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Top Rated
572 Ratings
Avalara
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Top Rated
572 Ratings
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Based on 572 reviews and ratings
Xero
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Top Rated
553 Ratings
<a href='https://www.trustradius.com/static/about-trustradius-scoring' target='_blank' rel='nofollow noopener'>trScore algorithm: Learn more.</a>Score 8.7 out of 100
Based on 553 reviews and ratings
Feature Set Ratings
Type of tax

7.6
Avalara
76%
Xero
Feature Set Not Supported
N/A
Avalara ranks higher in 4/4 features
Avalara ranks higher in 4/4 features
Sales and Use Taxes

8.7
87%
216 Ratings
N/A
0 Ratings
Cross-border Taxes

8.3
83%
46 Ratings
N/A
0 Ratings
VAT / GST Taxes

6.7
67%
38 Ratings
N/A
0 Ratings
Energy and Fuel Taxes

6.6
66%
20 Ratings
N/A
0 Ratings
Tax Reporting & Compliance

8.0
Avalara
80%
Xero
Feature Set Not Supported
N/A
Avalara ranks higher in 7/7 features
Avalara ranks higher in 7/7 features
Geolocation for Tax Assessment

8.2
82%
120 Ratings
N/A
0 Ratings
3rd-Party Software Integrations

7.9
79%
160 Ratings
N/A
0 Ratings
Tax Data Reporting

8.2
82%
182 Ratings
N/A
0 Ratings
Compliance Administration Management

7.7
77%
135 Ratings
N/A
0 Ratings
Tax Exemption Processing

8.3
83%
148 Ratings
N/A
0 Ratings
Tax Document Management

8.0
80%
141 Ratings
N/A
0 Ratings
Complex Tax Scenario Management

7.6
76%
95 Ratings
N/A
0 Ratings
Payroll Management

Avalara
Feature Set Not Supported
N/A
8.3
Xero
83%
Xero ranks higher in 5/5 features
Xero ranks higher in 5/5 features
Pay calculation

N/A
0 Ratings
8.1
81%
64 Ratings
Benefit plan administration

N/A
0 Ratings
8.2
82%
23 Ratings
Direct deposit files

N/A
0 Ratings
8.9
89%
49 Ratings
Salary revision and increment management

N/A
0 Ratings
8.8
88%
41 Ratings
Reimbursement management

N/A
0 Ratings
7.6
76%
54 Ratings
Customization

Avalara
Feature Set Not Supported
N/A
7.7
Xero
77%
Xero ranks higher in 2/2 features
Xero ranks higher in 2/2 features
API for custom integration

N/A
0 Ratings
7.3
73%
78 Ratings
Plug-ins

N/A
0 Ratings
8.1
81%
85 Ratings
Security

Avalara
Feature Set Not Supported
N/A
8.6
Xero
86%
Xero ranks higher in 2/2 features
Xero ranks higher in 2/2 features
Single sign-on capability

N/A
0 Ratings
8.8
88%
72 Ratings
Role-based user permissions

N/A
0 Ratings
8.4
84%
114 Ratings
Reporting & Analytics

Avalara
Feature Set Not Supported
N/A
8.2
Xero
82%
Xero ranks higher in 3/3 features
Xero ranks higher in 3/3 features
Dashboards

N/A
0 Ratings
8.0
80%
129 Ratings
Standard reports

N/A
0 Ratings
8.7
87%
132 Ratings
Custom reports

N/A
0 Ratings
7.9
79%
121 Ratings
General Ledger and Configurable Accounting

Avalara
Feature Set Not Supported
N/A
8.1
Xero
81%
Xero ranks higher in 21/21 features
Xero ranks higher in 21/21 features
Accounts payable

N/A
0 Ratings
8.7
87%
130 Ratings
Accounts receivable

N/A
0 Ratings
8.7
87%
131 Ratings
Cash management

N/A
0 Ratings
8.1
81%
121 Ratings
Bank reconciliation

N/A
0 Ratings
8.9
89%
137 Ratings
Expense management

N/A
0 Ratings
8.1
81%
125 Ratings
Time tracking

N/A
0 Ratings
6.9
69%
42 Ratings
Fixed asset management

N/A
0 Ratings
7.2
72%
86 Ratings
Multi-currency support

N/A
0 Ratings
8.2
82%
82 Ratings
Multi-division support

N/A
0 Ratings
7.6
76%
74 Ratings
Regulations compliance

N/A
0 Ratings
8.3
83%
67 Ratings
Electronic tax filing

N/A
0 Ratings
8.3
83%
65 Ratings
Self-service portal

N/A
0 Ratings
7.8
78%
80 Ratings
Global Financial Support

N/A
0 Ratings
8.1
81%
36 Ratings
Primary and Secondary Ledgers

N/A
0 Ratings
7.7
77%
34 Ratings
Intercompany Accounting

N/A
0 Ratings
7.4
74%
40 Ratings
Localizations

N/A
0 Ratings
8.2
82%
40 Ratings
Journals and Reconciliations

N/A
0 Ratings
8.7
87%
89 Ratings
Enterprise Accounting

N/A
0 Ratings
7.4
74%
33 Ratings
Configurable Accounting

N/A
0 Ratings
8.3
83%
59 Ratings
Centralized Rules Framework

N/A
0 Ratings
8.0
80%
33 Ratings
Standardized Processes

N/A
0 Ratings
8.5
85%
59 Ratings
Inventory Management

Avalara
Feature Set Not Supported
N/A
6.8
Xero
68%
Xero ranks higher in 4/4 features
Xero ranks higher in 4/4 features
Inventory tracking

N/A
0 Ratings
6.1
61%
60 Ratings
Automatic reordering

N/A
0 Ratings
7.2
72%
24 Ratings
Location management

N/A
0 Ratings
7.7
77%
29 Ratings
Manufacturing module

N/A
0 Ratings
6.3
63%
16 Ratings
Order Management

Avalara
Feature Set Not Supported
N/A
7.7
Xero
77%
Xero ranks higher in 7/7 features
Xero ranks higher in 7/7 features
Pricing

N/A
0 Ratings
7.3
73%
61 Ratings
Order entry

N/A
0 Ratings
7.8
78%
56 Ratings
Credit card processing

N/A
0 Ratings
8.6
86%
57 Ratings
Cost of goods sold

N/A
0 Ratings
8.1
81%
65 Ratings
Order Orchestration

N/A
0 Ratings
7.3
73%
21 Ratings
End-to-end order visibility

N/A
0 Ratings
7.4
74%
24 Ratings
Order exception Resolution

N/A
0 Ratings
7.5
75%
17 Ratings
Attribute Ratings
- Xero is rated higher in 9 areas: Likelihood to Recommend, Usability, Availability, Performance, Support Rating, In-Person Training, Online Training, Implementation Rating, Product Scalability
- Avalara and Xero are tied in 1 area: Likelihood to Renew
Likelihood to Recommend

8.2
Avalara
82%
331 Ratings
8.8
Xero
88%
155 Ratings
Likelihood to Renew

9.1
Avalara
91%
20 Ratings
9.1
Xero
91%
29 Ratings
Usability

8.2
Avalara
82%
323 Ratings
8.9
Xero
89%
80 Ratings
Availability

8.3
Avalara
83%
14 Ratings
9.0
Xero
90%
20 Ratings
Performance

8.3
Avalara
83%
14 Ratings
10.0
Xero
100%
16 Ratings
Support Rating

3.7
Avalara
37%
23 Ratings
7.3
Xero
73%
37 Ratings
In-Person Training

8.0
Avalara
80%
2 Ratings
9.1
Xero
91%
1 Rating
Online Training

7.3
Avalara
73%
3 Ratings
10.0
Xero
100%
5 Ratings
Implementation Rating

6.8
Avalara
68%
389 Ratings
9.5
Xero
95%
18 Ratings
Product Scalability

8.3
Avalara
83%
7 Ratings
10.0
Xero
100%
6 Ratings
Likelihood to Recommend
Avalara
I haven't used other sales tax service providers, so I can't compare it to others. However, I have found it to be extremely necessary as we grow and expand into other states so that we aren't spending all our time figuring out the complex tax laws, jurisdictions, rates, etc. for our customer sales. It gives us peace of mind that the correct taxes are being filed and we are compliant. There are definitely areas for improvement, but it's a great service.

Verified User
Employee in Finance and Accounting
Wholesale Company, 51-200 employeesXero
Xero is a 10-point software since it streamlines accounting and financial processes with great agility, generating immediate productivity. I recommend using all its features since, from creating reports to paying bills, the whole process is easy and does not require much knowledge. We can use it remotely with our phones and still build fluidity, plus it can be integrated with Salesforce, building even more power for short-term results.
Senior Account Manager
Arrow ElectronicsInformation Technology & Services, 10,001+ employees
Pros
Avalara
- Avatax stays current with all the changes in rates and does an excellent job of calculating the correct sales tax to charge.
- The reporting interface for sales tax reports is easy to use and once you set up a report you can save it as a favorite and rerun it any time with one click. Their UI on the reporting is simple and provides a minimum number of clicks to get the data you want and export it to Excel where every number lives whether it belongs there or not!
Chief Financial Officer
US DigitalElectrical & Electronic Manufacturing, 51-200 employees
Xero
- Reporting (customizing look and contents and the ability to add multiple comparative periods is brilliant and not found in many other competitors.
- Bank feeds. The way they organize bank feed and subsequent matching or coding is very user-friendly for non-accountants and fast for accountants.
- Can file VAT returns and is MTD compliant in UK.
- Customer support has been helpful (at least in my experience).
Senior Accountant
Tax Shop AccountantsAccounting, 11-50 employees
Cons
Avalara
- In the beginning our programmer wished to speak directly with a programmer at Avalara so he could have some specific questions answered. Instead he was referred to a forum where he had to post his questions. This delayed our implementation of Avatax.
- I'm not sure if there is help available to assist in learning how to reconcile sales tax returns or not. We basically had to figure out how to do that ourselves.
Senior Accountant
AdventSource Inc.Religious Institutions, 11-50 employees
Xero
- Overall it is a great platform and quite comprehensive for US based users.
- However, if we focus on multinational companies that want to integrate the information of different companies in several countries within the same solution, we find the need to carry out reports outside the platform to provide the accounting structure and compliance necessary in countries outside the US.

Verified User
Manager in Professional Services
Accounting Company, 51-200 employeesPricing Details
Avalara
General
Free Trial
Yes
Free/Freemium Version
—Premium Consulting/Integration Services
Yes
Entry-level set up fee?
Optional
Starting Price
$21 per month
Avalara Editions & Modules
—
Additional Pricing Details
—Xero
General
Free Trial
Yes
Free/Freemium Version
—Premium Consulting/Integration Services
—Entry-level set up fee?
No
Starting Price
$11 per month
Xero Editions & Modules
Edition
Early | $111 |
---|---|
Growing | $321 |
Established | $621 |
- per month
Additional Pricing Details
—Likelihood to Renew
Avalara
Avalara 9.1
Based on 20 answers
I have not been able to find a company that does it better than Avalara. I still have lots of problems, but we are working through them. Based on other demos i have seen and talking with peers in other companies, this is the best.
Accounting Manager
Cavender's Boot CityRetail, 501-1000 employees
Xero
Xero 9.1
Based on 29 answers
In addition to the matters covered in this review, my reason for renewing this product is that Xero's functionality and the constant updates that the company provides, makes the software even more business friendly. The software therefore builds a brand loyalty among customers.
Consultant - Cloud accounting integration, Real Time Accounting
FuturebooksAccounting, 1-10 employees
Usability
Avalara
Avalara 8.2
Based on 323 answers
I give Avalara a rating of 10 because of how easy it has been to train various, lower level employees to use the platform with fidelity. Even in my own training as an Account Executive who is responsible for calculating taxes on new deals, I was able to pick up the Avalara platform fairly quickly because of how easy and intuitive it is to use.
Account Executive
Albert | Learn By DoingComputer Software, 11-50 employees
Xero
Xero 8.9
Based on 80 answers
It has deep functionality, and it's easy to use for invoicing, quoting, financial reporting, and customer management. This product manages financial information for small business owners in a unique way. The phone interface is really good as well-meaning I can keep on top of the finances on my phone and feel confident about the financial decisions I'm making.
Workplace Culture Architect & Owner
Carolyn SworaManagement Consulting, 1-10 employees
Reliability and Availability
Avalara
Avalara 8.3
Based on 14 answers
I have been using Avalara for years and do not remember ever having an outage during working hours. The service is accurate and dependable.
Accounting Ma
Digital Ally IncElectrical/Electronic Manufacturing, 51-200 employees
Xero
Xero 9.0
Based on 20 answers
We have been actively using and 100% Xero based for our ecommerce accounting practice for over 4 years. There has on been one real outage for more than 5 minutes. Xero was open and transparent about the outage, what they were doing to resolve the issue, and provided 15 minute updates. Showing how they care about their customers and partners. Plus, showing that their customers care too, were understanding, and went surfing or in our case took a nap. Couldn't run our business without Xero as a partner.
Co-Founder
Catching CloudsAccounting, 1-10 employees
Performance
Avalara
Avalara 8.3
Based on 14 answers
We do have trouble tying Avalara's reporting back to our POS, but we just got a new POS system and there are bugs we are still trying to work out within the POS system. I do not believe this is an Avalara issue
Accounting Manager
Cavender's Boot CityRetail, 501-1000 employees
Xero
Xero 10.0
Based on 16 answers
Pages generally load quickly, but it's a fairly common occurrence to have pages taking a bit longer than I'd like to load (as in, 4+ seconds). Occasionally I have to refresh a page to get it to work. Bank feed and integrations tend to be slow in general, but that could easily be due to API latency on the side of the other parties. Most of the time, though, the bank feeds refresh before I login so it's not a huge problem. Not necessarily good performance compared to a local app like QuickBooks desktop, but definitely good performance for a cloud application. Room for growth? yes.

Verified User
C-Level Executive in Corporate
Information Technology and Services Company, 11-50 employeesSupport Rating
Avalara
Avalara 3.7
Based on 23 answers
Avalara is not consistent in giving us information timely. For instance, right now, we have a help desk ticket with them that's been open since October. They are still trying to figure it out and we haven't gotten any feedback on where they are at or what is going on. That seems to me a very excessive amount of time to be working on a problem. Was it forgotten? Is there something bigger going on? Do they need something from us? An update would be helpful.
Also, many times when we call with an issue or concern (wrong tax rate for instance) we generally feel like the help desk assumes it's of our doing instead of theirs and doesn't truely listen when we explain the problem because we end up repeating it over and over as well as sending examples. We expect more respect on our end.

Verified User
Manager in Finance and Accounting
Veterinary Company, 201-500 employeesXero
Xero 7.3
Based on 37 answers
Support has always been responsive and quickly resolved any questions I have. The only reason I don't give full points is because there's no way to call for immediate help. I'm fine with this because I don't need it badly enough to pay for it
CFO
RenewableTech VenturesVenture Capital & Private Equity, 11-50 employees
In-Person Training
Avalara
Avalara 8.0
Based on 2 answers
I wasn't here when they first started with Avalara.
Sales Tax Administrator
The Merit Distribution Group, LLCWholesale, 201-500 employees
Xero
Xero 9.1
Based on 1 answer
The format was great; someone was there to ask questions or help if you were stuck.
Executive Director
EpsomTax.com LimitedAccounting, 11-50 employees
Online Training
Avalara
Avalara 7.3
Based on 3 answers
The videos go too fast; I kept having to pause them and go back. They don't allow for any practice transactions or provide training materials.
Sr. Accountant
DVL Group IncEnvironmental Services, 51-200 employees
Xero
Xero 10.0
Based on 5 answers
All of Xero's training is online and available for anyone (business owner or accountants) to learn and become experts in their system. There is a range of content from product training to real world webinars from their partners. Xero is beautiful accounting software and their training is the same.
Co-Founder
Catching CloudsAccounting, 1-10 employees
Implementation Rating
Avalara
Avalara 6.8
Based on 389 answers
The implementation team from Avalara was very knowledgable and did a good job of passing along information so that we could maintain the system and be able to make future changes ourselves. We had asked for some custom tax setup and they worked with us to get additional taxes set up that they didn't previously have. They worked with us to pull our documentation on tax rules and make sure those were included. I had hoped more scenarios would be there out of the box to cut down on the configuration time.

Verified User
Manager in Human Resources
Wholesale Company, 1001-5000 employeesXero
Xero 9.5
Based on 18 answers
If it can be done, time the implementation near a new fiscal year so you can start clean. Otherwise, you have to go back and do historical data from the beginning of the fiscal year, which can be brain draining.
Owner / Head Trainer
When Hounds FlyConsumer Services, 1-10 employees
Alternatives Considered
Avalara
We've looked at some other products but have been satisfied enough with Avalara that we've never had an interest in moving to another platform. It integrates well with our systems and does a great job for us. We have had some relationship management turnover and unmet expectations along with that experience, but generally have been able to resolve the issues.
CFO (Chief Financial Officer)
The Lab Depot IncConsumer Goods, 11-50 employees
Xero
Solely the ease of use. This has saved me so much time on day-to-day tracking it is astonishing. Not only does it make it super easy to send invoices, but it also makes it easy to print invoices off, eases the process of partial payments, and keeps good track of all notes made to the account.
Customer Success manager
JOHNSONCONCEPT LLC.Marketing & Advertising, 11-50 employees
Scalability
Avalara
Avalara 8.3
Based on 7 answers
There is no change that has to happen as your company grows, Avalara continues to do it's job for any size company

Verified User
Employee in Finance and Accounting
Building Materials Company, 501-1000 employeesXero
Xero 10.0
Based on 6 answers
Over 600 plus apps available for integration and easy to create standard charts of account and report templates to implement across multiple entities. Same pricing regardless of number of transactions or users. Real benefit is variety of integrated apps that allow you to automate processes and have functionality that 10 years ago was only available in ERP systems costing hundreds of thousands.

Verified User
Partner in Finance and Accounting
Accounting Company, 1-10 employeesReturn on Investment
Avalara
- Prior to Avalara, we had two full-time people doing nothing but tax returns. Now, we only review data via reports within Avalara and it takes one person about 2 hours a month.
- Certificate exemption was a manual process we tracked on an excel spreadsheet. It was not always easy to read and wrought with human error. CertCapture has made this process digital and saved us countless amounts of time.
- With Avalara managing the taxation through our ERP, we rarely have to worry about the taxation not being correct on our invoices to our customers. This saves time in having to investigate tax rates by state, county, and jurisdiction.

Verified User
Supervisor in Finance and Accounting
Industrial Automation Company, 501-1000 employeesXero
- Makes bookkeeping easier for clients or for us to do on behalf of clients.
- Time saving reports for BAS preparation.
- Picks up on potential issues in General Ledger Exceptions report.
- Dashboard can show accounts watchlist and current payables/receivables.
- Matches bills/sales to bank feed transactions and you can select multiple or split payments.
Senior Bookkeeper
MultipleFood & Beverages, 201-500 employees