Employment Hero vs Xero
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
Employment Hero
Employment Hero is an all-in-one HR, payroll, and benefits platform with a strong presence in Australia and New Zealand. It offers a free HR plan alongside paid payroll and benefits modules, making it accessible for businesses at any stage. Employment Hero also operates a job marketplace called Swag for employees.
Xero
Xero is a cloud-based accounting platform popular with small businesses and accountants worldwide. It is known for its clean interface, strong bank reconciliation tools, and excellent integration ecosystem. Xero is particularly popular in Australia, New Zealand, and the UK, and is considered the main alternative to QuickBooks for cloud-based accounting.
Pros
- ✓Free HR plan available with core employee management features
- ✓Strong compliance tools for Australian and NZ employment law
- ✓All-in-one platform covering HR, payroll, and benefits
- ✓Employee benefits marketplace with discounts and perks
Cons
- ✗Payroll module costs extra and is best suited for AU/NZ companies
- ✗Limited support and compliance coverage outside Australia and New Zealand
- ✗Some users report the platform can feel complex to navigate
Pros
- ✓Beautiful and intuitive interface — one of the cleanest in accounting software
- ✓Unlimited users on all plans — no per-seat pricing
- ✓Excellent bank reconciliation with smart matching
- ✓Strong ecosystem of 1000+ integrations
Cons
- ✗Payroll requires a separate add-on in most regions
- ✗Inventory management is basic compared to QuickBooks
- ✗Reporting is less comprehensive than QuickBooks on lower tiers
- ✗Customer support is primarily online with no phone support
Employment Hero vs Xero: Side by Side
| Factor | Employment Hero | Xero |
|---|---|---|
| User Rating | N/A | N/A |
| Category | HR Software | Accounting Software |
| Pricing Model | Freemium | Paid |
| Starting Price | Free | $15/mo |
| Best For | Australian and NZ businesses needing full HR suite | Small businesses and accountants wanting a clean, modern alternative to QuickBooks |
| Our Pick | — | — |
Employment Hero Features
- ✓HR management
- ✓payroll
- ✓benefits
- ✓recruitment
- ✓learning
- ✓employee engagement
Xero Features
- ✓Bookkeeping
- ✓invoicing
- ✓bank reconciliation
- ✓expense claims
- ✓payroll
- ✓financial reporting
- ✓inventory
- ✓project tracking
- ✓integrations
- ✓mobile app
Pricing Comparison
Our Take
Choose Employment Hero if australian and nz businesses needing full hr suite. Choose Xero if small businesses and accountants wanting a clean, modern alternative to quickbooks.
Best For
Australian and NZ businesses needing full HR suite
Best For
Small businesses and accountants wanting a clean, modern alternative to QuickBooks
Also Consider
If neither Employment Hero nor Xero is the right fit, Justworks is worth evaluating.
Justworks
Small businesses wanting Fortune 500 benefits
From $59/employee/mo
Frequently Asked Questions
What is the difference between Employment Hero and Xero?
Employment Hero is best for australian and nz businesses needing full hr suite. Xero is best for small businesses and accountants wanting a clean, modern alternative to quickbooks.
Which is better, Employment Hero or Xero?
Choose Employment Hero if australian and nz businesses needing full hr suite. Choose Xero if small businesses and accountants wanting a clean, modern alternative to quickbooks.
How much does Employment Hero cost?
Employment Hero starts at Free. Pricing model: Freemium.
How much does Xero cost?
Xero starts at $15/mo. Pricing model: Paid.
Who should use Employment Hero?
Australian and NZ businesses needing full HR suite
Who should use Xero?
Small businesses and accountants wanting a clean, modern alternative to QuickBooks