If you haven’t used FreshBooks, the setup wizard on the dashboard (see image below) will guide you through the process. But unless you are a small business with plans for immediate growth, it may not make fiscal sense to invest in either. FreshBooks, on the other hand, provides just the right combination of simplicity and professionalism that is perfect for maintaining your freelancer freedom. In addition, both the set-ups for QuickBooks and Xero take a bit of time.

• They both managed to quickly resolve the questions I had and were friendly to boot.
• You can even set up recurring invoices each month, late payment reminders and scheduled late fees for overdue invoices.
• Therefore, we see a situational approach here wherein we see FreshBooks and Xero’s A/P management as the best in their respective fields.
• We’re going to take a look at the pricing, tools, and special functions to help you decide on the best accounting software and bookkeeping service in Northern Colorado.
• FreshBooks, QuickBooks, and Xero all have the essential accounting features businesses need to manage their finances.

Overall, however, it’s smooth sailing for the regular service. Here’s where the difference between QuickBooks and Xero becomes clear. Instead of limiting the features you have access to on cheaper plans, Xero is a little more expensive in general but focuses on limiting the number of employees you can have on payroll. QuickBooks offers a 30-day free trial, after which you’ll have to choose from four separate paid plans ranging from $10/month all the way up to $50/month.

FreshBooks vs. Xero: Xero Wins

Plus, with industry-leading customer support, you’ll never struggle alone. While both software solutions offer features like mileage tracking, inventory management and reporting, QuickBooks’ capabilities typically exceed those of FreshBooks. Upgraded QuickBooks plans also include multiple users, so you can share the workload with or among employees. The highest-tier Advanced plan, for example, lets you add up to 25 users. FreshBooks, on the other hand, charges $11 per month per additional user and is better suited for contractors and freelancers. Each FreshBooks plan comes with just one user with the exception of the custom Select plan, which includes two.

• Predictable costs without the need for add-ons or additional app integrations and transparent pricing that fits your budget.
• 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.
• Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development.
• This is because QuickBooks was designed for small businesses that might not have an accounting background, whereas Xero was designed with accountants and bookkeepers in mind.
• Do you make more than 150K a year or have more than 500 clients?

They also don’t do things like loan amortization and inventory control. They are a simple financial program for small business invoices and expense recording. Both FreshBooks and Xero are cloud-based accounting software that operate under the software-as-a-service (SaaS) model. FreshBooks provides a software environment that blends accounting and project management, making it ideal for self-managed businesses and freelancers. On the contrary, Xero has more accounting features, making it an excellent choice for growing businesses, especially product-based companies. The Plus plan allows you to run advanced reports instead of just basic ones.

QuickBooks vs. FreshBooks vs. Xero: A Comparative Guide from a Business Owner’s Perspective

In addition, you can bill for tracked hours, track and manage time for a specific project and allow your employees to track their time (if you’re using the team members add-on). Freshbooks is a relative newcomer to the accounting software arena. Their ideal customer is an Internet-based service company run by a single person or a small group. They are not a full accounting system, meaning they do not generate balance sheets with credits and debits, handle sales taxes, etc.

What is the difference between Xero and FreshBooks?

However, as you get used to the software, you will realize how effective and efficient it is. It has over 15 templates in different formats, ensuring your invoices look attractive and professional. accounting memo sample Xero has a web-based interface that is simple and easy to use. The main dashboard gives you an overview of your business’ finances. QuickBooks invoicing and payments are reliable and efficient.

Invoicing and Billing

We evaluated pricing based on how each plan compares with similar software packages as well as how many users are included in each plan and the extra costs incurred per additional user. Xero offers certification programs for bookkeepers and certified public accountants (CPAs). You can hire independent Xero Advisors or integrate with Bookkeeper360 to get bookkeeping assistance. We’ve noticed several setbacks on Xero that aren’t material per se, and these mainly focus more on practical expediency. We saw that it’s impossible to combine payments received from customers into a single deposit entry, even if they’re all checks or all cash. The problem this creates is your Xero check register will show multiple deposits, whereas your bank statement will show the actual deposit amount which has all the amounts combined.

Though they have different functionalities, both made our list of the best accounting software. QuickBooks Online is an industry standard for small-business accounting and delivers on its robust feature set, ease of sharing with accountants and range of integrations. On the downside, it can be expensive compared to other options like FreshBooks and Xero. All FreshBooks plans, except for the highest-tier custom plan, come with one user. FreshBooks gives you six user roles to choose from, plus client access and project manager customization options. Project tracking tools in higher-tier plans; lacks industry-specific reports and transaction tracking tags; users with multiple businesses must pay for separate subscriptions.

FreshBooks’ cheapest plan uses the less-reliable single-entry accounting system, which introduces a higher possibility of accounting errors. Worse, FreshBooks doesn’t include free accountant access with its cheapest plan. Unloop is the first and only accounting firm exclusively servicing ecommerce and inventory businesses in the US and Canada. With the power of people and technology, our team dives deep into COGS and inventory accounting. You are paired with a dedicated bookkeeping team that prepares accurate financial statements, financial forecasts, and can also pay bills or run payroll for you.