Best Xero Alternatives will be discussed in this article. Xero is a popular name in the accounting software industry, praised for its scalable nature, a large selection of features, and ease of use. If you’re on the quest for the multiple suitable Xero alternatives, the good news is there are many Xero competitors available on the market. Even though Xero is an excellent tool, it has some downsides. For example, many of the advanced features are reserved for the most expensive plan, and there’s no live phone support.
Here are the software like Xero that we think are the best Xero alternatives. Although they are all fairly similar, some Xero competitors will be better suited to your circumstances than others, so read more about the Xero competition below.
In the following section, we’ll explore the best Xero alternatives and mention what makes each tool a suitable replacement. You’ll find out which tool is most similar to Xero and which of the tools you should opt for if you’re a freelancer, independent contractor, or a small business.
Top 10 Best Xero Alternatives In 2023
In this article, you can know about Xero Alternatives here are the details below;
1. Zoho Books (best Xero alternative overall)
Upon first look, Zoho Books looks similar to Xero. It comes with all the features small and medium-sized companies need, like invoicing, expense tracking, estimates, online payments, automated workflows, and advanced reporting.
Zoho Books is better than Xero because it comes with a free plan, unlike Xero, which only has a 30-day trial. Zoho lets you choose between five monthly plans, and Xero has three. Zoho Books is the best alternative to Xero because it has more payment gateway options than other accounting tools.
The software lets you accept payments from payment gateways such as Paypal, Stripe, Square, Worldpay, Forte, and WePay. It’s also one of the most suitable solutions for selling physical products, as it comes with robust inventory management and sales features.
If you’re functioning with an accountant, you can give them access to the system so they can balance your books and prepare your taxes. You can even collaborate with clients directly on invoices and estimates, as Zoho has a client portal functionality. Zoho Books offers nonprofit companies a 15% discount on the original pricing.
Zoho Books is best for:
- Startups
- Small businesses
- Medium-sized companies
- eCommerce businesses
Features
- Invoices
- Templates
- Expenses
- Estimates
- Bills
- Client portal
- Banking
- Online payments
- Projects
- Sales orders
- Sales tax
- Inventory
Pricing
- Free
- Standard: $15 /month billed annually
- Professional: $40 /month billed annually
- Premium: $60 /month billed annually
- Elite: $120 /month billed annually
- Ultimate: $240 /month billed annually
2. Wave (best free Xero alternative)
Wave is one of the best free Xero alternatives as its basic software’s completely free. Paid features include payroll and customer payments. The free plan lets you send invoices, recurring invoices, and payment reminders. You’ll also get unlimited income and expense tracking, unlimited bank and credit card connections, and unlimited partners, collaborators, or accountants.
Another thing Wave has in its favor is the incredible ease of use. If you’re an absolute beginner with no experience in accounting systems, Wave is a great app to start. The software has a clean & user friendly interface that makes it easy to steer the system. There’s also a dedicated invoicing mobile app to keep you going on the go.
Wave is best for:
- Freelancers
- Self-employed contractors
- Startup owners
- Small business entrepreneurs
Features
- Invoicing
- Accounting
- Banking
- Payments
- Payroll
- Advisors
Pricing
- Invoicing features: $0
- Accounting features: $0
- Banking features: $0
- Credit card payments: starts at 2.9% + $0.6 per transaction
- Bank payments: 1% per transaction
- Payroll: starts at $20
- Advisors: starts at $149
3. QuickBooks Online (most similar to Xero)
QuickBooks Online is one of the multiple famous names in the business accounting software industry. We voted it the most similar to Xero for several reasons. Like Xero, QuickBooks Online is also an excellent choice for SMBs and growing companies as it has an extensive suite of features, ranging from bill management and project profitability to inventory management and cash flow planner.
In terms of pricing, QuickBooks is slightly more expensive than Xero, although it offers a promotional 50% markdown on all plans for the first three months. Both software solutions don’t have a free plan.
Where QuickBooks Online is even better than Xero is that it belongs to a larger family of QuickBooks products that all work seamlessly with one another, including QuickBooks Online Accountant, QuickBooks Online Payroll, and QuickBooks Payments.
QuickBooks Online is best for:
- Startups
- Small businesses
- Medium-sized businesses
- Freelancers
Features
- Invoicing
- Income and payments
- Expenses
- Sales tax
- Bill management
- Estimates
- Cash flow planner
- Reports
- Project profitability
- Inventory management
- Timesheets
- Mobile apps
- Mileage tracking
Pricing
- Simple Start: $15 /month for the sooner three months, then $30
- Essentials: $27.50 /month for the rather three months, then $55
- Plus: $42.50 /month for the rather three months, then $85
- Advanced: $100 /month for the sooner three months, then $200
- Self-employed for freelancers: $7.50/month for the first three months, then $15
4. Crunch (good Xero alternative if you want access to expert accountants)
We voted Crunch as a good Xero alternative if you need access to expert accountants. Crunch is the only software platform on this list that supplies qualified accountants in-house. What’s unique about Crunch is that you’ll get software and service in one beautiful package.
The software includes excellent features like invoices, expenses, banking, bank reconciliation, and online payments (soon to be released). But Crunch also offers a range of services included in your paid subscription or available for a one-time fee.
For instance, Crunch can educate you about tax relief options, help with your registration for taxes, register your company for you, and more.
One downside is that it’s only available for UK-based businesses. Users of the free plan can access features like unlimited invoices, expense management, estimates, receipt scanning, open banking, and bank reconciliation.
The paid plans give access to some more advanced features and free services like unlimited accountancy support, year-end accounts, a real-time tax dashboard, a dedicated account manager, and in-app customer support.
Crunch is best for:
- Freelancers
- Independent contractors
- Sole traders
- Startups
- Small businesses
- UK-based businesses
Features
- Invoices and quotes
- Expenses
- Receipt scanning
- Banking
- Tax and VAT
- Integrations
- Reporting
- Ask an accountant
- Company formation
- Bookkeeping
- Payroll
Pricing
- Free: £0/month
- Sole Trader Pro: £24.50+VAT/month
- Unlimited Company Pro: £41.50+VAT/month
- Limited Company Premium: £121.50+VAT/month
- Small Business: £206.50+VAT/month
5. myBooks: cheaper alternative to Xero if you’re on a budget
If you’re looking for a inexpensive alternative to Xero, take a look at myBooks. The software is built by the Indian software company Zetran, which has several products under its belt, including financial planning software and HR management software. myBooks has a generous free plan that supports one user and allows for up to 25 monthly transitions.
There are two paid plans, Standard and Premium. The Standard plan costs only $4.99 per month and comes with additional features like three users, 100 monthly transactions, payment integration, and an iOS app. The Premium plan contains the full features of the software, introducing more advanced features like ten users, unlimited transactions, and automatic bank feeds.
MyBooks is best for:
- Freelancers
- Startups
- Small businesses
Features
- Payment Integration
- Multi-Division/Branch
- Transactions
- Profitability Analysis
- Priority Support
- Automatic Bank Feed
- SMS Integration
- Purchase Order
- Android & IOS app
- Pricing
- Free plan
- Standard, $4.99 /month billed annually
- Premium, $9.99 /month billed annually
6. Freshbooks (good option for freelancers and independent contractors)
Freshbooks might be an amazing alternative to Xero if you’re a freelancer or independent contractor. It’s intuitive and easy to use, making it among the top Xero alternatives for beginners in the accounting software industry.
Some of the features you’ll find include creating and sending invoices, managing clients and projects, tracking billable time, project management, and accepting online payments. Accounting features include balance sheets, accounts receivable and payable, and general ledger tools.
One downside is that Freshbooks doesn’t have a free version, but its cheapest plan will cost you only $13.50 /month, billed annually. There are four subscription levels in total, running from $13.50 /month to $45 /month. You’ll also get a 10% discount if you opt for an annual subscription.
Online payments work through Freshbooks’ own payment function called WePay. The service costs 2.9% plus 30 cents per transaction. You can accept payments through other gateways like Stripe and Paypal.
Freshbooks is best for:
- Freelancers
- Independent contractors
- Solopreneurs
- Small business owners
Features
- Invoicing
- Time tracking
- Expenses
- Clients
- Payments
- Projects
- Estimates and proposals
- Accounting and reports
- Add-ons
Pricing
- Lite: $13.50 /month billed annually
- Plus: $22.50 /month billed annually
- Premium: $45 /month billed annually
- Select: contact vendor for pricing
7. Sage Accounting (top Xero replacement for startups)
Sage Accounting can be a top Xero replacement for startups, as well as for solo entrepreneurs. The software is a wonderful starting point for businesses that need a more lightweight cloud accounting solution and limited budgets.
There are two paid plans you can opt for, including Sage Start, that’s available for only $10 per month, and Sage Accounting Standard, which costs $25 per month. The former paid plan is suitable for self-employed individuals and micro-businesses, while the latter is geared towards small businesses.
And if your business eventually grows, there are two other Sage accounting products you can transfer your business to, Sage 50cloud and Sage Intacct. The most notable features of Sage Accounting are invoices, estimates, expenses, billing, accounts payable and receivable, and cash flow forecasting.
Sage Accounting is best for:
- Startups
- Solopreneurs
- Freelancers
- Features
- Invoices
- Billing
- Snap receipts
- Accounts payable
- Cash flow forecasting
- Purchase invoicing
Pricing
- Sage Accounting Start, $10 /month
- Sage Accounting Standard, $25 /month
8. ZipBooks (great Xero substitute for small agencies)
ZipBooks made it to our list as the best Xero substitute for small agencies and contractors. The software is easy to utilize, has an extensive set of features, and is very affordable. But there are other items that make it a suitable choice for agencies.
There’s a special subscription level called Accountant that comes with all the features small accounting agencies need to manage their clients. You’ll be able to text clients directly from ZipBooks, track time across client accounts, export financial packages, edit transactions in bulk, manage clients from one central dashboard, and more.
Features like smart insights and reports can come in handy for retaining your most profitable clients, getting paid on time, and seeing how you’re doing compared to competitors. There’s some automation functionality built-in that lets you automate everything with auto-billing and automated payment reminders.
ZipBooks is best for:
- Self-employed
- Startups
- SMBs
Features
- Invoicing
- Accounting
- Expenses
- Time tracking
- Payments
- Estimates
- Projects
- Reports and insights
- Integrations
Pricing
- Free
- Smarter: $15 /month
- Sophisticated: $35 /month
- Accountant: Contact vendor
9. Kashoo (top option for small businesses)
Small companies have a plenty to gain from Kashoo, especially if they care about affordability, ease of use, and a generous set of features. The good news is that Kashoo has some great functionality like unlimited users, online payments, inventory management, and bill management.
You’ll also be able to associate expenses or income with a project, which can be handy if you’re dealing with better than a few clients. Another good-to-have functionality is the multi-currency feature that can be quite useful if you’re working with clients that live outside of the US or Canada.
There is also a good deal of financial reports and statements that let you keep track of your financial fitness so that you can make better business decisions. Clients can pay their invoices online via payment providers like Visa, MasterCard, and American Express.
But recognize that if you want to utilize the online payments feature, you must first sign up for an account for Kashoo’s credit card processor, WePay.
Kashoo is best for:
- Freelancers
- Startups
- Small businesses
Features
- Invoicing and payments
- Income and expenses
- Bills
- Reports
- Bank reconciliation
- Banking
- Mobile app
- Users and account management
- Projects
Pricing
- $30 /month
10. FreeAgent (good Xero alternative for unlimited everything)
At first glance, FreeAgent may look like any other online accounting system. It comes with standard invoicing, expense tracking, and banking functionalities. But the secret is that FreeAgent is completely unqualified.
You can have as many users, clients, & projects as you like at no extra cost. And the most useful part is that you’ll get all of this functionality for only $20 per month. You’ll also get a 50% discount for the first six months.
In case you ever cancel your subscription to FreeAgent, you’ll be able to download all of your data at any time for free. If you’re UK or EU, you’ll be happy to hear FreeAgent has great VAT support.
FreeAgent is best for:
- Small businesses
- Medium-sized businesses
- European-based businesses
Features
- Estimates
- Invoices
- Expenses
- Time tracking
- Dashboard
- Banking
- Projects
Pricing
$10 /month for six months, then $20 /month
Which of the alternatives to Xero is a good choice for you?
In this post, we voted Zoho Books as one of the best alternatives to Xero for its free plan option, a large selection of payment gateways, and ease of use. Zoho Books might fit the bill and be a top-notch option for many businesses. However, Zoho Books can’t fit everyone’s bill. Other options like ZipBooks or QuickBooks might be more suitable for some of you.
Let’s summarize our findings so that you can easily decide on the best accounting software for your business. Wave is an excellent choice if you’re working with a tight budget and need a capable but free solution. Freshbooks is designed with freelancers and independent contractors in mind, while ZipBooks has a monthly plan tailored to fit the needs of small accounting agencies.
The most reasonable approach here is to think about your needs and your budget. Then, take advantage of these accounting solutions’ free plans or trials before deciding. If you need further reading resources, we have a separate post that discusses the best software for accounting.
