XERO STARTER PLAN
Xero has for a long time had a Starter Plan (at $27.50 per month plus GST) version of its Standard ($60 per month plus GST) package which has invoicing and debtors features. However the failing was that the number of invoices and the number of bank transactions you were allowed to process each month was so small that it made the Starter Plan unworkable for all except a very limited number of businesses.
Xero have acknowledged this failing and have upgraded the Starter plan so that it now allows processing unlimited bank transactions each month and up to 20 invoices per month. This is a much more realistic proposition for smaller businesses.
We understand that a feature that is still missing is Cash Coding, which allows simpler bulk coding of bank transactions, but this is probably of little consequence to most clients routinely using Xero software.
These changes provide two opportunities:
- For businesses that have registered for the Standard package to down grade to a Starter Plan if they issue 20 invoices or less per month achieving a saving of $32.50 per month.
- For businesses that issue less than 20 invoices per month but did not feel the cost of the standard package was justified to upgrade from a GST cashbook package ($21 plus GST per month) to the Starter Plan for an increased monthly cost of only $6.50 plus GST.
The ease of issuing invoices and following the debtors in Xero is excellent so for many small businesses issuing small numbers of invoices this additional cost will be well worthwhile.
We will follow up with clients where either situation looks applicable but please don't hesitate to contact us beforehand if you believe a change would be of benefit to you.