When you want to stay on top of your finances and bookkeeping in your business. In many cases, accounting software is incredibly pricey, so what should a small business do if it wants to be in control of its finances and keep it relatively cheap? Xero may offer a great option.
Xero, based in New Zealand, offers cloud-based accounting solutions for small businesses. If you’re looking for a way to keep track of your business’s banking and accounting.
But what if you’re looking for an alternative to Xero? We’ll walk through eight fantastic options to Xero in this article.
- Zoho Books: Best overall Xero alternative
- QuickBooks Online: Best Xero alternative with an enormous network of independent bookkeepers and advisors
- QuickBooks Desktop: Best desktop software alternative to Xero
- Sage 50cloud Accounting: Best Xero alternative for users needing to consolidate multiple companies
- FreshBooks: Best Xero alternative for outstanding customer service
- Wave: Best free Xero alternative
- QuickBooks Self-Employed: Best alternative for freelancers needing simple expense tracking
- Quicken: Best alternative for individuals with a few rental properties
Xero vs Alternative
| Software | Pricing | Free trial | Features |
| Zoho Books | Standard: $15 for three users; Professional: $40 for five users; Premium: $60 for 10 users; Elite: $120 for up to 10 users; Ultimate: $240 for up to 15 users | 14-day free trial | Offers invoicing with quotes, bank reconciliation, purchase order and expense management, tax management, and integration with hundreds of third-party applications |
| QuickBooks Online | Simple Start: $15 per month for one user;Plus: $45 per month for multiple users;Advanced: $100 per month | 30-day free trial | Offers income and expense tracking, receipt capture and organization, maximizing tax deductions, mileage tracking, cash flow management, unlimited invoices and payment acceptances, general reports, creating and sending estimates, tracking sales and sales tax, managing 1099 contractors, comprehensive report running, sales channels for e-commerce bill pay management, and more |
| QuickBooks Desktop | QuickBooks Desktop Pro for one user: $41 per month; QuickBooks Desktop Pro for three users: $84 per month;QuickBooks Desktop Pro Plus Payroll for one user: $87 per month plus $4 per employee per month;QuickBooks Desktop Pro Plus Payroll for three users: $130 per month plus $4 per employee per month | 30-day free trial | Automates billing and invoicing and work order management, automated payments and deposits from a linked bank account with a comprehensive accounting software application, including accounts payable and receivable, project accounting, expense and payroll management |
| Sage 50cloud Accounting | Sage 50cloud Pro Accounting: $578 per year; Sage 50cloud Premium Accounting: $824 per year;Sage 50cloud Quantum Accounting: $1,368 per year | 30-day free trial | Invoice and bill tracking, purchase orders, expense management, bank reconciliation, inventory, job management, purchase and change orders, advanced budgeting and reporting, inventory tracking for multiple companies, creates, sends and tracks invoices, tracks money owed, and mobile options |
| FreshBooks | Lite: $8.50 per month plus $11 per team member per month;Plus: $15 per month plus $11 per team member per month;Premium: $27.50 per month plus $11 per team member per month;Select: Talk to the company for more information about pricing | 30-day free trial | Double-entry accounting tools, profitability, cash flow health, and access to spending details and outstanding customer service |
| Wave | Invoicing: Free;Accounting: Free;Payments: 2.9% + 60 cents per credit card transaction, 3.4% + 60 cents per Amex transaction, 1% per transaction for bank statements;Mobile receipts: $8 per month or $72 annually; Payroll: $40 per month for tax service states plus $6 per active employee or independent contractor paid, $20 for self service states plus $6 per active employee or independent contractor paid;Advisors: $149 per month for bookkeeping support and $379 one-time fee for accounting and payroll coaching | Free | Create customized invoices for your brand, income and expense tracking, unlimited partners, collaborators, or accountants; unlimited bank and credit card connections and reports, can pay via bank deposit, credit card, and Apple Pay, recurring billing and payments for retainer clients, advantage of unlimited receipt scanning, access to paystubs and tax forms and easy access to important tax forms and documents, bookkeeping coaching, and more |
| QuickBooks Self-Employed | Self-Employed: $10 per month;Self-Employed Tax Bundle: $15 per month;Self-Employed Live Tax Bundle: $20 per month | 30-day free trial | Track mileage, sort expenses, organize receipts, run reports, estimate taxes, file taxes, and more |
| Quicken | Simplifi by Quicken: $2.39 per month;Quicken Home and Business: $5.99 per month;Quicken Premier: $4.19 per month;Quicken Deluxe: $2.99 per month | No free trial | Financial accounts in a single dashboard, downloadable and categorizing transactions, personalized budget, track progress, manage personal and business finances together and separately, track and grow your investment portfolio, maximize tax benefits with built-in tax reports, connects your banking, credit cards, loans, investments; project different scenarios for loans, and more |
8 Best Xero Alternatives
We’ve compiled the best Xero alternatives, complete with features, pros, cons, price, and plans for each option. Consider exploring free trials (if offered) for each to help you decide whether you’ve found the best Xero alternative.
Zoho Books: Best Overall Xero Alternative
Xero, an online accounting software platform for small businesses, offers invoicing with quotes, bank reconciliation, purchase order and expense management, tax management, and integration with hundreds of third-party applications.
pros
- Integrates with hundreds of third-party applications
- Clear overview of accounts payable and cash flow
- Excellent expense management tools
cons
- Some users report long wait times on customer service
- Feature limitations
Price
- Standard: $15 for three users
- Professional: $40 for five users
- Premium: $60 for 10 users
- Elite: $120 for up to 10 users
- Ultimate: $240 for up to 15 users
Plans
- Standard plan: The Standard plan offers recurring expenses, project tasks, payment gateways, phone and live chat customer service and other integrations.
- Professional plan: The Professional plan offers retainer invoices, bills, recurring bills, stock trading, and more.
- Premium and Elite plans: For larger businesses, these plans offer more customization options, like custom fields and reports and a vendor portal. Elite offers advanced inventory controls and a Shopify integration.
QuickBooks Online: Best Xero alternative with an enormous network of independent bookkeepers and advisors
QuickBooks Online is a premier choice for small business accounting and one of the most compelling Xero competitors. It offers a wide range of features for growing companies. It can throw you for a loop if you didn’t major in accounting in college, but it’s a solid choice because of its patented support, app integration, reporting, and more.
pros
- Expert support for inventory management
- Excellent app integration
- Great record keeping and reporting capabilities
- Expert customers service
cons
- Limited number of users
- Difficult to learn the interface
Price
- Simple Start: $15 per month for one user
- Plus: $45 per month for multiple users
- Advanced: $100 per month
Plans
- Simple Start: Free guided setup, income and expense tracking, receipt capture and organization, maximizing tax deductions, mileage tracking, cash flow management, unlimited invoices and payment acceptances, general reports, creating and sending estimates, tracking sales and sales tax, managing 1099 contractors, and one sales channel for e-commerce.
- Plus: Plus offers the same perks as the Simple Start plan, plus comprehensive report running, all sales channels for e-commerce, ability to enter time, bill pay management, project profitability tracking, and inventory tracking.
- Advanced: Advanced offers the same perks as Plus as well as invoice batching and expenses, business analytics with Excel, managing employee expenses, enhanced custom fields, exclusive app integrations, 24/7 support, on-demand online training, automated processes and tasks, restore company data, and revenue recognition.
QuickBooks Desktop: Best desktop software alternative to Xero
QuickBooks Desktop is another of the Xero accounting alternatives on our list. The company automates billing and invoicing and work order management. You can make automated payments and deposits from a linked bank account with a comprehensive accounting software application, including accounts payable and receivable, project accounting, expense and payroll management within its collection.
pros
- Excellent accounts receivable tracking
- Customizable reports
- Document trail for purchases
- Straightforward pricing
cons
- Pricey option; costs continue to rise
- No free trial
Price
- QuickBooks Desktop Pro for one user: $41 per month
- QuickBooks Desktop Pro for three users: $84 per month
- QuickBooks Desktop Pro Plus Payroll for one user: $87 per month plus $4 per employee per month
- QuickBooks Desktop Pro Plus Payroll for three users: $130 per month plus $4 per employee per month
Plans
- QuickBooks Desktop Pro for one user: This plan creates professional invoices, tracks sales and expenses, manages accounts payable, and offers one-click sales and tax reports.
- QuickBooks Desktop Pro for three users: Offers the same options as QuickBooks Desktop Pro for one user.
- QuickBooks Desktop Pro Plus Payroll for one user: This plan offers the ability to create professional invoices, sales and expense tracking, accounts payable management, one-click sales and tax reports, can quickly pay employees, and can easily remit payroll taxes.
- QuickBooks Desktop Pro Plus Payroll for three users: Offers the same options as Desktop Pro Plus Payroll for one user.
Sage 50cloud Accounting: Best Xero alternative for users needing to consolidate multiple companies
Sage 50cloud offers desktop accounting software with the flexibility of the cloud. The company boasts faster payments, bilingual UI, and Microsoft 365 integration.
pros
- Analyze real-time reporting
- Run what-if scenarios as often as you need
- Detailed breakdowns of cash-in and cash-out
cons
- More expensive than other accounting options
Price
- Sage 50cloud Pro Accounting: $578 per year
- Sage 50cloud Premium Accounting: $824 per year
- Sage 50cloud Quantum Accounting: $1,368 per year
Plan
- Sage 50cloud Pro Accounting: For one user, this plan includes a wide variety of features: invoice and bill tracking, purchase orders, expense management, bank reconciliation, inventory, job management, and more.
- Sage 50cloud Premium Accounting: For one to five users, you’ll get all the same perks as Pro, plus purchase and change orders, advanced budgeting and reporting, inventory tracking for multiple companies, and more.
- Sage 50cloud Quantum Accounting: Quantum Accounting allows up to 40 users. You get the same benefits as Pro and Premium, but it also creates, sends and tracks invoices, tracks money owed, and offers excellent mobile options.
FreshBooks: Best Xero alternative for outstanding customer service
FreshBooks’ double-entry accounting tools and reports show the gamut of everything you could possibly need: profitability, cash flow health, and details of your spending. Xero also offers outstanding customer service, with over 100 Support staff working across North America and Europe.
pros
- Automated payment reminders
- Time tracking makes it easy for teams to log time and add to invoices
- Easily track every dollar in and out of your business
cons
- Limits for large companies
- Must pay per team member
Price
- Lite: $8.50 per month plus $11 per team member per month
- Plus: $15 per month plus $11 per team member per month
- Premium: $27.50 per month plus $11 per team member per month
- Select: Talk to the company for more information about pricing
Plans
- Lite: Unlimited invoices to up to five clients, offers unlimited expense tracking and estimates, credit card and bank transfer payments, and tax time reports.
- Plus: You get the same perks as Lite, plus automatic expense tracking and receipt data capture, unlimited estimates and proposals, recurring bills and client retainer setup, and business health/financial/accounting reports. You can also invite your accountant and get mobile mileage tracking and unlimited invoices to up to 50 clients.
- Premium: The Premium plan offers the same as that in Plus, in addition to unlimited invoices to unlimited numbers of clients, bill tracking, bill payments, project profitability tracking, and customized email templates/signatures. Also, you’ll get automatic expense tracking, bill capture, receipt data, late payment, and late fee reminders.
Wave: Best free Xero alternative
Wave accounting allows a wide number of options, whether you’re accepting online payments or using accounting tools. Wave’s suite of money tools lets you do it all seamlessly as one of the few Xero alternatives free of charge.
pros
- Professional-looking invoice options
- Faster payments
- Free accounting features
cons
- Difficult to scale
- Limited customer service options
Price
- Invoicing: Free
- Accounting: Free
- Payments: 2.9% + 60 cents per credit card transaction, 3.4% + 60 cents per Amex transaction, 1% per transaction for bank statements
- Mobile receipts: $8 per month or $72 annually
- Payroll: $40 per month for tax service states plus $6 per active employee or independent contractor paid, $20 for self service states plus $6 per active employee or independent contractor paid
- Advisors: $149 per month for bookkeeping support and $379 one-time fee for accounting and payroll coaching
Plans
- Invoicing: Create customized invoices for your brand.
- Accounting: Take advantage of income and expense tracking, unlimited partners, collaborators, or accountants; unlimited bank and credit card connections and reports.
- Payments: Can pay via bank deposit, credit card, and Apple Pay and get your money in as fast as as a business day. The Payments plan includes recurring billing and payments for retainer clients.
- Mobile receipts: You can take advantage of unlimited receipt scanning, importing 10 receipts at a time and accessing expense information digitally; track business spending without the need for manual bookkeeping, and keep accurate books and reports for tax prep.
- Payroll: Pays employees and contractors, deposit payments into employee’s bank accounts, gives employees access to paystubs and tax forms and easy access to important tax forms and documents.
- Advisors: Finally, get coaching from bookkeeping, accounting, and payroll experts year-round, not just during tax time.
QuickBooks Self-Employed: Best alternative for freelancers needing simple expense tracking
QuickBooks is an ubiquitous name in the accounting world, and QuickBooks Self-Employed doesn’t disappoint among Xero accounting competitors. You can track mileage, sorts expenses, organizes receipts, runs reports, estimates taxes, file taxes, and more.
pros
- Comprehensive mileage tracking
- Tax tools created with freelancers and other solopreneurs in mind
- Easy-to-use interface
cons
- No extended bookkeeping features
- Only one user can gain access
Price
- Self-Employed: Basic bookkeeping tools for $10 per month
- Self-Employed Tax Bundle: Offers Intuit TurboTax Self-Employed for $15 per month
- Self-Employed Live Tax Bundle: Offers Intuit TurboTax Live Self-Employed for $20 per month
Plans
- Self-Employed: Offers separate business and personal expenses, maximizing your Schedule C deductions, quarterly estimated taxes calculated automatically, and automatic mileage tracking.
- Self-Employed Tax Bundle: Offers the same options as the self-employed plan, but also allows paying quarterly estimated taxes online directly from QuickBooks, easily transferring information to TurboTax and one state and one federal tax return filing.
- Self-Employed Live Tax Bundle: You get the same perks as the Self-Employed Tax Bundle as well as the option to talk to a real CPA when you need, get unlimited help and advice all year and having a CPA do a final review of your return.
Quicken: Best alternative for individuals with a few rental properties
If you’re a rental property owner, Quicken offers a great opportunity through its plans. All relatively affordable, they offer a comprehensive accounting resource for small businesses (especially for those who manage properties).
pros
- Great option if you own rental properties
- Can manage your money and see where it goes
- Clean, smooth interface
- Can manage and pay your bills from one convenient place
cons
- Subscription model instead of a one-time price
- Not as much flexibility with third-party integrations compared to other options
Price
- Simplifi by Quicken: $2.39 per month
- Quicken Home and Business: $5.99 per month
- Quicken Premier: $4.19 per month
- Quicken Deluxe: $2.99 per month
Plans
- Simplifi by Quicken: Financial accounts in a single dashboard, downloadable and categorizing transactions, personalized budget, track progress through savings goals, timely insights and notifications.
- Quicken Home and Business: You can manage personal and business finances together and separately, get built-in Schedule C & E tax reports, P&L, cash flow, manage tenants, payments, expenses, lease terms, rates, deposits, and store business and rental property documents.
- Quicken Premier: Quicken Premier allows you to track and grow your investment portfolio, maximize tax benefits with built-in tax reports. You can also track and pay your bills from Quicken and get priority access to customer support.
- Quicken Deluxe: Quicken Deluxe connects your banking, credit cards, loans, investments, and property. You can track your monthly bills, manage and grow your savings, create a customized 12-month budget, and ensure spending matches your goals. You can project different scenarios for loans and investments, create customized views and use built-in calculators to plan ahead.
How We Evaluated Xero Alternatives
How did we evaluate companies that made our list? Let’s take a look.
We evaluated a dozen companies by taking a bird’s-eye view of each company, including the pros, cons, price, and plans. We put each of those factors under the microscope, analyzing the pros and cons side by side as well as the price of each plan. Additionally, we evaluated the divergence of offerings between price points relevant to each bundled package.
We also looked at reviews users and subscribers left for each accounting option. We looked at Better Business Bureau reviews and other reviews to determine the trustworthiness of each company.
FAQs
What is the best free alternative to Xero?
There’s no one “best” free alternative to Xero. Reviewing your business and personal requirements to decide on the best small business alternative is important. Many companies offer a free trial to get a feel for each option. Consider taking advantage of the free trial for a handful of options.
