So, you’re running Xero and think it might be time to level up? We’ve put together a list of the specific signs you have outgrown Xero and when you should begin looking for something with more robust capabilities.
When you’re looking to expand, Xero will not be able to handle multiple entities from the one instance, and will require new instances for each entity. If expansion involves different languages, Xero natively supports English only, presenting additional problems for businesses operating in multilingual environments. Similarly, if you’re requiring multi-currency management, you’ll need a more robust system to handle this.
Ask yourself:
If you require capabilities like cash flow forecasting, revenue recognition, global compliance, support for multiple forms of depreciation, budget roll-ups, total-organisational budgets, subscription billing and detailed custom reporting – it will be beyond the capabilities of Xero.
Ask yourself:
The complexity of managing disparate systems, and plugging gaps with third-party solutions, can lead to inefficiencies, data inconsistencies, and a drain on resources, and could eventually break or degrade to a point that is unsustainable to operate and scale.
Ask yourself:
Xero is currently investing in its third-party marketplace to offer additional automation tools and integrations but it’s a short-term fix that can lead to complexity in setup and configuration.
Ask yourself:
As your employee count grows beyond 50, payroll processing will become noticeably slower and less efficient until you reach Xero’s cap of 200 employees. At this point, you will either need to deploy a second instance of Xero or transition to a new solution.
Ask yourself:
If you begin to experience slower processing times, challenges in executing complex reports such as GST, or encounter system crashes or freezes, it's possible that you've hit Xero’s daily API call limit of 5,000.
It’s important to remember that a single sales transaction could require multiple API calls. For example, one sale might involve individual API calls for verifying item availability, processing the payment, updating inventory levels, and creating a shipping order. Consequently, a singular transaction like a sale could trigger a series of API calls, often amounting to half a dozen or more calls. During peak sales periods, such as Black Friday or Christmas, the volume of transactions (and consequently, API calls) increases significantly. This surge can overload Xero, leading to transaction processing delays or inventory update lags, directly affecting customer experience and profitability.
Ask yourself:
If you're considering launching subscription billing, it's important to note that Xero does not currently offer native support for subscriptions. This means that subscription billing processes would need to be managed manually outside of the Xero platform.
Ask yourself:
If your business is currently experiencing any of these growing pains, then be warned - your issues are only going to intensify as you grow. It may be time to look towards a more robust business system that will support your growth.
A few more helpful resources:
Levelling up from Xero with NetSuite: Why businesses make the switch + capabilities comparison
Feature-by-feature comparison: Xero versus NetSuite >
NetSuite versus Xero: The essential guide to upgrading your systems >
Competitor Analysis: NetSuite vs Xero >
Infographic: Shopify-NetSuite versus Shopify-Xero >
Is your Shopify-powered business experiencing growing pains? A comparison of Xero & NetSuite with Shopify >
Whitepaper: Has your business outgrown Xero? >