ERP software for your UK business
Enterprise resource planning (ERP) software – brings core functions together. Xero's platform gives you the accessibility, VAT and MTD compliance, and other features you need in one place. Named the UK’s most loved small business accounting software.
What ERP software does for your business
Four in five Xero customers save 6 hours a month by cutting out manual data entry.* Here's how Xero's ERP features help.
Automate your financial admin
Send invoice reminders, track stock levels, and reconcile bank transactions – without the manual work.
Everything in one place
Finance, inventory, payroll, and VAT MTD compliance in one cloud platform. No switching between tools.
Scale as your business grows
Growing your business? Start with the ERP tools you need, then add more from 1,000+ apps as your ERP needs grow.
*Source: Xero survey of 373 SBs globally, October 2025
Everything goes into Xero and it’s all right there at my fingertips.
Leslie Peterson, owner of Berkshire Hathaway Homes Services.
What is ERP software?
ERP – enterprise resource planning – software connects core business functions in one system. Instead of juggling separate tools, ERP software gives you your finances, inventory, payroll, and reporting on one, and shares data between them. Cloud ERP runs online so you can work from anywhere.
Core ERP modules and how they connect
Financial management, inventory control, payroll and HR, CRM, and reporting – ERP software links these core business functions.
ERP software built for the UK
UK businesses need to keep up withVAT, PAYE, and HMRC deadlines. Xero handles that in one place – lodge VAT with HMRC, file RTI payroll submissions, manage your CIS, and stay MTD-compliant. 90% of customers agree Xero helps them stay compliant.* Your data is stored securely in the cloud.
VAT, MTD, and HMRC compliance
Lodge VAT returns to HMRC directly from Xero. Submit VAT and MTD for Income Tax returns securely and directly to HMRC.
UK payroll and PAYE
Manage and pay your employees, handle RTI submissions, and calculate CIS for subcontractors – all within Xero's ERP solution.
UK bank connections through open banking
Connect your bank accounts to Xero so transactions flow automatically into your books, ready to reconcile.
Extend your ERP software with apps
Choose from 1,000+ apps in the Xero App Store to add the tools you need. Connect apps you already use through the Xero App Store, including tools like HubSpot and Shopify, to integrate even more of your business. Build the ERP system that fits your business – not the other way around.
Browse the Xero App Store
Plans to suit your business
Simple
A new plan, specifically for non VAT businesses, with features designed for sole traders and landlords.
Simple
Usually £7
Now £1.40
GBP per month excluding VAT
Save £33.60 over 6 months
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile bank transactions
- Smart document capture
- View real-time reports
- Automate subcontractor CIS calculations and reports
Do you need ERP software?
If you need finance, invoicing, inventory, payroll, and compliance in one place, Xero provides ERP-style functionality in one centralised platform and can save you money.
Set up in days, not months
Xero is quick and easy to set up. It’s quick and easy to set up Xero, so you can get up and running fast.
ERP software for your industry
Different industries use ERP software in different ways. Xero's integrated platform handles your core finance, inventory, and payroll, and the App Store lets you add specialist tools for your sector. Here's how it works for four common business types.
Retail and ecommerce
Track stock levels, connect your Shopify store, and manage sales and inventory from one platform.
Distribution and wholesale
Manage purchase orders, track inventory, and extend Xero's functionality with apps from the Xero App Store.
Professional services
Track project time, manage expenses, and invoice clients with apps like ServiceM8, Projectworks, or ROLL, connected to your Xero account.
FAQs about ERP software
ERP software – or enterprise resource planning software – is a system that integrates your core business functions into one platform. These typically include financial management, inventory control, payroll and HR, CRM, and reporting.
Instead of running separate tools that each hold their own data, an ERP system centralises everything so information flows between functions automatically. When you record a sale, for example, your inventory updates, your finances reflect the revenue, and your reports refresh – all without you having to re-enter data.
ERP software – or enterprise resource planning software – is a system that integrates your core business functions into one platform. These typically include financial management, inventory control, payroll and HR, CRM, and reporting.
Instead of running separate tools that each hold their own data, an ERP system centralises everything so information flows between functions automatically. When you record a sale, for example, your inventory updates, your finances reflect the revenue, and your reports refresh – all without you having to re-enter data.
An ERP system works by connecting separate business functions through a shared database. An ERP system works by integrating separate business functions and processes, and centralising data within a single database, so the software exchanges information between these functions seamlessly.
Xero is an all-in-one platform available across your devices, so you can share and access your data from anywhere. And when you log in, everything is current.
An ERP system works by connecting separate business functions through a shared database. An ERP system works by integrating separate business functions and processes, and centralising data within a single database, so the software exchanges information between these functions seamlessly.
Xero is an all-in-one platform available across your devices, so you can share and access your data from anywhere. And when you log in, everything is current.
Accounting software focuses on financial transactions – invoicing, bank reconciliation, expense tracking, and reporting. ERP software has a wider scope: it also includes inventory management, HR and payroll, CRM, and supply chain functions, all in one system. The line between them has blurred, though: cloud platforms like Xero now include inventory tracking, payroll, multi-user access, and reporting alongside core accounting. Xero provides solutions that mimic typical enterprise resource planning (ERP) software and help small businesses manage finances, inventory, payroll, and more in one centralised platform.
Accounting software focuses on financial transactions – invoicing, bank reconciliation, expense tracking, and reporting. ERP software has a wider scope: it also includes inventory management, HR and payroll, CRM, and supply chain functions, all in one system. The line between them has blurred, though: cloud platforms like Xero now include inventory tracking, payroll, multi-user access, and reporting alongside core accounting. Xero provides solutions that mimic typical enterprise resource planning (ERP) software and help small businesses manage finances, inventory, payroll, and more in one centralised platform.
ERP software combines a range of features, like financial management, inventory management, customer relationship management (CRM), and advanced reporting and analytics.
- financial management (invoicing, bank reconciliation, accounts payable and receivable)
- inventory management (stock tracking, purchase orders)
- payroll and HR (employee payments, tax compliance)
- CRM (customer data, sales pipeline)
- reporting and analytics (dashboards, profit and loss, cash flow)
ERP software has a wider scope than accounting software and can unify a range of business functions, for example inventory management, customer relationship management, and supply chain management.
ERP software combines a range of features, like financial management, inventory management, customer relationship management (CRM), and advanced reporting and analytics.
- financial management (invoicing, bank reconciliation, accounts payable and receivable)
- inventory management (stock tracking, purchase orders)
- payroll and HR (employee payments, tax compliance)
- CRM (customer data, sales pipeline)
- reporting and analytics (dashboards, profit and loss, cash flow)
ERP software has a wider scope than accounting software and can unify a range of business functions, for example inventory management, customer relationship management, and supply chain management.
Xero streamlines your operations by automating finances, inventory, payroll, and reporting in one integrated platform. You get unlimited general users at no extra cost, 1,000+ apps to extend your capabilities, and UK compliance built in – including VAT MTD, PAYE, and CIS. Four in five Xero customers save six hours a month by cutting out manual data entry, and 91% agree it's easy to use.
Xero can be customised with apps from the Xero App Store to extend its functionality and tailor it to your business needs.
Sources: Xero survey of 373 SBs globally, October 2025; Xero survey of 2,634 SBs in UK, AU, and US, May–June 2024
Xero streamlines your operations by automating finances, inventory, payroll, and reporting in one integrated platform. You get unlimited general users at no extra cost, 1,000+ apps to extend your capabilities, and UK compliance built in – including VAT MTD, PAYE, and CIS. Four in five Xero customers save six hours a month by cutting out manual data entry, and 91% agree it's easy to use.
Xero can be customised with apps from the Xero App Store to extend its functionality and tailor it to your business needs.
Sources: Xero survey of 373 SBs globally, October 2025; Xero survey of 2,634 SBs in UK, AU, and US, May–June 2024
Xero includes unlimited general users at no extra cost, unlike competing platforms that charge per seat. Xero’s flexible software scales with you as your business grows, and it includes unlimited general users at no extra cost.
Xero includes unlimited general users at no extra cost, unlike competing platforms that charge per seat. Xero’s flexible software scales with you as your business grows, and it includes unlimited general users at no extra cost.
Enterprise resource planning (ERP) software are business management tools that link core business functions – like finance, inventory, human resources, and customer relationship management – within the software. You can use Xero on the go with the mobile app, and Xero stores your business information in the cloud, so it’s always backed up.
That means your small business can manage bookkeeping, payroll, tax and cash flow reporting in one place, with tools that help automate admin and reduce costs. It also means your business information is stored in the cloud, so it’s always backed up.
Enterprise resource planning (ERP) software are business management tools that link core business functions – like finance, inventory, human resources, and customer relationship management – within the software. You can use Xero on the go with the mobile app, and Xero stores your business information in the cloud, so it’s always backed up.
That means your small business can manage bookkeeping, payroll, tax and cash flow reporting in one place, with tools that help automate admin and reduce costs. It also means your business information is stored in the cloud, so it’s always backed up.
It depends. ERP software can help link core business functions like finance and inventory within one system. Xero combines business tools in one place to help you manage finances, track inventory, reduce manual data entry, and simplify compliance. Those are signs your business has outgrown basic software.
Xero combines core ERP-like functions – including finance, inventory, payroll, and reporting – in one integrated platform to help streamline your operations. An accountant or bookkeeper can help you decide which is best for your business.
It depends. ERP software can help link core business functions like finance and inventory within one system. Xero combines business tools in one place to help you manage finances, track inventory, reduce manual data entry, and simplify compliance. Those are signs your business has outgrown basic software.
Xero combines core ERP-like functions – including finance, inventory, payroll, and reporting – in one integrated platform to help streamline your operations. An accountant or bookkeeper can help you decide which is best for your business.
It depends on the type of system. It’s quick and easy to set up your business correctly in Xero.
Xero’s ERP features and tools help you speed through your financial admin. You can connect your bank accounts, set up invoicing, and start reconciling transactions in Xero. If you need to migrate historical data or configure payroll, your accountant or bookkeeper can help speed things up.
It depends on the type of system. It’s quick and easy to set up your business correctly in Xero.
Xero’s ERP features and tools help you speed through your financial admin. You can connect your bank accounts, set up invoicing, and start reconciling transactions in Xero. If you need to migrate historical data or configure payroll, your accountant or bookkeeper can help speed things up.
Yes. Modern cloud ERP software connects with other business systems through APIs and app marketplaces. Xero integrates with 1,000+ apps, like:
- HubSpot for CRM
- Shopify for eCommerce,
- Expand and customise Xero with apps
- Use apps from the Xero App Store to extend Xero's functionality
- ServiceM8 for job management
That means you can tailor your ERP system to your unique needs by connecting the tools you already use, discovering new apps, and building custom integrations from one flexible platform.
Yes. Modern cloud ERP software connects with other business systems through APIs and app marketplaces. Xero integrates with 1,000+ apps, like:
- HubSpot for CRM
- Shopify for eCommerce,
- Expand and customise Xero with apps
- Use apps from the Xero App Store to extend Xero's functionality
- ServiceM8 for job management
That means you can tailor your ERP system to your unique needs by connecting the tools you already use, discovering new apps, and building custom integrations from one flexible platform.
Start using Xero for free
Access Xero features for 30 days, then decide which plan best suits your business.
Key features of ERP business software
Online invoicing
Work smarter, not harder with Xero’s intuitive invoicing software. You can log on from your desktop or mobile app and send invoices as soon as the job is done.
Pay bills
Automate and simplfiy bill payments with Xero accounts payable software - helping save you time and giving you a clearer view of your UK cash flow.
Bank reconciliation
Keep your account balances and financials up to date. Easily confirm that the transactions in your bank accounts are recorded in your business financial records with Xero’s bank reconciliation software.
Inventory
Keep track of stock levels with Xero’s inventory control system, which populates invoices and orders with items you buy and sell.
Reporting
Track your finances with accurate accounting reports. And collaborate with your advisor online in real time.