The best alternatives to Xero are QuickBooks Online and Zoho Books for similarities in features and functionality. Other Xero competitors include Sage 50 for consolidating multiple companies and FreshBooks for simplicity. Here’s the complete list of providers that we believe are worthy Xero alternatives:
- QuickBooks Online: Best overall Xero alternative
- Zoho Books: Best for mobile app accounting
- QuickBooks Desktop Premier: Best for keeping the books of multiple companies
- Wave: Best free Xero alternative for basic expense tracking and invoicing
- Sage 50 Accounting: Best for preparing consolidated financial statements for multiple companies
- FreshBooks: Best for very small service-based businesses
- QuickBooks Self-Employed: Best alternative for freelancers who need simple expense tracking
- Quicken: Best alternative for individuals with a few rental properties
QuickBooks Online is our pick for the best overall small business accounting software with outstanding invoicing, bill pay, and inventory tracking. Get 50% off QuickBooks Online for three months. |
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Comparison of Top Xero Competitors & Alternatives
Pricing | Users Included | Great Invoicing | Solid Inventory Accounting | Strong Mobile App | Good Project Accounting | |
---|---|---|---|---|---|---|
$15 to $78 per month | Unlimited | ✓ | ✓ | ✕ | ✓ | |
$30 to $200 per month | 1 to 25 | ✓ | ✓ | ✓ | ✓ | |
$0 to $275 per month | 1 to 15 | ✓ | ✓ | ✓ | ✓ | |
$949 to $2,199 per year | 1 to 5 | ✓ | ✓ | ✕ | ✓ | |
Free or $16 per month | 1 or unlimited | ✓ | ✕ | ✕ | ✕ | |
✓ | ✓ | ✕ | ✓ | |||
$19 to $60 or custom pricing | ✓ | ✕ | ✕ | ✓ | ||
$20 to $40 per month | 1 | ✕ | ✕ | ✓ | ✕ | |
$3.99 to $9.99 per month (billed annually) | Unlimited | ✕ | ✕ | ✕ | ✓ | |
QuickBooks Online: Best Overall Xero Alternative
Pros
- Similar features to Xero
- Ability to track activity by class and location
- Better mobile app than Xero
- Live customer support is available
- Over 130 customizable reports
Cons
- Requires a separate subscription for each company file
- Cannot compare estimated to actual project costs
- Limitations on the number of users
QuickBooks Online has four plans. Our top-recommended plan is QuickBooks Online Plus because it has all the necessary accounting features present in Xero but at a more affordable price point than QuickBooks Online Advanced.
- Simple Start: $30 per month for one user
- Essentials: $55 per month for up to three users
- Plus: $85 per month for up to five users
- Advanced: $200 per month for up to 25 users
We chose QuickBooks Online as the overall best Xero competitor because it offers many of the same features as Xero but is more flexible in many areas, including invoicing and bank reconciliation. QuickBooks Online stands out in its ability to calculate sales tax rates automatically based on the customer address, which is something Xero can’t do. QuickBooks Online also offers more extensive customer support options, including live customer support.
Zoho Books: Best for Mobile App Accounting
Pros
- Free plan for businesses with less than $50,000 in revenue
- Phone support and live chat included in all paid plans
- Best mobile app we have found that can perform almost all accounting functions
- Integrates with Zoho Inventory for detailed inventory tracking
Cons
- Cannot manage and track fixed assets
- Limitation on the number of invoices you can send in free plan
- Requires subscription to Professional plan to track unpaid bills
Features
- Invoicing: Zoho Books offers plenty of design options and templates to create unique invoices.
- Bank reconciliation: Reconcile bank accounts by connecting your bank account (live bank feeds) or manually importing bank statements.
- Inventory management: Even without the Zoho Inventory integration, you can track the cost of inventory on hand and allocate that cost between ending inventory and the COGS.
- Mobile app: The unbeatable Zoho Books app contains all the essential features of mobile accounting, including invoicing, online payments, receipt capture, time entry, and reporting.
Zoho Books has one free plan and five paid tiers, and the features included vary by plan (discussed in detail in our Zoho Books review’s pricing section). You can try the free plan and upgrade when necessary.
- Free: Good for one user, 1,000 invoices per year, and annual revenue limit of $50,000
- Standard: $20 per month for up to three users
- Professional: $50 per month for up to five users
- Premium: $70 per month for up to 10 users
- Elite: $150 per month for up to 10 users
- Ultimate: $275 per month for 15 users
We selected Zoho Books as the best mobile accounting app because of its ability to send invoices, enter bill payments, assign expenses, record time worked, and view reports. The functionality of Xero’s mobile app is a lot better than Xero’s and even exceeds QuickBooks’ app. Zoho Books also excels with invoice customization options and its customer service. Compared to Xero, Zoho Books offers live customer support via telephone or chat in all of its paid packages. It also offers a free plan for businesses with an annual revenue of less than $50,000.
QuickBooks Desktop Premier: Best Desktop Alternative to Xero for Keeping the Books of Multiple Companies
Pros
- Manage the books for an unlimited number of companies
- Large network of independent QuickBooks ProAdvisors
- Manage inventory and calculate COGS using the average cost method
- Less expensive than Sage 50 for managing multiple companies
Cons
- Very limited mobile app
- Each user requires a separate subscription fee
- Cannot manage and track fixed assets
- Harder to share your books with an external accountant than cloud-based software
Features
- Industry-specific editions: QuickBooks Desktop Premier offers five industry-specific versions for nonprofits, manufacturers and distributors, professional service firms, contractors, and retailers. Each edition has features that cater to your industry’s accounting needs.
- Excellent project accounting: QuickBooks Desktop Premier offers more project accounting features than QuickBooks Online. You can compare budget-to-actual information in QuickBooks Desktop and assign costs to projects which QuickBooks Online can’t do.
- Subscription-based program: QuickBooks Desktop Premier now offers subscriptions instead of licenses. It means that you can get the latest features of QuickBooks Desktop while you are subscribed.
- Inventory tracking: QuickBooks Desktop Premier has more inventory features than QuickBooks Online, especially if you select the retailer edition.
Pricing for QuickBooks Desktop Premier depends on the number of users.
- One user: $949 per year
- Two users: $1,249 per year
- Three users: $1,549 per year
- Four users: $1,849 per year
- Five users: $2,199 per year
We chose QuickBooks Desktop Premier as the best desktop alternative to Xero for keeping the books of unlimited companies because of excellent project accounting and inventory tracking features. Unlike Xero, it also offers industry-specific editions, which is ideal for nonprofits, retailers, contractors, professional service firms, and manufacturers and distributors.
Also, Xero is a single-entity program, which means that it can’t manage multiple companies within a single account. QuickBooks Desktop Premier lets you set up and manage as many companies as needed without an additional fee.
Premier users also have access to a large network of QuickBooks ProAdvisors, who can assist with any issues that may come up while using the software. While Premier may have some limitations when it comes to the mobile app and sharing your books with an external accountant, it has strong inventory management features.
Wave: Best Free Alternative to Xero for Basic Expense Tracking & Invoicing
Pros
- Has a free plan (Starter) that is great for basic expense tracking and invoicing
- Able to manage up to 15 businesses under a single account
- Lets you create and send unlimited invoices
- Allows you to create recurring invoices even in the free plan
- Can handle multicurrency transactions
Cons
- Can add only one user in the free plan
- Lacks live customer support in the free plan unless you purchase an add-on
- Unable to connect bank accounts in the free version
- Has no time tracking features
- No inventory tracking
Wave has two subscription options:
- Starter: Free; includes one user and has accounting and invoicing features
- Pro: $16 per month or $170 per year; includes unlimited users and has additional features, including bank connections, free receipt capture, and live chat and email support
Add-ons:
- Bookkeeping support: $149 monthly (Starter and Pro)
- Assisted payroll: $40 monthly for tax service states and $20 monthly for self-service states plus $6 monthly per employee
- Receipt scanning: $11 per month or $96 per year (Starter only; free in Pro)
We believe that Wave Starter is the best free alternative to Xero because it offers solid expense tracking and invoicing features. Plus, its features are an ideal fit for businesses that don’t need complex accounting functions like inventory and fixed asset management. If your goal is to keep your finances in order and accounted for properly, then Wave is a good option. If you manage multiple businesses, it also lets you create up to 15 organizations in the free plan.
Sage 50: Best Alternative for Consolidating Financial Statements for Multiple Companies
Pros
- Create consolidated financial statements from multiple company files
- Strong inventory management capability
- Powerful reporting tools
- Payroll integration available
Cons
- Limited integration options
- Only available for Windows machines
- No mobile app for accounting
Sage 50 offers 40% off for new customers in the first year. You can also add Microsoft 365 Business Premium for $180 per year. The plans are as follows:
- Pro: $58.92 per month for one user (no consolidation features)
- Premium: $96.58 per month for one user to $222.25 per month for five users
- Quantum: $160 per month for one user to $409.17 per month for 10 users
The provider offers custom prices for 11 to 40 users.
We feel that Sage 50 is the best alternative for consolidating financial statements for multiple companies because of its ability to reconcile intercompany accounts and transactions with the purchase of the Premium Accounting plan. It also provides industry-specific features for construction, manufacturing, and distribution.
Included in your Sage 50 subscription is an integrated do-it-yourself payroll module. It is also user-friendly, with an interface similar to QuickBooks Desktop. However, while Xero allows for unlimited users, Sage 50 only allows up to 10 users. Xero is also a lot more affordable than Sage 50.
FreshBooks: Best for Very Small Service-based Businesses
Pros
- Excellent customer service
- All plans include beautiful unlimited invoices
- Includes time tracking and team collaboration tools
- Mobile app has GPS mileage tracker
- Client self-service portal available
Pros
- Unable to track activity by class and location
- Only one user is included with each plan—additional users can be added for a fee
- Plans limit the number of billable clients
- Cannot track inventory
- Required to establish a live bank connection or accounting for cash is unusable
All plans include one user—each additional user is $11 per month.
- Lite: $19 per month for five billable clients
- Plus: $33 per month for 50 billable clients
- Premium: $60 per month for unlimited billable clients
- Select: Custom pricing for unlimited billable clients and specialized features
We selected FreshBooks as the best Xero competitor for very small service-based businesses because of its useful features like time tracking, which help you keep track of billable hours and add them to invoices easily. You can also set up automatic recurring billings for customers and communicate with clients directly through the mobile app, a feature that Xero lacks. FreshBooks was designed for people without accounting knowledge, and therefore it is easy to set up and use.
QuickBooks Self-Employed: Best Alternative for Freelancers Who Need Simple Expense Tracking
Pros
- Client portal to track and send invoices
- Track expenses automatically
- Easier to set up and use than Wave
- Access to the mobile app with GPS mileage tracker
- Estimate and pay quarterly taxes
Pros
- Doesn’t track assets and liabilities
- Difficult to upgrade to other versions of QuickBooks Online
- No integrated payroll
- Only allows one user, plus an accountant user
QuickBooks Self-Employed is good for one user only, and there is currently a promotion where you can save 50% for three months.
- Self-Employed: $20 per month for one user
- Self-Employed Tax Bundle with TurboTax Self-Employed: $30 per month for one user
- Self-Employed Live Tax Bundle with TurboTax Self-Employed: $40 per month for one user
Intuit has released a beta version of QuickBooks Solopreneur, which costs $20 monthly and differs from the Self-Employed version in that it is intended for one-person businesses looking to organize and grow their business. It provides an improved transaction management experience, easier setup, and productivity tools.
We chose QuickBooks Self-Employed as the best Xero competitor for freelancers who need simple expense tracking because it tracks expenses automatically and sets up user-defined categories to separate personal and business expenses. As compared to Wave, this process is much more streamlined and easy to set up. QuickBooks Self-Employed also lets you track mileage and capture receipts with its mobile app.
However, while Xero lets you use its mobile app to categorize expenses from the bank feed and enter bill payments, this is not available with QuickBooks Self-Employed. If you need to estimate and pay quarterly taxes, it streamlines this process as well. Its new version, QuickBooks Solopreneur, has been beta-tested and promises an even better user experience.
Quicken: Best Alternative for Individuals With a Few Rental Properties
Pros
- Powerful budgeting capability
- Able to manage both personal finances and rental properties
- Easy to use with a robust feature set
- Bill pay feature available
Cons
- Only available as a download for your computer
- Not a double-entry accounting system
- No way to track and manage payroll
Prices for each plan are the same for both Windows and Mac versions. The Mac version does not offer a Home & Business plan:
- Deluxe: $3.99 per month, billed annually
- Premier: $6.99 per month, billed annually
- Home & Business: $9.99 per month, billed annually
We selected Quicken as one of the best alternatives to Xero, specifically for individuals with a few rental properties because you can manage both your personal finances and rental properties in one place. In comparison to Xero which doesn’t offer tenant management features, Quicken allows you to track documents, loans, and bank accounts while it also lets you manage your contacts, rental agreements, and security deposits. Quicken also offers document storage and a powerful budgeting capability, two more features that Xero lacks.
How We Evaluated Xero Competitors
We evaluated Xero alternatives using a case study we developed to assess the products we recommend objectively. There are several categories in this case study.
5% of Overall Score
Software is rated based on its price for various levels of users, including one, three, and five users. It is also awarded points if it offers a free trial or discount for new users and if monthly vs annual plans are available.
53% of Overall Score
10% of Overall Score
5% of Overall Score
A good mobile app should be able to perform all the same functions as the computer interface.
20% of Overall Score
7% of Overall Score
We include the average user review score for each software collected from large third-party websites dedicated to the collection of user reviews, such as Software Advice, SourceForge, and G2.
Choosing the right accounting software for your business is crucial for effective financial management. Here are some considerations to help you make an informed decision:
- Business needs: Identify your specific accounting needs, considering factors such as the size of your business, the complexity of your financial transactions, and the number of users who will need access to the software.
- Budget constraints: Determine your budget for accounting software. Some applications are free or have a low monthly subscription, while others may be more expensive. Consider the value the software provides in relation to its cost.
- Scalability: Choose software that can grow with your business. It should be scalable to accommodate an increasing volume of transactions and users.
- User-friendliness: Look for accounting software that is user-friendly and easy to navigate. If you or your team find the software too complex, it may lead to errors or inefficiencies in your financial management.
- Integration with other systems: Consider whether the accounting software integrates with other tools or software you use in your business, such as payroll systems or ecommerce platforms. Integration can streamline processes and reduce data entry.
- Customer support: Evaluate the level of customer support available from the software provider. Reliable customer support can be crucial when you encounter issues or have questions about using the software.
- Features and functionality: Evaluate the features offered by different accounting software. Common features include invoicing, expense tracking, financial reporting, payroll processing, and inventory management. Choose software that aligns with your business requirements.
- Reviews and recommendations: Read reviews from other businesses similar to yours and seek recommendations from peers or industry associations. This can provide insights into the real-world performance of the accounting software.
Switching to a new accounting software platform can be a significant undertaking, but with careful planning and execution, it can be a smooth process. Here are steps to guide you through the transition:
- Step 1: Evaluate your current system. Assess your current accounting system to understand the data you need to migrate and the features you require in the new system. Identify any customizations or integrations you may have.
- Step 2: Set clear objectives. Define your goals for switching to a new accounting software platform. Whether it’s improving efficiency, gaining new features, or reducing costs, having clear objectives will guide your decision-making process.
- Step 3: Research and choose the new software. Based on your evaluation and objectives, research and select the new accounting software that best suits your business needs. Consider factors like scalability, user-friendliness, features, and integration capabilities.
- Step 4: Back up data. Before making any changes, ensure you have a complete and secure backup of your existing financial data. This is crucial in case of any issues during the transition.
- Step 5: Plan for data migration. Work closely with the new software provider to plan and execute the data migration. This may involve importing existing financial data, customer information, vendor details, and other relevant records. Ensure that the data is accurate and complete.
- Step 6: Train your team. Provide comprehensive training sessions to familiarize users with the features and functionalities of the new platform. This can help minimize disruptions to daily operations.
- Step 7: Go live. Once you are confident that the new accounting system is ready, schedule the transition. This may involve a weekend or off-peak hours to minimize disruption to regular business activities.
- Step 8: Monitor and troubleshoot. Monitor the system closely after the transition and be prepared to address any issues promptly. Provide additional training or support as needed.
Frequently Asked Questions (FAQs)
No, Xero is more popular in New Zealand, Australia, and the United Kingdom. QuickBooks is far more well-known and popular than Xero in the US.
Xero includes unlimited users in all of its plans. If you need to add many people to the software but don’t want to pay per user, Xero is the most flexible option.
Xero’s biggest competitor is QuickBooks Online, which provides strong customer service and a comprehensive bank reconciliation feature as well as an easy-to-use interface. Other competitors include Zoho Books, FreshBooks, and Wave.
Xero’s prices range from $15 to $78 per month, and the price depends on the number of bills and invoices you process per month. Each plan offers unlimited users.
Bottom Line
In our Xero review, we highlighted its powerful features, such as inventory and project accounting. However, there are many other areas of accounting and business where Xero isn’t the best option. For instance, if customer service is important to you, choose FreshBooks. If you want a mobile app that’s better than Xero, pick Zoho Books.
If you have trouble finding a Xero Advisor, it might be time to switch to QuickBooks Online. If you want a free alternative, there’s Wave. Overall, the best alternative to Xero depends on your budget, the intricacies of your industry, and the specific features you need.