4 Best Xero Alternatives in 2025
Last updated: February 2026 • 14 min read
Xero is a popular tool for small businesses outside the us. With pricing starting at $15/mo, it can be expensive for many teams. Whether you're looking for a cheaper option, better features, or an open-source solution, we've compiled the 4 best Xero alternatives to help you find the right fit.
📋 Quick Summary
- Total alternatives: 4
- Free alternatives: 2 (Wave, Zoho Books)
- Best overall: QuickBooks
- Best free: Wave
Why Look for Xero Alternatives?
People commonly look for Xero alternatives for several reasons:
- Cost: At $15/mo, Xero isn't cheap, especially for small teams and startups.
- Feature gaps: Limited US payroll and can be pricey are common complaints.
- Simplicity: Some users find Xero overly complex for their needs and prefer simpler solutions.
- Data ownership: Organizations wanting data sovereignty prefer open-source, self-hosted alternatives.
- Better fit: Different tools excel at different use cases — you may find a tool that's specifically built for your workflow.
📊 Quick Comparison Table
| Tool | Free Tier | Starting Price | Rating | Open Source | Best For |
|---|---|---|---|---|---|
| Xero | ✗ No | $15/mo | ⭐ 4.3 | No | Small businesses outside the US |
| QuickBooks | ✗ No | $30/mo | ⭐ 4.2 | No | Small businesses needing comprehensive accounting |
| FreshBooks | ✗ No | $17/mo | ⭐ 4.3 | No | Freelancers and service businesses |
| Wave | ✓ Free accounting and invoicing | Free | ⭐ 4 | No | Freelancers and micro-businesses wanting free accounting |
| Zoho Books | ✓ Free for <$50K revenue | $15/mo | ⭐ 4.2 | No | Growing businesses in the Zoho ecosystem |
Detailed Reviews of Each Alternative
QuickBooks
Leading small business accounting software by Intuit.
QuickBooks by Intuit is the most popular accounting software for small and medium businesses. It offers invoicing, expense tracking, tax preparation, payroll, and financial reporting. Available in both online and desktop versions, QuickBooks serves millions of businesses worldwide.
Pros
- ✓ Industry standard
- ✓ Comprehensive features
- ✓ Great for taxes
- ✓ Large ecosystem
Cons
- ✗ Expensive
- ✗ Can be complex
- ✗ Price increases
- ✗ Subscription only
FreshBooks
Accounting software built for service-based businesses.
FreshBooks is an accounting platform designed specifically for self-employed professionals and small service-based businesses. It excels at invoicing, time tracking, and expense management with an incredibly user-friendly interface that makes accounting less intimidating.
Pros
- ✓ Very user-friendly
- ✓ Great invoicing
- ✓ Time tracking built-in
- ✓ Beautiful design
Cons
- ✗ Limited for complex accounting
- ✗ Expensive for features
- ✗ Basic inventory
- ✗ Client limits on plans
Wave
Free accounting software for small businesses and freelancers.
Wave is a free accounting platform that offers invoicing, accounting, and receipt scanning at no cost. It makes money through payment processing and payroll services. Wave is ideal for freelancers and very small businesses who need basic accounting without the cost.
Pros
- ✓ Completely free
- ✓ Easy to use
- ✓ Good for basics
- ✓ Receipt scanning
Cons
- ✗ Limited features
- ✗ No inventory
- ✗ No time tracking
- ✗ Basic reporting
Zoho Books
Online accounting software for growing businesses.
Zoho Books is an online accounting platform that's part of the Zoho ecosystem. It offers comprehensive features including invoicing, expense tracking, inventory management, and bank reconciliation. As part of Zoho's suite, it integrates seamlessly with Zoho CRM, Projects, and other Zoho apps.
Pros
- ✓ Free for small businesses
- ✓ Comprehensive features
- ✓ Zoho ecosystem
- ✓ Good value
Cons
- ✗ Complex interface
- ✗ Steep learning curve
- ✗ US features limited
- ✗ Support can be slow
🏆 Our Recommendations
Best Overall Alternative:
QuickBooks — Small businesses needing comprehensive accounting
Best Free Alternative:
Wave — Free accounting and invoicing
❓ FAQ
What is the best free alternative to Xero?
The best free alternative to Xero is Wave, which offers Free accounting and invoicing.
Is there an open-source alternative to Xero?
There are no widely-used open-source alternatives to Xero at this time, but several affordable options exist.
What is the cheapest alternative to Xero?
The cheapest alternatives are the free options: Wave, Zoho Books. For paid alternatives, prices start from as low as $15/mo.
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