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Its $50 per month for essentially unlimited transactions. If you cant afford $600 a year which will save you over $1000 with your accountant, then maybe you are too small for Xero.
I think the issue is for real small companies that may have an account on Ebay or Shopify so they actually turn over more than the maximum transaction on the small program, but the business doesn't really warrent more.
As a small business owner (8 staff) we moved to Xero when there was only 2 of us. Best move ever and we weren't concerned with the monthly cost. In the scheme of running a growing business, efficient accounting is paramount. Most people who go into business aren't too worried about $50 a month. Perhaps, when you're working out of a bedroom or something on a shoe-string.. but I find even they want to start the way they want to continue as soon as possible.
My brothers company uses one of the online payroll providers which integrates with Xero I am not involved in that so dont know much about it. Similar sized business 20-30 staff.
http://www.xero.com/nz/add-ons/payroll/
Thanks Harvey
http://www.dailydo.co.nz/auckland/xeroaccounting585893
Interesting an Australia website marketing an online course in xero on a nz website..
Interesting to see a bot buyer going today...