The 11 Best Xero Alternatives in 2026

While Xero is a powerful accounting tool for many small businesses, its feature set, pricing tiers, and regional limitations may not be the perfect fit for everyone. If you find yourself hitting a wall with its capabilities or your business has simply outgrown it, you're in the right place. This guide breaks down the 11 best Xero alternatives available in 2026, so you can find the right accounting software for your specific needs, budget, and long-term goals.

The 11 Best Xero Alternatives for Businesses in 2026

1. QuickBooks Online

QuickBooks Online is the undisputed heavyweight champion in the U.S. accounting software market, and for good reason. It offers one of the most comprehensive feature sets available, including exceptionally robust payroll processing, in-depth inventory management, and extensive tax support capabilities. With a massive ecosystem of third-party app integrations, QuickBooks can serve as the central hub for nearly any business operation. While it has a slightly steeper learning curve than Xero, it's a scalable platform that can support a business from its startup phase well into its growth stages.

• Pros:
  • Industry-leading payroll features and tax support, especially for U.S. businesses.
  • Vast library of over 750 third-party app integrations.
  • Advanced reporting options give deep insights into financial performance.
  • Large community of users and certified ProAdvisors for support.
• Cons:
  • Can be more expensive than Xero, especially at higher tiers.
  • The interface can feel more cluttered and less intuitive for complete beginners.
  • Some users report occasional performance lags during peak usage.
• Pricing:
  • Simple Start: $30 per month.
  • Essentials: $60 per month.
  • Plus: $90 per month.
  • Advanced: $200 per month.

Who it's best for: U.S.-based small to medium-sized businesses that need a full-featured accounting solution with best-in-class payroll and a huge number of integration options.

2. Zoho Books

Zoho Books is a standout alternative for any business already invested in the broader Zoho ecosystem. It provides a surprisingly deep feature set for its affordable price point, including multi-currency transaction management, project billing, and solid automation rules for categorizing transactions. Its primary strength lies in its seamless integration with other Zoho products like Zoho CRM and Zoho Projects, creating a unified control center for your entire business. If you want a cost-effective solution that punches well above its weight, Zoho Books is an excellent choice.

• Pros:
  • Exceptional value for the money, with feature-rich plans at a low cost.
  • Native integration with the extensive suite of Zoho business applications.
  • Strong automation for workflows like payment reminders and transaction sorting.
  • Clean and user-friendly interface.
• Cons:
  • Payroll features are less developed compared to platforms like QuickBooks Online.
  • A smaller number of third-party integrations outside of the Zoho ecosystem.
• Pricing:
  • Free: For businesses with less than $50k USD in annual revenue.
  • Standard: $15 per month.
  • Professional: $40 per month.
  • Premium: $60 per month.

Who it's best for: Small businesses that want an affordable, all-in-one platform and can benefit from tight integration with CRM and project management tools.

3. FreshBooks

FreshBooks was designed from the ground up, prioritizing simplicity and ease of use, making it a favorite among freelancers, consultants, and service-based businesses. While it started as an invoicing tool, it has since grown into a full-fledged accounting platform. Its strengths remain in its incredibly intuitive invoicing, time tracking, and expense management features. If complicated accounting software feels overwhelming, FreshBooks offers a friendly, approachable alternative that handles all the core financial tasks without the steep learning curve.

• Pros:
  • Extremely intuitive and easy-to-use interface, perfect for non-accountants.
  • Excellent time tracking and project profitability reporting.
  • Highly customizable professional invoices with seamless online payment options.
  • Widely praised customer support.
• Cons:
  • Lacks advanced accounting features like robust inventory management or purchase orders.
  • Reporting options are less comprehensive than those in QuickBooks or Xero.
  • Can become costly as you add more billable clients on lower-tier plans.
• Pricing:
  • Lite: $17 per month for up to 5 billable clients.
  • Plus: $30 per month for up to 50 billable clients.
  • Premium: $55 per month for unlimited billable clients.

Who it's best for: Freelancers, sole proprietors, and service-based small businesses who prioritize easy invoicing and time tracking over complex accounting functions.

4. Wave Accounting

For solopreneurs, bootstrapped startups, and businesses with very simple accounting needs, Wave is an unbeatable proposition. Its core accounting, invoicing, and receipt-scanning software is completely free. You only pay for services that involve processing money, such as credit card payments and payroll. This pricing model makes it an accessible entry point for new business owners who need a professional way to manage finances without taking on another monthly subscription fee. While it lacks the advanced features of paid competitors, it covers the essentials extremely well.

• Pros:
  • The core accounting and invoicing platform is genuinely free.
  • Simple, clean interface that makes it easy to send invoices and track expenses.
  • Built-in receipt scanner in the mobile app helps with expense management.
  • No artificial limits on the number of invoices, customers, or transactions.
• Cons:
  • Very limited automation and integrations with other business tools.
  • Reporting is basic and not suitable for in-depth financial analysis.
  • Customer support is limited to email and chatbots for free users.
  • Not designed to scale for complex or growing businesses.
• Pricing:
  • Accounting & Invoicing: Free.
  • Payment Processing: Pay-per-use starting at 2.9% + 60¢ per transaction.
  • Payroll: Starts at $20 per month + $6 per employee.

Who it's best for: Startups, freelancers, and very small businesses who need a simple, no-cost solution for fundamental accounting and invoicing.

5. Sage Business Cloud Accounting

Sage has been a trusted name in business accounting for decades, and its cloud-based solution brings that extensive experience to the modern small business. Sage Business Cloud Accounting provides a solid, reliable platform for managing invoices, tracking expenses, and maintaining tax compliance. It offers a good balance of features and affordability, making it a dependable choice for businesses that value a stable and well-supported product. It is particularly effective at cash flow forecasting and is built to grow alongside your company.

• Pros:
  • Strong cash flow management and forecasting tools.
  • Affordable entry-level pricing makes it accessible for startups.
  • Very straightforward to manage invoicing and connect bank feeds.
  • Backed by a reputable company with a long history in accounting software.
• Cons:
  • The user interface feels less modern and intuitive compared to Xero or FreshBooks.
  • Has fewer third-party integrations than mainstream competitors.
  • Mobile app functionality is somewhat limited.
• Pricing:
  • Sage Accounting Start: $10 per month.
  • Sage Accounting: $25 per month.

Who it's best for: Small businesses looking for a reliable, no-frills accounting solution from an established brand with predictable pricing.

6. Odoo Accounting

Odoo isn't just an accounting software; it's a suite of open-source business management apps. You can choose to use just the accounting module or combine it with others like CRM, inventory, e-commerce, and project management to create a fully integrated enterprise resource planning (ERP) system. This unmatched modularity makes Odoo an incredibly flexible and customizable choice for businesses that need more than just a typical accounting package. If you plan to build a custom-fit software solution for your entire operation, Odoo is an intriguing alternative.

• Pros:
  • Fully integrated with a wide range of other business management applications.
  • Highly customizable to fit specific business processes and workflows.
  • Open-source nature provides flexibility and a strong developer community.
• Cons:
  • The DIY approach requires significant technical expertise to set up and configure effectively.
  • The learning curve is steep due to its vast number of features and options.
  • Pricing can become complicated as you add more apps and users.
• Pricing:
  • One App Free: Use one application for free with unlimited users.
  • Standard: Starts around $20 per month per user, with pricing varying by the apps you choose.

Who it's best for: Businesses with unique operational needs that require a customizable, all-in-one ERP solution beyond standard accounting.

7. Kashoo

Kashoo targets small business owners who want accounting software without the complexity often found in more powerful platforms. Its strength is in its simplicity, making bookkeeping fast and straightforward. It offers clean invoicing, easy expense tracking, and reliable bank reconciliation with a focus on doing the core jobs well. Features like automatic transaction categorization powered by machine learning help streamline daily tasks, giving you time back to focus on running your business.

• Pros:
  • Incredibly simple, clean interface that's very easy to learn.
  • Smart machine-learning features help automate transaction coding.
  • Strong customer support is easily accessible.
• Cons:
  • Doesn't have many advanced features like time tracking or detailed inventory.
  • Very limited third-party app integrations.
  • Mobile app is not as fully featured as some competitors'.
• Pricing:
  • Flat Rate: A single plan for $30 per month or $200 per year works for all users.

Who it’s best for: Small business owners who value speed and simplicity over an exhaustive list of features.

8. FreeAgent

Based in the UK, FreeAgent is explicitly designed for the needs of British freelancers, contractors, and small businesses. Its functionalities are built around the UK's specific tax regulations, including exceptional support for Making Tax Digital (MTD) and direct submission of Self-Assessment and VAT returns to HMRC. If you run a small service-based business in the UK, FreeAgent provides a polished, intuitive experience tailored precisely to your compliance needs.

• Pros:
  • Excellent features for UK tax compliance, including VAT and Self-Assessment filing.
  • Integrated time tracking and project management tools are perfect for service businesses.
  • Clean and friendly user interface that helps demystify accounting.
• Cons:
  • Not suitable for businesses outside of the UK due to its sharp regional focus.
  • Lacks sophisticated inventory management for product-based businesses.
• Pricing:
  • UK Sole Trader: £9.50+VAT per month for the first six months, then £19+VAT.
  • UK Limited Company: £14.50+VAT per month for the first six months, then £29+VAT.

Who it's best for: Freelancers, contractors, and small service-based businesses in the UK needing strong, built-in tax compliance tools.

9. KashFlow

Like FreeAgent, KashFlow is another excellent accounting package built primarily for the UK market. Acquired by IRIS software, it focuses on being jargon-free and easy to use for business owners without an accounting background. It handles UK-specific requirements like VAT and CIS (Construction Industry Scheme) returns with ease. Its straightforward approach to invoicing, quoting, and purchase management makes it a solid, practical choice for many UK-based SMEs.

• Pros:
  • Powerful tools for UK VAT calculation and RTI-compliant payroll submission.
  • Intuitive quote-to-invoice conversion process.
  • Strong purchase management capabilities.
• Cons:
  • Limited functionality and relevance for businesses operating outside the UK.
  • The interface can feel dated compared to more modern applications.
  • Fewer third-party integrations than global platforms like Xero or QuickBooks.
• Pricing:
  • Starter: £9 per month + VAT.
  • Business: £18 per month + VAT.
  • Business + Payroll: £24 per month + VAT.

Who it's best for: Small-to-medium-sized UK-based businesses that need a simple platform with robust tools for managing VAT and payroll.

10. NetSuite ERP

NetSuite ERP is an entirely different class of software from Xero and most of its alternatives. Acquired by Oracle, NetSuite is a full enterprise resource planning (ERP) system built for fast-growing mid-market businesses and enterprises. It goes beyond accounting to encompass inventory management, CRM, e-commerce, and even global supply chain management. For businesses that have grown beyond smaller accounting packages, NetSuite offers a comprehensive toolset for managing a diverse, growing operation.

• Pros:
  • Complete ERP solution for managing multiple business functions.
  • Scalable and capable of supporting large, complex organizations.
  • Broad range of integrations and customizability.
• Cons:
  • Pricing can be a barrier for smaller businesses.
  • Can be complex to implement and require considerable time and resources.
  • Not ideal if only basic accounting functions are required.
• Pricing:
  • Pricing varies greatly depending on the specific configuration and scale of implementation.

Who it's best for: Fast-growing mid-market businesses and enterprises that require a comprehensive and scalable ERP solution.

Final Thoughts

Choosing the right alternative to Xero means matching a platform's strengths to your unique business needs, budget, and future growth plans. From the robust, all-in-one power of QuickBooks Online to the beautiful simplicity of FreshBooks or the zero-cost barrier to entry with Wave, there is a solution available for nearly every type of business. Take the time to evaluate what features truly matter for your day-to-day operations and where you see your business headed in a few years.

Once your accounting system is in place, ensuring accurate tax reporting is the next step. For CPAs and tax professionals, complex questions about state tax codes, new revenue procedures, or specific IRC sections often stop work in its tracks. Instead of spending hours in clunky research databases or searching through untrustworthy internet sources, our tool Feather AI gives you immediate, citation-backed answers directly from authoritative law. It’s the fastest way for practitioners to handle complex tax research with confidence, letting you get back to advising your clients instead of digging through documents.