6 Xero Alternatives & Competitors to consider in 2024
Accounting and bookkeeping are essential for business success, especially for online businesses where invoice tracking and budgeting can be daunting tasks. With that being said, whilst many SaaS platforms specialize in sales, marketing and collaboration, there is a shortage of SaaS platforms that specialize in accounting and book-keeping.
This is why Xero has become so popular amongst small businesses and online startups. Xero gives you the tools to make bill payments, manage expenses and track inventory. Xero also allows you to accept payments, and it can be used to set-up bank feeds and track projects. Xero also has data management tools, and it can be used for reporting and invoicing. Xero also has a dashboard that can be used to manage fixed assets. Xero also has convenient data capturing tools, and it can be used to handle purchase orders and multi-currency transactions.
Indeed, Xero offers many tools that can be used to streamline your accounting and bookkeeping processes. However, issues with scheduling and reconciliation tools can make the software provider problematic for many users. Luckily, we have a list of viable alternatives that you can use, in case Xero is not suitable for you.
The best alternatives are:
(We mention the hidden gems ? on top of our list, to give them more exposure, over the already popular ones)
QuickBooks
QuickBooks provides convenient accounting and bookkeeping tools that can be used to track expenses and payments. QuickBooks can also be used to manage payrolls and inventory, and it can be used for budgeting and quotations. QuickBooks can also be used for reporting and taxation, and it comes with an advanced analytics dashboard. QuickBooks also has tools to help with order-reconciliation and invoicing.
Pros
✔️ Advanced inventory management features, with multi-channel tracking and stock-adjustment tools
✔️ Versatile payroll management tools, with penalty protection and time-tracking features
✔️ Robust time-tracking and collaboration tools for project managers
✔️ Streamlined user dashboard to manage expenses and consolidate data from multiple channels
Cons
❌ Paypal features have many limitations
❌ Data-export functions need to be improved
Pricing
💰 Free trial plan available
💰 Simple start plan- $12.5 per month
💰 Essentials plan- $25 per month
💰 Plus plan- $40 per month
💰 Advanced plan – $90 per month
💰 Customized pricing plans for users who are looking for add-ons
Best known for
Xero is best known for its payroll features. With Xero, you can set up automated payroll transactions and file payroll taxes with ease. Xero offers same-day direct deposits, and it has features that can be used to manage employee benefits. Xero also offers tax-penalty protection, and it can be used to track and manage timesheets. Xero also enables you to file automated tax forms.
FreshBooks
FreshBooks gives you the tools that you need to maintain your accounts and create professional looking invoices. With FreshBooks, you can easily track expenses and make payments, and you can easily create proposals and estimates as well. If you or your business owns vehicles, then you can use FreshBooks’ time and mileage tracking features to monitor your vehicles as well. FreshBooks also has a flexible mobile app, and it can be used for project management and reporting.
Pros
✔️ Unique mileage tracking features that are specifically designed for transport and logistics businesses
✔️ Flexible mobile app with in-built collaboration and invoicing tools
✔️ Robust tools to create proposals and finalize deals
✔️ Advanced project management dashboard, with seamless tracking features
Cons
❌ Analytical features need to be improved
❌ Receipt scanning features are restricted based on user location
Pricing
💰 Free trial plan available
💰 Lite plan- $6 per month
💰 Plus plan- $10 per month
💰 Premium plan- $20 per month
💰 Customized pricing plans for enterprise users
Best known for
FreshBooks is best known for its proposal features. With FreshBooks, you can create customized proposals with images and attachments. You can choose from a wide range of proposal templates, and your clients can sign off on electronic approvals with e-signatures. Comments can also be added into proposals, and invoices can also be generated from proposals. You can also track old proposals easily, and you can also respond to client questions through the FreshBooks app.
Zoho Books
One of the flagship products of the Zoho group, Zoho Books offers cloud-based financial tools that can be used for accounting, inventory tracking, reconciliation and project management. Zoho Books can also help with taxation, and it has document management tools. Zoho Books also offers contact management tools, and it has invoicing tools. Zoho books also has many automation tools, and it can be used to generate estimates and quotations as well.
Pros
✔️ Powerful automation tools to streamline tedious, high-volume tasks
✔️ Advanced inventory management tools, that record stock-changes in real time
✔️ Simplified expense management tools that make it easy to track recurring expenses
✔️ Versatile project management tools, with in-built collaboration and advanced-payment functions
Cons
❌ More bill capturing features could be added
❌ Timesheet functions need to be improved
Pricing
💰 Free trial plan available
💰 Standard plan – $15 per month
💰 Professional plan – $40 per month
💰 Premium plan – $60 per month
💰 Customized pricing plans for enterprise users
Best known for
Zoho Books is best known for its automation tools. With Zoho Books, you can automate repetitive tasks by creating recurring profiles to automatically send out transactions. You can also send automated payment reminders to your clients with Zoho Books, and you can bank rules to filter and categorize transactions. You can also bill clients automatically with Zoho Books.
ZipBooks
ZipBooks offers simplified accounting software for businesses of all sizes. With ZipBooks, you can easily track expenses and set up billing and invoicing functions for your business. ZipBooks also help you with reconciliation, time-tracking and team management. ZipBooks also has a flexible mobile app for easy on-the-go access, and it can be used for project management as well. ZipBooks can also be used to generate reports.
Pros
✔️ Streamlined reporting and project-tagging tools, with intelligent feedback functions
✔️ Advanced billing and invoicing tools, with in-built time tracking
✔️ Handy expense management tools, with options to split billing categories and save receipts
✔️ In-depth analytics tools to measure business health and invoice quality
Cons
❌ Inventory management features need to be improved
❌ Many features are not accessible for users who are not based in the U.S.
Pricing
💰 Free trial plan available
💰 Smarter plan- $15 per month
💰 Sophisticated plan- $35 per month
💰 Customized pricing plans for enterprise users
Best known for
ZipBooks is best known for its billing and invoicing tools. ZipBooks offers automated-billing features for recurring bills, and it has tools to process credit-card payments and multi-currency deposits. ZipBooks lets you customize invoices with ease, and you can convert estimates into invoices as well. You can also send invoices easily through ZipBook’s mobile app, and you can easily set-up automated-payment reminders for your clients and customers as well.
LessAccounting
As the name suggests, LessAccounting simplifies accounting and bookkeeping for startups and online businesses. With LessAccounting, you can generate invoices and proposals with ease. LessAccounting can also be used to generate reports and file taxes, and it can be used for reconciliation. LessAccounting can also be used to process payments, and it can be used for budgeting and expense management. LessAccounting also has time-tracking tools, and it can be used to set up payment reminders.
Pros
✔️ Compact bookkeeping suite with in-built tax filing functions
✔️ Versatile payment features, with tools that can be used to send out late-payment reminders
✔️ Robust proposal features with in-built invoice generation tools
✔️ Handy time and miles tracking tools for logistics and transportation companies
Cons
❌ Knowledge base and support center needs to be improved
❌ Project tracking and management tools need to be improved
Pricing
💰 Free trial plan available
💰 Lite plan – $24 per month
💰 Team plan – $36 per month
💰 Customized pricing plans for users who are looking for add-ons
Best known for
LessAccounting is best known for its bookkeeping software. With LessAccounting, you can easily maintain accurate records for seamless tax filing, and you can track your business’ financial health as well. LessAccounting’s bookkeeping tools can download your banking information automatically, and they can categorize and reconcile business transactions with ease. LessAccounting also has reporting tools to prepare monthly statements and financial reports, and it prepares annual financial packages for all its customers. LessAccounting also gives you a free 30-min CPA consultation every year.
Akounto
Akounto offers bookkeeping and accounting tools that can be used to generate monthly reports and track financial information in real-time. Akounto also offers invoicing tools, and it has banking and reconciliation tools to streamline financial processes. Akounto can also be accessed easily through a flexible mobile app, and you can use it to customize business performance reports. Accounting is suitable for cash and accrual-basis accounting.
Pros
✔️ Advanced data and receipt capturing tools, that can be used offline
✔️ Flexible mobile app that lets you access financial information from any location
✔️ Advanced automation tools that can be used to set-up recurring invoicing and billing
✔️ Unique incorporation services through which you can easily set up a new business in the US
Cons
❌ Features to process purchase orders need to be improved
❌ Features to manage fixed assets need to be improved
Pricing
💰 Free trial plan available
💰 Startup plan- $99 per month
💰 Growth plan- $149 per month
💰 Expansion plan- $229 per month
💰 Customized pricing plans for enterprise users
Best known for
Akounto is best known for its incorporation services. With Akounto, you can take your business to the US and set up a new firm within 15 minutes. Akounto provides locally registered agents that can complete all your paperwork and provide banking services. Akounto provides incorporation services with minimal paperwork and legal hassles.
Xero FAQs
Is there a free Xero version?
The best free version of Xero is Wave. Wave provides lifetime free accounting and invoicing tools. That being said, payment processing charges are levied for Wave users, and charges are levied for payroll services as well.
What is better than Xero?
There are many SaaS platforms that are better than Xero; a few of them have been listed above.
What is cheaper than Xero?
FreshBooks and ZipBooks are cheaper than Xero
Is Xero a competitor of QuickBooks?
Yes, Xero competes with QuickBooks in the accounting SaaS space.
How many transactions can Xero handle?
Xero’s transaction limits are given below:
1) Invoicing – 1,000 per month
2) Bills – 1,000 per month
3) Bank transactions – 2,000 per month
4) Inventory items – 4,000 tracked inventory items
5) Contacts – 10,000 in total
6) Fixed assets – 500 fixed assets
7) Tracking categories – 100 for each category (max of 2 active categories)
Do you need an accountant to use Xero?
Users who have a basic understanding of accounting and bookkeeping can use Xero. However, for complex tasks such as tax filing, budgeting and tracking large inventory volumes, it is advisable to hire an accountant or an accounting firm.
What is the difference between Xero and FreshBooks?
Xero and FreshBooks are very similar, as far as features are concerned. FreshBooks is cheaper than Xero, and it offers better invoicing tools; however, Xero does offer more tools and features in its monthly plans than FreshBooks.
