FreshBooks vs Xero: How They Compare

These are separated by function and industry to make it easier to search. Popular categories include payroll, inventory, time tracking, payments what is a provision for income tax and how do you calculate it 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.

It has all the functionality you need to manage transactions, calculate payments and track projects at an affordable entry point. QuickBooks’ customization options are more elaborate than FreshBooks, but are also designed for larger companies and businesses that need more flexibility in their accounting systems. FreshBooks is reasonably priced in the accounting software realm. The Plus and Premium plans are $7.50 and $13.75 per month, respectively, during the same time frame. This is ample time to see if the platform meets your business needs and will perform the functions you desire. Whether you are navigating from entering expenses to collecting payments, the sidebar is intuitive to use and doesn’t get lost in confusing jargon.

1. All our plans are equipped with invoicing, expense, and project management features at no extra cost.
2. All FreshBooks plans, except for the highest-tier custom plan, come with one user.
3. Wave Accounting is an entirely free option for small business owners.
4. Meanwhile, Xero offers certification programs for bookkeepers and CPAs.
5. However, you may be able to use a third-party app, such as Zapier, to connect the two.
6. While there are many accounting software options out there, FreshBooks is particularly well-suited for smaller businesses and companies with one main owner and operator.

FreshBooks vs Xero Comparison

Like most accounting programs, FreshBooks’ expense tracking automatically syncs expenses to your FreshBooks account and helps categorize expenses by tax category. Xero is a strange outlier in that it doesn’t include basic expense tracking with every plan—instead, expense tracking only comes with Xero’s priciest plan, which starts at $62 a month. Still, it’s an extra step you’ll avoid with most other accounting tools. In contrast, QuickBooks Online builds user limits into each plan. For instance, its cheapest plan allows for one user plus accountant access.

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. Xero only offers time tracking in its Established plan as part of the Expenses and Projects feature sets. Both FreshBooks and Xero allow you to track business performance using your dashboard, and generate and download financial reports. But Xero’s reporting is more robust thanks to its detailed accounting features. Can support larger small businesses with dozens of employees; all three plans include an unlimited number of users.

Friendly Customer Service

It also has flexible pricing, which is cheaper than Xero if you only need one or two users. If you intend to expand your business, it has a custom plan to match your needs. FreshBooks has four pricing packages, though the base prices only comprise part of your payments. The Advanced Payments add-on for storing your clients’ payment details and automating recurring payments costs $20 monthly.

Mobile App Functionality: FreshBooks Wins

You’ll just submit a support ticket, where you can attach any files that may make things easier to troubleshoot. If necessary, you can also give a Xero support person access to your account so they can take a closer look. Xero doesn’t have a phone number customers can call, but it can provide a callback if necessary. Both FreshBooks and Xero have a hearty number of apps you can integrate for further functionality. Xero offers built-in integrations for superior connections, including Shopify, Hubdoc, Stripe and HubSpot. You can also browse the Xero App Store to connect to over 1,000 third-party apps.

Plus Plan

Promotional offers for both monthly and yearly plans are for a limited period. No free trial period is included when availing this promotional discount. It offers everything that the Lite plan offers, as well as the ability to accept e-signatures on proposals and contracts.