Digits vs Xero (2026): which should you pick?
As of Nov 12, 2026, Xero grades higher than Digits: 2.6 against 2.2 out of 4.0.
Checked Nov 9, 2026 and Nov 12, 2026 · graded Oct 17, 2026 and Nov 12, 2026 by ToolGPA
Xero grades higher on value for money and ease of use. They get the same grade on the free plan, features and platforms.
Price, platforms and features side by side. The table says where each price was read and when.
Digits
AI-native general ledger with bookkeeping, bill pay and invoicing
Xero
Cloud accounting for small businesses, with unlimited users
Which one is for you
Pick Digits if
- Fits if you run a startup and want AI to categorize transactions in a real general ledger
- Makes sense if you want an API or MCP on your books
Look elsewhere if
- Pricey if you're a freelancer: $65 a month is the starting price, with no free plan
- Skip it if you need budget against actuals, as that's Pro at $250 a month
- Watch out: extra entities start at $35 a month
- Watch out: full-service accounting, CFO and tax work come through partner firms and aren't in the plans
- Not for you if you want an Android or desktop app
Pick Xero if
- Fits if your accountant already works in Xero
- Works for businesses where several staff and advisers need to be in the books, as users are unlimited
Look elsewhere if
- Tight if you send more than 20 invoices or enter more than 5 bills, since that's where Early stops
- Watch out: the advertised prices are 80% off for 3 months only, then $27, $59 or $97 a month
- Pricey if you need US payroll, at $36 a month plus $6 a person on top
- Pricey if you bill in other currencies, which need Established at $97, or want auto-reconcile on Early, a $5 add-on
- Skip it if you want a free plan to start on, as there isn't one, and taking the free month costs you the discount
How we grade them
| 2.2GPADigitsFair | 2.6GPAXeroGood | |
|---|---|---|
| Value for money | D$65 a month for Essentials, $100 for Core and $250 for Pro, against $26 in the middle for this category. The page doesn't say whether annual billing changes it. | CEarly is $27 a month, between this category's middle at $23 and its dearer quarter at $31.10, and it stops at 20 invoices and 5 bills. No limits means Growing at $59. Users are unlimited on every plan, so a team costs no more. |
| Free plan and trial | CA 30-day free trial, and the pages we read don't say whether a card is needed. No free plan. | COne month free on any plan, but you give up the 80%-off-for-3-months offer to take it. There's no free plan, and the listing doesn't say whether a card is needed for the trial. |
| Features | BAI bookkeeping, month-end close, bill pay, invoicing, reports and multi-entity books, with an API and MCP. The listing's only limits are plan gates, such as budgets on Pro. | BBank reconciliation, invoices and quotes, Tap to Pay, bill capture, free ACH bill payments, cash flow forecasts, Syft analytics, the JAX assistant and Gusto payroll. Multiple currencies need Established, but the whole job is here. |
| Ease of use | CNo store rating on record. You connect your accounts and review what the AI books before you rely on it. | B4.65 from 1,689 App Store ratings, just under the top band. Auto-reconcile, which takes away the most clicking, is part of Growing and Established and a $5 a month add-on on Early. |
| Platforms and integrations | BWeb and iPhone, with a developer API and MCP. No Android or desktop app listed. | BWeb, iPhone and Android, plus an app store with Gusto, Stripe, Syft, Dext, A2X and Mercury. There's no desktop app, which is what keeps it off an A. |
| Best for | AI-run books for startups | small businesses that work with an accountant |
The GPA is the average of the five grades: an A is 4 points, an F is none. The full reasons are on each tool's page: Digits and Xero. How we grade
Price against what you get
Digits starts at $65 a month and scores 2.7 out of 4 on features, ease of use and platforms. Xero starts at $27 a month and scores 3.0.
Xero scores higher and starts $38 a month lower. Of the other accounting and invoicing tools on the chart, 6 score higher than Digits for less, and 3 score higher than Xero for less.
Features, ease of use and platforms, averaged
What paid plans start at, a month (each step along is roughly double) →
- The best score at each price
- Has a free plan
- No free plan
Where they differ
- Digits also covers bill pay and dashboards.
- Xero also covers expense tracking and payroll.
At a glance
| Digits | Xero | |
|---|---|---|
| Pricing | Free trial | Free trial |
| Starts at | $65 per month | $27 per month, billed monthly |
| Free plan | None | None |
| Free trial | 30-day free trial | One month free on any plan, taken instead of the 3-month discount |
| Web | ||
| iOS | ||
| Android | ||
| Made by | Digits | Xero Limited |
| Price read from | digits.com | xero.com |
| Checked | Nov 12, 2026 | Nov 9, 2026 |
Worth knowing
Digits
- The pricing page states monthly prices but not whether annual billing changes them.
- Dimensional accounting and automated schedules start at Core; budget vs. actuals only on Pro.
- Extra entities beyond the free 250 transactions a year start at $35 a month.
- Full-service accounting, CFO and tax work are sold through partner firms, not in the plans.
Xero
- The advertised prices are 80% off for the first 3 months; plans then renew at $27, $59 or $97 a month.
- Early stops at 20 invoices and 5 bills, and its graphs and cash flow forecast are the basic ones.
- US payroll costs $36 a month plus $6 per employee or contractor, and is not offered to Xero's US mobile-only subscribers.
- These are US prices; Xero sells in other countries, including New Zealand, Australia and the UK, on separate regional sites.
Key features
Digits
- AI bookkeeping
- AI models code incoming transactions from connected banks, cards and payroll, with checks that each one is coded and documented.
- Agentic month-end close
- A close workflow and checklist for finishing the month, with automated schedules for accruals from the Core plan.
- Bill pay and invoicing
- Drag, drop, approve and pay bills, and create invoices, on every plan.
- Reports and dashboards
- Live profit and loss, balance sheet and cash flow; custom reports and dashboards arrive on Pro.
- Multi-entity books
- Several entities under one login with separate books; extra entities are free up to 250 transactions a year.
- Developer API and MCP
- An API and MCP connection to the ledger is included on all plans.
Xero
- Bank reconciliation
- Match bank transactions to invoices and bills. Auto-reconcile is part of Growing and Established, and a $5 a month add-on on Early.
- Invoices, quotes and online payments
- Send invoices and quotes with a payment service attached, and take card payments in person with Tap to Pay on iPhone and Android.
- Bills and Smart Document Capture
- Bills and receipts are pulled into Xero from documents, and standard ACH bill payments in US dollars are included on every plan.
- Cash flow forecasts and analytics
- Forecasts run 30, 60 or 180 days ahead depending on the plan, and Syft analytics, dashboards and health scorecards are built in.
- JAX assistant
- Xero's AI assistant answers questions about the business's numbers and handles routine bookkeeping tasks.
- Xero Payroll, powered by Gusto
- Full-service payroll that calculates, files and pays federal and state taxes across all 50 states, without leaving Xero.
Plans
Digits
Essentials$65
per month; billing basis not stated, no per-seat fees
For solopreneurs and early-stage businesses: core ledger, AI bookkeeping, bill pay and invoicing.
Core$100
per month; billing basis not stated, no per-seat fees
Adds dimensional accounting for departments and locations, and automated schedules.
Pro$250
per month; billing basis not stated, no per-seat fees
Adds custom reports, custom dashboards and budget vs. actuals.
Xero
Early$27
per month, billed monthly
Advertised at $5.40 a month for the first 3 months. Quotes, 20 invoices, 5 bills, bank reconciliation, sales tax and a 30-day cash flow forecast.
Growing$59
per month, billed monthly
Advertised at $11.80 a month for the first 3 months. No invoice or bill limits, auto-reconcile, dashboards, budgets and a 60-day forecast.
Established$97
per month, billed monthly
Advertised at $19.40 a month for the first 3 months. Adds multiple currencies, project time and costs, expense claims and a 180-day forecast.
Ways to pay less
Digits
No public discounts listed.
Xero
- Other savings
80% off the first 3 months
New US customers buying their first organization pay 20% of the base plan price for 3 months, then the regular monthly price. Add-ons are not discounted.
- Other savings
Two months of Xero Payroll free
Xero's payroll page offers two months free to try Xero Payroll, which then costs $36 a month plus $6 per employee or contractor.
Common questions
Which is cheaper, Digits or Xero?
As of Nov 12, 2026, Xero is cheaper to start with: $27 a month, against $65 a month for Digits. Digits starts at $65 per month, and Xero starts at $27 per month, billed monthly.
Which has a free plan, Digits or Xero?
As of Nov 12, 2026, neither Digits nor Xero has a free plan. Both have a free trial.
Which platforms do Digits and Xero run on?
As of Nov 12, 2026, only Xero lists an Android app. Both list a web app and an iOS app. A platform missing from a listing is one its maker's pages did not mention.
More comparisons
How this page was made
- The verdict at the top follows a fixed rule. When both tools are in the same category and either is in our top three for it, the verdict follows that ranking: the higher-placed tool is our pick. The top three weigh who each tool suits as well as its grades, so a pick can go against the GPA. Otherwise the page does not pick one and says which grades higher: the higher GPA first; on a tie, the one with a free plan, then the one that starts cheaper in dollars a month, counted the same way for both; if they are still level, what the choice depends on.
- The grades are our own, from each tool’s review or report card. The GPA is their average.
- Prices, plans and platforms come from each tool’s listing. The table above says where each price was read and when.
- The differences and the answers to the questions are worked out from those listings.