Best Open-Source Alternatives to Xero for Accounting and Invoicing

If you’re a business owner or freelancer looking to break free from costly SaaS accounting tools like Xero, you’re not alone. Open-source accounting software has matured to the point where you can take full control of your finances, invoices, and even taxes—without monthly subscriptions.

In this post, we’ll explore the top 4 open-source alternatives to Xero that you can self-host or use via managed services like OctaByte. We’ll compare their features, usability, and how closely they match the Xero experience.

1. Invoice Ninja

Invoice Ninja is the most Xero-like solution when it comes to invoicing, payments, and client management.

🔧 Features

• Invoicing & Quotes
• Time tracking
• Expense & payment management
• Client portal
• Recurring billing & subscriptions
• Supports 10+ payment gateways (Stripe, PayPal, etc.)

✅ Best For

Freelancers, small businesses, and service-based companies needing fast invoicing and recurring billing.

💬 How It Compares to Xero

• Similar UX and dashboard design.
• Not a full double-entry accounting system (limited compared to Xero in that area).
• Faster setup, lighter footprint, and great for billing-focused businesses.

2. ERPNext

ERPNext is a powerful full-stack ERP suite with robust accounting features. If you’re looking for an open-source Xero alternative that includes everything from invoicing to payroll to inventory, this is your pick.

🔧 Features

• Double-entry accounting
• Bank reconciliation
• CRM, HRM, Inventory, Projects
• Payroll & asset management
• Custom workflows
• Multi-currency & tax rules

✅ Best For

SMBs, manufacturers, or retail businesses that need more than just basic accounting.

💬 How It Compares to Xero

• Offers far more modules than Xero (ERP-level features).
• More complex to set up but offers comprehensive financial reporting and automation.
• Ideal for businesses ready to scale.

3. Akaunting

Akaunting is a sleek, modern accounting solution that covers everything from invoices to taxes and expenses, with an intuitive UI.

🔧 Features

• Invoicing & billing
• Expense tracking
• Accounting reports (P&L, Balance Sheet)
• Multi-currency & multi-company support
• Tax calculation
• Optional marketplace with plugins

✅ Best For

Small businesses that want an Xero-style experience with a modern web interface.

💬 How It Compares to Xero

• Very close in terms of UI and feature simplicity.
• Lacks some advanced integrations unless paid plugins are used.
• Great for non-technical users or teams without deep accounting experience.

4. Dolibarr

Dolibarr is an all-in-one ERP and CRM with a strong accounting module. It supports a broad range of business operations out of the box.

🔧 Features

• Invoicing, quotes, and payments
• Accounting (basic and advanced)
• Inventory, warehouse, and logistics
• CRM & HR
• Project management and POS

✅ Best For

Companies that want an integrated suite of tools for both sales and finance.

💬 How It Compares to Xero

• Broader ERP and CRM scope than Xero.
• Accounting features are good but not as polished as dedicated accounting tools.
• Highly modular and extendable.

🆚 Comparison Table

🔐 Want to Host These Tools Without the Hassle?

At OctaByte, we offer fully managed hosting for all of the tools above — complete with backups, SSL, monitoring, and 24/7 support. Get started with a 7-day free trial, and run your business with confidence.

🧾 Conclusion

Switching from Xero to an open-source solution isn’t just about saving money—it’s about owning your data, customizing your workflows, and scaling freely. Whether you’re a solo freelancer or an enterprise growing fast, one of these open-source tools will fit your needs.

Need help choosing the right one or want a custom deployment? Contact our team and we’ll guide you every step of the way.