Comparison
Ledger vs Xero
Xero is built for accountants. Ledger is built for you. Here's every difference that matters for a New Zealand small business.
The short version
Xero is powerful accounting software designed primarily for accountants and bookkeepers. It has 50+ reports, multi-currency, and an app ecosystem. It costs $50–80/mo for a typical NZ small business and assumes you know double-entry accounting.
Ledger is AI-powered accounting built specifically for NZ business owners who want their books done without hiring an accountant. Upload your bank CSV (or connect Akahu), AI codes everything, you approve with one click. GST returns in 5 minutes. PAYE included. From $29/mo.
If you need multi-currency, inventory management, and a team of accountants accessing your books — Xero is the right choice. If you're a sole trader or small business that wants to stop paying $500+/year for software you barely understand — Ledger is for you.
| Feature | Ledger | Xero |
|---|---|---|
| Monthly price (NZD) | ✓From $29/mo | $50–$80/mo |
| AI transaction coding | ✓Built-in. Learns your patterns. | No |
| GST return | ✓One-click with AI pre-flight check | Manual preparation required |
| Bank feed | CSV + Akahu live feed | Yodlee direct feeds |
| Invoicing | Unlimited (Business plan). Stripe payments. | Included. Stripe/GoCardless. |
| PAYE & IR348 | ✓Included on all plans | $10/mo add-on per employee |
| AI financial advisor | ✓Built-in. NZ tax law citations. | No |
| Receipt scanning | AI extraction (Business+) | Hubdoc ($0 with plan) |
| Reports | P&L, balance sheet, trial balance, aged receivables | ✓50+ report templates |
| Multi-currency | NZD focus. Multi-currency coming. | ✓Yes |
| Inventory | Not yet | ✓Basic |
| Mobile app | Mobile-optimised web app | ✓Native iOS + Android |
| Payroll | Basic PAYE included | Full payroll add-on |
| User interface | ✓Built for business owners. Essential. | Built for accountants. Complex. |
| Setup time | ✓5 minutes. Upload CSV. AI codes. | 30–60 minutes. Manual chart of accounts. |
| NZ tax intelligence | ✓IRD rules as first-class config | Generic. NZ as secondary market. |
| Annual accounts | ✓AI-generated with filing guide | Manual or accountant required |
| API | Coming soon | ✓Comprehensive REST API |
Switching from Xero? Here's how.
- 1Export your bank transactions from Xero as CSV (Accounting → Bank accounts → Export)
- 2Sign up for Ledger and complete the 5-minute onboarding (business name, GST number, bank account)
- 3Upload your CSV. Ledger's AI will code most transactions within seconds.
- 4Review and approve AI suggestions. After 30 transactions, Ledger learns your patterns and codes the rest automatically.
- 5Cancel Xero. You're saving $30–50/month. Treat yourself.