How to Cancel Xero Subscription

Ending a relationship with any software can feel daunting, especially when it holds years of your financial history. If you're ready to cancel your Xero subscription, a few preparatory steps will ensure you protect your vital data and make the process seamless. This guide walks you through a complete checklist for a clean break, explaining exactly how to back up your information, cancel the account, and what to expect afterward.

Before You Cancel: A Crucial Checklist

Jumping straight to the cancellation button without proper preparation can lead to lost data and future compliance headaches. Before you begin the process, work through these essential steps to secure your financial records and accommodate a smooth transition.

1. Secure a Full Backup of Your Financial Data

This is the most important step. Your Xero organization contains the detailed financial history of your business. You have a legal and operational responsibility to retain these records, often for seven years or more, for tax audits, financial reporting, and historical analysis. Before canceling, export a comprehensive set of reports. A new accounting system will not have this historical data, so a complete backup is your only safety net.

Log into your Xero account and navigate to the Accounting menu, then select Reports. Export the following reports as PDF and Excel/Google Sheets files:

• General Ledger: This highly detailed report shows every transaction—every invoice, bill, and payment—posted to every account over a selected period. Make sure to export this for each financial year your business has used Xero.
• Trial Balance: This is a summary of all your general ledger accounts and their balances. Export one for the end of each financial year.
• Key Financial Statements: Download the Profit & Loss (Income Statement) and Balance Sheet for each year.
• Aged Receivables and Payables: These reports give you a final list of all unpaid customer invoices and outstanding supplier bills.
• Contacts: Export your full list of customers and suppliers. You can find this in the Contacts section, not the report center.
• Fixed Assets Register: If you use Xero to track fixed assets, export this report to maintain your depreciation schedules.
• Bank Reconciliation Reports: These reports provide proof that your book balances match your bank balances—a critical audit trail.

Save these files in a secure, organized folder on your local drive or a secure cloud storage service. For detailed instructions on exporting, you can reference Xero's official guide to exporting data.

2. Disconnect Bank Feeds and App Integrations

To ensure a clean separation, manually disconnect any active bank feeds. Go to Accounting > Bank accounts, click Manage Account for each feed, and select Deactivate Feed. This prevents any further data from being sent to Xero.

Next, review your connected third-party applications. Go to your organization menu and select App Store, then click the Connected Apps tab. Disconnecting these apps from within Xero helps prevent any syncing errors or orphaned data connections. You may need to cancel separate subscriptions for these apps directly with the provider.

3. Manage and Remove Other Users

If you have invited your accountant, bookkeeper, or other team members into your Xero organization, it is good practice to remove them before you cancel. This secures your data and avoids confusion. Go to your organization name, click Settings, and then Users. From here, you can remove users by clicking the menu icon next to their name. Remember, only the person with the Subscriber role can cancel the subscription. All other users, including those with Standard or Advisor roles, do not have this permission.

4. Settle Any Outstanding Balances

Ensure your subscription payments are up to date. An overdue account can sometimes complicate the cancellation process. You can check your billing history and payment method under My Xero > Billing Account to confirm everything is settled before you proceed.

Step-by-Step Guide to Canceling Your Xero Subscription

Once you’ve completed the pre-cancellation checklist, you’re ready to finalize the process. Remember, these steps must be completed by the official subscriber for the organization.

1. Access Your Subscriptions Page: Log in to your Xero account. Click on your organization’s name in the top-left corner, and then select My Xero.
2. Navigate to Subscriptions: In your My Xero dashboard, you will see a list of all organizations you have access to. Click on the Subscriptions tab at the top of the page.
3. Choose the Subscription to Cancel: You will see all your active subscriptions here. Find the correct organization, click the three-dot menu icon on the right-hand side, and select Cancel subscription from the drop-down menu.
4. Follow the Cancellation Prompts: Xero will present a screen asking why you’re leaving. After you provide a reason, it will confirm the date your cancellation will take effect. Your subscription will remain active until the end of your current paid billing period; you won't be charged again.
5. Confirm the Cancellation: After you finalize the last step, your cancellation is complete. Xero will send a confirmation email to the subscriber’s registered email address. For a supplementary reference, you can visit the official Xero cancellation guide.

What Happens After You Click 'Cancel'?

The cancellation isn't an instant deletion. Understanding what happens next is important for future data access and compliance.

Access to Your Data (The Read-Only Period)

Xero will not delete your data immediately. Instead, your account will enter a read-only state. In many regions, including the United States, United Kingdom, and Australia, Xero retains your data for seven years to help you meet common statutory record-keeping obligations. During this time, you can still log in to view and export reports, statements, and contact lists. However, you cannot add or edit any transactions, reconcile bank accounts, or file sales tax returns.

The Fate of Add-On Subscriptions

When you cancel your main business plan, any connected Xero-owned add-ons are also scheduled for termination at the end of the billing period. This includes subscriptions for Xero Payroll, Xero Expenses, and Xero Projects. Similarly, any bundled Hubdoc subscription will be canceled as well.

Reactivating a Canceled Subscription

Changed your mind? Within the data retention period, you can typically reactivate your organization. By logging in and navigating to the My Xero > Subscriptions page, you'll see an option to resubscribe. Once you choose and pay for a new plan, your account will be fully restored with all its previous data intact.

Alternatives to Outright Cancellation

Before you commit to canceling, make sure it’s the right decision. In some situations, a different option might better suit your business needs.

Downgrading Your Plan

If you're canceling because of cost or unused features, consider downgrading to a more basic plan. Xero offers several tiers, and a simpler plan might provide all the functionality you genuinely need at a lower price point, without forcing you to migrate your financial data.

Transferring the Subscription

If you're selling your business, or your accountant is taking over your bookkeeping, you don't need to cancel. Instead, you can transfer the subscriber role. This process passes billing ownership to another user without any disruption to the financial data. The current subscriber can initiate this by going to My Xero > Subscriptions and selecting the "Transfer subscription" option. More information is available on the Xero subscriber transfer page.

Solving Common Cancellation Problems

Running into trouble? Here are solutions to the two most frequent hurdles tax professionals and business owners face during cancellation.

"I can't find the 'Cancel Subscription' link!"

This is almost always a permissions issue. Only the user with the "Subscriber" role has the authority to manage the subscription and billing. If you don't see the option to cancel, it means you're not the subscriber. To solve this, go to Settings > Users to see who is listed as the subscriber and contact them to either transfer the role to you or complete the cancellation process.

"My accountant set up my Xero. Who is the subscriber?"

When an accounting or bookkeeping firm sets up a client on Xero via their partner plan, the firm is the subscriber. In this scenario, you must contact your accounting professional directly and request that they cancel the subscription on your behalf. They are the billing owner and the only ones who can initiate the process.

Final Thoughts

Canceling your Xero subscription is a manageable process when you approach it with a clear plan. By backing up all your data first, understanding the subscriber role, and meticulously following the steps, you can ensure a clean, compliant end to your account and keep your historical business records safe.

While managing administrative software tasks is part of modern accounting, the real value lies in interpreting the financial data, not just storing it. Answering complex tax scenarios or building an audit defense requires deep, verifiable research, and that process is ripe for improvement. Tools like Feather AI simplify this by providing instant, citation-backed answers to your tax questions sourced directly from the IRC and IRS guidance, helping you turn backed-up data into actionable, strategic advice for your clients.