Feature set includes an excellent mobile app and suite of reports, capable invoicing features, plus automated bill and receipt capture through Hubdoc. When it comes to making payments easy for you and your clients and comparing FreshBooks vs Xero it’s easy to see why people choose FreshBooks. 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 beginning balances and closing entries on an income summary who want freedom with managing and billing their clients.
Choose Xero if your specific accounting needs aren’t present in FreshBooks, such as more advanced A/P features. The software must also have a mobile app to enable users to perform accounting tasks even when away from their laptops or desktops. Support network refers to a community of software users that can extend professional help to businesses. Having an independent software expert perform the bookkeeping is good for overall ease of use.
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If you want three people to access your accounting software, you’ll have to choose the Essentials plan, which doubles your starting price from $25 to $50 a month. Xero offers a choice of three subscription plans, which range from $15 to $78 per month. Regardless of which tier you choose, you’ll have access to unlimited users. The banking section of this case study focuses on cash management, bank reconciliation, and bank feed connections.
How We Evaluated FreshBooks vs Xero
While small businesses can use the software as well, the extra charge per team member could add up quickly. Both services let you track time for a project, meaning you’ll know exactly how long a certain job takes. However, FreshBooks seems to have more in-depth client features, as it lets you store their contact info, communications and any internal notes you might have about them.
Otherwise, you’ll need to upgrade to a heftier FreshBooks plan or consider invoicing software that doesn’t curtail the number of people you can charge each month. FreshBooks is best equipped to serve small business owners without much accounting experience. The larger your business is, the better equipped Xero becomes to meet your needs. That said, Xero makes up for its user-friendliness shortcomings through tutorial videos and a demo company feature.
FreshBooks vs. Xero: Comparing Top Accounting Software Platforms
But if you’re looking for more affordable software that still offers comprehensive features and better customer service, FreshBooks and Xero could suit too. Even though we love FreshBooks’ invoicing capabilities, it’s not the right software choice for business owners who bill more than five clients a month. Like we said above, while FreshBooks has unlimited invoices, it limits the number of clients you can bill each month. You’ll have to sign up for FreshBooks’ mid-tier plan to increase that number to 50. Well, FreshBooks’ fantastic invoicing capabilities make it one of our favorite accounting software for service-based freelancers.
- You’ll be able to utilize the automatic expense receipt capture to simplify the accounting of regular expenses such as meals and travel.
- Stay updated on the latest products and services anytime anywhere.
- QuickBooks is more comprehensive but also requires more training to maximize the use of features.
- Starting at just $13 a month, Xero’s basic plan is one of the most affordable out there.
- With plans starting at $15 a month, FreshBooks is well-suited for freelancers, solopreneurs, and small-business owners alike.
- Compared side by side, Xero is clearly the winner when it comes to features.
QuickBooks Online
Essential features are available in all FreshBooks plans, like invoicing, time tracking, expense tracking, online payments, and reporting. FreshBooks started out as invoicing software for small-business owners who wanted to bill clients quickly and efficiently. For instance, since Xero only includes project tracking with its most expensive plan, it’s a better pick for product-based freelancers and businesses than for service-based business owners.
Time tracking and client management
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. 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. While both software programs offer all the bells and whistles you need to manage your business’s finances, Xero limits the number of quotes and invoices you can send each month.
We prefer Xero if you’re a larger business looking for more potent features, such as bank account reconciliation and Gusto payroll software. Xero also has robust file storage that lets you manage and share documents, bills, contracts and receipts on the cloud. Speaking of the cloud, both software earned a spot on our best cloud accounting software list. As a client, receiving a FreshBooks invoice with line items for subscription-based products or services, it’s easy to pay.
