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Xero vs Digits

Xero: Cloud accounting software with AI help for reconciling, invoicing and understanding your numbers. Digits: AI-native accounting platform that automates bookkeeping and gives live financial reports. Here is how they compare on features, pricing, platforms, pros and cons.

Quick verdict

Xero

Best for: Small businesses that want simple, cloud-based accounting.

Stands out for: Clean interface; Unlimited users on plans.

Digits

Best for: Startups that want modern, automated books.

Stands out for: Very modern approach to accounting; Live, easy-to-read reports.

Side-by-side comparison

Comparison of Xero, Digits
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What it isCloud accounting software with AI help for reconciling, invoicing and understanding your numbers.AI-native accounting platform that automates bookkeeping and gives live financial reports.
Pricing
Free trial
Paid
Free to useNoNo
CategoryAI Finance & AccountingAI Finance & Accounting
Editor rank#2 in category#13 in category
Made byXeroDigits
Best forSmall businesses that want simple, cloud-based accounting.Startups that want modern, automated books.
Key features
  • Invoicing and bill payments
  • Smart bank reconciliation
  • AI assistant for tasks and insights
  • Thousands of app integrations
  • Automated bookkeeping
  • Live financial dashboards
  • AI categorisation
  • Tools for accountants
Pros
  • Clean interface
  • Unlimited users on plans
  • Very modern approach to accounting
  • Live, easy-to-read reports
Cons
  • No permanent free plan
  • Newer than traditional accounting tools
Use it to
  • Reconcile a month of bank transactions
  • Send a repeating invoice
  • Ask about your profit this quarter
  • See your burn rate in real time
  • Automatically categorise expenses
  • Share reports with investors
Web app
iPhone & iPad
Android

Xero vs Digits: questions

Is Xero better than Digits?

Neither wins for everyone. Our editors rank Xero slightly higher overall in AI Finance & Accounting, but Digits can be the better fit: Startups that want modern, automated books.

Which is free, Xero or Digits?

Neither has an ongoing free plan: Xero is free trial and Digits is paid.

Can I use Xero and Digits together?

Yes. Many people keep both and pick per task, for example reconcile a month of bank transactions with Xero, and see your burn rate in real time with Digits.

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