Xero review for tradies: plans, limits and whether it's worth the money

Ask a room of Australian bookkeepers which accounting software they’d like their trade clients on, and most will say Xero. It’s not the cheapest option, and it’s not built specifically for trades. But it’s what most of the trade software world connects to, and that counts for a lot when your quotes and invoices live in a job app.

This review covers Xero’s plans and prices, what tradies get on each plan, the limits that catch people out, and how it works alongside a job app. Prices are from Xero’s Australian pricing page, checked in October 2026. We haven’t run a trade business on Xero for this review, so it’s based on Xero’s published plans and the integrations listed by the major job apps.

For a side-by-side with the main alternative, see our Xero vs MYOB comparison.

Xero plans and prices (checked October 2026)

All prices are in AUD and include GST, as Xero states on its pricing page.

Swipe the table sideways to see every column

New customers were offered 80% off for the first three months, after which the regular price applies and the subscription auto-renews monthly. Payroll, expenses and projects can add charges if you go over the included numbers, and online invoice payments have their own fees.

What every plan does

Xero’s plan cards list these on all plans:

• send invoices and quotes, and accept online payments (fees apply)
• automate bill entry and track bills
• reconcile bank transactions from bank feeds
• track GST and lodge BAS
• smart document capture for receipts and bills
• real-time reports
• automated superannuation for payroll
• JAX, Xero’s AI feature, which Xero says categorises and matches high confidence bank transactions

For a tradie, the core loop is simple: your job app sends invoices, Xero receives them, the bank feed brings in payments, and you match the two. At quarter end, Xero’s GST report feeds your BAS. Our BAS and GST guide covers the quarterly routine.

The Ignite limits

Ignite is the plan most sole traders look at first, and its limits are the thing to understand. Xero says Ignite has limits on invoices and bills, and that the invoice limit applies to both approving and sending. Importantly, transactions created by connected apps can count towards the limit. If your job app pushes every invoice into Xero, a busy month can reach the cap.

If you buy materials on account from wholesalers and enter every supplier bill, the bill limit can bite too. Check the current numbers on Xero’s plan comparison page before committing, and expect to move to Grow once work picks up.

Xero with a job app

ServiceM8, Tradify and Fergus all list Xero integrations, as do many other trade apps. In practice that means:

• invoices raised in the job app appear in Xero automatically
• payments recorded in Xero can flow back to the job app
• customers and items sync between the two

Our ServiceM8 vs Tradify vs Fergus comparison covers which job app suits which kind of trade business. If you use a job app, it generally handles job costing, so you don’t need Xero’s project tracking on the Ultimate plans.

Payroll for your first apprentice

Payroll with Single Touch Payroll reporting and automated super is included on every plan, starting with one person on Ignite and two on Grow. That covers a sole trader taking on a first apprentice without a separate payroll subscription. Go over the included number and extra charges apply.

See Xero plans and the current offer → Affiliate link. Opens the merchant site in a new tab.

What we like

• Widest trade app support. If you plan to add a job app, receipt scanner or payroll tool, there’s a good chance it connects to Xero.
• Accountant access. Your accountant or bookkeeper can log in directly, and many already know Xero well.
• Prices include GST and are clearly listed.
• Payroll included on every plan, which suits a first apprentice.

What we don’t

• Price. Grow and Comprehensive are a real yearly cost for a sole trader.
• Ignite limits. Connected apps can use up the invoice allowance.
• Project tracking sits on the Ultimate plans, from $143 a month.
• Monthly billing only is described on the pricing page, so there’s no annual discount to plan around.

Who Xero suits

• Tradies using a job app who want a smooth sync.
• Businesses with an accountant or bookkeeper who already uses Xero.
• Sole traders planning to hire an apprentice in the next year.
• Growing businesses that expect to add more apps over time.

Who might look elsewhere

• Very low volume sole traders watching every dollar. MYOB Lite was $315 a year when we checked, which is cheaper than a year of any Xero plan. Our MYOB review covers it.
• Businesses that want annual billing.

Compare: see MYOB plans → Affiliate link. Opens the merchant site in a new tab.

What the first year costs

Xero’s intro offer for new customers was 80% off for three months when we checked. If you qualify, the first year on Ignite works out at about $355 (three months at $7.40, then nine at $37). On Grow it’s about $749 (three months at $15.60, then nine at $78). After that, Ignite is $444 a year and Grow is $936 a year at the October 2026 prices. All of these include GST.

Remember to add any job app you run alongside it, and extra charges if you go over the payroll, expense or project limits included in your plan.

A typical month for a sole trader

Here’s how most sole trader tradies use Xero day to day:

1. Quote and invoice from Xero or from your job app, which pushes the invoice across.
2. Get paid, and let the bank feed bring the payment in.
3. Reconcile once a week: match each bank line to an invoice, bill or receipt. Bank rules make repeat items, such as fuel and phone, quicker.
4. Snap receipts on the phone as you buy materials.
5. Lodge your BAS at the end of each period, or hand the file to your BAS agent or accountant.

Ten or fifteen minutes a week on reconciliation saves a painful weekend at BAS time. Our BAS and GST guide explains what goes on the form.

Switching to Xero

If you’re coming from spreadsheets or another system, start at the beginning of a BAS period or a new financial year so the books are clean. Your accountant or bookkeeper can bring across opening balances. Connect your bank accounts first, then your job app, then set up invoice templates.

Before you sign up

1. Ask your accountant or bookkeeper what they prefer. Their efficiency affects your bill.
2. Check your job app’s Xero integration, and how invoices count towards Ignite’s limit.
3. Count your monthly invoices and supplier bills to see if Ignite is realistic.
4. Budget on the regular price, not the intro offer.
5. Connect your bank feed on day one and reconcile weekly.

For a full comparison of sole trader options including QuickBooks, see our guide to the best accounting app for sole trader tradies.