Free plan · GST built in · No credit card

ProfitBooks is a Notable Xero Alternative!

Cloud accounting with Indian GST returns, inventory and a free plan.

ProfitBooks is a Xero alternative for small businesses that want cloud accounting with Indian GST built in. It has a free plan for one user, GSTR-1 and GSTR-3B reports from the Essential plan, inventory on every plan and up to 25 users. Xero suits businesses that need a large app ecosystem in the UK, Australia or the US.

Try ProfitBooks For Free → Compare with Xero ↓

Free Startup plan with no time limit. Upgrade when you need GST returns or a team.

1,00,000+ businesses100+ countries50+ reports

GST · GSTR-1 summary

Kaveri Spices Pvt LtdReturn period October 2026

Ready to file

B2B invoices42

B2C invoices118

Credit notes3

✓Sales register163 documents for the monthMatched

✓Customer GSTINsSaved on each customer42 of 42

→GSTR-3BPrepare after GSTR-1Next

Sample figures for illustration

Multi-currencyOn Growth and SMB Pro

Stock updatedInventory on every plan

Side by side

How ProfitBooks compares with Xero

Xero is strong software. Here is where each one fits, including where Xero gives you more.

What you need	ProfitBooks	Xero
Free plan	Yes. Startup is free with no time limit (1 user, 10 invoices a month)	No. Early, Growing and Established are paid plans
Users	1 on Startup and Essential, 10 on Growth, 25 on SMB Pro	No per-user licence fees
Entry plan limits	Essential: 1,000 invoices a year	Early: quotes, 20 invoices and 5 bills
Multi-currency	Growth and SMB Pro	Established plan
Inventory	Every plan: 1 warehouse free, 3 on Growth, unlimited on SMB Pro	Inventory Plus add-on on Growing and Established
Indian GST	Built in: GST invoices, GSTR-1 and GSTR-3B from Essential	Our guide found it stronger in the UK, Australia and the US
App integrations	Fewer; payment links through Instamojo, Razorpay or Cashfree	Large app ecosystem and bank connections
Mobile app	iOS and Android for invoices, expenses and your dashboard	More complete app, in our tester's view

Xero plan details from xero.com/us/pricing-plans (US plans), checked 2 November 2026; plans differ by country. Integrations, market focus and mobile app views come from our ProfitBooks vs Xero guide.

Who each one suits

ProfitBooks or Xero: which fits your business

Where you operate and who keeps the books decide most of it.

Choose ProfitBooks if

Your business is in India and files GST returns
You keep the books yourself, without an accounting background
You sell goods and need stock and warehouses
You want a free plan to start and a fixed yearly price later

Xero may suit you if

You operate in the UK, Australia or the US
You connect many other apps to your books
You need advanced reporting and dashboards
You manage several entities or currencies every day

In ProfitBooks

Built for how Indian small businesses work

GST invoices and returns

Create GST invoices with the right tax worked out for you, and keep your sales and purchases ready for your returns. GSTR-1 and GSTR-3B come with the Essential plan.

Credit and debit notes
Customer GSTINs saved on each record
Invoice reminders and signature

GST return filing →

Accounting in plain words

Record income, an expense or a transfer by choosing what happened and entering the amount. ProfitBooks posts the double entry behind the scenes.

Chart of accounts, journals and ledgers
Bank reconciliation from imported statements
50+ reports, including Profit and Loss and Balance Sheet

Bank reconciliation →

Recording a simple income entry in ProfitBooks

Stock, warehouses and a team

Follow stock from purchase order to sale across warehouses. Give your sales team, store manager and accountant their own logins with roles.

Production, wastage and stock transfers
10 users on Growth, 25 with custom roles on SMB Pro
Auditor access on SMB Pro

Inventory management →

ProfitBooks user roles for sales, accountant and inventory manager

See ProfitBooks before you switch

A short walkthrough of invoicing, expenses, inventory and reports.

ProfitBooksSee ProfitBooks before you switch Watch the demo Watch on YouTube ↗

Try ProfitBooks For Free →

More on Xero and its alternatives

ComparisonProfitBooks vs XeroAn honest test of both, from a business owner ReviewXero accounting software reviewFeatures, plans and who Xero suits GuideAlternatives to XeroOther products worth a look All comparisonsCompare ProfitBooksTally, QuickBooks, Zoho Books, FreshBooks and more

View all the features →

Your success is our success.

We only win when you do. From the day you sign up, real people and practical resources are on your side.

Real peoplenot bots 3 languagesin-app chat Mon–Fri5 days a week

RK Rohan from ProfitBooksSupport · usually replies in minutes

Where do I record bank charges?

Create a Bank Charges account, then record it as an expense.

1Add Bank Charges in Accounting → Charts of account 2Go to Expenses → Record Expense → New Expense 3Choose Cash Expense and select Bank Charges 4Enter the amount, attach the receipt, save

Bank charges then sit in their own expense account, with the bank receipt attached to the entry.

Small thing, big help.

Type your question…➤

Start free. Upgrade when you grow.

Every new account starts with a free 15-day SMB Pro trial, then moves to the free Startup plan unless you upgrade.

Startup

For trying it out or very small volumes

₹0forever

Start free

1 user
10 invoices a month
10 journal vouchers a month
Basic financial reports
1 warehouse

Essential

For solopreneurs filing GST

₹2,499per year

Start free trial

1 user
1,000 invoices a year
GSTR-1 and GSTR-3B
Invoice reminders and signature
WhatsApp integration add-on

Growth

For growing teams and service firms

₹4,999per year

Start free trial

Everything in Essential, plus
10 users
5,000 invoices a year
Payroll and multi-currency
3 warehouses

SMB Pro

For established businesses

₹7,500per year · or ₹750/month

Start free trial

Everything in Growth, plus
25 users with custom roles
Unlimited invoices
Unlimited warehouses
Projects and auditor access

Prices exclude GST. Pay by card, net banking, American Express or PayPal. Compare every feature →

1,00,000+ businesses in 100+ countries use ProfitBooks

What users say in their reviews.

“Very convenient to make customer invoices and apply taxes as needed.”

Ankush P.ProfitBooks user · 4 out of 5

“An application to manage the company's money.”

Cherie Q.ProfitBooks user · 5 out of 5

“This is the best software so far that I have encountered for use by small commissaries.”

Francis Louie M.ProfitBooks user · 4 out of 5

Xero alternative: common questions

Is ProfitBooks a good alternative to Xero?

Yes, for small businesses in India and owners without an accounting background. ProfitBooks has GST returns built in, inventory on every plan and a free plan. Xero remains a strong choice if you work in the UK, Australia or the US and connect many apps to your books.

Does Xero have a free plan?

No. Xero's plans, listed as Early, Growing and Established on its US site, are all paid. ProfitBooks has a free Startup plan with no time limit for one user, with 10 invoices a month, 50 customers and 10 products.

Which is better for GST in India, Xero or ProfitBooks?

ProfitBooks. It is built for Indian GST, with GST invoices and GSTR-1 and GSTR-3B reports from the Essential plan. Our ProfitBooks vs Xero guide found Xero stronger in the UK, Australia and the US, and ProfitBooks stronger for businesses in India.

Does Xero charge per user?

No. Xero lists no per-user licence fees on its plans. ProfitBooks includes a set number of users on each plan: 1 on Startup and Essential, 10 on Growth and 25 with custom roles on SMB Pro.

Can I move my data from Xero to ProfitBooks?

Yes. Export your contacts, products and a trial balance from Xero on your switch date. Import the lists into ProfitBooks with the sample files on each import screen, then enter your opening balances. Our support team helps on chat from Monday to Friday.

Does ProfitBooks support multi-currency like Xero?

Yes, on the Growth and SMB Pro plans. You can invoice customers in other currencies and keep your books in your own currency. On Xero's US site, multi-currency is part of the Established plan.

Is ProfitBooks really free?

Yes. The Startup plan is free forever for one user. Every new account starts with a free 15-day SMB Pro trial and then moves to the Startup plan unless you upgrade to Essential, Growth or SMB Pro. No credit card is needed to sign up.

ProfitBooks is a Notable Xero Alternative!

How ProfitBooks compares with Xero