Does Tidybill handle VAT and tax?

Yes. Tidybill supports configurable tax rates per line item, including VAT. You can set default tax rates for your company and override them per item. Tax totals are shown on invoices and in reports.

Best Xero Alternative for Freelancers

Q: How does Tidybill pricing compare to Xero?

Xero's Starter plan is around $29/month, the Standard plan is around $46/month, and Premium starts at around $62/month. Tidybill's free plan is $0, Starter is $7/month billed annually, and Pro is $15/month billed annually. For pure invoicing work, Tidybill covers what a freelancer needs at a fraction of the cost.

Q: Is there a free trial?

Yes. The Free plan is available forever with no credit card required. Paid plans include a 14-day free trial.

Why people leave Xero

Xero is built for accountants, not freelancers

Xero solves a real problem for businesses that need full double-entry accounting. For freelancers who need invoicing, time tracking, and payments, it is more than required.

Invoice limits on the entry plan

Xero Starter caps you at 20 invoices and 5 bills per month. A freelancer with multiple clients will hit that within a fortnight and be forced onto the Standard plan at roughly $46/month.

Complexity intended for accounting teams

Xero includes chart of accounts, bank reconciliation, payroll, and detailed financial reporting. These are genuinely useful for businesses with an accountant. For a one-person freelance operation, they add navigation overhead with no practical benefit.

No free plan

Xero offers a 30-day trial but has no permanent free tier. Once the trial ends, you pay from day one. For freelancers starting out or in a slow period, paying $29 to $62 per month for software is a meaningful overhead cost.

Price increases over time

Xero has raised prices repeatedly in recent years. Users who chose the platform for a specific price point have found themselves paying significantly more than when they signed up, with no change in their own usage.

What people actually use Xero for

Xero is a cloud accounting platform. Its core value proposition is connecting your bank account, reconciling transactions, generating financial statements, and giving your accountant access to your books. It also includes invoicing, but invoicing is one module among many rather than the product's central focus.

Freelancers often arrive at Xero because it is the platform their accountant recommends, or because they searched for "invoicing software" and Xero appeared prominently. After a few months, many realise they use three features: invoicing, expense tracking, and occasionally reports. The rest of the product stays dormant.

Xero pricing in 2026

Xero's pricing varies by region but the approximate standard rates in GBP for the UK market are:

Starter: around PS16/month (capped at 20 invoices and 5 bills per month)
Standard: around PS30/month (unlimited invoices and bills)
Premium: around PS40/month (multi-currency support included)

US pricing runs at roughly $29, $46, and $62/month for the same tiers. Xero often runs promotional discounts for the first few months, after which prices revert to full rate. For accurate current pricing, see the Xero pricing page directly.

What Tidybill covers for freelancers

Tidybill is invoicing software, not accounting software. That distinction matters. If you need full double-entry bookkeeping, a chart of accounts, and payroll, Xero is the right tool and Tidybill is not a replacement. If you need to send professional invoices, track time against projects, accept online payments, send reminders, and manage recurring billing, Tidybill covers all of that cleanly.

Tidybill's Starter plan at $7/month includes:

Unlimited invoice sending (up to 50 invoices/month, 25 clients)
Time tracking linked directly to invoice line items
Recurring invoices on any schedule
Quotes that convert to invoices on client approval
Client portal for invoice viewing and online payment
Automated payment reminders and late fee rules
Stripe-powered online payments

The Pro plan at $15/month removes all limits: unlimited clients, invoices, and projects, with up to 25 team members.

Migrating from Xero to Tidybill

Xero lets you export your contacts as a CSV file from Contacts, and your invoices from the Invoices section. Tidybill supports CSV import for both. The migration process is:

Export contacts and invoice history from Xero
Create your Tidybill account (no credit card required)
Import the CSV files under Settings
Review imported records and set up your invoice templates

If you have an accountant who uses Xero to manage your books, you can run Tidybill alongside Xero for invoicing while your accountant keeps their Xero access for the accounting side. Many freelancers operate this way.

A note on accounting vs invoicing

Choosing between Xero and Tidybill depends on what problem you are solving. Xero is not overpriced for what it does. It is a serious accounting platform with genuine depth. The question is whether you need that depth. If your accountant files your returns and you just need clean invoices sent and paid, Tidybill fits that workflow directly. See our pricing page for a full breakdown of what each plan includes.

Feature	Tidybill	Xero
Free plan	Yes, free forever	30-day trial only
Entry plan starting price	$7/mo (Starter)	~$29/mo (Starter, capped invoices)
Invoice limits on entry plan	50/mo on Starter	20/mo on Starter
Time tracking	Built-in, Starter ($7/mo)	Via Projects add-on
Client portal	Starter ($7/mo)	Not available
Recurring invoices	Starter ($7/mo)	All plans
Multi-currency	All plans	Premium plan only (~$62/mo)
Full double-entry accounting	Invoicing only	Full accounting suite

Frequently asked questions

Why do freelancers look for a Xero alternative?

Xero is a full accounting platform designed primarily for businesses with accountants. Freelancers who just need invoicing find it expensive and unnecessarily complex. The entry-level Starter plan limits invoices and bills, which forces many users onto higher-priced tiers quickly.

How does Tidybill pricing compare to Xero?

Xero's Starter plan is around $29/month, Standard is around $46/month, and Premium starts at around $62/month. Tidybill's Free plan is $0, Starter is $7/month billed annually, and Pro is $15/month billed annually. For pure invoicing work, Tidybill covers what a freelancer needs at a fraction of the cost.

Can I migrate data from Xero to Tidybill?

Xero allows you to export contacts and invoices as CSV files. Tidybill supports CSV import for clients and invoices, so you can migrate your records without starting from scratch.

Does Tidybill handle VAT?

Yes. Tidybill supports configurable tax rates per line item, including VAT. You can set a default tax rate for your company and override it per item. Tax totals appear on invoices and in reports.

Is Tidybill suitable for UK and South Africa freelancers?

Yes. Tidybill supports multiple currencies, configurable tax labels, and flexible date formats. It works for freelancers in the UK, South Africa, and other markets without any configuration changes.

Is there a free trial?

The Free plan is available forever with no credit card required. Paid plans include a 14-day free trial. You can also downgrade to Free at any time and keep all your data.

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