More and more companies are migrating from their legacy accounting software to cloud-based financial management suites. This allows them to free up hardware expenses and access their platforms anywhere; and even on mobile. One of the most popular ones is Xero. Many consider it as an all-in-one business solution as it integrates seemingly disparate functions into one single hub. It has modules not only for accounting but also for inventory, payroll, and invoicing, among many others. This is why it is among the top accounting software solutions today.
Despite its strong offering, there are also other products that rival or may even surpass Xero in terms of relative operational fit. Xero might be too general for some that they would rather have specialized accounting software for, let’s say, ecommerce or pet services. Also, there are also companies that may find Xero’s offer too limited. This is why, in this article, we will introduce alternatives to Xero that are either more specialized or more comprehensive.
In 2021, 58% of enterprises have been reported to use cloud accounting solutions. And, recent accounting statistics show that even small companies, 78% of which, were using cloud accounting in 2020. Accounting software adoption, in the same year, was also gearing up as tech spending of accounting firms continued to increase. Large firms lead the pack with a 60% increase. Small firms are second with 41%, while mid-sized firms increased their tech spending by 38%.
With this, experts estimate that by 2024, the United States accounting software market alone will reach $416.23 million. And, cloud-based software solutions are looking to be more popular than ever. This is because around 67% of accountants, in a study, revealed that they prefer web-based software over on-premise ones.
The market is also quite exciting as accounting professionals have been investing in emerging technologies even back in 2020. The top ones include 5G (22%), advanced and predictive analytics (21%), and automation (20%). Other exciting technologies that accountants are investing in include natural language processing (NLP) and blockchain. So, in the next five to 10 years, expect cloud-based accounting platforms to include some of these advanced features and capabilities.
However, this is not to say that today’s accounting solutions are not enough. The top ones, like Xero, have very comprehensive feature sets that any business of any type, size, and industry can benefit from.
Xero is described as a software solution that has revolutionized the digital accounting sector. Users say this app has been developed with the user experience in mind and offers the exact accounting features they need.
The best part about Xero is that even lay users will find it easy to manage. It makes even complex work such as double bookkeeping simple to handle for novices. For this reason, the app has become a prominent brand name in the accounting software market. If you have not hired the services of a bookkeeper, do not worry, as you can count on the assistance of the vendor’s certified advisors.
Xero is a company based in New Zealand and its accounting product has become popular in the US, UK, European, and Australian markets. Today, the company operates 20 global offices and it has won many awards for its high-quality software and services.
Xero is used by more than 475,000 sole and business accountants. The app integrates seamlessly with leading third-party solutions and accounting systems. If you have simple needs, you can start with the basic Starter plan for $25/month. However, if your needs include more number of quotes, invoices, and bills as well as multi-currency features, then you can subscribe to the premium packages. The vendor offers a handy 30-day free trial you can use to check out the features before you shell out your money.
If you are looking for a wider choice, we have got you covered as we also analyze the main benefits of top Xero alternatives. We provide you valid reasons why you should consider Xero instead of the alternative application and vice versa.
FreshBooks is one of the top Xero alternatives in the market. What makes FreshBooks stand above the competition? To start, it is a fast and reliable accounting solution that makes financial management a fun activity.
Businesses benefit as they can easily manage recurring subscriptions and invoices, and collect online payments using this single system as it facilitates credit card, PayPal, and Google Checkout payments. Plus, it integrates smoothly with leading business applications to streamline this process. The vendor also offers a great free trial plan if you’d like to try out the key features first.
You can unite financial control with this single platform, which means you don’t need to invest in multiple software solutions. To give you more options, we provide viable FreshBooks alternatives here.
Why use FreshBooks instead of Xero?
Why use Xero instead of FreshBooks?
Detailed FreshBooks Review
NetSuite ERP is a comprehensive and scalable cloud ERP product designed for the needs of fast-growing small businesses as well as large enterprises. The app automates front- and back-office processes including: inventory management, billing, order management, fixed assets, revenue management, and financial management. Plus, it enables all employees from top managers to clerical staff to view customizable reports on key performance indicators for their role. Finally, this ERP module integrates smoothly with other NetSuite software such as eCommerce, CRM, inventory, and order management tools. If you wish to look at more options, read about viable NetSuite ERP alternatives here.
Why use NetSuite ERP instead of Xero?
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Detailed NetSuite ERP Review
This web-based accounting solution is created for small businesses, independent accounting firms, and freelancers. QuickBooks Online provides all essential accounting tools in a single platform to help growing businesses and firms simplify their accounting and finance management processes. This application offers robust tools that automate data collection and tax calculation, as well as features for simplifying billing and invoice management, sales monitoring, generating customized reports, banking data synchronization, and more.
QuickBooks Online is also accessible on multiple devices and is equipped with auto-syncing options so you will be up to date no matter what device you are using. If you want to find similar software, you can check out QuickBooks Online alternatives.
Why use QuickBooks Online instead of Xero?
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Formerly known as Sage One, Sage Business Accounting Cloud is a leading accounting software solution designed especially for small businesses. It provides users with automation tools and modules for invoicing and remote access. The product is also for its robust financial management and reporting features including drill-down and report designer module.
Other key features include billing, payments support, bank connections, bank reconciliation, stock management, accounts receivable, and accounts payable. Moreover, the product has multi-currency support for international operations.
Sage Business Accounting Cloud is not just accessible via the web on your PC but it also has native mobile applications for Play Store and App Store so you can manage your business on the go. If you want to find similar platforms, you check out other Sage Business Accounting Cloud alternatives.
Why use Sage Business Accounting Cloud instead of Xero?
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Tipalti Approve is a great alternative to Xero for procurement. It provides users with better tools for processing purchase orders, goods received, and purchase approvals. Like other top applications, it has a centralized communication module for better collaboration and keeping employees on the same page.
Other key features include smart view filters, email notifications, and request duplication to avoid redundant manual entry. Moreover, Tipalti Approve is also valued by its users for having a good vendor onboarding feature. This allows users to build and foster great working relationships with their suppliers.
The solution is also mobile-ready. Thus, key signatories can use their phones to approve purchases even while they are out of the office. Moreover, the platform integrates with other business tools including Slack, Okta SSO, NetSuite, and Gmail among others. If you want to find similar platforms, you check out more Tipalti Approve alternatives.
Why choose Tipalti Approve instead of Xero?
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Detailed Tipalti Approve Review
AvidXchange is a cloud-based solution developed to help businesses of all sizes handle their invoice management and payment automation needs. With it, users get access to digitized invoicing, purchase order automation, as well as approval workflow management. It even comes with a highly configurable interface that makes it easier for users to customize it according to their accounts payable requirements.
Aside from the abovementioned features, the platform also comes with pay services, bank reconciliation, and a supplier portal. With these, it is easier to make sure that all transactions with vendors are completed on time. Plus, as the platform uses the latest security features and fraud detection systems, it can ensure that all of your transactions are legitimate. Should you want to learn more about this platform, be sure to schedule an AvidXchange demo.
The software is web-based, making it easy to access from any computer device that is connected to the internet. Moreover, the platform supports over 180 integrations so you can be sure that it easily blends well with your existing software ecosystem. To give you more selections, we provide good AvidXchange alternatives here.
Why use AvidXchange instead of Xero?
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Detailed AvidXchange Review
Rossum is an all-in-one document gateway built to automate document management between businesses and their partners. Equipped with self-learning AI technology and cognitive data capture, this platform aims to accelerate data entry while minimizing the risk of human error. This platform is also built to be fully configurable so you can create custom approval rules for your accounts payable documents and other accounting files.
As it is a document management system at its core, the platform serves as a unified repository for all your accounting documents. It comes with a search engine that makes it easy to retrieve any transaction data. Plus, it tracks the usage of all documents so you can keep a close eye on who accesses your files. Plus, the platform can seamlessly integrate with your existing software ecosystem so you don’t have to worry about compatibility. For more options, browse these good Rossum alternatives here.
Why use Rossum instead of Xero?
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Detailed Rossum Review
A2X is mainly a cloud-based ecommerce platform that has great financial management and reporting tools. It is a great alternative to Xero for companies with heavy ecommerce operations. It has a great inventory management tool and great integrations with customer-facing services like Shopify and Amazon. Thus, it can be an end-to-end solution for ecommerce businesses.
Other features include a general ledger, inventory accounting, transaction history, cost of good functionality, financial reconciliation, and supports multiple currency transactions. Moreover, you can also have multiple seller accounts to keep operational channels separate while having an integrated view.
The product integrates with other business and accounting platforms like Amazon Pay, Sage, QuickBooks Online, and Walmart Marketplace. If you need to find similar ecommerce platforms with great accounting tools, you can check out A2X alternatives.
Why use A2X instead of Xero?
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Detailed A2X Review
Trolley, formerly Payment Rails, is an accounts payable (AP) software designed for companies with medium to high-volume accounts payables. It is also designed to scale with a business as it grows. It is not only popular among large enterprises but also SMEs. Key features include a recipient portal, PayPal payouts support, and bank account validation.
The platform also offers low FX rates to more than 135 currencies. Also, it has AML and Compliance Watchlist screening as well for better security. It is also prized for its automated tax form collection and reporting features. Plus, it has customized approval workflows to make teh whole AP process more efficient. The product is perfect for businesses that want to take their operations to the international stage.
Trolley also integrates with accounting and ERP platforms. Other integrations include Trello, SurveyMonkey, Harvest, HubSpot, and Zendesk. If you want to compare Trolley with other similar products, you can check out Trolley alternatives.
Why choose Trolley instead of Xero?
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Detailed Payment Rails Review
DocuPhase is an accounts payable automation solution providing document management features and other capabilities that are usable for the entire organization. It can act as a worthy alternative to Xero because of its strong accounting automation system.
Because of its Optical Character Recognition feature, it can read the text on scanned documents accurately. On top of that, it has a document storage system that can keep invoices, receipts, and related financial documents. Thus, there is no need to worry about losing a single bit of data.
DocuPhase can also help with the digitization of a company’s processes with other automation workflows. For example, it can automate payments of invoices. Since it is a programmed action, organizations can rest assured that their dues are paid on time.
You can also compare the software with these DocuPhase alternatives.
Detailed DocuPhase Review
Why use DocuPhase instead of Xero?
Why use Xero instead of DocuPhase?
Xero is a well-rounded and easy-to-use accounting platform that is scalable, feature-packed, and priced reasonably well. It does not only track finances but also projects and inventories. So, it is really a good go-to platform.
The problem, however, is that it can be too general or broad for a business’s needs. Some companies only need accounts payable software, ecommerce businesses want ecommerce tools with robust accounting modules. So, they are better off with more specialized products like Tipalti Approve.com or Trolley.
But, if you want to compare Xero side-by-side to any product. The best alternative is FreshBooks. Firstly, it is far superior when it comes to its feature list. It has modules for online invoicing, expense tracking, time tracking, project management, payments support, and accounting reports and taxes. Many companies use it as an all-in-one business solution. And, that is something that Xero could not provide on its own.
If you are new to cloud-based accounting software tools and you want to know more, you can check out our more in-depth analysis of what accounting software solutions are and their benefits.
Lastly, to keep yourself updated with the accounting software market and profession, you can also check out the latest accounting software trends for 2022.
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