Best for
Best for German freelancers and small businesses that want quotes, e-invoices, bookkeeping and the VAT return in one place, with a direct DATEV handover to the tax adviser.
- Freelancers
- Small and mid-sized
Accounting & Invoicing Comparison
Lexware Office vs. Xero
At a glance
At a glance
Best for
Best for small businesses that want bank reconciliation, document capture and unlimited users on every plan, with payroll handled through Gusto.
- Freelancers
- Small and mid-sized
Cataleo does not name a winner. Both statements come from the vendors themselves.
Full Comparison
| Criterion | Lexware Office | Xero |
|---|---|---|
| Starting price | From €7.90 / month plus VAT Four versions, each per month plus VAT and cancellable monthly: S €7.90, M €12.90, L €21.90 and XL €32.90. Payroll (Lohn & Gehalt) is a separate add-on at €12.90 / month plus VAT that combines with any version. A 50% discount for the first three months is currently advertised. | From $25 / month United States plans, per organisation. Growing is $55 and Established $90 a month. Plan names and prices differ by country. Xero is running 90 percent off the first six months for purchases made by 30 September 2026. |
| Free trial | 30 days free, with the full XL feature set | Not stated |
| Users | Over 450,000 customers | Not stated |
| API | Yes, the Lexware Office Public API (REST), available from version XL at no extra cost | Yes, a documented open API and the Xero App Store with more than 1000 apps |
| Hosting | Cloud (SaaS) | Cloud (SaaS) |
| Invoicing and quotes | Yes, quotes, invoices, delivery notes and credit notes, with XRechnung and ZUGFeRD e-invoicing included | Yes, professional online invoices and quotes from the desktop or mobile app, with sales tax calculated automatically |
| Bookkeeping and bank feeds | Yes, multibanking with automatic matching proposals for bank transactions, and GoBD-compliant records | Yes, bank reconciliation on every plan, with Hubdoc pulling bills and receipts into Xero |
| Expenses and receipts | Yes, receipt capture from a phone photo or an email import, with automatic categorisation | Yes, employee expense and mileage claims, plus receipt and bill capture through Hubdoc |
| Tax and compliance | Yes, VAT advance return (UStVA) filed from the software, EÜR and year-end preparation, plus a direct DATEV handover to the tax adviser (Germany) | Yes, automatic sales tax on invoices with an Avalara integration for detailed tax reporting |
| Payroll | Yes, as a paid add-on (Lohn & Gehalt) at €12.90 / month plus VAT, combinable with any version | Available through an integration with Gusto, Xero's preferred payroll partner |
| Reports and exports | Yes, a dashboard with account balances and open invoices, plus P&L (GuV) and BWA reports | Yes, financial reports, analytics and a real-time dashboard on every plan |
| Integrations and API | Yes, the Lexware Office Public API (REST), from version XL at no extra cost | Yes, a documented open API and the Xero App Store with more than 1000 apps |
| Deployment | Cloud (SaaS), Browser-based | Cloud (SaaS), Browser-based |
| Company size | Freelancers, Small and mid-sized | Freelancers, Small and mid-sized |
| Integrations | more entries DATEV, PayPal, Shopify, Amazon | Gusto, Avalara, Hubdoc |
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The short version
Key Differences
- Starting price Lexware Office From €7.90 / month plus VAT Xero From $25 / month
- API Lexware Office Yes, the Lexware Office Public API (REST), available from version XL at no extra cost Xero Yes, a documented open API and the Xero App Store with more than 1000 apps
- Invoicing and quotes Lexware Office Yes, quotes, invoices, delivery notes and credit notes, with XRechnung and ZUGFeRD e-invoicing included Xero Yes, professional online invoices and quotes from the desktop or mobile app, with sales tax calculated automatically
- Bookkeeping and bank feeds Lexware Office Yes, multibanking with automatic matching proposals for bank transactions, and GoBD-compliant records Xero Yes, bank reconciliation on every plan, with Hubdoc pulling bills and receipts into Xero
- Expenses and receipts Lexware Office Yes, receipt capture from a phone photo or an email import, with automatic categorisation Xero Yes, employee expense and mileage claims, plus receipt and bill capture through Hubdoc
Every line is one datapoint from the table above, picked automatically. Nothing here is written text.
The trade-offs
Strengths and Limitations
Lexware Office
Strengths
- XRechnung and ZUGFeRD e-invoicing included in the product
- Direct DATEV handover, so the tax adviser works on the same data
- UStVA and EÜR prepared and filed from the software
- Public REST API at no extra cost once you are on version XL
Limitations
- Bookkeeping, EÜR and VAT only start in version L, and the API only in XL
- Payroll is a paid add-on rather than part of any version
- Built around German tax rules, ELSTER and DATEV, so it suits German businesses specifically
Xero
Strengths
- Bank reconciliation and Hubdoc document capture on every plan
- Unlimited users at no extra cost on all plans
- Automatic sales tax with an Avalara integration
- Documented API and an App Store with more than 1000 apps
Limitations
- Payroll relies on the Gusto integration rather than being native
- Multi-currency and project profitability are reserved for the Established plan
Plans
Pricing
Lexware Office
- S €7.90 / month plus VAT Receipt capture and receipt archive.
- M €12.90 / month plus VAT Adds quotes, invoices and e-invoices, and dunning.
- L €21.90 / month plus VAT Adds bookkeeping, EÜR and VAT (UStVA).
- XL €32.90 / month plus VAT Adds EU invoices, part invoices and the Public API.
- Lohn & Gehalt (add-on) €12.90 / month plus VAT Payroll add-on, combinable with any version.
Xero
- Early $25 Per month, United States pricing. Quotes and 20 invoices, 5 bills, bank reconciliation, Smart Document Capture, real-time reports, sales tax, W-9 and 1099 management and a 30-day cash flow forecast.
- Growing $55 Per month, United States pricing. Removes the invoice and bill limits and adds automated bill entry, auto-reconciliation, performance dashboards, financial health scorecards, budgets and a 60-day cash flow forecast.
- Established $90 Per month, United States pricing. Adds multiple currencies, project time, cost and profitability tracking, employee expense and mileage claims, industry benchmarking and a 180-day cash flow forecast.
What users say
Review Scores · opens after launch
Lexware Office
- Ease of use
- Not rated yet
- User interface
- Not rated yet
- Onboarding
- Not rated yet
- Support and service
- Not rated yet
- Value for money
- Not rated yet
- Features
- Not rated yet
No reviews yet. Be the first to review this tool. Every review is checked for fairness before it appears, and the vendor cannot have one removed.
Xero
- Ease of use
- Not rated yet
- User interface
- Not rated yet
- Onboarding
- Not rated yet
- Support and service
- Not rated yet
- Value for money
- Not rated yet
- Features
- Not rated yet
No reviews yet. Be the first to review this tool. Every review is checked for fairness before it appears, and the vendor cannot have one removed.
Where this comes from
Where this comes from
Lexware Office https://www.lexware.de · checked against the official source on 2026-08-27
Xero https://www.xero.com · checked against the official source on 2026-08-19
This table lists factual criteria taken from information the vendors publish themselves. For how we put it together, see the methodology.