June 23, 2025
Accounting is a real headache for many companies, like retail shops, small agencies, and growing startups. They need to manage vast amounts of financial data every day. Manual process will not work for them. To solve this issue, they rely on Accounting Software like Xero to simplify bookkeeping and make it easy to track expenses, manage invoices, and prepare tax reports. This is why many companies want to build similar software. However, one big question remains — what is the cost of developing accounting software like Xero?
Let’s look at all the key factors so you can plan your project with confidence.
How Xero is Helping Businesses to Grow?
Before we examine the cost of building accounting software like Xero, let’s first consider how Xero is helping businesses reach new levels of growth.
In today’s competitive world, traditional accounting is too slow for businesses like food delivery, healthcare, and logistics. They have millions of dollars worth of financial data to manage. But with Xero accounting software, they are increasing their efficiency. How?
With Xero, managing the accounting process becomes easy. Businesses can send statements, track payments, and view their finances in one place. It helps to reduce paperwork and allows more time to focus on growing your company.
If we look at Xero’s Accounting and Bookkeeping Industry Report 2025, it shows:
- 79% of firms earned more money after using their advisory features.
- 82% believe that “Making Tax Digital for IT” will help them get new customers.
- 87% of businesses say that using cloud accounting software, such as Xero, keeps their clients happier.
With Xero, businesses don’t need to worry about messy records or missing tax deadlines. They can focus on sales, customers, and new ideas. Building an app like Xero can help companies easily manage their finances and grow faster.
Have a Brief Look at Xero’s Features
Xero comes with many helpful features that make managing business accounts easy. It allows you to work faster and smarter while keeping your data safe and up to date.
Below are the key features of Xero:
- Easy invoicing and billing: Can quickly send and track invoices to customers.
- Automatic bank feeds: Import bank transactions without manual entry.
- Real-time cash flow tracking: See up-to-date cash balances at a glance
- Expense claims and receipts: Capture and Manage Expenses on the Go.
- Multi-currency support: Handle transactions across different currencies.
- Financial reports: Generate profit, loss, and tax reports anytime.
- Cloud-based security: Keep data safe with regular backups and encryption.
- User-friendly dashboard: Get quick insights into your business performance.
- Smooth app integrations: Connect Xero with other tools you already use.
- Multi-user access: Let your team collaborate easily with controlled permissions.
Cost to Build an Accounting Software like Xero
Building accounting software like Xero can be time-consuming and expensive. The cost depends on multiple factors that we will discuss in the next section.
If you want basic features like invoices, expense tracking, and bank links, the cost is lower. However, if you require more advanced tools, such as reports, tax calculations, and cloud storage, the price will increase.
A simple version can cost between $50,000 to $100,000. A more complex version can cost $150,000 or more. It’s important to plan your budget carefully. Select a skilled team that understands your objectives and can develop software that scales with your business.
Key Factors Affecting the Cost of Accounting Software Like Xero
Features and Functionality
In terms of cost, features still have a significant influence. While simple features, such as invoicing, expense tracking, and tax tools, will require less time to build. More advanced features, such as multi-currency support, automated reports, and integration with other apps, will require more time and money to create. It’s smart to list the most important features first and then plan other features for future updates.
Design and User Experience
A clean and easy design will help your software stand out. Good design is not just about looks; it’s also about making it easy for people to use. Designers require time to develop the app’s arrangement and test it on real users. This process is both skill-requiring and effort-consuming. Good UX design might incur higher costs initially, but in this way, you achieve higher customer retention and satisfaction levels.
Platform Support
You need to decide which platforms your app will support — web, iOS, Android, or all of them. There is a cost implication associated with choosing to have your software application support multiple platforms. Every platform requires its code, testing, and updates. This also means that you will need resources for every additional platform. If money is an issue, focusing on one platform at first can be the best approach, and you can expand as time goes by. Once you gain more users, you can add other platforms.
Development Team and Location
Your team size and skill level significantly impact the cost. Hiring a top agency in a big city often costs more than working with a small, remote team. Location also matters because rates can vary significantly between countries. You must decide whether to hire in-house developers or an outside team. A strong team will produce better software faster, but it will also incur higher costs.
Integrations and APIs
Your software will need to connect to other services, such as banks, tax tools, or payroll apps. Building these connections takes extra time, skill, and money. Some APIs can be easily used, while others are complicated enough that a longer time is required for their setup and testing. The higher the number of systems you want to interact with, the more you will need to invest directly or indirectly. Picking the most important integrations first can help control the budget.
Data Security and Compliance
Handling financial data requires top-notch security. Developers should consider applying data encryption, secure logins, and privacy checks. They should also ensure that the app complies with local tax laws and privacy policies. This work requires time and may increase costs, but it’s essential if you care about protecting user data and gaining their trust. Being safe and compliant is more important than rushing the app.
Partner With Richestsoft to Build Accounting Software Like Xero
It is crucial to select the right software development partner for building accounting software like Xero. The right team can make your project easier, faster, and better. Richestsoft can be your right development partner. They have more than 13 years of experience in developing custom accounting software.
Their team of experts knows what businesses need. They listen to their clients’ goals and give them smart solutions. Their developers and designers work in coordination to build secure, simple, and strong apps.
Quality and long-term support make them stand out from others. So what are you waiting for? Reach out to RichestSoft today and let them help you succeed.
Conclusion
Building accounting software like Xero takes careful planning and the right team. Every feature, design, and integration affects the cost. Knowing these costs helps you make better choices. A strong app can help your business grow and simplify financial work. But you need a partner who understands your goals and can deliver a quality product. RichestSoft can help you at every step. Their team has expert developers and designers who will listen to your needs and create a custom solution tailored to your requirements.
