Xero wins on more features overall (10 vs 5, 4 tied). Below is the full feature-by-feature breakdown.
| Feature | PayPal Invoicing | Xero |
|---|---|---|
| Free plan |
✓ Yes
Free to create — fees on paid invoices
|
✗ No
30-day trial only
|
| Entry paid plan |
✓ Yes
No subscription, only per-transaction fees
|
— Paid add-on
AU$35/mo Starter, AU$70/mo Standard
|
| Download PDF without signup |
✗ No
PayPal account required
|
✗ No
|
| Feature | PayPal Invoicing | Xero |
|---|---|---|
| Unlimited invoices |
✓ Yes
|
— Limited
Ignite caps at 20 invoices/month — unlimited requires Grow at AU$78
|
| Custom logo & branding |
— Limited
Logo only — minimal template control
|
✓ Yes
|
| Recurring invoices |
✓ Yes
|
✓ Yes
|
| Email invoices to clients |
✓ Yes
|
✓ Yes
|
| Multi-currency |
✓ Yes
|
— Paid add-on
Premium plan only
|
| Client management |
— Limited
|
✓ Yes
|
| Feature | PayPal Invoicing | Xero |
|---|---|---|
| ATO-compliant GST invoices |
— Limited
Configurable but not auto-formatted
|
✓ Yes
|
| ABN field built in |
✗ No
Manual workaround via custom fields
|
✓ Yes
|
| Australian-focused support |
— Limited
|
✓ Yes
|
| Feature | PayPal Invoicing | Xero |
|---|---|---|
| Bank reconciliation |
✗ No
|
✓ Yes
|
| Expense tracking |
✗ No
|
✓ Yes
|
| Payroll |
✗ No
|
— Paid add-on
+AU$10/mo per employee
|
| Inventory tracking |
✗ No
|
✓ Yes
|
| Feature | PayPal Invoicing | Xero |
|---|---|---|
| Stripe payments |
✗ No
PayPal locks you to its own processor
|
✓ Yes
|
| Mobile app |
✓ Yes
|
✓ Yes
|
| Feature | PayPal Invoicing | Xero |
|---|---|---|
| Setup time |
— Limited
PayPal Business account required
|
✗ No
Days — requires chart of accounts setup
|
Neither tool fits your invoicing-only workflow? Try InvoiceSonic — free for unlimited ATO-compliant tax invoices, no signup required.
Create a free invoice now →PayPal Invoicing starts at Free (2.6% + AU$0.30 per paid invoice); Xero starts at AU$37/mo (Ignite — 20 invoices). PayPal Invoicing offers free invoicing — fees apply to payments. Xero offers 30-day free trial.
For ATO-compliant GST: PayPal Invoicing = limited, Xero = yes. For native ABN field: PayPal Invoicing = no, Xero = yes. If you operate in Australia and either tool falls short here, InvoiceSonic handles both natively — and it's free.
Most freelancers want fast invoicing without paying for full accounting. Between these two, Xero wins more categories overall. But if you're a freelancer who just wants ATO-compliant tax invoices for free, InvoiceSonic is purpose-built for that workflow.
Do not assume a one-click migration. Confirm each product's current export and import formats, then test contacts, opening balances, unpaid invoices, tax codes, attachments and reconciliations before cancelling the old account. Keep statutory records outside both systems.
Both tools include more than invoicing. If invoicing is your only need, a dedicated generator can be faster and more focused than a full accounting subscription.
Yes — InvoiceSonic lets you create and download an invoice without signup. Its account plans have separate limits and pricing, so compare current official plans before deciding.