When it comes to accounting software, Xero is a favored option. It's cost-effective, provides solid functionality, and is user-friendly. However, it primarily caters to small businesses and lacks certain features that some businesses might require. If you're seeking an alternative to Xero, it's probably because it doesn't offer sufficient functionality and/or your business has outgrown it.
In such cases, upgrading to an ERP system is likely the best choice due to its extensive functionality and customization capabilities. Depending on your business requirements, it's wise to explore alternatives that might offer more specific features, varied pricing, or enhanced scalability. Here’s an overview of some leading Xero competitors to help you find the right match.
Oracle NetSuite is a highly customisable ERP solution designed for larger businesses with complex needs. It offers a comprehensive accounting module along with tools for inventory management, CRM, and eCommerce. For businesses looking to scale significantly, NetSuite is the perfect solution. It offers advanced financial consolidation making it super easy to expand into new territories, and it's cloud-based functionality means you have unlimited user and transaction capabilities.
NetSuite is designed for growing enterprises with complex financial needs. It’s a highly scalable solution, with modules for accounting, inventory, and CRM, making it suitable for companies with diverse operational requirements.
NetSuite’s reporting capabilities are highly customisable, allowing businesses to gain in-depth insights into their financials and other key areas, unlike Xero’s more basic reporting features.
NetSuite goes beyond accounting by offering a complete ERP suite. This can be advantageous for businesses needing more than just financial management, as it consolidates multiple functions into one platform. It's also able to integrate with a massive range of third-party applications, meaning it's easy to migrate your current systems into your new single solution.
NetSuite is a premium product, and its cost may be prohibitive for small or medium-sized businesses that don’t require an extensive ERP system.
Due to its depth and complexity, NetSuite requires more time to learn and implement, which can be challenging for teams without dedicated training resources.
NetSuite has a modular and user based pricing structure, and can be quite complex. It varies significantly depending on your business requirements, so it's hard to give a general pricing, as it can range from $2000 to $100,000 per month. For a detailed breakdown of NetSuite pricing, check out our pricing guide, or use our pricing calculator below to get a personalised quote for your business!
Sage Intacct is a cloud-based financial management system designed to help organisations grow and succeed. It offers powerful financial solutions to help businesses streamline processes, improve visibility, and drive better results. It enables businesses to manage their financial operations with real-time insights, better accuracy, and deeper analysis, making it a robust alternative to Xero.
Sage Intacct is well-regarded for its advanced financial management capabilities, such as multi-entity and multi-currency support, project accounting, and comprehensive reporting. This makes it ideal for organisations needing in-depth financial analysis.
With a clean and intuitive interface, Sage Intacct is accessible for accounting teams and easy to scale. Its modular design allows businesses to add features as needed, adapting the software to their requirements without overwhelming users.
Sage Intacct connects seamlessly with popular applications like Salesforce and other CRM, HR, and ERP systems, allowing organisations to build a cohesive tech ecosystem.
Unlike Xero, Sage Intacct doesn’t include modules for CRM, eCommerce, or other non-accounting functions, so integrations are necessary to cover these gaps. This can add complexity and potential for slower performance.
Sage Intacct’s tax compliance features are strongest for US and UK businesses, with limited native support for other countries, which may impact organisations with international operations.
Sage Intacct uses a subscription model with annual pricing and charges per user, so costs can increase as your team grows. Licenses typically starts at around £6,750 per year for basic packages, but prices vary significantly based on the features required, number of users, and level of customisation.
Microsoft Dynamics 365 Business Central is a comprehensive ERP solution with strong accounting capabilities. It’s part of the Microsoft ecosystem, offering seamless integration with Microsoft Office and other Dynamics 365 applications. For businesses looking for more than just accounting, Business Central is a feature-rich alternative to Xero.
Unlike Xero, Business Central is a full ERP system, supporting not only accounting but also inventory management, sales, and supply chain processes. This makes it ideal for companies that need an all-in-one solution.
Being part of Microsoft’s suite, Business Central integrates naturally with tools like Excel, Outlook, and Teams, streamlining workflows and enhancing productivity.
With built-in Power BI integration, Business Central provides advanced reporting and analytics capabilities, allowing for in-depth financial insights and visualisation.
Due to its extensive features, Business Central has a steeper learning curve compared to Xero, and may require dedicated training for staff.
Business Central often comes with a higher price tag than Xero. This can be a significant consideration for smaller businesses or those with straightforward accounting requirements.
Business Central’s pricing starts from around £52.80 per user per month for the Essentials plan and £75.40 per user per month for the Premium plan. However native functionality is limited, so costs for customisation, additional integrations, and implementation services can make the total investment significant.
Wave Accounting is a free, easy-to-use accounting software, designed specifically for freelancers, consultants, and very small businesses. It offers basic features like invoicing, expense tracking, and receipt scanning, making it a budget-friendly alternative to Xero for businesses with straightforward accounting needs.
Wave’s core features, including invoicing and expense tracking, are completely free, which is highly attractive for small businesses and freelancers on a budget.
Wave is designed for ease of use, with an intuitive interface that makes it accessible for those without an accounting background. Its simplicity is ideal for basic financial management.
Wave offers affordable add-ons like payroll services, allowing businesses to expand functionality without committing to a full accounting suite.
Wave is best suited for small, straightforward businesses. Growing companies or those with more complex accounting needs may find Wave lacks the advanced features available in Xero.
Wave's basic reporting features may not meet the needs of businesses that require in-depth financial analysis or custom reports. This limitation can create challenges for companies needing detailed insights into their financial performance, as generating the nuanced data necessary for strategic decision-making becomes difficult.
Wave’s "freemium" model means that all core accounting features are free, including invoicing, expense tracking, and receipt scanning. Then optional add-ons such as payroll come at a cost, albeit low, at £15 per month plus £4 per employee.
Odoo is an open-source ERP system offering a wide range of applications for accounting, CRM, inventory management, and more. It’s highly customisable, making it a good Xero alternative for businesses that require flexibility and a range of business functions in one platform.
Odoo’s open-source nature allows for extensive customisation, which means businesses can tailor the software to their unique needs—a flexibility that Xero doesn’t offer.
Odoo is more than just accounting software; it includes modules for CRM, eCommerce, inventory, and HR, providing a single platform for managing all core business functions.
Cost-Effective for Comprehensive Needs
For businesses needing multiple modules, Odoo can be a cost-effective alternative to purchasing separate solutions, as it consolidates everything in one system.
Odoo’s flexibility and range of features can make setup complex, and customisation often requires a skilled developer. This can make implementation longer and more challenging compared to Xero.
While Odoo covers many areas, some modules may not be as robust as standalone software, so it may require additional tweaking to get the most out of each function.
Odoo offers a modular pricing structure; the cost depends on the modules selected. For example, the accounting module starts at around £12 per user per month. Odoo’s pricing is per user and per module, so the cost varies based on the number of users and the combination of modules. Customisation and implementation can add significantly to Odoo’s cost, especially if you require extensive modifications.
FreshBooks is designed primarily for freelancers and small service-based businesses, with a focus on invoicing, time tracking, and expense management. It’s a strong alternative to Xero for businesses that prioritise client-based billing and time-tracking features.
FreshBooks is tailored for businesses that operate on a project basis, providing detailed time tracking and invoicing features that are particularly valuable for freelancers and agencies.
FreshBooks offers a clean, intuitive interface, making it easy for users to manage their finances without needing extensive accounting knowledge.
FreshBooks’ invoicing features are highly customisable, allowing businesses to create professional invoices, track payments, and send automated reminders.
FreshBooks isn’t ideal for businesses that need inventory management or complex financial reporting, as it lacks the breadth of features offered by Xero.
While FreshBooks covers the basics, it doesn’t provide the depth of reporting available in Xero, which may be a drawback for businesses needing advanced financial analysis.
FreshBooks uses a tiered subscription model based on the number of clients and features required. FreshBooks pricing starts at £13 per month for the Lite plan, £22 for the Plus plan, and £45 for the Premium plan. Payroll services, if needed, are available as an add-on, and certain integrations may come with additional fees.
The best alternative to Xero depends on your business’s unique needs. QuickBooks and Zoho Books are solid choices for small businesses looking for simplicity and affordability, while FreshBooks suits service-based businesses. For companies with more complex accounting needs, Sage or NetSuite might be more appropriate.
By carefully considering your business’s size, industry, and future growth, you can find an accounting solution that matches your goals and supports your journey. Whether you need a free tool for basic tasks or a powerful ERP system for scaling, there’s a Xero alternative out there that can meet your needs.