The 5 Best Xero Alternatives

If you're a freelancer, small business owner, or just someone tired of wrestling with spreadsheets and dashboards, this one’s for you.

Xero is a solid accounting platform, no doubt about it. But it’s not always the most user-friendly or cost-effective tool out there, especially for solopreneurs or startups looking for simplicity, clarity, and value. So, what if you're looking for a better fit?

In this guide, we’re diving into the 5 best Xero alternatives that offer intuitive features like expense tracking, online invoicing, automated payment reminders, and more (all tailored to real-world business needs).

Why Look for a Xero Alternative?

While Xero accounting software includes a wide range of financial tools, from bank reconciliation and multi currency transactions to client invoices and inventory management, it’s not perfect for everyone.

Let’s break it down:

Where Xero Falls Short

• Steep learning curve: Not exactly plug-and-play. Even though it has an intuitive interface, it still leans heavily on traditional accounting jargon.

• Invoice limits on the Starter Plan: That “Early” plan limits you to just 20 invoices a month. Not ideal if you're sending recurring or personalized invoices.

• Limited cash flow forecasting: Forward-looking financial data and cash flow insights require third-party tools.

• Extra fees: Want online invoicing, bank payments, or automated payment reminders? You’ll be paying more, either through upgrades or third-party apps.

• Not built for freelancers or tiny teams: It's not really optimized for small businesses with unique needs or lean teams.

If any of that hits home, don’t worry—there are better options. Let’s dig into the top alternatives to Xero in 2025.

1. Cashflowy – The Best Xero Alternative for Freelancers

Description: Cashflowy's dashboard welcoming the user, showing profit and loss trends, a list of invoices, net revenue totals, and an expense breakdown chart, with a left-side menu for transactions, reports, invoices, and clients.”

If Xero feels like homework, Cashflowy feels like a breath of fresh air. This accounting software is designed specifically for freelancers, creators, consultants, and solopreneurs who just want to know: Where is my money going?

Key Features

• Visual cash flow dashboard

• Automated transaction categorization

• AI-powered financial coach with tailored tips based on your results

• One-click invoicing and payments

• Clear financial reporting in plain English

• Automatic tracking of unpaid invoices.

• Run all your finances in <1 hour per month.

Why Cashflowy Is a Great Alternative

• 10-minute setup

• Flat pricing–no add ons, no hidden fees

• Unlimited users included

• No inventory or payroll complexity

• Built for real time insight

• Invoices get paid faster.

• Combines invoicing + financial reporting in one tool.

• Extremely easy to use.

• Saves your time

Limitations

• Not built for inventory management

• No payroll integration

• Newer in the market compared to legacy tools.

Best For

Self-employed, freelancers, and service providers who want a great alternative to Xero without accounting stress. Cashflowy is for those who want to get paid faster, stay on top of overdue payments, and have complete financial clarity in one place.

2. FreshBooks – Best for Invoicing and Time Tracking

Description: FreshBook's Dashboard interface showing outstanding revenue, total profit over time, and revenue streams, with charts, dollar amounts, and a navigation menu on the left for items like invoices, expenses, and reports.

FreshBooks shines in the world of online invoicing, recurring invoices, and time tracking. It’s one of the top Xero alternatives for creatives and small service-based businesses.

Key Features

• Time tracking and billable hours

• Custom personalized invoices

• Project management features

• Client portals for easy communication

• Basic expense tracking and reporting

Pros

• Clean, user friendly interface

• Mobile app is excellent

• Great for send invoices and recurring invoices

Cons

• Starter plan only supports 5 clients

• Not great for inventory management or deep financial reporting

• Lacks advanced accounting system capabilities

Best For:

Freelancers who want polished invoices and collaborative project management tools.

3. QuickBooks Online – Best for Established Small Businesses

Description: QuickBooks business overview dashboard showing a cash flow chart with money in and money out by month, plus sections for invoices, expenses, and bank account balances, with a navigation menu on the left.

The OG of accounting software, QuickBooks Online is feature-rich and accountant-approved. It’s got payroll integration, bank reconciliation, inventory management, and serious financial reporting power.

Key Features

• Payroll integration

• Bank reconciliation

• Mileage and time tracking

• Access for accountants

• Advanced tax calculations

Pros

• Massive ecosystem and support

• Deep accounting tasks coverage

• Real-time financial data and reports

• Popular among bookkeeping pros

Cons

• Too complex for beginners

• High cost for extra users

• Overkill if you don’t need full-blown financial management

Best For:

Small businesses that need a powerful accounting system and work closely with accountants.

4. Wave – Best Free Alternative to Xero

Description: Wave's dashboard showing bank accounts and credit cards with balances, a cash flow chart over time, and a profit and loss section, plus a left-side menu for sales, purchases, accounting, payroll, and reports.

Need a free alternative to Xero? Wave delivers a lot of bang for no bucks. Perfect for startups and side hustlers who just need the basics: invoices, payments, and expense tracking.

Key Features

• Simple expense tracking

• Sync bank accounts

• Unlimited invoices and payments

• Import expenses and categorize automatically

• Bank reconciliation included

Pros

• Totally free for core features

• Easy setup

• Clean and user friendly design

Cons

• Limited project management or team management tools

• No payroll integration on free tier

• Lacks deeper financial tools like forecasting

Best For:

Solopreneurs just starting out or running lean small businesses with simple needs.

5. Zoho Books – Best for Custom Workflows and Integrations

Description: Zoho Books dashboard showing key metrics like conversion rate, won deals, average deal size, and sales cycle length, with charts for monthly sales trends and win rates, plus navigation menus and filters.

Looking for serious automation? Zoho Books is a great alternative to Xero, especially if you’re already using other Zoho products. It’s got a steep learning curve but shines with its powerful custom workflows, financial reporting, and multi-level user access.

Key Features

• Robust inventory management

• Strong team management and role-based access

• Custom to do list workflows

• Smart financial reporting tools

• Supports multi currency transactions

Pros

• Affordable professional plan

• Deep integration with Zoho CRM

• Offers automated payment reminders, send invoices, and create estimates

Cons

• Not as user friendly for beginners

• Support can be hit or miss

Best For:

Growing businesses that need automation and deep financial management features.

Feature Comparison Table

Why Cashflowy Is the Best Xero Alternative Today

If your business is less about rows and columns and more about clarity and speed, Cashflowy takes the win. It’s the best Xero alternative for self-employed who want less accounting and more answers.

• No jargon.

• No complicated setup.

• Just real-time, clear financial health insights that help you make informed decisions fast.

Whether you're looking to track expenses, track income, or just want to stop dreading tax time, Cashflowy delivers what matters most—peace of mind and control over your business finances.

Why Cashflowy Wins for Freelancers

Built Around Financial Health

Cashflowy prioritizes financial health, not bookkeeping perfection.

Designed for Self-Employed

It’s built for solopreneurs, not accountants.

Focused on Decisions, Not Data Entry

You get insight, not spreadsheets.

Bottom line: Cashflowy is the best Xero alternative for founders who value clarity over complexity.

Your Next Step

You started your business to do meaningful work, not to wrestle with accounting software.

If you’re ready to ditch complexity and finally feel confident about your money, Cashflowy gives you that clarity.

FAQs – You Asked, We Answered

What is the best alternative to Xero?

Cashflowy is currently the best overall Xero alternative for freelancers and solopreneurs due to its intuitive design, fast setup, and powerful features tailored to small businesses.

Is Zoho Books a good replacement for Xero?

Yes! Zoho Books is a great alternative if you need custom workflows, deep automation, and CRM integration. Just be prepared for a steeper learning curve.

Which accounting software is best for small businesses?

For ease of use, value, and features like expense tracking, online invoicing, and bank reconciliation, FreshBooks, Wave, and Cashflowy are top choices.

Can I track expenses and income without using Xero?

Absolutely. Most Xero alternatives like Cashflowy, FreshBooks, and Wave let you easily track income, import expenses, and even categorize transactions.

Is there a free alternative to Xero?

Yes, Wave is a 100% free alternative with essential accounting tasks like invoicing, expense tracking, and payments. But you can try Cashflowy for free for 15 days.

Wrapping Up – Find the Right Fit for Your Unique Business

Choosing the right accounting software isn’t just about features. It’s about fit. Every business has unique needs, goals, and levels of complexity. Whether you're a solo coach who needs time tracking, a growing agency craving custom workflows, or just want to see your current balances and move on with your day, there’s a better fit than Xero out there.

Pro tip: Always consider your top 3 business priorities: financial reporting, expense tracking, and simplicity and match your software accordingly.

So, what are you waiting for?

Try Cashflowy, the most user friendly, fast, and powerful Xero alternative today, and take back control of your money.