Xero alternatives
Xero is already the cheapest accounting tool we track at a one-person business ($27/mo). Here's how the other 2 compare. The closest match, QuickBooks Online, covers 95% of what Xero does. Each one shows how much of it it covers, capability by capability, next to the price.
What Xero does
Core: Bank & card feeds, Double-entry ledger & statements, Invoices & online payment.
Important: Bills & accounts payable, Receipt capture & OCR, AI transaction coding, Sales tax & VAT, Payroll with tax filing, Multi-currency, Accountant access & services, App marketplace & API, Mobile apps.
Also has: Owner income tax, Inventory tracking, Projects & tracking categories, Sales channel & payout sync, Accruals & startup metrics (partly), E-invoicing compliance.
Alternatives to Xero at a one-person business, best match first
- QuickBooks Online: $38/mo Intro promos 50-90% off for 3 months (Simple Start). It covers 95% of Xero; missing or partial: Owner income tax (partly), E-invoicing compliance. Free plan: Free plan: 1 user, 1 bank connection, 2 invoices a month, P&L and balance sheet. Last price hike: Aug 2026.
- FreshBooks: $43/mo Intro promos up to 80% off ignored (Plus). It covers 77% of Xero; missing or partial: AI transaction coding (partly), Sales tax & VAT (partly), Multi-currency (partly), Owner income tax, Inventory tracking (partly). Free plan: none. Last price hike: Mar 2026.
Prices at every size
- Xero: a one-person business $27/mo, a 3-user small business with bills $59/mo (Early caps invoices at 20/mo, bills at 5/mo)
- QuickBooks Online: a one-person business $38/mo, a 3-user small business with bills $85/mo (Intro promos 50-90% off for 3 months)
- FreshBooks: a one-person business $43/mo, a 3-user small business with bills $92/mo (Intro promos up to 80% off ignored)
Prices are the software subscription in USD per month on monthly billing (annual-only plans divided by 12) at the regular list price, ignoring introductory discounts, for two fixed bookkeeping scenarios. Payment-processing, bank and bill-pay fees, payroll and done-for-you bookkeeping or tax services are left out.
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Everything about Xero's own prices and price hikes: Xero.