Xero revamps subscription plans for NZ business customers

Xero has announced a significant overhaul of its subscription plans for customers in New Zealand, commencing on 12 September 2024. The company will introduce three new business plans—Xero Ignite, Xero Grow, and Xero Comprehensive—and will enhance the existing Ultimate plan. These revisions aim to simplify the user experience by integrating key features directly into the plans, eliminating the need for separate add-ons.

The new line-up of streamlined business plans is designed to facilitate easier access to essential accounting and management tools. The Ignite plan will cater to businesses just getting started, the Grow plan will be aimed at self-employed individuals and growing businesses, and the Comprehensive plan will offer a blend of accounting and payroll services tailored for businesses with employees. The Ultimate plan will continue to provide a robust package but with enhanced features to support business scaling and growth.

The transition will see the current Starter, Standard, and Premium plans discontinued from 12 September 2024. Furthermore, add-ons such as Xero Payroll, Xero Projects, and Analytics Plus will no longer be available for purchase independently, as these features will now be bundled into the new plans. As part of its ongoing focus on payroll services, Xero has invested in making payroll management more straightforward, with recent upgrades to payroll reporting and employee setup functionality.

For existing subscribers, Xero has outlined a phased approach to migrating to the new plans, with the goal of completing the transition by March 2025. Customers will be notified at least 60 days in advance of any changes to their subscription, allowing sufficient time to understand and adapt to the new offerings. For the majority, the shift is intended to result in more features at the same or reduced cost.

Additionally, Xero has announced pricing adjustments for some existing plans. Beginning 12 September 2024, the Standard plan will increase to NZD $75 per month, and the Premium plan will rise to NZD $99 per month, exclusive of GST. Prices for optional add-ons within current subscriptions will remain unchanged. Promo code discounts will continue to apply to the new pricing until the promo code's expiration.

Starting from 12 September 2024, customers can opt to switch to the new plans themselves. However, once a customer transitions to a new plan, their previous plan will be unavailable. Subscribers wishing to upgrade, downgrade, or remove an add-on must choose from the new plan options. Xero has committed to supporting its users through this transition and will provide further details on the migration process closer to the launch date.

In addition to the business plans, Xero is also updating its offerings for accountants and bookkeepers. The partner plans will be simplified from three to two, with Xero Ledger and Xero Cashbook remaining as the primary options. These changes aim to make it easier for professionals to select and recommend the most suitable plans for their clients. Starting 12 September 2024, the Xero GST Cashbook will no longer be available for purchase.