Fathom HQ vs Xero
Side-by-side comparison for accounting professionals.
Fathom HQ
AI management reporting and KPI dashboards
$46/mo
★4.7/ 5
14-day free
Xero
AI-native accounting platform for growing firms
$25/mo
★4.4/ 5
30-day free
| Feature | Fathom HQ | Xero |
|---|---|---|
| Core accounting | ||
| Bank reconciliation | Not available Not an accounting platform. Requires connected Xero, QuickBooks, or MYOB to function. | AvailableAll plans Auto-reconcile (Beta) on Growing+. JAX AI agent handles 80%+ of bank lines in real time. Standard matching on Early. |
| Invoicing | Not available No invoicing features. | LimitedGrowing+ unlimited Unlimited invoices on Growing+ ($55/mo). Early plan caps at 20/mo — unsuitable for active client work. |
| Expense categorisation | Not available Not available. Reads data from your accounting platform — does not manage transactions. | AvailableAll plans AI suggests categories from transaction history. Learns from corrections over time. |
| Receipt capture | Not available Not available. | AvailableAll plans (Hubdoc) Hubdoc included free on all plans. OCR extraction, supplier rule learning, syncs as draft transactions. |
| AI & reporting | ||
| Cash flow forecasting | AvailableAll plans Three-way forecasting (P&L, balance sheet, cash flow) with scenario modelling on all plans. Goalseek tool for decision modelling. | LimitedEstablished ($90/mo) 180-day forecast with scenario modelling on Established. 60-day on Growing. 30-day on Early. |
| Management reporting | AvailableAll plans Core product. AI Commentary Writer, KPI dashboards, white-label reports, industry benchmarking. All features on every plan. | LimitedEstablished ($90/mo) Basic reports on all plans. Syft Analytics with AI narrative commentary only on Established. |
| Business features | ||
| Multi-currency | AvailableAll plans Multi-currency consolidations included on all plans at no extra cost. | LimitedEstablished ($90/mo) Full multi-currency with automatic exchange rate updates on Established only. |
| Time tracking | Not available Not available. | LimitedProjects add-on Via Xero Projects add-on. Not natively built in — requires separate configuration. |
| Payroll | Not available Not available. | LimitedAdd-on by region AU: Xero Payroll add-on. US: third-party integration required (Gusto most common). No native Payroll AI agent. |
| Multi-entity consolidation | AvailableAll plans Consolidated reporting across multiple entities. Intercompany eliminations. Unlimited consolidated groups at no extra cost. | Not available Not designed for multi-entity consolidation. Consider Sage Intacct for complex group structures. |
| Sales tax automation | Not available Not available. | LimitedAll plans Basic sales tax on all plans. No automated multi-state sales tax agent unlike QuickBooks. |
| Support & pricing | ||
| Client portal | Not available No client portal. Clients receive branded report exports or dashboard links. | Not available No dedicated client portal. Clients need their own Xero login for file access. |
| Phone support | AvailableAll plans Multi-channel support. Reviewers consistently note ~10 minute response times. | Not available Email and help centre only. No phone line. Flagged in 319 G2 reviews as a top frustration. |
| User seats | AvailableAll plans Unlimited users on all plans. Priced per company connected, not per user. | AvailableAll plans Unlimited users on all plans at no extra cost. A 5-person firm pays the same as a sole practitioner. |
Which should you choose?
Choose Fathom HQ if…
Accounting firms that provide monthly advisory reporting to SMB clients and want to produce board-quality reports in under 30 minutes.
Not ideal: Firms that only need basic P&L and balance sheet reports — Xero/QuickBooks native reporting may be sufficient.
Choose Xero if…
Growing accounting firms managing international clients who need the best cash flow forecasting and widest integration ecosystem.
Not ideal: US-focused firms where QuickBooks ecosystem lock-in already exists.