Penny Software vs Xero: Which Should You Choose in 2026?
Choosing between Penny Software and Xero comes down to understanding what each tool does best. This comparison breaks down the key differences so you can make an informed decision based on your specific needs, not marketing claims.
By Toolradar Team · Last updated February 28, 2026 · Methodology
Short on time? Here's the quick answer
We've tested both tools. Here's who should pick what:
Penny Software
Streamline procurement and spend management with AI-powered automation.
Best for you if:
- • You want to try before committing
- • You need invoicing features specifically
- • AI-powered procurement and spend management platform.
- • Automates the entire purchasing workflow from requisition to payment.
Xero
Beautiful accounting software
Best for you if:
- • You want the higher-rated option (8.6/10 vs 0.0/10)
- • You need accounting features specifically
- • Xero is cloud accounting software for small businesses
- • It provides invoicing, bank reconciliation, and financial reporting
| At a Glance |  Penny Software |  Xero |
|---|---|---|
Price | Free + Paid | Paid |
Best For | Invoicing | Accounting |
Rating | —/100 | 86/100 |
| Feature | Penny Software | Xero |
|---|---|---|
| Pricing Model | Freemium | Paid |
| Editorial Score | — | 86 |
| Community Rating | No ratings yet | No ratings yet |
| Total Reviews | 0 | 0 |
| Community Upvotes | 0 | 0 |
| Categories | InvoicingExpense Management | AccountingInvoicing |
How Penny Software and Xero Compare
Penny Software
Streamline procurement and spend management with AI-powered automation.
Free tier available
Xero
Beautiful accounting software
Paid · 86/100 score
Penny Software is a invoicing tool. Xero is in accounting.
Who Should Use What?
On a budget?
Penny Software has a free tier. Xero is paid only.
Go with: Penny Software
Want the highest-rated option?
Xero scores 86/100. Penny Software is unrated.
Go with: Xero
Value user reviews?
Neither has user reviews yet.
Go with: Xero
3 Questions to Help You Decide
What's your budget?
Penny Software is freemium. Xero is paid. Penny Software lets you start free.
What's your use case?
Penny Software is a invoicing tool. Xero is in accounting. Pick the category that matches your needs.
How important are ratings?
Not all tools have been rated yet.
Key Takeaways
Xero
- Higher score: 86/100 vs unrated
- Our pick for this comparison
Penny Software
- Has a free tier
- Better fit for invoicing
The Bottom Line
Xero (86/100) is our pick. Penny Software has a free tier if you want to test without paying.
Frequently Asked Questions
Is Penny Software or Xero better?
Xero scores 86/100 in our evaluation. Penny Software is freemium and Xero is paid.
What are Penny Software and Xero used for?
Penny Software: Streamline procurement and spend management with AI-powered automation.. Xero: Beautiful accounting software.
What does Penny Software cost vs Xero?
Penny Software is freemium (free tier + paid plans). Xero is a paid tool. Visit their websites for detailed pricing.