The key reason organisations outgrow Xero accounting software is because they have changed, and their requirements have grown. In this article we discuss the tell-tale signs that you have outgrown Xero.

Xero is a great entry level accounting solution for small organisations but for growing organisations you will quickly reach the limits of its capability. It is a solution that has been designed to connect with a range of different third-party applications and provide a broad but shallow service offering.

At some point on your journey you may realise that Xero has stopped delivering for you. These tell-tale signs include:

  • You have reached the limit for invoices, purchase orders or bank statement lines and the system is performing badly. This usually happens at around 4,000 per month total, which for many organisations that have 1,000 sales per month this limit will be easily reached.
  • Your processes are still very manual with limited automation
  • Business systems across the organisation are disconnected, and information is siloed
  • You have reached the limit for API transactions for extensions. If you use multiple extensions this is easily reached. The limit is 60 calls per minute and 5,000 calls per day
  • Reporting is a lengthy, overly complicated process and results in insufficient information
  • You have encountered a problem with one of your extensions and struggled to get it resolved with so many technology providers being involved
  • Accounting occurs in spreadsheets not in Xero


What are your upgrade options for Xero?

Once you have identified that you are ready to upgrade Xero, the next stage is selecting a system that meets your requirements. Your new system will need to have more capability, support more users and help you deal with the current pains.

Microsoft offers a product called Dynamics 365 Business Central that is a perfect upgrade to Xero. Dynamics 365 Business Central is an all-in-one business application or ERP solution that offers your advanced finance, stock, sales, projects, manufacturing and service management capability. It is built with insights and productivity in mind to make your employees more efficient. Visit our article to learn about how to build the business case for Dynamics 365 Business Central and how it delivers a 17x return on investment.


Download our guide on outgrowing Xero to learn more about selecting the right system for you and how Microsoft Dynamics 365 Business Central could help you.