5 Best Xero Alternatives for Agencies in 2026

Quick thing before we start... most people searching "Xero alternatives" are actually after one of two different things.

Either: you want a different accounting tool. Xero's pricing crept up, or the Early plan's 20-invoice cap is killing you, or your accountant wants something else. Fair enough.

Or: you don't actually hate Xero's accounting. You hate doing your billing inside it. The invoicing feels clunky. There's no milestone billing. Scope changes live in email threads. And every Monday you're sending "just checking in on that invoice..." emails because Xero's reminders don't really chase anyone.

Those are two completely different problems. And honestly, most agencies I talk to have the second one, not the first.

I ran digital agencies for 20+ years. Xero was always fine for the books. The billing side is where everything leaked — late payments, scope creep, no paper trail. So I'm going to be straight with you below. For the people genuinely switching accounting tools, I'll cover the real options. And for the people who just want billing to stop being painful... there's a better answer than swapping accounting software, which is a massive hassle for no reason.

Here's the quick version.

Pricing as of June 2026. These change constantly — check the vendor's site before you commit.

Right, let's get into it.

1. Handl — Best If Your Real Problem Is Billing, Not Accounting

Best for: Agencies and freelancers who are fine with Xero's accounting but sick of doing milestone billing, scope changes, and payment chasing inside it.

Here's the thing I wish someone had told me years ago... you probably don't need to replace Xero. You need to stop using it for the client-facing billing stuff.

Xero is accounting software. Bank feeds, reconciliation, tax, the stuff your accountant lives in. It does that job properly. What it doesn't do — by design — is manage the relationship between you and your client when money's moving. There's no milestone billing. No client portal. No change order workflow. No AI chasing late payers for you. Xero records what happened. It doesn't help you make it happen.

That's the exact gap Handl fills. It sits in front of Xero. You quote, the client signs off digitally, milestones trigger invoices automatically as project phases complete, an AI billing agent drafts and sends and chases overdue invoices for you (through your dashboard, Slack, or MCP), and when the client pays through the branded portal — one-click pay, even auto-pay — it syncs straight back into Xero. Your books stay clean and you didn't touch a thing.

It also pulls milestones from your PM tools — Monday, Asana, Jira, ClickUp, Trello — so your invoicing reflects what's actually shipped. Plus scope-creep change orders so "can you just add one more thing" has a tracked, billable record instead of vanishing into Slack. And cash-flow forecasting on Team and up.

Pricing: From $29/mo. Freelancer is $29 (1 user, 1.5% payment fee). Team is $99 (up to 3 users, 1.2%). Agency is $199 (unlimited users, 1.0%). Priced by plan, not per seat — so the bill doesn't climb every time you hire. 7-day free trial.

Pros:

• Milestone billing built for how agencies actually bill — by phase, not just by date
• AI billing agent drafts, sends, and chases invoices so you stop being the bad guy
• Branded client portal — no login, one-click pay, auto-pay
• Scope-creep change orders with a real paper trail
• PM integrations (Monday, Asana, Jira, ClickUp, Trello) so invoices match reality
• Syncs straight into Xero (and MYOB) — your accountant stays happy
• Plan pricing, not per seat — Agency caps at $199/mo, unlimited users
• Cash-flow forecasting (Team and up)

Cons — and I'll be honest here:

• It is not accounting software. No double-entry, no bank rec, no payroll, no tax. It pairs with Xero, it doesn't replace it. If you want one tool for everything, this isn't it.
• Newer and smaller than Xero. We don't have a 20-year ecosystem or a huge user community yet.
• Two subscriptions instead of one (Handl + your accounting tool). Arguably better at each job, but it's still two line items.

If you genuinely want to ditch Xero and run one tool, skip down to the others. But if your accounting is fine and your billing is the mess... this is the play. Add the layer, keep your books where they are.

Worth a deeper read: Handl vs Xero — why agencies use both.

2. QuickBooks — Best Full Accounting Swap (Especially US)

Best for: Agencies actually replacing their accounting software, or whose accountant already lives in QuickBooks.

If you're switching accounting tools for real, QuickBooks is the obvious one. It's the most well-known accounting platform on the planet and there's a very good chance your accountant already knows it cold. Double-entry bookkeeping, bank reconciliation, payroll (add-on), tax prep, an enormous integration library. For US agencies specifically, the tax and payroll depth is hard to beat.

But — same honest caveat as Xero — QuickBooks is accounting software, not billing software. No milestone billing, no client portal, no change order workflow, no proposal signing, no AI chasing. The reminders are basic. The interface carries decades of feature bloat. If your reason for leaving Xero was that invoicing annoyed you, switching to QuickBooks doesn't fix that. You'll have the same billing pain in a different (busier) UI.

One thing to flag: Handl doesn't sync natively with QuickBooks yet (we do Xero and MYOB). So if you go QuickBooks for accounting and want Handl for billing, you're exporting between them for now.

Pricing: From $15/mo (Simple Start). Essentials $27.50, Plus $42.50, Advanced $100. Intuit discounts entry plans hard for the first few months, then it jumps.

Pros:

• Best-in-class accounting — the real deal
• Your accountant almost certainly knows it
• Strong US tax and payroll
• Massive integration ecosystem and support community

Cons:

• Invoicing is basic — no milestone billing
• No client portal, no change orders, no PM integrations
• UI feels bloated if all you want is billing
• Gets pricey at scale, frequent price creep
• Handl doesn't sync with it natively (yet)

More detail: Handl vs QuickBooks.

3. MYOB — Best for Australian Agencies Switching Accounting

Best for: Australian agencies who need local compliance and want an alternative to Xero their accountant already trusts.

If you're in Australia and you're moving off Xero, MYOB is the other heavyweight. It's been doing BAS lodgement, GST, Single Touch Payroll and super for Aussie businesses since before cloud accounting was a thing. Walk into a bookkeeper's office in Melbourne and say "we're on MYOB" and they just nod and get to work. The cloud version has modernised a lot — it's not the clunky desktop thing you might remember.

Same story on the billing side though. MYOB records and reconciles. It doesn't do milestone billing, client portals, change orders, or AI payment chasing. The UX also isn't quite as clean as Xero, in my opinion.

Good news if your problem was really billing: Handl syncs natively with MYOB too. So the "use both" approach works here — MYOB for Aussie compliance, Handl for the client-facing billing.

Pricing: From $34/mo AUD (Business Lite). Business Pro $63, AccountRight Plus $150. There's also a Solo plan at $5.50/mo AUD for sole traders with very basic needs.

Pros:

• Deep Australian compliance (BAS, GST, STP, super)
• Solid payroll for Aussie obligations
• Your Australian accountant probably already uses it
• Good bank feeds for AU banks
• Handl syncs with it natively

Cons:

• UX isn't as polished as Xero
• Not a billing tool — no milestones, no portal, no change orders
• No PM integrations
• Plan options can be confusing
• International features are limited

More here: Handl vs MYOB.

4. FreshBooks — Best Simpler Swap for Solo Freelancers

Best for: Solo freelancers and very small operators who want simple invoicing plus basic accounting, friendlier than Xero.

FreshBooks has been around since 2003 and it's genuinely good at the basics — clean invoicing, built-in time tracking, expense capture, a solid mobile app. If your Xero frustration is "this is more accounting tool than I need," FreshBooks is the gentler landing. Lower learning curve, friendlier UI, does invoicing and light accounting in one.

The catch is the pricing model: it's tiered by billable client count. The $15/mo Lite plan caps you at 5 active clients, which a growing freelancer blows through fast. And it charges per extra team member, so it adds up the second you're more than one person. On the agency side it's thin — no milestone billing, no change orders, no PM integrations, no client portal, and reminders are manual.

For simple solo work, it's a clean choice. For agency project work, you'll outgrow it.

Pricing: From $15/mo (Lite, 5 clients). Plus $25, Premium $50. Extra team members cost more. 30-day trial.

Pros:

• Friendly UI, easy to learn
• Built-in time tracking and expenses
• Great mobile app
• 20+ years mature and well-refined
• 30-day free trial

Cons:

• Lite plan caps you at 5 clients
• Charges per extra team member
• No milestone billing, no client portal, no change orders
• No PM integrations
• Reminders are manual

More: Handl vs FreshBooks.

5. Wave — Best Free Swap for Simple Needs

Best for: Early-stage freelancers who want free invoicing and basic accounting and don't run complex projects.

Wave is the one genuinely free option here. Not a trial, not freemium bait — actually free for invoicing and accounting. They make money on payment processing (2.9% + 60c on cards, 1% on bank transfers). The accounting foundation is legit too — proper double-entry, expense tracking, bank reconciliation. It's not a toy.

If your Xero subscription feels like overkill for the handful of invoices you send, Wave might honestly be all you need. The moment your work gets project-complex, though, the gaps show fast: no milestone billing, no client portal, no proposals with sign-off, no change orders, no PM integrations, and reminders are basic and manual. It was built for bookkeeping, not agency ops.

If you want free accounting and proper agency billing, you can pair Wave-style simplicity with Handl on top — though most agencies on Handl run Xero or MYOB underneath.

Pricing: Free for invoicing and accounting. Payment fees: 2.9% + 60c (cards), 1% (bank transfer).

Pros:

• Genuinely free — invoicing and accounting
• Solid double-entry bookkeeping for a free tool
• Expense tracking and bank rec included
• Up and running in 10 minutes
• No contract, no trial expiry

Cons:

• No milestone billing, no client portal, no change orders
• No PM integrations, no AI reminders
• Payment processing fees add up at volume
• Limited support (it's free, so...)
• Outgrows fast once you're running real projects

More: Handl vs Wave.

Frequently Asked Questions

Can Handl replace Xero? No — and it's not trying to. Handl is billing software, not accounting software. It does milestone invoicing, AI payment chasing, change orders, and a client portal. Xero does the books — bank reconciliation, tax, payroll. They do different jobs. Handl syncs into Xero so you can run both without double data entry. If you need to replace your accounting, look at QuickBooks, MYOB, FreshBooks, or Wave instead.

What's the best Xero alternative for agencies? Depends on your actual problem. If your accounting is fine but billing is the mess (late payments, scope creep, no milestones), don't switch accounting at all — add Handl on top of Xero. If you genuinely want different accounting software: QuickBooks for full-featured US accounting, MYOB for Australian compliance, FreshBooks or Wave for simpler solo needs.

Is there a free alternative to Xero? Yes — Wave is genuinely free for invoicing and basic accounting (you just pay payment processing fees). It's solid for simple solo work. But it has no milestone billing, no client portal, and no PM integrations, so agencies running real projects will outgrow it quickly.

Do I have to switch accounting tools to fix my invoicing? No, and this is the part most people miss. Swapping accounting software is a genuine hassle — migrating data, retraining, getting your accountant on board. If your only real complaint is the billing and payment-chasing side, you can keep Xero and add a billing layer like Handl on top. It syncs back into Xero automatically. Way less disruptive than a full accounting migration.

So... what should you actually do?

If you genuinely need different accounting software — QuickBooks, MYOB, FreshBooks, or Wave depending on where you are and how complex your needs get. Pick the one your accountant won't groan at.

But if you're being honest and the thing you actually hate is doing milestone billing, chasing payments, and tracking scope creep inside Xero... don't blow up your whole accounting setup to fix a billing problem. Keep Xero. Add Handl on top.

The AI billing agent drafts, sends and chases your invoices. Milestones pull from your PM tools. Change orders give scope creep a paper trail. Clients pay through a branded portal — one click, or auto-pay. And it all syncs back into Xero so your books stay clean.

I built it after 20+ years of running agencies and never finding a tool that solved the payment-chasing and scope-creep mess. From $29/mo, 7-day free trial, no card needed.

Try Handl free — app.handl.works

Related reading: Handl pricing · Handl integrations · Inside the AI billing agent

More guides: See all the alternatives guides we've written → · or jump to the pricing page.