IRIS KashFlow vs Xero (2026): which should you pick?

Pick IRIS KashFlow if

• Fits if you're a UK limited company that wants VAT returns and payroll in one product
• Works for sole traders who sell through Shopify, WooCommerce or Amazon

Look elsewhere if

• Tight if you're on Starter: one user, 10 invoices and 25 bank transactions
• Not for you if you're outside the UK, since VAT goes to HMRC and prices are in pounds
• Watch out: the £1.35 and £2.75 months and the annual prices are new-customer offers
• Pricey if you need more than one user: Business is £27.50 a month plus VAT

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

IRIS KashFlow

• Built for UK businesses: VAT submission goes to HMRC, and prices are in pounds.
• Starter is limited to a single user, 10 invoices and 25 bank transactions to reconcile; Business lifts those limits.
• The page marks the annual prices (£97 and £178 plus VAT) as discounted offers for new customers only.
• The pricing page names a mobile app but not which operating systems it runs on.

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.

IRIS KashFlow

Invoicing and quotes

Send quotes and invoices, set up repeat invoices and purchases, schedule customer statements and set credit limits.

VAT returns

VAT is managed in the software and can be submitted online to HMRC; the vendor also has a Making Tax Digital page.

Bank feeds and reconciliation

Bank feeds bring in transactions to reconcile, capped at 25 on Starter and unlimited on Business.

Purchases, expenses and receipts

Manage purchases and expenses, track mileage and capture receipts with a mobile app.

Payments

KashFlow Payments and IRIS Pay let customers pay invoices online.

Payroll and reports

Both plans list payroll for up to 5 employees, over 50 reports, multi-currency and a customizable dashboard.

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.

IRIS KashFlow

• Starter£13.50

  per month, billed monthly (£97 a year, new customers)

  Single user; unlimited quotes, 10 invoices and 25 bank transactions to reconcile. New customers pay £1.35 a month for 6 months.

• Business£27.50

  per month, billed monthly (£178 a year, new customers)

  Multi-user; unlimited quotes, invoices and bank transactions. New customers pay £2.75 a month for the first 6 months.

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.

IRIS KashFlow

• Other savings

  90% off the first 6 months

  New customers on monthly billing pay £1.35 (Starter) or £2.75 (Business) a month for 6 months, then the regular monthly price.

• Annual discount

  Annual plans for new customers

  New customers can pay £97 a year for Starter or £178 a year for Business, plus VAT, against listed RRPs of £162 and £291.50.

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.