Best Xero Alternatives in 2026
Xero ($15/mo) not the right fit? Here are 3 alternatives we tested and compared — from free options to enterprise-grade tools.
Last updated: February 2026 · 3 alternatives reviewed
Xero
Cloud accounting platform popular with small businesses globally, with strong multi-currency and advisor features.
- Starter plan limited to 20 invoices/month
- US payroll requires third-party add-on (Gusto)
- Less widely used by US accountants than QuickBooks
📝 Why People Look for Xero Alternatives
Xero is the best QuickBooks alternative, especially for international businesses. The unlimited users policy (vs QuickBooks' per-user pricing) makes it significantly cheaper for teams. Multi-currency support is genuinely superior — real-time exchange rates and automatic gain/loss tracking. The ecosystem of 1000+ apps compensates for missing built-in features.
Moving from QuickBooks? Xero has a built-in QuickBooks importer that handles chart of accounts, contacts, and outstanding invoices. The transition takes 2-4 hours. Your accountant may need training on Xero's interface (it's quite different from QuickBooks).
Top 3 Alternatives to Xero
FreshBooks
Cloud accounting and invoicing software built for freelancers and small business owners.
- Best-in-class invoice creation — professional and customizable
- Built-in time tracking and project management
- No free plan — only 30-day trial
- Lite plan limited to 5 clients
QuickBooks Online
The industry-standard small business accounting platform with payroll, invoicing, and tax preparation.
- Industry standard — every accountant knows QuickBooks
- Most comprehensive reporting and financial analysis
- Expensive — $30-200/month with no free plan
- Frequent price increases (has raised prices 3x since 2023)
Wave Financial
Free accounting, invoicing, and receipt scanning for small businesses and freelancers.
- 100% free accounting and invoicing — no catch
- Unlimited invoices, clients, and users on free plan
- No inventory management
- Limited integrations (no Zapier, limited API)
Frequently Asked Questions
What is the best free alternative to Xero?
The best free alternatives to Xero include Wave Financial. Each offers a free plan with varying feature limits.
Is there a cheaper alternative to Xero?
Yes. Xero starts at $15/mo. FreshBooks ($7.6/mo) and Wave Financial (Free / $0/mo) offer lower pricing.
Why do people switch from Xero?
Common reasons include: Starter plan limited to 20 invoices/month, US payroll requires third-party add-on (Gusto), Less widely used by US accountants than QuickBooks. Each alternative addresses different pain points, so the best choice depends on your specific needs.
Can I migrate my data from Xero?
Most alternatives offer import tools or CSV migration paths. The complexity depends on your data volume and workflow complexity. We recommend running both tools in parallel for 1-2 weeks during transition.