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Accounting & Finance · head to head

Bench vs Xero

Bench logo

Bench

Accounting & Finance

America's largest bookkeeping service for small businesses

From
$299/month
Rated
-
Full reviewWebsite
Xero logo

Xero

All industries

Beautiful accounting software

From
$13/month
Rated
-
Full reviewWebsite

The short version

  • Each has a real cost: Bench recent bankruptcy and acquisition by Employer.com creates uncertainty about product roadmap and support continuity; Xero the Early plan caps you at 20 invoices and 5 bills per month, and the invoice limit counts both approving and sending
  • They diverge on capability: Bench covers Dedicated bookkeeper, Xero covers Invoicing.

Where they differ

Only the attributes on which Bench and Xero actually diverge.

Attributes where Bench and Xero differ
AttributeBenchXero
Starting price$299/month$13/month
Pricing modelUnknownsubscription
PlatformsWeb, Ios, AndroidWeb, Ios, Android, Api
CategoryAccounting & FinanceAll industries
Founded20122006

Identical on both: free tier (No), user rating (Not yet rated).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in Bench

  • Dedicated bookkeeper
  • Monthly financial statements
  • Tax preparation
  • Expense categorization
  • SOC 2
  • Bank-level encryption
  • Web support
  • Ios support

Only in Xero

  • Invoicing
  • Bill payment
  • Expense claims
  • Financial reporting
  • Inventory tracking
  • Project tracking
  • Mobile apps
  • Shopify

Both cover

  • Bank reconciliation
  • Stripe
  • PayPal
  • Square

What people use each for

The jobs each tool is most often brought in to do.

Bench

  • Bookkeeping outsourcingnot Xero
  • Tax preparationnot Xero
  • Financial reportingnot Xero

Xero

  • Small business bookkeeping, invoicing and bank reconciliationnot Bench
  • Bill payment and purchase order managementnot Bench
  • Sharing books with an accountant or bookkeepernot Bench

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

Bench

  • Recent bankruptcy and acquisition by Employer.com creates uncertainty about product roadmap and support continuity
  • Higher starting cost at $299/month compared to self-service accounting software like Wave or QuickBooks Online
  • Requires manual connection of financial accounts and ongoing coordination with bookkeeping team, less automated than software-first solutions
  • Tax services limited to US income tax returns; no support for complex entity structures or multi-state taxation
  • History of burning through capital rapidly, raising concerns about long-term business sustainability

Xero

  • The Early plan caps you at 20 invoices and 5 bills per month, and the invoice limit counts both approving and sending
  • Invoices created by connected app partners count against the Early plan invoice limit
  • Multiple currencies, project time and cost tracking, employee expense and mileage claims and industry benchmarking are restricted to the top Established plan at $90 per month
  • Cash flow forecasting is capped at 30 days on Early and 60 days on Growing, with 180 days only on Established
  • Payroll is not included in any plan and costs an extra $36 a month plus $6 per employee or contractor through Gusto
  • Inventory Plus is a paid optional add-on rather than part of any plan
  • The advertised 90% off applies only to the first 6 months, after which the regular $25, $55 or $90 monthly price auto-renews
  • The introductory discount excludes add-ons, usage charges and payment fees
  • Payment fees apply to online invoice payments and to bill payments other than standard domestic ACH, and are billed on top of the subscription
  • Subscriptions are billed monthly with no annual payment option, and after upgrading you must wait one month before downgrading to a cheaper plan
  • Xero states subscription prices are increasing from October 1, 2026

Pricing, plan by plan

Bench

$299/month

No published plan breakdown. See the Bench review.

Xero

$13/month
  • Early$13/month
    • Send 20 invoices
    • Enter 5 bills
    • Reconcile bank transactions
  • Growing$37/month
    • Unlimited invoices & bills
    • Bulk reconcile transactions
    • Short-term cash flow
  • Established$70/month
    • Everything in Growing
    • Use multiple currencies
    • Track projects

Which should you pick?

Choose Bench if

  • You need dedicated bookkeeper.
  • You work on Web, Ios, Android.
  • You also want monthly financial statements.
Bench review

Choose Xero if

  • You need invoicing.
  • You work on Web, Ios, Android, Api.
  • You also want bill payment.
Xero review

Questions people ask

Is Bench or Xero better?
Neither clearly leads. Bench starts at $299/month and Xero at $13/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Bench or Xero?
Bench starts at $299/month and Xero at $13/month.
Does Bench or Xero run on more platforms?
Bench runs on Web, Ios, Android. Xero runs on Web, Ios, Android, Api.
What is Bench best used for?
Bench is most often used for bookkeeping outsourcing, tax preparation, financial reporting. Of those, bookkeeping outsourcing and tax preparation are not what Xero is typically brought in for.
What can Bench do that Xero cannot?
Bench covers Dedicated bookkeeper, Monthly financial statements, Tax preparation, Expense categorization. Xero covers Invoicing, Bill payment, Expense claims, Financial reporting. Both handle Bank reconciliation, Stripe, PayPal, Square.

Answered from the vendors’ own pages

Bench: What happened to Bench Accounting?

Bench shut down abruptly on December 27, 2024, filing for bankruptcy in Canada with $65 million in debt. The company was acquired by Employer.com on December 30, 2024, and resumed operations in January 2025 under new ownership.

Source
Bench: What are Bench's current pricing plans?

Bench offers Bookkeeping at $299/month (billed annually) and Bookkeeping + Tax at $599/month (billed annually). Both include automated bookkeeping, real-time financial statements, and a dedicated team of bookkeepers.

Source
Bench: Does Bench include tax preparation services?

The Bookkeeping plan includes monthly bookkeeping and year-end tax-ready financial statements. The Bookkeeping + Tax plan adds one-on-one income tax consulting and annual income tax return filing.

Source
Bench: How does Bench's bookkeeping work?

Bench combines proprietary software with human bookkeepers. You connect your financial accounts to automate data entry, and Bench's team handles bookkeeping and provides year-end tax-ready statements. Customers can reach their dedicated team within 24 hours.

Source
Bench: Can I access real-time financial data with Bench?

Yes, Bench provides real-time reporting, allowing you to access or download updated income statements and balance sheets at any time.

Source
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