Xero HFS vs. 360: Which tool is best? [2026]

Choosing between an integrated HR and accounting tool versus a specialized enterprise HR platform comes down to your company's size, complexity, and primary needs. Xero HFS is built for small to mid-sized businesses that prioritize a seamless link between payroll, basic HR, and their Xero accounting software. In contrast, 360 is designed for larger organizations that require deep, customizable HR functionalities, advanced compliance, and comprehensive talent management, often independent of a specific accounting system.

What is Xero HFS?

Xero HFS (Human Force Services) is an integrated solution that combines human resources, payroll, and time-tracking features directly within the Xero ecosystem. It's designed to give small and mid-sized businesses a single source of truth for employee management and financials. By connecting HR functions directly to Xero's powerful accounting platform, it simplifies processes like running payroll, tracking leave, and managing employee onboarding without forcing you to switch between disconnected systems. The primary goal of Xero HFS is to offer a user-friendly, all-in-one platform for companies that need solid foundational HR tools that work perfectly with their bookkeeping software.

What is 360?

360 (often referred to as 360HR) is a comprehensive, enterprise-grade Human Resource Management System (HRMS). Its focus extends far beyond basic payroll to cover the entire employee lifecycle, from talent acquisition and performance management to intricate, multi-jurisdictional compliance. 360 is built for medium-to-large enterprises that have complex organizational structures, specialized reporting requirements, and a need for highly customizable HR workflows. It functions as a standalone system that can integrate with various ERPs and other business tools, providing a robust, centralized platform for dedicated HR departments to manage a large workforce effectively.

Comparing Xero HFS vs. 360

While both platforms handle HR tasks, they are engineered for fundamentally different business scales and priorities. Xero HFS excels in integration and ease of use for SMBs, while 360 masters complexity and customization for the enterprise market.

Comparison Area

Xero HFS

360

Core Functionality

Integrated payroll, HR, time-tracking, and onboarding within the Xero accounting ecosystem.

Comprehensive HR management, advanced payroll, compliance, and talent management as a standalone system.

Target Business Size

Small to medium businesses (up to ~250 employees).

Medium to large enterprises (250+ employees).

Payroll Features

Automated payroll runs, streamlined tax filings, and employee self-service for pay stubs and leave.

Advanced payroll features, multi-jurisdiction tax withholding and compliance, and fully customizable workflows.

Employee Management

Handles essential HR records, document storage, and time-off requests.

Provides comprehensive employee lifecycle management, including performance reviews, goal tracking, and succession planning.

Compliance & Reporting

Focuses on local payroll and tax compliance with standard, pre-built reports.

Offers robust multi-national compliance tools, customizable analytics, and detailed, granular reporting.

Integrations

Seamless native integration with Xero accounting and a curated list of third-party apps.

Powerful API access for deep integrations with various ERP, CRM, and other enterprise business software.

User Experience

Highly intuitive and user-friendly, designed for quick setup and minimal training.

Feature-rich interface that allows for deep customization but has a steeper learning curve.

Pricing

Transparent monthly subscription, typically starting from $40/month, based on employee count.

Custom enterprise quoting, often starting in the hundreds of dollars per month with potential implementation fees.

Functionality and Business Focus

The most significant difference lies in their core purpose. Xero HFS is an accounting-first HR solution. Its value comes from its native integration with Xero's general ledger, making payroll reconciliation and financial reporting automatic and error-free. The HR tools, like onboarding checklists, document storage, and leave management, are built to support the payroll function and provide essential record-keeping for SMBs. This is perfect for a business where the owner, office manager, or accountant wears the HR hat.

360, on the other hand, is an HR-first platform. Its features are designed to solve the challenges of a dedicated HR department. This includes sophisticated tooling for talent management (performance reviews, goal setting), deep compliance management for businesses operating in multiple states or countries, and extensive customization to match specific company policies and workflows. It treats payroll as one component of a much larger employee management strategy.

Payroll and Compliance

Xero HFS offers robust and automated payroll that an accountant or business owner can manage with confidence. It handles tax calculations, direct deposits, and filings for standard SUI and FUTA requirements, and gives employees a self-service portal to access their information. This is more than enough for most SMBs operating in a single or few locations.

360's payroll capabilities are built for complexity. It excels where a business has employees across many states with different tax laws, manages union-specific wage rules, or requires certified payroll reports for government contracts. Its compliance engine is a key strength, providing alerts and automated workflows to navigate complex labor laws, from FLSA to international regulations. For a company facing a high risk of non-compliance due to scale, 360 is the more appropriate tool.

Integrations and Customization

Integration is central to Xero HFS's appeal, but it's largely focused on the Xero universe. The deep, two-way sync between payroll and accounting is its biggest selling point. While it connects with some other apps, its ecosystem is intentionally streamlined.

360 assumes you're operating in a more complex technology stack. Its open API allows you to connect it with enterprise resource planning (ERP) systems, customer relationship management (CRM) software, and other specialized HR tools. Furthermore, its internal workflows are highly customizable. You can build approval chains for time-off requests, craft company-specific performance review templates, and design granular user permissions far beyond what Xero HFS offers.

Pricing and Total Cost of Ownership

The pricing reflects their target markets. Xero HFS uses a transparent, predictable subscription model. You'll typically pay a base fee plus a small cost per employee per month, making it easy for an SMB to budget for. There are no surprise implementation fees, and you can get started quickly on your own.

360's pricing is built for the enterprise sales cycle. It involves a custom quote based on your specific employee count, required feature modules, and implementation needs. The total cost will be significantly higher and often includes a one-time setup and training fee. While more expensive, this cost includes dedicated support and professional services to configure the platform for your organization's unique requirements.

Which One Should You Choose?

Your choice depends almost entirely on the current size and future trajectory of your business. Your decision should be guided by your operational complexity, not just your employee headcount.

Choose Xero HFS If...

• You are a small or medium-sized business (5-250 employees). The feature set is designed specifically for the needs of a growing but not yet enterprise-level company.
• You already use or plan to use Xero for accounting. Its greatest strength is the seamless integration between HR/payroll and your books. You cannot get this level of native functionality by connecting 360 to Xero.
• You need a user-friendly tool that doesn't require an HR expert. Business owners, office managers, and bookkeepers can easily learn and manage Xero HFS without extensive training.
• Your HR needs are straightforward. If you primarily need automated payroll, time-off tracking, basic document management, and simple onboarding, Xero HFS delivers exactly that without unnecessary complexity.

Choose 360 If...

• You are a medium-to-large enterprise (250+ employees). Your organizational structure, reporting needs, and compliance risks have outgrown what an SMB-focused tool can handle.
• You have a dedicated HR department. 360 provides the specialized tools, like advanced talent management, succession planning, and custom analytics, that HR professionals need to operate strategically.
• You operate in multiple states or countries. Managing payroll and labor law compliance across different jurisdictions is a core strength of 360. Xero HFS is generally focused on single-country compliance.
• You require deep customization and flexible integrations. If you need to tailor HR workflows to unique internal policies or connect your HRMS to a larger enterprise tech stack (like a specific ERP), 360's flexibility is necessary.

Final Thoughts

Deciding between Xero HFS and 360 is a classic case of choosing the right tool for the job. Xero HFS is the ideal choice for SMBs that want to simplify operations by tightly integrating their accounting and HR functions, while 360 serves larger organizations needing a powerful, specialized platform to manage complex HR challenges at scale.

Whether you're managing multi-jurisdictional compliance in 360 or ensuring accurate payroll tax filings in Xero HFS, finding answers to specific tax questions is a constant need. Instead of sinking time into unreliable search results for complex client scenarios, using a dedicated research assistant like Feather AI gives you citation-backed answers from authoritative IRS and state sources in seconds. This ensures you can support your clients or your company with confidence and precision.