QuickBooks vs FreshBooks vs. Xero: A Comparative Guide from a Business Owners Perspective by back office accountants Dec, 2023

However, I will say that unless you know about the two separate versions of FreshBooks it’s incredibly easy to stumble into signing up to the Classic version instead of the modern one. They’re so similar, in fact, that there’s very little more to say about Xero in particular or how these features work – everything’s been covered by the QuickBooks entry. Accounting is a time-consuming, complex, frustrating, and criminally boring part of running a business. You can also check out how FreshBooks compares to other programs and details about its function as a viable alternative on our comparison page. When he’s not at his desk, you’ll find him at a music festival, thrifting, or spending time with his friends and family.

• The interface is very cluttered and can be overwhelming for new users.
• And while the software will automatically match some transactions for you, it doesn’t let you create bank rules to further automate the categorization process.
• You are charged an additional month beyond your cancelation date.
• When choosing the right accounting software, it’s important to really consider your business needs and what features you need.
• When setting up a FreshBooks account, you can start fresh, or transfer over existing data from any previous software like QuickBooks, HoneyBook QuickBooks Online, Zoho Books, or Xero.
• Compared to Xero’s app, it’s more user-friendly and offers a wider selection of features, including entering bills, live time tracking, and billing clients for time worked.

While FreshBooks also has different subscription tiers, its reporting capabilities and other functions aren’t as varied or advanced as QuickBooks. FreshBooks may not be as comprehensive an accounting platform as Xero, but it’s hard to deny that its invoicing features are top-tier. Even with FreshBooks Lite, I was able to create and send unlimited customized invoices, whereas Xero restricted me to 20 per month. If you need to give accounting access to more than five people, Xero could be the better option for you. QuickBooks Online’s most popular Plus plan tops out at five users; its highest-tier Advanced plan allows up to 25 users, but that plan is expensive at $200 per month. In contrast, all Xero plans offer unlimited users and its highest-tier Established plan is a more affordable $70 per month.

When you might choose FreshBooks instead

It’s simply a more accurate form of accounting that ensures your books are balanced at the end of the day, and the software itself handles the trickiest parts of double-entry accounting entries. Xero isn’t simply more affordable than either FreshBooks or QuickBooks Online. It also has more comprehensive accounting features—though there are a few notable exceptions. However, there are some key differences between the three programs. For example, Freshbooks is a beginner’s champion because it is easy to use. Quickbooks’ Live Bookkeeping and Priority Circle can help you with bookkeeping tasks.

As an Advanced QuickBooks Online ProAdvisor, Certified Xero Partner, and a Freshbooks Accountant, we have had the opportunity to really dive into all three platforms. While all three offer great products, our firm (Parkway Business Solutions) selected QuickBooks Online as its premier offering. Reviews of QuickBooks are also largely positive, although several users do note that it can be a little difficult to use at first. In other words, this is where Xero shows its face as a tool aimed at small-to-mid-sized businesses, rather than just small ones.

• Instead of having to jump between several documents or services to manage your invoices, payroll, taxes, and accounts in general, these apps give you a central hub from which you can organize everything easily.
• Both QuickBooks and Xero excel at helping small businesses keep track of financial details.
• Plus, Xero integrates with over a thousand apps, meaning you can personalize your inventory, payroll, CRM or time-tracking experience however you’d like.
• With the ability to send unlimited, customizable invoices, payment reminders and proposals to clients, FreshBooks is the optimal solution for freelancers or solo entrepreneurs.
• You can personalize and customize your account in a wide variety of ways to best match your business needs, so this program tends to work really great for most people.

The difficulty in using Xero compared to FreshBooks is compounded by a lack of customer service. Let’s dig deeper into FreshBooks and Xero in the subsections. So, what happens to the freelancer who simply wants to make professional invoices? Well, you can pay for upgraded plans on Xero to have access to more features even if you don’t have employees. QuickBooks offers its price plans based on the number of users who may need access to the software.

Customer Support: FreshBooks vs. Xero

Our partners cannot pay us to guarantee favorable reviews of their products or services. You know who picks up and never transfers you when you call FreshBooks? FreshBooks has the best rating for customer support among all competitors at 91%. FreshBooks makes it easy to transfer all of your financial data over from another platform so you can get up and running. Instead of wasting time labouring over manual inputs or struggling to keep track of bulky receipts, you can use the FreshBooks accounting application to safely automate your accounting. Collaborative accounting means no more back and forth with your accountant.

Post new FreshBooks payments to a Slack channel

You can also browse the Xero App Store to connect to over 1,000 third-party apps. These are separated by function and industry to make it easier to search. Popular categories include payroll, inventory, time tracking, payments and CRM. Comparing FreshBooks and Xero side by side shows that their starting prices aren’t bad—though Xero is the cheaper option for both the introductory and regular offers. If you’re looking to pay bills regularly, it makes more sense to Xero, as you can pay five of them on the base plan.

This could be a real shortcoming for small online retail businesses, for instance, that need to keep track of their products and the materials used to make them. All of Xero’s plans come with inventory management so business owners enrolled agent information can track what’s in stock and which products are selling. Easy-to-use invoicing, payments, project management, accounting features, and so much more, is why over 30 million businesses in 160+ countries have used FreshBooks.

Interface and User Experience

Xero makes your tax digital and simplifies business tasks overall. FreshBooks cloud based accounting software is built for non-accountants running small and medium sized businesses – making it easy to create invoices and get paid. And you can always give your accountant immediate access to FreshBooks to get support during tax season and key financial decisions. You don’t have time to spend figuring out how to use complicated accounting software. With FreshBooks, you’ll confidently create invoices, input expenses, and do your bookkeeping in half the time. And with the best customer support in the industry, it’s easy to see why Xero customers switched to FreshBooks.

Accounting app features

The software offers a variety of features, including invoicing, tracking expenses and creating financial reports. Xero also integrates with other business applications, such as payroll and inventory management systems. This makes it a versatile tool for small businesses that need to streamline their operations. Xero is a powerhouse accounting software, with the ability to create and send purchase orders, quotes, invoices and more with a few clicks. You’ll also get inventory management, accounting reports and cloud file storage, all on the base plan. Plus, Xero integrates with over a thousand apps, meaning you can personalize your inventory, payroll, CRM or time-tracking experience however you’d like.

FreshBooks Is the Quickbooks Alternative That’s Easy to Use

For expediency, we’d prefer just to enter the bank statement balance and reconcile directly. Instead, Xero requires users to upload a bank statement before reconciliation. When you are looking at Xero vs Quickbooks vs Freshbooks, it’s important to ask what you actually need so you don’t pay for unnecessary features. There’s nothing like the freedom of running your own business.