Xero’s 2025 Pricing & Plan Updates : What Bookkeeping Firms Need to Know
As a bookkeeping practice managing several client accounts, staying ahead of platform updates is essential to delivering uninterrupted service, keeping costs transparent, and scaling efficiently. That’s why Xero’s upcoming price and feature updates, effective July 1, 2025, are important to understand—especially if you manage clients on multiple plans.
From built-in payroll changes to new pricing tiers and analytics features, here’s what your firm needs to know to stay proactive and profitable.
Updated Plan Pricing – What It Means for Your Clients
Xero will roll out new pricing for Australian subscribers starting July 1, 2025. Here’s the revised monthly cost structure:
Grow Plan: $75 (was $70)
Comprehensive Plan: $100 (was $90)
Ultimate Plans:
Ultimate 10: $130 (was $115)
Ultimate 20: $162 (was $145)
Ultimate 50: $222 (was $200)
Ultimate 100: $272 (was 245)
The Ignite Plan remains at $35.
What this means for you:
If you manage clients under these plans, it’s time to review your client fees, especially if your firm absorbs the software costs. You might also want to advise clients on which plan gives them the best value based on their needs.
Payroll Just Became Simpler for Small Clients
Previously, clients using the Starter or Standard plan had to upgrade for payroll access. That’s changing:
Ignite Plan now includes payroll for 1 employee
Grow Plan includes payroll for 2 employees
Both now come with automated superannuation payments
Why it matters?
Many small business clients rely on you to handle payroll. These changes let you keep them on a lower-cost plan without sacrificing core payroll functionality. That’s a win for your margins and theirs.
Advanced Analytics for Smarter Advisory
Xero is also enhancing reporting capabilities with integrated analytics tools powered by Syft, offering:
Cash flow dashboards
Forecasting and performance metrics
Customizable visual insights
Opportunity for your firm:
These tools help you offer higher-value advisory services, such as cash flow forecasting and financial strategy planning. It’s a great way to differentiate your services beyond compliance.
Transition Guidance: No Surprises for Existing Clients
If you have clients on legacy plans:
No immediate action is required — Xero will auto-transition them in July.
You can manually move them earlier if needed to take advantage of payroll features or analytics.
If the transition results in a price increase, it will only occur from July 1, 2025 onward.
Tip: Review your clients’ plans now to avoid billing surprises and identify where plan upgrades could unlock better functionality.
How Bookkeepers Should Prepare
If you’re managing dozens of Xero accounts, here’s how to future-proof your firm:
Audit client plans – Determine which clients benefit from payroll changes.
Communicate early – Send updates to clients so they’re not caught off guard by price changes.
Train your team – Learn the new analytics tools to offer value-added services.
Outsource for scalability – If your team is stretched thin, partner with a reliable offshore bookkeeping support team (like The Global BPO) to scale efficiently.
Xero’s 2025 updates bring valuable improvements—but they also mean more complexity and planning for bookkeepers like you. Whether it’s choosing the right plan for each client, adjusting your billing, or incorporating advisory features into your services, these changes can either become a burden—or a strategic growth opportunity.
At The Global BPO, we help bookkeeping practices handle the heavy lifting—client-by-client. From daily reconciliations to advanced reporting, our virtual bookkeepers are trained on Australian systems and ready to support your scale-up journey.
Visit our website to partner up with us and grow your practice: www.theglobalbpo.com