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Software · head to head

Paymo vs Xero

Paymo logo

Paymo

Software

Work & project management for teams

From
On request
Rated
-
Full reviewWebsite
Xero logo

Xero

Software

Beautiful accounting software

From
$13/month
Rated
-
Full reviewWebsite

The short version

  • Each has a real cost: Paymo every advertised price rises after 3 months, with Plus going from $10.90 to $15.90 per user and Pro from $16.90 to $23.90; 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: Paymo covers Task management, Xero covers Bank reconciliation.

Where they differ

Only the attributes on which Paymo and Xero actually diverge.

Attributes where Paymo and Xero differ
AttributePaymoXero
Starting priceOn request$13/month
Pricing modelfreemiumsubscription
PlatformsWeb, Ios, Android, DesktopWeb, Ios, Android, Api
Founded20082006

Identical on both: free tier (No), 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 Paymo

  • Task management
  • Time tracking
  • Gantt charts
  • Resource scheduling
  • Slack
  • Google Workspace
  • Zapier
  • SSL encryption

Only in Xero

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

Both cover

  • Invoicing

What people use each for

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

Paymo

  • Project management with time tracking and invoicing for agenciesnot Xero
  • Tracking billable hours and project profitabilitynot Xero

Xero

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

Where each one falls short

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

Paymo

  • Every advertised price rises after 3 months, with Plus going from $10.90 to $15.90 per user and Pro from $16.90 to $23.90
  • The free plan allows 1 user, 1 client and 2 projects
  • The Solo plan is still capped at 3 clients and 5 projects
  • Gantt charts, task dependencies and scheduling require the Plus plan
  • Integrations are excluded from both the free and Solo plans

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

Paymo

On request
  • FreeFree
    • 1 user
    • Basic features
  • Starter$4.95/month
    • Time tracking
    • Kanban
    • Invoicing

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 Paymo if

  • You need task management.
  • You work on Web, Ios, Android, Desktop.
  • You also want time tracking.
Paymo review

Choose Xero if

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

Questions people ask

Is Paymo or Xero better?
Neither clearly leads. Paymo starts at On request and Xero at $13/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Paymo or Xero?
Paymo starts at On request and Xero at $13/month.
Does Paymo or Xero run on more platforms?
Paymo runs on Web, Ios, Android, Desktop. Xero runs on Web, Ios, Android, Api.
What is Paymo best used for?
Paymo is most often used for project management with time tracking and invoicing for agencies, tracking billable hours and project profitability. Of those, project management with time tracking and invoicing for agencies and tracking billable hours and project profitability are not what Xero is typically brought in for.
What can Paymo do that Xero cannot?
Paymo covers Task management, Time tracking, Gantt charts, Resource scheduling. Xero covers Bank reconciliation, Bill payment, Expense claims, Financial reporting. Both handle Invoicing.
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