Users say this app has been developed with the user experience in mind and offers the exact accounting features they need. Xero is described as a software solution that has revolutionized the digital accounting sector. The top ones, like Xero, have very comprehensive feature sets that any business of any type, size, and industry can benefit from. However, this is not to say that today’s accounting solutions are not enough. So, in the next five to 10 years, expect cloud-based accounting platforms to include some of these advanced features and capabilities. Other exciting technologies that accountants are investing in include natural language processing (NLP) and blockchain. The top ones include 5G (22%), advanced and predictive analytics (21%), and automation (20%). The market is also quite exciting as accounting professionals have been investing in emerging technologies even back in 2020.
This is because around 67% of accountants, in a study, revealed that they prefer web-based software over on-premise ones. And, cloud-based software solutions are looking to be more popular than ever. With this, experts estimate that by 2024, the United States accounting software market alone will reach $416.23 million. Small firms are second with 41%, while mid-sized firms increased their tech spending by 38%. Large firms lead the pack with a 60% increase. Accounting software adoption, in the same year, was also gearing up as tech spending of accounting firms continued to increase. And, recent accounting statistics show that even small companies, 78% of which, were using cloud accounting in 2020. In 2021, 58% of enterprises have been reported to use cloud accounting solutions. This is why, in this article, we will introduce alternatives to Xero that are either more specialized or more comprehensive. Also, there are also companies that may find Xero’s offer too limited. Xero might be too general for some that they would rather have specialized accounting software for, let’s say, ecommerce or pet services. This is why it is among the top accounting software solutions today.ĭespite its strong offering, there are also other products that rival or may even surpass Xero in terms of relative operational fit. It has modules not only for accounting but also for inventory, payroll, and invoicing, among many others. Many consider it as an all-in-one business solution as it integrates seemingly disparate functions into one single hub.
This allows them to free up hardware expenses and access their platforms anywhere and even on mobile.
More and more companies are migrating from their legacy accounting software to cloud-based financial management suites. It can be used by any type of business of any size in any industry. Moreover, it is highly flexible and easily customizable. It has more features housed in easy-to-use modules, from expense and time tracking tools to accounting reports and payments support. FreshBooks is the best alternative to Xero.