What does the change in xero subscription charges mean for me?
Paula • 30 August 2024
Xero is rolling out new subscription plans in the UK starting from September 12, 2024.
These changes will simplify the current offerings by replacing the existing Starter, Standard and Premium with three new plans: Ignite, Grow, and Comprehensive. Additionally, the Ultimate plan will remain in place but be enhanced to offer more features.
New Plans Overview
- Ignite is aimed at small businesses just starting out and includes essential accounting tools.
- Grow is designed for businesses looking to expand, offering more comprehensive tools, including payroll and expense management.
- Comprehensive provides full accounting and payroll capabilities, suitable for businesses with employees.
Key points to note
- These new plans will bundle features that were previously add-ons, such as Xero Payroll, Xero Expenses, and Analytics Plus, into the base subscription. This change aims to reduce complexity and provide more value for the same or slightly adjusted pricing.
- The new plans are available from 12 September 2024 and you can move to a new plan when you like. However, Xero recommend waiting until they email you with your new proposed plan before migrating. This will happen late September 2024.
- Existing users will be gradually migrated to these new plans, with those benefiting from more features at the same or lower cost being transitioned first in February 2025.
- For users who may face a price increase, the migration will be delayed until September 2025 to allow for a smoother transition.
Current plans price increases
In addition to the new plans and their subscription fees the current plans as they stand are going to subject to a price increase from the 12th September 2024.
- Starter will increase to £16 per month, an increase of £1 per month.
- Standard will increase to £33 per month, an increase of £3 per month.
- Premium will increase to £47 per month, an increase of £5 per month.
- Ultimate will increase to £59 per month, an increase of £4 per month.
Conclusion
The change in pricing for existing plans combined with the upgraded new subscription plans has caused some confusion for Xero users. It is important to be aware of what change is going to impact you and when. Regarding the new plans Xero customers also need to know exactly what their new subscription is going to give them and what additional add ons may need to be purchased.
MPower Accounting is a certified Xero advisor and we are on hand to assist you with the successful migration of your subscription to ensure you have the right Xero product at the best price point for your business.
Please get in
touch.
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