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Hi Janette,
Not sure on Xero pricing myself, but I would suggest you consider Quickbooks Online as well. From what I see on the Xero website the margins from Intuit are greater. The way Intuit works is you can set up a subscription to be billed to either client or yourself. If billed to you, you have a price for each level of product and you can either absorb the cost, or bill it on to client (at whatever price you want)
From what I can so far from using Xero, I feel it harder to do bookkeeping tasks within it. I find bank reconciliation very loose in Xero and difficult to manage. I cannot seem to be able to run a historic trade debtors and creditors list but showing items still open - can only run it on report date basis.
Xero does have a few features that Quickbooks Online does not have but nothing that would make me want to use it unless client really wanted me to or if my client was needing it to do something specific that QBO does not do. One area Xero is slightly better at in my opinion, is repeating monthly invoices because with this (as well as repeating bills) you can use placeholders to insert dates so if you reference a month or a date in the details of an invoice, Xero can put this in automatically.
On the whole, I prefer Quickbooks Online.
Hope this helps,
Dave
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