costs nothing extra).

Ignite — $35

The entry-level plan covers the essentials: sending invoices and quotes, entering bills, bank reconciliation, BAS and a basic cash flow forecast. The catch is the caps — 20 invoices and 5 bills a month, and payroll for just one person. If you’re a sole trader without employees and your volumes are low, this is all you need. The moment you’re regularly bumping into those limits, or you take on a second person to pay, it’s time to move up.

Grow — $75

Grow removes the invoice and bill caps entirely and lifts payroll to two people. It also adds expense claims and performance dashboards. This is the right home for most small businesses with one or two staff. Worth noting: the jump from Ignite to Grow is a meaningful one in dollar terms, so it’s worth confirming you genuinely need unlimited invoicing or that second payroll slot before stepping up.

Comprehensive — $100

Comprehensive raises payroll to five people and adds two things Grow doesn’t have: multi-currency (essential if you buy or sell in foreign currencies — there’s no workaround on the lower plans) and a longer cash flow forecast with deeper analytics. If you have three to five people on payroll, or you deal in other currencies, this is your minimum.

Ultimate — from $130

Ultimate is built for larger or more complex operations. It covers payroll for 10 (with higher tiers for 20, 50 and 100), and adds Xero Projects for tracking profitability job by job, along with advanced KPI reporting and industry benchmarking. If you don’t track projects and don’t have a bigger payroll, you’re unlikely to need this.

A quick way to check

Run through these in order — the first one that applies points to your plan:

1. More than 5 people on payroll? → Comprehensive (up to 5) or Ultimate (up to 10).
2. Invoice or pay in foreign currency? → Comprehensive at minimum.
3. Need to track profit per project? → Ultimate.
4. Two people on payroll, or sending more than 20 invoices a month? → Grow.
5. None of the above, and you’re a one-person operation? → Ignite.

Worth a few minutes

It only takes a moment to open your Xero subscription and see which plan you’re on. If it’s higher than the questions above suggest you need, you may be able to downgrade and save — keeping in mind you can move to a less expensive plan one month after your last upgrade.

If you’d like us to review your plan for you, just get in touch.