Xero vs Akaunting: Which Accounting Software Should You Use in 2026?

A factual comparison of Xero and Akaunting for small businesses deciding between a paid cloud accounting platform and a free, open-source alternative.

Updated 2026-09 · 2026

Xero

Cloud accounting software for small to mid-sized businesses

$20month (Early plan, billed monthly, USD)

Strengths

+Deep bank feed reconciliation with 21,000+ supported banks and connections
+Large ecosystem of 1,000+ third-party app integrations (Stripe, Shopify, HubSpot, etc.)
+Multi-currency support and strong payroll add-ons in supported countries

Weaknesses

-Entry-tier plan (Early) caps invoice/bill quantity per month
-Pricing scales up quickly once you need more users or the Established plan
-Payroll and some features are region-locked (varies by country)

Best for

Small businesses that want a mature, bank-connected accounting platform and don't mind paying a monthly subscription.

Akaunting

Open-source, self-hosted accounting and invoicing software

Freeself-hosted, open-source (MIT license)

Strengths

+Core software is completely free and open-source — no per-user or per-invoice fees
+Self-hosting gives full control of your financial data
+Multi-company, multi-currency support built in

Weaknesses

-Self-hosting requires server setup and maintenance (PHP/Laravel stack) unless you use their hosted option
-Bank feed connections are far more limited than Xero's
-Smaller ecosystem of native integrations and fewer accountants familiar with it

Best for

Freelancers, developers, and small teams comfortable self-hosting who want free invoicing/accounting without subscription costs.

Feature Comparison

Feature	Xero	Akaunting
Starting price	$20/mo (Early plan)	Free (self-hosted)
Hosting model	Cloud SaaS only	Self-hosted or optional cloud hosting
Bank feed connections	21,000+ banks supported	Limited, region-dependent, fewer direct feeds
Invoicing	Included, unlimited on higher tiers	Included, unlimited (free)
Multi-currency	Yes (Established plan and up)	Yes, built in
Payroll	Available via add-on in supported countries	Via community/paid app extension
Third-party integrations	1,000+ apps in marketplace	Smaller app marketplace, fewer native integrations
Open source	No	Yes (MIT license)
Data ownership	Data stored on Xero's servers	Full control if self-hosted
Mobile apps	iOS and Android apps	iOS and Android apps
Accountant/bookkeeper network	Large, well-established	Smaller, growing

The Verdict

Xero is the safer choice if you want a mature, bank-connected platform with wide accountant support and don't mind a monthly bill that grows with your business. Akaunting is the better pick if you're technical enough to self-host, want to avoid subscription costs entirely, and don't need extensive bank-feed automation. For a small team just needing solid invoicing and books without ongoing fees, Akaunting is worth trying first.

How to switch from Xero to Akaunting

1Export your Chart of Accounts, Contacts, and transaction history from Xero as CSV files via Accounting > Reports > All Reports and the Contacts export tool.
2Set up Akaunting: either self-host it on a server (PHP/Laravel requirements) or sign up for Akaunting's hosted option, then create your company profile and Chart of Accounts.
3Import your Xero CSV exports into Akaunting using its built-in CSV import tool for contacts, accounts, and invoices, mapping fields carefully to avoid mismatched data.
4Reconnect or manually reconfigure integrations Xero handled automatically (e.g., Stripe/PayPal payments) using Akaunting's official apps from its marketplace.
5Run both systems in parallel for one billing cycle, reconciling bank statements manually in Akaunting via OFX/QIF/CSV imports to confirm data accuracy before fully cutting over.
6Once verified, cancel your Xero subscription, notify your bookkeeper/accountant of the new system, and update any recurring invoice or payment links to point to Akaunting.

Xero vs Akaunting: common questions

How do I export my data from Xero before switching to Akaunting?+

In Xero, go to Accounting > Reports > All Reports, or use the built-in export tools under each module (Contacts, Invoices, Bank Transactions) to download CSV files. You can also export your full Chart of Accounts and transaction history as CSV from the 'Advanced Accounting' settings. Akaunting accepts CSV imports for contacts, accounts, and transactions, so map the columns carefully before importing.

What features do I lose moving from Xero to Akaunting?+

You'll lose Xero's extensive live bank feed network (21,000+ banks) since Akaunting has far fewer direct feed integrations, so manual statement imports (OFX/QIF/CSV) may be needed. You'll also lose access to Xero's large third-party app marketplace and built-in payroll for many countries unless you add a compatible Akaunting extension.

Is Akaunting's free plan enough for a small team?+

For invoicing, expense tracking, and basic bookkeeping, yes — the free self-hosted version has no user or invoice limits. If you need advanced payroll, extensive bank automation, or dedicated support, you may need to add paid Akaunting apps or accept more manual work than Xero requires.

Does Akaunting integrate with the same tools as Xero?+

No, Akaunting's integration marketplace is much smaller than Xero's 1,000+ app ecosystem. Common integrations like Stripe and PayPal are supported through official Akaunting apps, but niche CRM, e-commerce, and payroll integrations that Xero supports natively may require custom API work or aren't available.

How much money do I actually save switching from Xero to Akaunting over time?+

If you self-host Akaunting, you eliminate Xero's subscription entirely — potentially $240–$960/year depending on your Xero plan — minus whatever you pay for server hosting (often $5–$20/month on a basic VPS). Over 2-3 years this can save several hundred to over a thousand dollars, though you're trading that for the time cost of self-hosting, maintenance, and manual bank reconciliation.