What are transaction limits in Xero?

Over the years, Xero's limits have always felt a little fuzzy.

We get asked quite frequently by companies what limits exist, so the purpose of this page is to provide those details for Canadian organizations.

Transaction limits in Xero can be broken down into the following limits: 

  • Invoicing - 1,000 per month
  • Bills - 1,000 per month
  • Bank transactions - 2,000 per month
  • Inventory items - 4,000 tracked inventory items
  • Contacts - 10,000 in total
  • Fixed assets - 500 fixed assets
  • Tracking categories - 100 for each category (max of 2 active categories)

Invoicing & Bills

Factors affecting those limits include how often you invoice during the month (all in one batch vs. sporadically throughout the month), how different the amounts are (that's an odd one) and the frequency of your sales tax reporting requirements.

So all in all, not very helpful if you're close to that 1,000 item limit.

Bank Transactions

This seems to be limited to spend and receive money transactions vs imported bank transaction lines. Xero mentions that the variability of transaction volumes and how often you invoice play a part in the limits here as well. Thanks for that Xero - super clear!

Inventory Items

If you come close to the 4,000 tracked inventory limit in Xero, you probably shouldn't be using Xero for tracking inventory. Find a system like Dear or Locate, you'll be so much happier.


This is one where a good purge could come in handy from time to time. 10,000 is a lot, but if you're auto-importing from other services, this could creep up on you quite quickly.

Fixed Assets

See comment on 'inventory items' above. There are better ways to track fixed assets than in Xero in Canada (especially if you'd like to match your tax records). Have 10-30 items? Sure. But anything over that and you're getting into 'this is becoming annoying' territory.

Tracking Categories

This is probably the question we get asked the most. In the past, we used to loath this limit, but quickly began to appreciate that nice round number. If you're managing a lot of projects, sales people, locations, types, etc and you come close to hitting that number (especially when using multi-currencies), you're going to start to experience other issues. Things like report filtering speed, not being able to fit everything on one report, trailing FX amounts for 'closed' categories, etc.

So, if you feel like this limit may be something you'll hit, it's probably time to talk about other ways to track and receive the information you'll need.


That's it for Xero transaction limits for Canadian companies. If you feel like you're outgrowing Xero, hit us up and we may be able to help you build out a process that stays within these limits, while continuing to provide you useful information each month.