QuickBooks also has a more intuitive interface than Xero as well as a desktop version. In the battle of FreshBooks vs. Xero, we don’t think one is the ultimate winner. FreshBooks is the go-to solution for freelancers and solopreneurs who want freedom with managing and billing their clients.

• FreshBooks is a freelancer’s dream accounting software, as it comes with unlimited invoicing, estimates and time tracking.
• Additionally, they can connect their bank and financials to the cloud to collaborate in real time, no matter where workers, accountants, managers and bookkeepers are.
• We found Xero’s bill pay tools to be the best of any accounting software we reviewed ― not just when compared to FreshBooks.
• You can automatically track time using the mobile app, a browser extension or third-party apps like Trello and Asana.

Some accounting software vendors offer pre-built importing tools; that’s not a secret. That’s a long process depending on how you set up your CSV and how the importing tool handles the process. This way of data migration takes your time, effort and raises the security aspect too.

Sure, they’re not well-known like accounting tool, QuickBooks, however they are both extremely viable options for your accounting solutions. Xero and FreshBooks are just among many accounting software solutions that can be used to manage your e-commerce business and other businesses. Other great options you could try out include QuickBooks online, Zoho Books, and Stripe. Xero limits users to 20 invoices per month on its basic plan while its other two plans offer unlimited invoicing access. Both FreshBooks and Xero offer online services and are cloud-based accounting software that can be used on the go. Xero lacks tax tools for business users but operates a powerful tax platform for accountants.

Where Can You Find the Best Small Business Accounting Software?

Though there’s certainly some overlap, both Xero and FreshBooks seem to excel in different areas. QuickBooks is designed for selling companies that require scalable accounting software. FreshBooks suits the best for service-based businesses to track income & expenses. Growing costs $34 per month and focuses on meeting the requirements of an establishing business. The plan includes all features from Early plan plus bulk reconciliations and unlimited invoices.

• Due to its limited accounting features compared to Xero, FreshBooks doesn't offer as many report options, and within its reports, customization is pretty sparse.
• Promotional offers for both monthly and yearly plans are for a limited period.
• FreshBooks also offers a product called Advanced Payments, which is used to accept credit card payments by phone and in person.
• For freelance professionals and self-employed folk with basic needs, this plan is available for $15/month and allows you to bill up to 5 clients.
• FreshBooks gives you six user roles to choose from, plus client access and project manager customization options.

Another thing worth noting is that when you file your taxes with TurboTax Self-Employed, you get a free year of QuickBooks Self-Employed. If you’re a freelancer looking for more straightforward accounting software, this would be an ideal opportunity to take advantage of. Your dashboard immediately shows you graphs for outstanding revenue, total profit, revenue streams, spending, and unbilled time. Xero has a reporting dashboard you can customize to show only what you specifically want to see. Depending on the business this might include outstanding invoices owed to you, outstanding expenses, profit, debt ratio, and many more. FreshBooks pricing begins at $15 per month for the Lite Plan and costs up to $50 per month with the Premium Plan.

For tracking your expenses, FreshBooks’ base plan comes with mobile receipt scanning and bill line item capture. For more advanced features, such as accounts payable and accountant access, you’ll need to upgrade to a higher plan. Though notably basic, FreshBooks is a reliable starter tool for those who are just starting out with accounting software. The main value of using FreshBooks is having a software that takes mere minutes to set up and begin using for your business. The project management and time tracking features are particularly helpful because that isn’t found for free in all competitors. It’s priced fairly similarly to Xero, which is a drawback as it offers fewer features and details.

Apps and Integrations

However, time tracking and invoicing lean in favor of FreshBooks, which offers unlimited use compared to Xero’s restrictions. Both made our list of the top invoicing software, however, so you really can’t go wrong with either. Predictable costs without the need for add-ons or additional app integrations and transparent pricing that fits your budget. adjusting entry for interest on capital calculation and example All our plans are equipped with invoicing, expense, and project management features at no extra cost. Those interested in a full trial can get access to a 30-day free option. Those features include bill management, time tracking, inventory management, management of 1099 contractors, and payroll (billed based on the number of employees).

Xero

The accounting software that fits your business could be the difference in a better CRM direction for your business. Xero integrates with Stripe, HubSpot CRM, Mailchimp and Spotify. Additionally, as with FreshBooks, Xero includes a Gusto integration ― however, this integration doesn’t incur extra fees. Across the board, we found Xero’s built-in integrations ― and roughly 100 additional integrations ― to be approachable and powerful. At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

FreshBooks and Xero allow assisted bookkeeping services to help small businesses in keeping the books organized. These bookkeeping services aren’t part of the subscription price, and you’ll need to pay an additional fee to get the service. As a full-featured accounting software program, there are many features to explore. However, once you get the navigational flow, it’s a matter of remembering where to find specific accounting information based on the menu categories. FreshBooks offers many more discounts than Xero, and it wins here in terms of pricing since it offers significantly affordable pricing plans compared with Xero. However, since FreshBooks charges $10 per additional user, per month, it can quickly become more expensive than Xero if you need three or more users.

Company's Address

Most accounting solutions include features like invoicing, expense tracking, accounting reports, payroll, and accounting or bookkeeping services. Some accounting tools are designed for specific industries, but Xero and FreshBooks can both be applied to businesses of all types. Whether you’re in ecommerce, retail, or consulting, you could use either of these options. 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.

Are there differences in FreshBooks' payment processing fees based on the payment method?

Ultimately, Xero and FreshBooks are both solid software options targeting different users. In contrast, Xero can run payrolls without customers needing to integrate other solutions, which comes at a cost. While FreshBooks includes bills as part of its Expense dashboard, Xero has a unique centralized bill dashboard that was recently launched by the company.

Xero offers more than 80 reports, including standard financial reports, and lets you add tracking categories to monitor performance in different areas of your business. You can generate traditional financial reports, but they aren't available with all plans. You’ll need the Plus plan to access a general ledger, trial balance or chart of accounts and the Premium plan to create any accounts payable reports.

You can chat and assign project deadlines from within the accounting tool. FinancesOnline is available for free for all business professionals interested in an efficient way to find top-notch SaaS solutions. We are able to keep our service free of charge thanks to cooperation with some of the vendors, who are willing to pay us for traffic and sales opportunities provided by our website. In the event you continue having second thoughts about which product will perform best for your company it may be a sensible idea to analyze each service’s social metrics. Such metrics are frequently a sign of how popular each solution is and how extensive is its online presence. The offers that appear on the website are from software companies from which CRM.org receives compensation.