Why I Tried Using Xero for Personal Finance (And Why It Didn't Work)
I work in tech in Sydney, and everyone around me raves about Xero. "Beautiful interface." "Made for Aussie businesses." "Your accountant will love you."
So when I wanted to get serious about tracking my personal finances, I thought: why not use what the pros use?
Three weeks later, I gave up.
It wasn't that Xero was bad - it's genuinely excellent software. The problem was that it's built for something completely different than what I needed. Every time I logged in, I was confronted with invoicing dashboards, BAS statement reminders, and accounts receivable reports.
I don't have accounts receivable. I have a salary and a coffee habit.
Understanding What Xero Actually Does
Xero was founded in Wellington, New Zealand in 2006, and it's become the dominant cloud accounting platform in Australia and New Zealand. It's genuinely brilliant at what it's designed to do:
What Xero Excels At
Cloud-Based Accounting
Full double-entry bookkeeping accessible from anywhere, with real-time collaboration with your accountant
GST & Tax Compliance
Built specifically for Australian and NZ tax requirements, with automatic BAS preparation and GST tracking
Multi-Currency Support
Handle transactions in 160+ currencies with automatic exchange rate updates - essential for importers and exporters
Professional Invoicing
Create and send branded invoices, track payments, and set up automatic payment reminders
Business Reporting
Profit & loss statements, balance sheets, cash flow forecasts, and aged receivables reports
Bank Reconciliation
Match bank transactions to invoices and bills with smart suggestions and rule-based categorization
If you're running a small business in Australia or New Zealand, Xero is probably the right choice. Your accountant likely already uses it, and the GST integration alone can save hours at tax time.
But here's the thing: none of that helps if you just want to track where your paycheck goes.
Xero vs BankSync: The Honest Comparison
Let me be completely transparent about what each tool does and doesn't do:
Xero vs BankSync for Personal Finance
| Feature | Feature | Xero | BankSync |
|---|---|---|---|
| Monthly Price | Monthly Price | $15-78 AUD | $7 USD |
| Primary Purpose | Primary Purpose | Small business accounting | Personal finance tracking |
| GST/Tax Tracking | GST/Tax Tracking | Yes - comprehensive | No (not needed for personal use) |
| Invoicing | Invoicing | Yes - professional | No (you're not invoicing yourself) |
| Multi-Currency | Multi-Currency | Yes - 160+ currencies | Yes - via bank connections |
| Bank Connections | Bank Connections | Limited Australian banks | 10,000+ institutions globally |
| Investment Tracking | Investment Tracking | Basic/Manual | Full holdings & trades |
| Custom Reports | Custom Reports | Rigid templates | Unlimited via Notion/Sheets |
| Learning Curve | Learning Curve | Steep (accounting concepts) | Minimal (just bank sync) |
| Payroll | Payroll | Yes (add-on cost) | No (you're an individual) |
The Real Cost Comparison
Xero's pricing is designed for businesses, and it shows:
Annual Cost Comparison
Xero Starter
Limited to 20 invoices/month
- Bank reconciliation
- 5 invoices/quotes
- Basic reports
- GST tracking
- Single user
Xero Growing
Most popular for small business
- Unlimited invoices
- Bank reconciliation
- Multi-currency
- Projects tracking
- Expense claims
- GST/BAS reports
BankSync Pro
Everything for personal finance
- Unlimited bank accounts
- Unlimited transactions
- Investment tracking
- Notion/Sheets/Airtable sync
- Custom categorization
- Automatic daily syncs
Why Xero Doesn't Work for Personal Finance
After my failed experiment, I realized Xero has several fundamental issues when used for personal finance:
1. You're Paying for Business Features You'll Never Use
Even the cheapest Xero plan includes invoicing, GST tracking, and accounts receivable. These features are essential for businesses but completely useless for tracking your groceries and Netflix subscriptions. You're subsidizing features built for commerce when all you need is visibility into your spending.
2. The Learning Curve Is Designed for Accountants
Xero assumes you understand double-entry bookkeeping, chart of accounts, and reconciliation workflows. These are valuable skills for business owners, but they're overkill if you just want to know "did I overspend on Uber Eats this month?"
3. Investment Tracking Is an Afterthought
Xero can track business assets, but it's not built to monitor your ETFs, super fund, or stock portfolio. For a complete picture of your personal net worth, you'd need to manually enter investment values - defeating the purpose of automation.
4. Limited Bank Connections for Non-Business Accounts
Xero's bank feeds are designed for business accounts. Connecting personal savings accounts, investment platforms, and international accounts can be hit-or-miss, with some requiring manual CSV imports.
How BankSync Works for Personal Finance
BankSync takes a completely different approach. Instead of trying to be accounting software, it's a data bridge:
- Connect your bank accounts (checking, savings, credit cards, investments)
- Choose your destination (Notion, Google Sheets, or Airtable)
- Set up automatic syncing (daily, weekly, or manual)
- Build whatever views and reports you want using tools you already know
No invoicing. No GST. No chart of accounts. Just your transactions, automatically flowing into tools you're already comfortable with.
Where Your Data Can Go
BankSync integrates directly with the tools you're already using:
Supported Destinations
Notion
Build personal finance dashboards with databases, charts, and custom views. Perfect for the all-in-one workspace crowd.
Google Sheets
Use familiar spreadsheet formulas to analyze spending. Create pivot tables, charts, and automated budgets.
Airtable
Combine your financial data with other life tracking. Perfect for detailed categorization and automation.
What You Can Track (That Xero Can't)
Because BankSync is built for personal finance, it handles data types that Xero simply wasn't designed for:
Personal Finance Data Types
All Transactions
Every purchase, transfer, and payment from all your accounts in one place
Balance History
Track how your account balances change over time to see saving patterns
Investment Holdings
See your ETFs, stocks, and funds with current values and quantities
Trade History
Track buys, sells, and dividends across all investment accounts
Loan Balances
Monitor mortgage, car loan, and personal loan paydown progress
Net Worth Tracking
Combine everything for a complete picture of your financial health
Frequently Asked Questions
What Our Users Say
"I tried using Xero for personal finance because my accountant recommended it for my freelance work. After a month, I realized I was paying $47 for software that was 90% irrelevant to my personal tracking needs. BankSync does exactly what I need - no more, no less - and my Notion finance dashboard is actually something I enjoy using."
When You Should Actually Use Xero
To be fair, Xero is the right choice in certain situations:
- You run a registered business that needs GST tracking and BAS lodgment
- You need to send professional invoices and track payments
- Your accountant requires direct Xero access for your books
- You have employees and need payroll management
- You deal with multi-currency invoicing internationally
If that describes you, Xero is excellent. But if you're an individual who just wants to see where your money goes each month? There's a simpler path.
The Bottom Line
Xero is outstanding accounting software - for businesses. It's built for Australian and New Zealand small businesses that need compliance, invoicing, and professional bookkeeping features.
But if you're an individual who wants to track personal spending, monitor investments, and understand where your money goes - without learning accounting or paying for business features - BankSync offers a simpler, cheaper, and more flexible alternative.
Your bank data, automatically synced to Notion, Google Sheets, or Airtable. No accounting degree required.