Xero AI features and pricing (October 2026)

Xero is cloud accounting software for small businesses and their accountants, covering invoicing, bills, bank reconciliation and reporting, with an AI partner called JAX that reconciles bank transactions and answers questions about the books.

Xero combines sales invoicing, bill management, bank feeds and reconciliation, cash flow forecasts and reports in one online ledger, with optional payroll in some countries. Bills can be uploaded, forwarded by email or photographed through Hubdoc. Approval roles control who may create and approve bills, and duplicate bills are flagged.

The company started in New Zealand in 2006, is listed on the ASX and reports 5 million customers in more than 180 countries, plus around 250,000 accountants and bookkeepers in its partner program. Its core users are small business owners working together with an external accountant.

• Reconciles bank transactions automaticallyJAX combines four methods: your bank rules, matches with existing records, memory of how you reconciled similar items and predictions based on how other Xero users handled them. It only reconciles on its own when highly confident and otherwise suggests a match, so the finance team reviews exceptions instead of every line.
• Turns bills into draft entriesUploaded or emailed bills are read by AI, which extracts the key details and creates draft bills ready for approval. Bookkeepers spend less time typing supplier data, while the approval step keeps a person in control before anything is paid.
• Answers questions about the numbersJAX answers questions about income, profit trends and business performance using the company's Xero data, and returns charts and tables. Owners and bookkeepers get a quick view of the figures without building a report first.
• Drafts invoices from quotesJAX can create an invoice based on a previous quote, so accepted offers turn into invoices without retyping line items. Xero states that JAX respects existing user roles and does not use customer data to train the underlying language models.

• Automatic reconciliation also draws on how other Xero users reconciled similar transactions, not only on the company's own rules and history.
• The JAX chat assistant carries no extra charge for subscribers; in the UK, automatic reconciliation by JAX is part of Grow, Comprehensive and Ultimate and an AI Automate add-on on the smaller plans.
• Flat monthly prices per organization rather than per user, published by country on the pricing pages, such as $27 per month for the US Early plan.

Xero was founded in New Zealand, is listed on the Australian Securities Exchange and describes itself on its company page as the leader in cloud accounting in New Zealand, Australia and the UK.

Check which plan includes JAX automatic reconciliation, since smaller plans need the AI Automate add-on, and whether invoice and bill limits fit your volume. Xero lists AWS, Anthropic and OpenAI among US-based subprocessors, so review the public data processing addendum and subprocessor list with your privacy team. Auditors can request Xero's SOC 2 report. Approval roles for bills exist, so define who creates and who approves.

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