Xero

Xero is a cloud-based accounting software platform designed for small to medium-sized businesses, including tour and activity operators. The platform provides comprehensive financial management tools including invoicing, expense tracking, bank reconciliation, and real-time financial reporting. Xero operates entirely online, allowing tour operators to access their financial data from anywhere with an internet connection. The software automates many accounting tasks such as bank feeds, invoice reminders, and payment processing, reducing manual data entry and improving accuracy. Xero's intuitive interface makes it accessible to business owners without formal accounting training, while still offering advanced features that professional accountants appreciate. The platform includes inventory management, purchase order tracking, and multi-currency support, making it particularly valuable for tour operators who work with international clients and suppliers. Xero also offers a robust marketplace of over 1,000 integrated apps, allowing tour businesses to connect their accounting data with booking systems, payroll services, and other operational tools.

Xero offers three main pricing tiers to accommodate different business sizes and needs. The Early plan starts at $15 per month and is designed for sole proprietors or very small tour operations, allowing 20 invoices and 5 bills per month with basic features. The Growing plan costs $42 per month and is the most popular option for established tour operators, offering unlimited invoices and bills, multi-currency support, expense claims, and project tracking for individual tours or activities. The Established plan is priced at $78 per month and adds advanced features like multi-currency accounting, analytics, and expense management for larger tour companies. All plans include unlimited users at no extra cost, which is particularly valuable for tour operators who need their guides, managers, and accountants to access financial data. Xero also offers add-ons for payroll (pricing varies by region) and additional features. There are no setup fees or long-term contracts required, and Xero provides a 30-day free trial so tour operators can test the platform before committing.

Xero is ideally suited for small to medium-sized tour and activity businesses, typically those with annual revenues between $100,000 and $10 million. The platform works exceptionally well for tour operators with 1-50 employees who need professional accounting capabilities without the complexity and cost of enterprise-level systems. Sole proprietor tour guides and small adventure companies can start with the Early plan and scale up as their business grows, while established tour operators with multiple guides, seasonal staff, and diverse revenue streams benefit from the Growing or Established plans. Xero handles the accounting needs of businesses managing multiple tours simultaneously, tracking seasonal revenue fluctuations, and working with various payment methods and currencies. The platform is particularly valuable for growing tour companies that have outgrown basic spreadsheets but aren't ready for enterprise resource planning systems. However, very large tour operators with complex multi-entity structures, hundreds of employees, or highly specialized accounting requirements may eventually need more robust enterprise accounting software.

Xero offers extensive integration capabilities through its marketplace, which features over 1,000 third-party applications covering virtually every business function relevant to tour operators. Popular integrations for the tour industry include booking and reservation systems like FareHarbor, Peek Pro, and Checkfront, which automatically sync booking revenue with Xero's accounting records. Payment processors such as Stripe, Square, and PayPal connect seamlessly to reconcile credit card transactions and online payments. Xero also integrates with inventory management systems for tour equipment and retail items, CRM platforms like HubSpot for customer relationship management, and payroll services including Gusto and ADP for managing guide and staff compensation. Time tracking apps help tour operators monitor labor costs per tour, while expense management tools like Expensify streamline guide expense reimbursements. Most integrations work through Xero's well-documented API, allowing custom connections for specialized tour management software. These integrations eliminate duplicate data entry, reduce errors, and provide a comprehensive view of tour business operations by connecting financial data with operational systems.

Xero provides comprehensive customer support through multiple channels designed to help tour operators quickly resolve accounting questions and technical issues. All Xero users have access to 24/7 email support, with typical response times within one business day for standard inquiries and faster responses for urgent issues. The Xero Central help center offers an extensive knowledge base with hundreds of articles, video tutorials, and step-by-step guides covering common accounting tasks and industry-specific scenarios. Live chat support is available during business hours for immediate assistance with navigation and basic questions. Xero also maintains an active community forum where users can ask questions, share best practices, and learn from other tour operators using the platform. For more complex support needs, Xero has a network of certified advisors and accountants who specialize in tour and hospitality businesses and can provide personalized consulting and training. The platform includes in-app guidance and contextual help that appears as users navigate different features. Xero regularly hosts webinars and training sessions covering new features, best practices, and industry-specific accounting topics relevant to tour operators.

Xero operates on a flexible month-to-month subscription model with no long-term contracts or commitments required. Tour operators can start using Xero by signing up for a 30-day free trial, which provides full access to all features in the chosen plan without requiring a credit card. After the trial period, users can select their preferred plan and begin paying monthly, with the ability to cancel at any time without penalties or cancellation fees. This flexibility is particularly valuable for seasonal tour operators who may want to adjust their subscription during off-peak months, though most choose to maintain their subscription year-round to preserve historical financial data and maintain continuous accounting records. Users can upgrade or downgrade between Xero's pricing tiers at any time based on their changing business needs, with changes taking effect immediately and billing adjusted on a pro-rated basis. There are no setup fees, implementation costs, or hidden charges beyond the stated monthly subscription price. If a tour operator decides to leave Xero, they can export their financial data in standard formats before cancelling their subscription, ensuring they retain complete access to their accounting records.

Xero provides robust multi-currency functionality starting with the Growing plan, making it ideal for tour operators who serve international clients or work with overseas suppliers. The platform supports over 160 currencies and allows tour operators to send invoices, receive payments, and record expenses in any supported currency. Xero automatically applies current exchange rates when converting foreign currency transactions to the business's base currency for financial reporting, with exchange rates updated daily from reliable financial data sources. Tour operators can also manually override exchange rates for specific transactions when needed to match actual bank exchange rates. The system tracks unrealized gains and losses on foreign currency accounts, providing accurate financial reporting that complies with accounting standards. When tour operators receive payments in foreign currencies, Xero reconciles these against invoices and automatically accounts for any currency conversion differences. The platform maintains separate accounts receivable and payable tracking for each currency, giving tour operators clear visibility into outstanding invoices and bills across all currencies. This multi-currency support is essential for tour companies that accept bookings from international travelers, pay foreign tour guides or suppliers, or operate in multiple countries.

Xero offers flexible tracking capabilities that allow tour operators to monitor revenue across different tours, activities, and revenue categories using the platform's tracking categories and project features. Tour operators can set up tracking categories to classify income by tour type, location, season, or any other relevant dimension, enabling detailed analysis of which tours generate the most revenue. The project tracking feature, available on Growing and Established plans, lets operators create individual projects for specific tours or tour packages, tracking all associated revenue and expenses to understand profitability at the tour level. This is particularly valuable for operators offering diverse activities like kayaking tours, wine tours, and historical walking tours who need to evaluate each activity's financial performance separately. Xero's chart of accounts can be customized to create specific revenue accounts for different income types such as tour fees, equipment rentals, merchandise sales, tips, and add-on experiences. The platform's reporting tools then break down revenue by these categories, providing insights into revenue composition and trends over time. Tour operators can also use Xero's invoice customization to automatically assign revenue to appropriate categories based on the service or product sold, reducing manual categorization work.

Xero includes comprehensive tax reporting and compliance features designed to simplify tax obligations for tour operators across different jurisdictions. The platform automatically calculates sales tax, VAT, or GST based on configurable tax rates and rules specific to the operator's location and applicable tax regulations. Tour operators can set up multiple tax rates for different services, jurisdictions, or customer types, and Xero applies the correct rate automatically when creating invoices or recording expenses. The software generates ready-to-file tax reports including sales tax returns, VAT returns, and GST reports that can be submitted directly to tax authorities in many regions. Xero tracks tax collected on income and tax paid on expenses, calculating net tax liability and ensuring accurate reporting. For tour operators in regions with digital tax filing, Xero offers direct integration with tax authorities like the IRS, HMRC, and other revenue agencies, allowing electronic submission of tax returns. The platform maintains detailed audit trails of all tax-related transactions, making it easier to respond to tax inquiries or audits. Year-end tax reporting includes profit and loss statements, balance sheets, and other financial reports accountants need for preparing income tax returns.

Xero provides comprehensive accounts receivable and accounts payable management tools that streamline tour operators' financial workflows and cash flow management. For accounts receivable, tour operators can create and send professional invoices directly from Xero, with the platform tracking which invoices are outstanding, overdue, or paid. Xero automatically sends payment reminders to customers with overdue balances, reducing the time tour operators spend on collections. The platform reconciles incoming payments against open invoices, whether payments arrive via bank transfer, credit card, or online payment platforms integrated with Xero. Tour operators get a clear aged receivables report showing which customers owe money and how long invoices have been outstanding, helping prioritize collection efforts. For accounts payable, Xero allows operators to enter supplier bills, schedule payments, and track what is owed to tour guides, equipment suppliers, and other vendors. The platform can automatically import bills from emails, reducing manual data entry. Tour operators can batch process multiple payments, schedule future payments, and track payment history for each supplier. Xero's cash flow reporting combines receivables and payables data to provide accurate cash flow forecasts, helping tour operators plan for seasonal fluctuations.

Xero offers sophisticated project tracking capabilities through its Projects feature, available on the Growing and Established plans, which is ideal for tour operators who need to analyze profitability at the individual tour or activity level. Tour operators can create projects for specific tours, seasonal offerings, or special events, then assign all related revenue and expenses to these projects. The platform tracks income from tour bookings, equipment rentals, and add-on services alongside expenses like guide payments, transportation costs, permits, equipment, and supplies for each project. Xero calculates gross profit and profit margins automatically, showing tour operators which activities are most profitable and which may be operating at a loss. The project dashboard provides real-time visibility into project budgets versus actual costs, helping operators identify cost overruns before they significantly impact profitability. Tour operators can also use Xero's tracking categories as an alternative or complement to projects, creating custom dimensions like tour type, location, or guide to analyze profitability from different perspectives. Time tracking integrations allow operators to allocate guide labor costs accurately to specific tours, improving profitability calculations. These profitability insights help tour operators make data-driven decisions about pricing, resource allocation, and which tours to expand or discontinue.

Xero delivers comprehensive financial reporting capabilities with real-time dashboards and customizable reports that give tour operators complete visibility into their business's financial performance. The platform automatically generates standard financial statements including profit and loss statements, balance sheets, and cash flow statements, all updated in real-time as transactions are recorded. Tour operators can view financial performance over any date range, compare periods to identify trends, and analyze seasonal patterns that are common in the tour industry. Xero's dashboard presents key financial metrics like revenue, expenses, profit margins, and cash position in an easy-to-understand visual format, allowing operators to quickly assess business health without accounting expertise. The platform offers dozens of pre-built reports covering accounts receivable aging, accounts payable, sales by customer or product, expense analysis, and budget versus actual comparisons. Tour operators can customize reports by filtering data, selecting specific accounts or tracking categories, and choosing different date ranges or comparison periods. Reports can be scheduled to generate and email automatically on daily, weekly, or monthly schedules, keeping stakeholders informed. All reports can be exported to Excel or PDF for sharing with accountants, investors, or lenders.