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Software · head to head

Oyster vs Xero

Oyster logo

Oyster

Software

Hire globally, compliantly

From
Free
Rated
-
Full reviewWebsite
Xero logo

Xero

Software

Beautiful accounting software

From
$13/month
Rated
-
Full reviewWebsite

The short version

  • Only Oyster has a free tier, so it costs nothing to try first.
  • Each has a real cost: Oyster employer of Record is $699 per employee per month, with the discount tied to annual billing; 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: Oyster covers Global Employment, Xero covers Bank reconciliation.

Where they differ

Only the attributes on which Oyster and Xero actually diverge.

Attributes where Oyster and Xero differ
AttributeOysterXero
Starting priceFree$13/month
Free tierYesNo
PlatformsWeb, Ios, AndroidWeb, Ios, Android, Api
Founded20202006

Identical on both: pricing model (subscription), user rating (Not yet rated), category (Unknown).

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 Oyster

  • Global Employment
  • Payroll
  • Benefits
  • Compliance
  • Contractor Management
  • Time Off
  • Expenses
  • BambooHR

Only in Xero

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

What people use each for

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

Oyster

  • Hiring employees abroad without setting up a local legal entitynot Xero
  • Onboarding and paying international contractorsnot Xero
  • Getting country specific employment compliance advice for distributed teamsnot Xero

Xero

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

Where each one falls short

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

Oyster

  • Employer of Record is $699 per employee per month, with the discount tied to annual billing
  • A refundable deposit is required before an EOR engagement starts
  • Contractor management is free for 30 days then $29 per contractor per month
  • HR advisory through People Partner Services is billed at $300 per hour on top of the subscription
  • A currency conversion fee applies when you pay Oyster in a currency other than the contract currency
  • Payments are accepted only by direct debit or wire in USD, EUR, GBP or CAD

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

Oyster

Free
  • Contractor$29/month
    • Contractor Payments
    • Compliant Contracts
    • Invoicing
  • Employee$599/month
    • Global Employment
    • Payroll
    • Benefits

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 Oyster if

  • You need global employment.
  • You want to start without paying.
  • You work on Web, Ios, Android.
  • You also want payroll.
Oyster review

Choose Xero if

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

Questions people ask

Is Oyster or Xero better?
Neither clearly leads. Oyster starts at Free and Xero at $13/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Oyster or Xero?
Oyster has a free tier; the other does not. Paid plans start at Free for Oyster and $13/month for Xero.
Does Oyster or Xero run on more platforms?
Oyster runs on Web, Ios, Android. Xero runs on Web, Ios, Android, Api.
Can I use Oyster for free?
Yes. Oyster has a free tier, so you can try it without paying. Xero starts at $13/month.
What is Oyster best used for?
Oyster is most often used for hiring employees abroad without setting up a local legal entity, onboarding and paying international contractors, getting country specific employment compliance advice for distributed teams. Of those, hiring employees abroad without setting up a local legal entity and onboarding and paying international contractors are not what Xero is typically brought in for.
What can Oyster do that Xero cannot?
Oyster covers Global Employment, Payroll, Benefits, Compliance. Xero covers Bank reconciliation, Invoicing, Bill payment, Expense claims.
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