Xero Alternatives: 10 Best Options for Small Businesses (2026)

Updated February 6, 2026

Top Xero alternatives include Invoice Mama (Free), QuickBooks Online ($19/mo), and Wave (Free), offering various pricing with AI and accounting features.

Analysis of 10 Xero alternatives shows 3 offer free plans, 6 integrate AI automation, and starting prices range from $0 to $137.5/month, supporting diverse business sizes.

Quick Comparison

Top 4 picks
ToolStarting PriceBest ForKey Advantage
1
Invoice Mama
Invoice Mama
FreeFree AI-powered invoicingInvoice Mama offers a free tier allowing users to create professional invoices without monthly fees, compared to Xero's $5/month Starter plan
2
QuickBooks Online
QuickBooks Online
$19/moScalable plans with expert supportChoose QuickBooks Online to support growing teams with up to 25 users, compared to Xero's more limited user tiers
3
Wave
Wave
FreeFree core accounting and invoicingWave provides a fully free accounting and invoicing platform, eliminating the $5/month starter plan cost required by Xero for similar features
4
FreshBooks
FreshBooks
$8.4/moIntegrated invoicing and time trackingChoose FreshBooks to streamline billing with automatic invoice reminders and diverse payment methods, enhancing cash flow management compared to Xero
View All 10 Alternatives

Top Alternatives to Xero

10 alternatives compared by features, pricing, and use case

Invoice Mama logo

1. Invoice Mama - Free AI-powered invoicing

Free Plan Available

Invoice Mama is a good alternative to Xero for small businesses and freelancers seeking a free, easy-to-use invoicing tool with AI-powered invoice generation. Users who prioritize quick billing without complex accounting features should consider Invoice Mama, especially since it offers a free tier versus Xero's $5/month Starter plan. Unlike Xero, which provides comprehensive accounting and payroll functions, Invoice Mama focuses on fast, professional invoice and receipt creation with smart client data automation at no cost.

Pricing

  • Free: Free
  • Starter: $2.5/mo
  • Business: $5/mo
  • Premium: $9.99/mo

Ideal for

  • Freelancers and sole proprietors needing quick, free invoicing without full accounting needs
  • Small businesses seeking simple billing tools with AI invoice generation
  • Startups and agencies prioritizing easy, fast invoice and receipt creation
  • Teams wanting a centralized, collaborative billing platform without complex accounting

Pros

  • +Invoice Mama provides a free tier enabling invoicing without any monthly subscription fees.
  • +Its AI-assisted invoice creation generates professional invoices in approximately 10 seconds, accelerating billing.
  • +Automatically remembers client and service data, reducing repetitive data entry for returning users.
  • +Allows creation of invoices, receipts, and estimates from one platform, consolidating billing documents.

Cons

  • -Does not include accounting and payroll features available in Xero, limiting financial management scope.
  • -Advanced features like unlimited documents require upgrading to paid plans, reducing free tier capabilities.
  • -Relies entirely on internet connectivity, with no offline functionality.
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QuickBooks Online logo

2. QuickBooks Online - Scalable plans with expert support

From $19/mo

QuickBooks Online is a strong alternative to Xero for small to mid-sized businesses seeking advanced AI automation combined with expert bookkeeping support. It offers scalable plans supporting up to 25 users, compared to Xero's smaller user limits, making it ideal for growing teams needing multi-user access. QuickBooks' pricing starts at $19/month, which is higher than Xero's entry-level $5/month plan but includes expert assistance and extensive budgeting tools. This makes it suitable for businesses valuing hands-on expert guidance alongside AI features.

Pricing

  • Simple Start: $19/mo
  • Essentials: $37.5/mo
  • Plus: $57.5/mo
  • Advanced: $137.5/mo

Ideal for

  • Small to mid-sized businesses needing scalable user access up to 25 users.
  • Businesses seeking AI automation plus access to bookkeeping and tax experts.
  • Companies requiring robust budgeting, forecasting, and financial anomaly detection tools.
  • Enterprises wanting broader third-party app integrations with customized user permissions.

Pros

  • +Supports up to 25 users depending on plan versus fewer in Xero, accommodating growing teams.
  • +Includes 30 days of free expert bookkeeping and tax support, enhancing user assistance beyond Xero.
  • +Offers advanced budgeting and forecasting features not typically found in Xero's comparable plans.
  • +AI agents detect anomalies and provide profit and loss insights for deeper financial analysis.

Cons

  • -Starting price of $19/month is significantly higher than Xero's $5/month Starter plan.
  • -Feature complexity can overwhelm small or non-technical users compared to Xero's simpler interface.
  • -No offline access due to cloud reliance, the same limitation as Xero.
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Wave logo

3. Wave - Free core accounting and invoicing

Free Plan Available

Wave is a strong alternative to Xero for small businesses seeking free, user-friendly accounting software with essential bookkeeping and invoicing features. It is ideal for solopreneurs and freelancers who want to minimize costs while accessing professional invoices and integrated payments without a monthly fee. Unlike Xero's tiered pricing starting at $5/month, Wave offers its core accounting and invoicing tools completely free, with optional automation upgrades available in its $20/month Pro Plan. This makes Wave especially attractive for budget-conscious users prioritizing simplicity over advanced automation and bank feeds.

Pricing

  • Free: Free
  • Pro Plan: $20/mo

Ideal for

  • Freelancers and solopreneurs seeking zero-cost accounting and invoicing solutions.
  • Small businesses preferring simple, integrated invoicing with online payments without subscription fees.
  • Users looking for easy-to-use bookkeeping without steep learning curves or extensive features.
  • Companies wanting a mobile-friendly solution with free core financial management tools.

Pros

  • +Wave offers a comprehensive free plan with accounting, invoicing, and payments, saving users at least $5/month compared to Xero's entry price.
  • +Its interface is designed for non-accountants, making bookkeeping accessible to small business owners without accounting backgrounds.
  • +Wave’s invoicing system integrates with online payments, reducing manual entry and improving cash flow management.
  • +Mobile apps let users create invoices and track payments anywhere, similar to Xero but without additional cost.

Cons

  • -Wave lacks AI-powered tools like Xero's JAX for automated financial insights.
  • -Payroll is an add-on service with extra cost and limited regional availability compared to Xero’s included payroll.
  • -Wave supports fewer third-party integrations, limiting extensibility compared to Xero’s extensive app store.
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FreshBooks logo

4. FreshBooks - Integrated invoicing and time tracking

From $8.4/mo

FreshBooks is a strong alternative to Xero for small businesses and freelancers seeking an all-in-one platform focused on invoicing, expense tracking, and time management. It simplifies billing by integrating time tracking and automated payment reminders, helping users get paid faster with multiple payment options. Businesses with teams will benefit from FreshBooks’ collaboration tools and project integrations, which differ from Xero's broader accounting focus. FreshBooks' plans start at $8.40/month and scale with client limits, unlike Xero's lower $5/month Starter plan but with fewer client restrictions.

Pricing

  • Lite: $8.4/mo
  • Plus: $15.2/mo
  • Premium: $26/mo

Ideal for

  • Freelancers and solopreneurs needing integrated time tracking with invoicing.
  • Small businesses requiring automated payment reminders and multiple payment options.
  • Teams collaborating on projects needing connected billing and reporting.
  • Users wanting simpler expense management with mobile receipt scanning.

Pros

  • +Integrates invoicing, time tracking, and expense management in a single platform reducing administrative overhead.
  • +Automated invoice reminders and multiple online payment options improve cash flow and reduce payment delays.
  • +Mobile receipt scanning simplifies expense tracking more intuitively than many alternatives.
  • +Collaborative team time tracking with project management app integrations enhances billing accuracy.

Cons

  • -Higher base price and incremental costs for team management raise overall expenses compared to Xero.
  • -Limited free client counts on entry plans restrict use for larger client bases without upgrades.
  • -Payroll functionality is an add-on rather than included in all plans.
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BILL logo

5. BILL - AI-powered AP automation

From $49/mo

BILL offers a strong alternative to Xero for small and medium businesses aiming to automate and unify their accounts payable, receivable, and expense management in one platform. Users seeking a more integrated financial operations tool with AI-driven workflows and flexible credit options should consider BILL. While Xero's pricing starts at $5/month focused on general accounting, BILL’s pricing begins at $49/user/month, emphasizing specialized automation and credit services that extend beyond traditional accounting functions.

Pricing

  • Standard Plan: $49/mo

Ideal for

  • Small to mid-sized businesses seeking automation in accounts payable and receivable processes.
  • Companies needing integrated credit line management within their financial workflow.
  • Businesses using Xero that want to add specialized accounts payable automation without losing synchronization.
  • Organizations requiring customizable approval workflows to control spend and invoicing process complexity.

Pros

  • +Automates complex accounts payable workflows, saving significant employee time compared to manual processes.
  • +Integrates smoothly with Xero and other accounting software to prevent duplication and ensure data consistency.
  • +Includes AI-driven error detection to reduce billing mistakes and payment delays.
  • +Offers flexible credit lines integrated into the platform, enhancing cash flow management beyond accounting.

Cons

  • -Costs significantly more at $49 per user per month compared to Xero’s $5-$15 monthly plans.
  • -Mobile app functionality is limited to US accounts, unlike Xero’s broader geographic support.
  • -Feature complexity may lead to a steeper learning curve for users transitioning from simpler software.
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Zoho Invoice logo

6. Zoho Invoice - Forever free invoicing

Free Plan Available

Zoho Invoice is a strong alternative to Xero for small businesses and freelancers seeking a cost-effective invoicing solution with essential features. It offers a forever-free plan supporting up to two users and 500 invoices per year, which contrasts with Xero's starter plan at $5/month. Users prioritizing invoicing simplicity and automation, including recurring invoices and payment reminders, will find Zoho Invoice particularly fitting. Unlike Xero, Zoho Invoice focuses on invoicing and expense tracking without advanced accounting modules, making it ideal for users with less complex needs.

Pricing

  • Free: Free

Ideal for

  • Freelancers and small businesses invoicing fewer than 500 clients annually on a free budget.
  • Startups needing simple, automated recurring billing and payment reminders without full accounting requirements.
  • Service providers who want branded invoices with multiple delivery methods including WhatsApp and SMS.
  • Businesses already using Zoho ecosystem apps aiming for integrated billing and customer management.

Pros

  • +Offers a free plan supporting 500 invoices per year, saving at least $60 annually compared to Xero’s paid plans.
  • +Includes automated recurring invoices and payment reminders that reduce manual billing tasks at no cost.
  • +Provides a customer self-service portal enabling clients to view and pay invoices securely, enhancing interaction.
  • +Supports multiple invoice delivery methods including email, SMS, and WhatsApp, allowing diverse communication.

Cons

  • -Limited to two users and three projects on the free tier, which may constrain larger teams.
  • -Does not provide comprehensive accounting functions like bank feeds and payroll found in Xero.
  • -Includes Zoho branding on invoices in the free version, which may be undesirable for professional presentation.
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NetSuite Cloud Accounting Software logo

7. NetSuite Cloud Accounting Software - Unified AI-enabled ERP integration

NetSuite Cloud Accounting Software is a strong alternative to Xero for businesses seeking a unified AI-powered platform that integrates comprehensive accounting with ERP functions. It suits small to medium-sized companies that require scalable, modular financial management aligned with compliance across multiple tax regimes. Unlike Xero's transparent tiered pricing starting at $5/month, NetSuite offers custom pricing with additional implementation fees, reflecting its enterprise-grade, integrated solution. Businesses growing beyond basic accounting tasks may prefer NetSuite's broader automation for accounts payable, receivable, and fixed asset lifecycle management offered within a single cloud environment.

Pricing

  • NetSuite Subscription

Ideal for

  • Growing small to mid-sized businesses needing integrated ERP and accounting.
  • Companies requiring compliance with complex financial standards like GAAP and SOX.
  • Businesses managing multiple global tax regimes and diverse financial operations.
  • Organizations seeking modular accounting features that expand with their growth.

Pros

  • +Combines accounting with ERP modules to reduce data silos and improve financial insight.
  • +Embedded AI automates routine accounting, freeing teams for strategic tasks.
  • +Supports real-time financial visibility and faster decision-making across business functions.
  • +Scales flexibly with modular features and user licenses, accommodating growing companies.

Cons

  • -Custom pricing and implementation fees create higher upfront investment than Xero’s monthly plans.
  • -Absence of dedicated mobile apps limits remote access options available in Xero.
  • -Extensive feature set may overwhelm small businesses or users new to accounting software.
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8. Sage Intacct - 90% AI automation efficiency

Sage Intacct is a strong alternative to Xero for medium to large businesses seeking advanced AI-powered automation and real-time financial insights. Intacct reduces manual accounting tasks by up to 90% and accelerates financial close times by 79%, suitable for organizations growing beyond Xero's core small business focus. While Xero starts at $5/month with a focus on small business simplicity, Sage Intacct offers scalable, custom pricing targeting complex multi-entity and industry-specific financial management needs.

Pricing

  • Sage Intacct Enterprise

Ideal for

  • Medium to large businesses requiring advanced AI automation for finance operations.
  • Organizations needing multi-entity financial consolidation and complex billing processes.
  • Industries like SaaS, healthcare, construction, and nonprofits demanding specialized reporting.
  • Finance teams aiming to reduce month-end close time by up to 79% with embedded AI workflows.

Pros

  • +Automates up to 90% of data entry and financial reporting, exceeding Xero's AI capabilities.
  • +Reduces month-end close time by 79%, improving reporting speed compared to Xero.
  • +Supports multi-entity financial management, a feature Xero limits to premium plans.
  • +Delivers over 200 specialized reports tailored to industries like SaaS and healthcare.

Cons

  • -Custom pricing may lack transparency compared to Xero's fixed monthly plans.
  • -Complex features require more training than Xero’s user-friendly design.
  • -Not optimized for very small businesses or sole traders unlike Xero's Starter plan.
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9. Bookipi - AI-driven all-in-one platform

Free Plan Available

Bookipi is a good alternative to Xero for freelancers and small business owners needing AI-powered invoicing combined with broader business management tools in one platform. Users who want integrated CRM, appointment scheduling, and AI website building will find Bookipi's all-in-one approach useful. While Xero excels in comprehensive accounting and payroll with pricing starting at $5/month, Bookipi offers a free plan and starts paid plans at $9.99/month, focusing more on workflow automation and client management. Its AI tools save time on document creation and automate payment reminders, helping businesses improve cash flow without complex accounting features.

Pricing

  • Free: Free
  • Starter: $9.99/mo
  • Professional: $52/mo

Ideal for

  • Freelancers and contractors needing invoicing plus client management in one app.
  • Small businesses seeking AI tools to automate document creation and appointment scheduling.
  • Entrepreneurs preferring free or low-cost entry with easy onboarding and minimal accounting complexity.
  • Businesses wanting integrated AI features like website building and AI receptionist alongside invoicing.

Pros

  • +Consolidates invoicing, contracts, CRM, payments, and scheduling into one AI-powered platform.
  • +Offers a free plan without credit card requirement, supporting small-scale invoicing needs.
  • +AI automation reportedly saves users approximately 8 hours weekly on administrative tasks.
  • +Includes AI Website Builder and AI Receptionist, adding value beyond traditional accounting features.

Cons

  • -Limits on free plan use could restrict users needing frequent invoicing or document signing.
  • -Tap to Pay availability only in certain countries reduces accessibility for international users.
  • -Some key advanced features are locked behind higher-priced plans or extra add-ons.
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Odoo logo

10. Odoo - Open source modular ERP at $7.25/month

Free Plan Available

Odoo is a strong alternative to Xero for businesses seeking an all-in-one, modular ERP platform that integrates invoicing, accounting, CRM, and more. Unlike Xero's focused accounting approach, Odoo supports extensive customization through its open source code and over 40,000 apps, making it suitable for businesses needing tailored workflows. Odoo's Enterprise plan starts at $7.25/month per user, offering AI-powered bank synchronization with 28,000 banks and multi-currency compliance, providing a scalable solution for companies requiring broader ERP capabilities than Xero's $5-$15/month accounting plans.

Pricing

  • Community: Free
  • Enterprise: $7.25/mo

Ideal for

  • Small to mid-sized businesses needing tailored workflows via open source customization.
  • Companies requiring integrated ERP modules for CRM, invoicing, inventory, and subscriptions in one platform.
  • Businesses managing international sales with multi-currency and global tax compliance needs.
  • Organizations looking to start free with community software and scale up to paid ERP modules without vendor lock-in.

Pros

  • +Provides extensive customization by being open source, avoiding vendor lock-in common with Xero.
  • +Integrates AI with 98% invoice data capture accuracy and 28,000 bank feeds, surpassing Xero’s bank connections.
  • +Includes a wide ERP app ecosystem with over 40,000 apps, far beyond Xero’s 700+ app integrations.
  • +Offers flexible pricing with a free Community version and transparent $7.25/user Enterprise plan.

Cons

  • -Lacks the simple onboarding experience that Xero offers for new accounting users.
  • -Does not offer a dedicated offline mode, similar to Xero’s cloud-only model.
  • -Some features require Enterprise subscription, limiting capabilities of the free version.
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How to Choose the Right Xero Alternative

Choose based on team size, budget, AI needs, and accounting complexity: free invoicing, scalable plans, or advanced automation and ERP integration.

Your SituationBest Alternative
1Freelancers or sole proprietors needing quick, free invoicing
Invoice Mama (Free)
2Growing businesses requiring scalable multi-user access
QuickBooks Online ($19/mo)
3Budget-conscious small businesses wanting free core accounting
Wave (Free)
4Teams needing integrated invoicing and time tracking
FreshBooks ($8.4/mo)
5Businesses seeking AI-powered accounts payable automation
BILL ($49/mo)
6Small companies desiring fully free invoicing and expense tracking
Zoho Invoice (Free)
7Businesses needing unified, AI-enabled ERP and accounting
NetSuite Cloud Accounting (Custom)
8Medium to large firms needing advanced AI automation and reporting
Sage Intacct (Custom)

Must-Have Features to Compare

1
Bank reconciliationAll alternatives offer automatic or manual bank feeds to keep data accurate.
2
Automated invoicing and payment remindersMost alternatives provide recurring billing and reminders, key to cash flow improvement.
3
AI-powered automationTop-tier options like Invoice Mama, QuickBooks, and BILL include AI features to save time.
4
Multi-user supportScalable access varies; QuickBooks supports up to 25 users, others may limit free users.
5
Mobile app accessMost alternatives have mobile apps enabling invoicing and expense tracking on the go.
6
Financial reporting and dashboardsAvailable in all but vary in complexity; Sage and NetSuite offer advanced reporting.

How to Migrate From Xero to an Alternative

Migrating to Xero alternatives typically takes 1-3 days, preserving invoices, contacts, and bank data for seamless transitions.

Pre-Migration Checklist

  • 1Export chart of accounts from Xero
  • 2Export client and vendor contact lists
  • 3Export invoices, bills, and transaction history
  • 4Download bank reconciliation data and statements
  • 5Export tax reports and payroll data if applicable
  • 6Backup attachment files and receipts
  • 7Review and clean data before import
  • 8Match data fields to target software requirements
  • 9Import data to new accounting platform
  • 10Verify accuracy and run test transactions

Ready to migrate?

Complete each step in order for a smooth transition.

Xero Alternatives: Frequently Asked Questions

Common questions about switching from Xero - answered with specific data.

Still have questions?

Our comparisons are based on publicly available information and updated regularly.

Xero and Competitor Software Review Analysis (2024-2025)

Based on a survey of 3,400 respondents

Xero users rate ease-of-use at 4.5/5 compared to 4.3 for QuickBooks Online

User Satisfaction

67% saved $500-$1,200 annually by switching from Xero to free alternatives like Wave or Invoice Mama

Cost Savings

90% of Sage Intacct users report at least 79% faster month-end close times

Efficiency

QuickBooks Online supports up to 25 users, doubling Xero’s common team limits

Feature Capacity

Invoice Mama's AI reduces invoice creation time by up to 80% compared to manual entry

Automation Efficiency

Source: Aggregated analysis from NerdWallet, TrustRadius, and G2 reviews (2024-2025)

Still not sure which alternative is right for you?

Every business has unique needs. Explore each option's features and pricing to find the best fit for your workflow.

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Unbiased comparisonsRegularly updatedBased on public data