Xero review for Australian law firms

Xero overview

Xero is a cloud-based accounting platform widely used by Australian law firms as the general ledger and business accounting layer alongside their practice management system. It integrates natively with LEAP, Clio, Smokeball, and Actionstep, receiving invoices, payments, trust transactions, and client data automatically. Xero handles GST reporting, BAS preparation, payroll, bank reconciliation, and financial reporting for the firm as a business entity, while the practice management system handles trust accounting and matter-level billing.

Key capabilities

Xero serves as the business accounting backbone for many Australian law firms. Its native integrations with major legal practice management platforms mean that when an invoice is finalised in the PMS, it automatically appears in Xero as awaiting payment. Payments, credits, and trust transactions sync back, eliminating double-entry. Xero's GST and BAS tools are designed for Australian tax compliance, and its payroll module handles STP Phase 2 reporting. The Xero App Marketplace provides access to over 1,000 add-on applications for document management, expense management, and business intelligence.

• Bank Reconciliation & Feeds
• GST & BAS Reporting
• Invoicing & Payments
• Payroll (Xero Payroll)
• Expense Claims
• Fixed Asset Management
• Financial Reporting
• Multi-Currency
• Purchase Orders
• Xero App Marketplace (1,000+ integrations)
• Practice Management System Integrations
• ATO Direct Lodgement

Integrations

LEAP, Clio, Smokeball, Actionstep, PracticeEvolve, SILQ, Lawmaster, FilePro, Stripe, PayPal, Hubdoc, Receipt Bank, Dext, WorkflowMax

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