Xero Increases Subscription Prices by 33%, Retires Classic Invoicing

Xero Subscription Price Increase and New Invoicing Version

Xero has announced a price increase for its subscription plans, effective October 27, 2024. The price hike will vary by country, in the US, the early plan has increased by about 33%.

Xero Subscription Price Increase in US

Pricing changes in the U.S. will affect the Early, Growing, and Established plans as follows:

Early Plan:

  • Old: $15/m
  • New: $20/m

Growing Plan:

  • Old: $42/m
  • New: $47/m

Established Plan:

  • Old: $78/m
  • New: $80/m

The costs for any optional Xero add-ons will remain unchanged. Additionally, any discounts or promotional codes applied to current subscriptions will continue to be valid under the new pricing until the discount or promo period ends.

These changes will apply to both new and existing users in the U.S. from October 27, 2024, with the updated prices reflected in invoices from 27th onward.

Here are Xero pricing changes for other countries.

Transition from Classic to New Invoicing

In addition to the subscription price increase, Xero is moving forward with its transition from the classic invoicing system to a new version. This change will be fully implemented by November 20, 2024. While many users have already been automatically switched to the new version, Xero has allowed some to switch back to the classic system temporarily. However, this option is limited, and some functionalities may break.

While Xero has been talking about the benefits of the new invoicing system—such as enhanced features and capabilities—the changes have not been well-received by many customers.

A growing number of users have voiced their frustrations in Xero’s forums, with one discussion garnering over 300 comments from customers urging the company to reconsider retiring the classic system. A petition has also been created, demanding the company drop the invoicing changes and revert to classic invoicing.

The most dominant complaints about the new invoicing system are its complexity and slower performance. Many customers want the simplicity and ease of use of the classic invoicing system.

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