There’s a reason FreshBooks made it on Zapier’s list of the best self-employed accounting software, while Xero made it on the list of the best accounting software for bigger businesses. Xero offers this through Hubdoc so you can access your documents online. QuickBooks offers receipt and document organization accounting for convertible securities with its mobile app as well as the online version. For an additional $50, add a Bookkeeping setup with a Live Bookkeeper. It also offers Payroll, but this service is an additional fee starting at $45 to $125 per month. In the battle of FreshBooks vs. Xero, we don’t think one is the ultimate winner.
Integrations: Tie
For example, when you purchase the Pro Plus Desktop plan, you can have up to three concurrent users but each of those users must pay for their own account (at $349.99 each per year). Its Online version allows up to 25 users at no additional cost, provided you’re paying for the Advanced plan. Another key difference between the two companies is the maximum number of users it allows. Xero has no limit to how many users can access data, whereas QuickBooks limits this to 40 with its Enterprise plan. You can enjoy project conversations, file sharing and project due dates, but these features are most helpful for individual or small-team projects.
Customer Support: FreshBooks vs. Xero
If your company is small and scaling and your accounting team does not require advanced features, FreshBooks is an attractive option. Its price is very competitive and the platform has excellent features. Its users need to integrate these services using Bench Accounting. Under the bills dashboard in Xero, customers can store bills in one place and see an overview of unpaid bills, expenses and purchase orders. They can also schedule payments and view bills that are in draft, waiting for approval or ready to be paid.
Can you use Xero to track inventory?
Instead, it partners with Bench, an online bookkeeping service that helps you find a bookkeeper. Meanwhile, Xero’s banking and cash management system allows—but doesn’t require—a bank feed connection. You can set up different cash accounts, reconcile book and bank statements, and print checks. One thing we recommend while comparing Xero vs FreshBooks is to learn all about the FreshBooks Accountant Partner Program. It’s a unique part of FreshBooks that you won’t get from other cloud based accounting solutions. You are charged an additional month beyond your cancelation date.
FreshBooks invoicing capabilities
It also lets you track time and billable hours so clients can see exactly what you’re charging for. We prefer Xero if you’re a larger business looking for more potent features, such as bank account reconciliation and Gusto payroll working capital 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.
- Worse, FreshBooks doesn’t include free accountant access with its cheapest plan.
- If you start with Xero when you are a small company, it has all the options and integration you will need as you grow to be a large company.
- FreshBooks makes it easy to transfer all of your financial data over from another platform so you can get up and running.
Third-party integrations
There are a number of alternative accounting software programs that can offer powerful features and a user-friendly interface. 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. QuickBooks is also better for businesses that need to track inventory, as it has built-in inventory management features. Xero also has inventory management, but it’s not one of its core functions. QuickBooks is available both online and via desktop and is ideal for businesses that outsource their accounting tasks to a bookkeeper or accountant. This is because QuickBooks only allows up to 40 users for its highest-tiered plan, and even then, some plans require every user to pay for their own account.
With a free plan and paid plans starting at $20 per month, Zoho Books has plans for most budgets. Higher-tier plans include unique features, like workflow rules, on top of tools that help you measure project profitability. Phone support and live chat support bookkeeping, tax, cfo services for startups small businesses are available 24/5 to all paying customers, but third-party integrations are limited compared to QuickBooks Online and Xero. Wave Accounting is a free accounting solution for very small service-based businesses, contractors, freelancers and consultants.
Overall, Xero is an efficient and cost-effective way for small businesses to manage finances. Xero is a better option for businesses that need to track project profitability. This is because Xero allows you to see how much each project is costing you in real time and compare that to your estimated profits. Xero is also a better option for businesses that are expanding internationally as it offers multicurrency support. FreshBooks doesn’t offer quite as many connections, with just 100 partner apps.
Whether Xero or QuickBooks Online is right for you depends on the specific features you need and how much you can afford to pay. FreshBooks is a freelancer’s dream accounting software, as it comes with unlimited invoicing, estimates and time tracking. You can even set up recurring invoices each month, late payment reminders and scheduled late fees for overdue invoices. 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.
Meanwhile, FreshBooks is perfect for freelancers and small businesses that want simplicity without sacrificing functionality. Plans start at $15 per month for up to 20 invoices, five bills, bank account reconciliation, receipt capture and short-term cash flow snapshots. Its $78-per-month plan also includes multiple currencies, project tracking, in-depth analytics and employee expense claims. Zoho Books is the accounting software provided by the office suite platform Zoho. It’s an easy-to-use platform that naturally integrates with other Zoho programs.
FreshBooks is the better choice for freelancers and service providers. Its features combine project management and accounting with helping professionals self-manage their business. 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. The banking section of this case study focuses on cash management, bank reconciliation, and bank feed connections. The software must have bank integrations to automatically feed bank or card transactions.
However, it gives you more customization options than FreshBooks. FreshBooks, QuickBooks, and Xero all have the essential accounting features businesses need to manage their finances. Xero’s online accounting software will help you take control of your business. Xero also provides 24/7 support, which may or may not be a dealbreaker for you.
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