Xero vs Employment Hero
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
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.
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.
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
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
Xero vs Employment Hero: Side by Side
| Factor | Xero | Employment Hero |
|---|---|---|
| User Rating | N/A | N/A |
| Category | Accounting Software | HR Software |
| Pricing Model | Paid | Freemium |
| Starting Price | $15/mo | Free |
| Best For | Small businesses and accountants wanting a clean, modern alternative to QuickBooks | Australian and NZ businesses needing full HR suite |
| Our Pick | — | — |
Xero Features
- ✓Bookkeeping
- ✓invoicing
- ✓bank reconciliation
- ✓expense claims
- ✓payroll
- ✓financial reporting
- ✓inventory
- ✓project tracking
- ✓integrations
- ✓mobile app
Employment Hero Features
- ✓HR management
- ✓payroll
- ✓benefits
- ✓recruitment
- ✓learning
- ✓employee engagement
Pricing Comparison
Our Take
Choose Xero if small businesses and accountants wanting a clean, modern alternative to quickbooks. Choose Employment Hero if australian and nz businesses needing full hr suite.
Best For
Small businesses and accountants wanting a clean, modern alternative to QuickBooks
Best For
Australian and NZ businesses needing full HR suite
Also Consider
If neither Xero nor Employment Hero is the right fit, Dext is worth evaluating.
Dext
Bookkeepers, accountants, and businesses with high receipt volumes wanting to eliminate manual data entry
From $15/mo
Frequently Asked Questions
What is the difference between Xero and Employment Hero?
Xero is best for small businesses and accountants wanting a clean, modern alternative to quickbooks. Employment Hero is best for australian and nz businesses needing full hr suite.
Which is better, Xero or Employment Hero?
Choose Xero if small businesses and accountants wanting a clean, modern alternative to quickbooks. Choose Employment Hero if australian and nz businesses needing full hr suite.
How much does Xero cost?
Xero starts at $15/mo. Pricing model: Paid.
How much does Employment Hero cost?
Employment Hero starts at Free. Pricing model: Freemium.
Who should use Xero?
Small businesses and accountants wanting a clean, modern alternative to QuickBooks
Who should use Employment Hero?
Australian and NZ businesses needing full HR suite