How is Afirmo different from Xero?
Afirmo and Xero both provide online accounting tools, but their standard service models are different.
Software and accountant support
An Afirmo plan combines Afirmo's accounting platform with a New Zealand based Afirmo accountant. The accountant prepares and files the returns included in the selected plan.
A standard Xero business subscription provides accounting software. A human accountant or tax agent is not listed as part of the standard business subscription. A business can invite its own accountant or bookkeeper to work in Xero.
Xero also provides Xero Tax and other practice tools for accountants and bookkeepers. It would therefore be incorrect to say Xero cannot prepare or file tax returns in any context.
Accounting features
Xero's New Zealand plans include bank reconciliation, GST tracking and filing, reports and invoicing. Limits and advanced features vary by plan. Higher plans can add payroll allowances, expense users, projects, multiple currencies, forecasting and deeper reporting.
Afirmo is designed for small New Zealand businesses that want the software and specified accountant-prepared returns in the same service. Plan inclusions depend on business structure and GST-return frequency.
GST and income tax
Xero business plans can track and file GST returns. The business or its adviser remains responsible for using the software correctly and deciding who reviews and files the return.
With Afirmo, a New Zealand based Afirmo accountant prepares and files the GST and income-tax returns included in the customer's plan.
Comparing total cost
Xero's business subscription price pays for the software. Accountant and tax-agent fees may be additional.
Afirmo's plan price includes its platform and an Afirmo accountant for the returns and support covered by the plan. Payroll, general bookkeeping, past returns and work outside the plan can still cost extra.
An Afirmo plan and a Xero software subscription are not like-for-like products. Compare the combined annual cost of software, accountant, tax returns, bookkeeping, payroll and any add-ons needed.
Which service might suit me?
Afirmo may suit a business that wants a small-business platform and accountant-prepared returns in one plan.
Xero may suit a business that wants a broad accounting-software ecosystem, extensive integrations or advanced operational features, and is comfortable choosing a separate accountant or managing the software with its existing adviser.
An Afirmo customer may keep an existing accountant. Ask both providers how responsibilities will be divided before changing systems.
Frequently asked questions
Does a Xero subscription include an accountant?
A standard Xero business subscription provides software and does not list a human accountant or tax agent as a plan inclusion.
Can Xero file GST returns?
Yes. Xero's New Zealand business plans support GST tracking and filing. The Afirmo difference is that an Afirmo accountant prepares and files the returns included in the selected plan.
Does Xero include financial reports?
Yes. Xero includes reporting. The depth of reports and forecasting varies by plan.