Xero Subscription Changes September 2024
At The Accounts Department (TAD), we are committed to keeping you informed and well-prepared for changes that could affect your business. With Xero rolling out new business plans starting on 12 September 2024, it's important to understand what these changes mean for you and how you can benefit from them.
What’s Changing?
Xero has confirmed that from September, they will be adjusting the prices across various subscription tiers. Depending on the plan you're currently subscribed to, you might see an increase in your monthly or annual costs. The updates are designed to reflect the ongoing improvements to Xero’s functionality and support.
While the exact increase will depend on your subscription level, here are some of the key points to be aware of:
Increased Monthly Fees: Users can expect a rise in the cost of their subscriptions across all tiers.
Feature Updates: Alongside price adjustments, Xero is rolling out new features and enhancements to their software, including improved reporting and automation tools.
Plan Reviews: If you’re on an older or more basic plan, Xero may suggest upgrading to a more comprehensive package that better aligns with your usage.
Biggest change to xero GST CASHBOOK
One of the key changes is the transition from the Xero GST Cashbook to the new Xero Ignite plan. Here's what this means for our clients:
1. New Plan Introduction: The Xero Ignite plan, priced at $35 per month (excluding GST), is set to replace the Xero GST Cashbook. This plan is designed specifically to cater to the needs of small businesses, offering essential accounting tools in a more streamlined and efficient package.
2. Enhanced Functionality: The Xero Ignite plan allows for up to 20 invoices per month, a significant improvement over the GST Cashbook’s limited invoicing capabilities. This enhancement is ideal for small businesses that require basic yet effective invoicing solutions.
3. Adjustment in Fees: Starting from 01 October 2024, the new fee for the Xero Ignite plan will be implemented. We understand that changes in costs can be challenging, but we are here to ensure you derive maximum value from these updates.
Pricing Changes Across Other Xero Plans:
Starter Plan: Increases to $35/month from $33.
Standard Plan: Adjusts to $75/month from $71.
Premium Plan: Moves to $99/month from $94.
Ultimate Plan: Rises to $113/month from $105
These price adjustments come with additional features aimed at simplifying and enhancing your business operations.
Migration Details:
For existing subscribers, Xero plans a staggered migration between September 2024 and March 2025. Detailed information and timelines are expected to be released in September, with Xero providing a 60-day notice period for these changes.
What You Should DO?
If you’re using Xero for your business, now is the time to review your subscription and consider any adjustments. Here are a few steps you should take:
Review Your Current Plan: Log into your Xero account and double-check which plan you're currently on. Take note of the upcoming price increase and evaluate whether your current plan still meets your business needs.
Assess Usage: If you’re not using all the features in your current plan, now might be a good time to consider switching to a lower-cost option. Alternatively, if you find yourself needing more functionality, an upgrade may be beneficial.
Budget for the Change: Ensure that you account for the subscription price increase in your budget. Adjusting your cash flow projections now will help avoid surprises down the line.
STAY TUNED
As Xero releases more information about the changes we will share with our clients and community. Make sure to sign up for our newsletter to get the latest updates.