Best alternative to Xero

How does Xero work?

Xero is a cloud-based accounting platform designed for small businesses. It allows users to manage their financial records, track income and expenses, and complete basic bookkeeping tasks. Xero connects with bank accounts to retrieve transactions and supports invoicing, payroll, and tax calculations. While Xero simplifies financial management, it primarily focuses on accounting tasks and leaves banking and payments to third-party providers. Xero is mainly used by accountants, who ask their clients to use Xero so that they can access their data and make adjustments.

Thriday, on the other hand, offers a more comprehensive solution by combining banking, automated accounting, and tax management in one platform. Instead of just integrating with banks, Thriday gives you direct access to a business bank account that earns 3.35% interest, tracks your transactions, and automates tax deductions. Thriday also provides fractional accountants and tax agents who are available when needed. In my opinion, Thriday's all-in-one approach goes beyond what Xero can offer, making it an ideal choice for small business owners who want a fully automated experience.

Key benefit: Thriday provides automated accounting and integrates banking and tax management on one platform without relying on third-party services.

Where does my money go with Xero?

When using Xero, you still need a separate bank account where your funds are deposited. Xero pulls transaction data from your external bank accounts to track income, expenses, and payments. While this provides some level of financial overview, it requires juggling multiple platforms, including third-party bank accounts, payment gateways, and payroll services. Bank feeds, the integrations that retrieve data from third-party bank accounts, only operate once a day. This means you can't see your real-time financial position.

With Thriday, all your money is deposited directly into your Thriday business account, managed by Regional Australia Bank, giving you complete access to your funds anytime. Unlike Xero, Thriday doesn't rely on external banking integrations; it brings everything under one roof. This allows for a seamless flow of money from invoicing, tax allocation, and payments without dealing with separate systems. The 3.35% interest on your account balance is an added benefit.

Key benefit: Thriday eliminates the need for third-party banks by offering an integrated bank account. This account gives you real-time access to your funds and earns interest.

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Can I access my money with Xero?

While Xero integrates with external bank accounts, it does not provide direct access to your money. You manage your transactions through the bank account you link to Xero, but the platform doesn't hold or manage your funds.

In contrast, Thriday allows you to have instant access to your money. You manage everything through your Thriday account, and because Thriday combines banking and accounting, you have real-time control over your money and how it's being allocated for taxes or expenses. Thriday allows me to pay bills, manage cash flow, and make transactions without delays or middlemen.

Key benefit: Thriday provides complete and immediate access to your money, allowing you to manage your finances in real time.

What features does Xero offer?

Xero is well-known for its suite of accounting features, including invoicing, payroll, tax calculation, and integrations with various third-party apps. It offers a comprehensive range of tools to handle day-to-day bookkeeping tasks, making it a powerful option for small businesses looking to automate their accounting.

However, Xero focuses almost entirely on accounting, whereas Thriday takes things a step further by incorporating banking, automated accounting, bill payments, receipt tracking, and AI-driven financial management. Thriday uses advanced automation to categorise expenses, allocate funds for tax payments, and track income. What sets Thriday apart is its ability to automate every part of the financial process, from invoicing to tax compliance, all while you have complete control over your funds.

Thriday's accountants and tax agents can also help ensure your business complies with the ATO. This combination of automation, AI, and human support makes Thriday a more holistic financial management solution than Xero. Bringing everything under one roof makes everything more efficient and cost-effective.

Key benefit: Thriday offers more advanced automation and includes banking features, making it a more comprehensive tool for small business owners who want total financial management.

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Is Xero available for companies?

Xero is available for various business structures, including sole traders, companies, and partnerships. It's scalable and can grow with your business. Xero is known for being highly adaptable and has plenty of features for larger businesses, but its focus is still on accounting rather than complete financial management.

Thriday also supports companies, partnerships, and sole traders. However, its advantage lies in the fact that it offers banking, automated accounting, and tax solutions alongside its business services. This makes Thriday better equipped to handle all aspects of a company's financial needs, from basic invoicing to complex tax obligations.

Key benefit: Thriday caters to various business structures while integrating banking and tax services, making it a more versatile and scalable solution.

Is the Xero app good?

Xero's mobile app offers basic invoicing, expense tracking, and bank reconciliation features. It's useful for small business owners who need to manage accounting tasks on the go. However, reviews have noted that some features, like invoices, are limited, and the interface can sometimes feel clunky. The app has an average rating of 4.4 stars.

In comparison, the Thriday app provides accounting features and access to banking, tax management, and real-time reporting. With a user-friendly interface, I can manage my entire business from my phone, from paying bills to checking cash flow. Thriday's app has an average rating of 4.7, making it one of Australia's highest-rated financial management apps.

Key benefit: Thriday's app offers more comprehensive features than Xero, including banking, invoicing, payments, and tax management, all within a highly rated, user-friendly interface.

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How much does Xero cost?

Xero's pricing structure starts at $35 per month for the Ignite Plan and increases depending on your required features. You can only send up to 20 monthly invoices on the basic plan. The costs can rise significantly for larger businesses or those that need payroll. Xero also charges extra for multi-currency support and other add-ons, meaning costs can quickly add up.

Thriday, by contrast, offers a more straightforward and cost-effective pricing model. It charges a flat $29.95 per month, which includes all features—banking, accounting, tax, and invoicing. This makes Thriday more affordable for small businesses that need comprehensive financial management without the hefty price tag.

Key benefit: Thriday offers a more affordable, flat-fee pricing model that includes banking and accounting, making it a better value option than Xero.

Do you need an accountant with Xero?

One of the biggest considerations for small business owners is whether they need an accountant to manage their finances. With Xero, while the platform offers a variety of tools to help you track income, expenses and generate reports, Xero is primarily a DIY accounting tool, meaning you're responsible for setting up your accounts, reconciling transactions, and ensuring your tax filings are done correctly.

However, because Xero is primarily built for accountants and bookkeepers, many users still need to hire an accountant or tax agent to handle the more complex aspects of their finances. Businesses often require external help to ensure compliance and accuracy, from understanding tax law to managing payroll. Xero even has a network of certified accountants who can assist, but this means adding another layer of cost and relying on third-party expertise to utilise the platform entirely.

With Thriday, things are much more straightforward. Thriday is designed to automate most of the financial process, meaning you don't need to hire an accountant; you need to use the platform. The powerful AI and automation tools handle expense categorisation, tax calculations, and ATO compliance. Knowing that Thriday is doing the heavy lifting in the background, you can confidently manage your finances.

But if you need help, Thriday has a unique advantage: you can consult a fractional Thriday accountant or tax agent. These professionals are available on-demand to provide guidance, whether it's a one-time consultation or ongoing support. You only pay for the assistance when needed, without the commitment or high costs of hiring a full-time accountant.

Key benefit: With Xero, most businesses hire an accountant to navigate the complexities of financial management. Thriday, on the other hand, provides a fully automated platform that lets you manage your finances while offering access to expert help when needed.

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How do I contact Xero?

Xero primarily offers support through its online help centre and email-based customer service, but it doesn't provide a direct phone line for immediate assistance. Some users have reported that response times can be slow, especially when dealing with urgent issues.

Thriday, on the other hand, offers more personalised customer support. Not only does Thriday have an online chat feature, but it also connects you with real human support whenever needed. Thriday prides itself on fast response times and expert customer service, ensuring I get answers when needed.

Key benefit: Thriday provides more responsive, human customer support than Xero's online-only system.

Key takeaways

While Xero has established itself as a popular accounting tool, Thriday offers a more complete solution that includes banking, advanced automation, and expert customer support. Thriday's all-in-one platform allows you to take control of your finances without relying on third-party integrations or juggling multiple platforms. Plus, with Thriday's affordable pricing, superior AI-driven automation, and comprehensive suite of features, it's clear why Thriday is the better choice for small business owners looking for a financial tool that covers it all.

If you're looking for an alternative to Xero, Thriday delivers a superior experience with banking, accounting, and tax automation all in one place. The combination of cost-effectiveness, flexibility, and innovation makes Thriday a standout choice for anyone serious about their business finances.