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. While Freshbooks may work well for a small creative, service-based business, for a full accounting software solution, you need to go with Quickbooks or Xero. Of these two, Xero will allow your company to grow without your cloud-based accounting system becoming a major expense. The second version of Quickbooks is the online, cloud-based software.
- That being said, if a small business does need all the bells and whistles that QuickBooks offers, they’ll have to take the time to learn the program and master its features.
- FreshBooks’s cheapest plan, Lite, costs $15 per month, but it gives you unlimited invoices and estimates, bill payments and credit card processing.
- There are a number of alternative accounting software programs that can offer powerful features and a user-friendly interface.
- The entire premise of Xero is cloud-based accounting, but it feels like traveling back in time 25 years when trying to get anything done with them.
- While both products can get the job done, each has its own technology concept, strengths and weaknesses.
Here’s how each accounting software vendor breaks down their services, so you can see how they compare. Xero’s financial reporting features start with its interactive reports and budgets, updated in real time throughout the week. You can set specific KPIs, and can jump to detailed transactions when you need more info. Reports can be customized with different columns, formulas, text blocks, or drag-and-drop accounts. You can add your logo to your invoice templates, and change the color to fit your business’s branding.
FreshBooks Pros
Xero’s support and learning portal, Xero Central, offers access to a searchable database categorized by topics like ‘Inventory’ or ‘Reporting and Tracking,’ among others. Resources include how-tos, explainers, and professional development courses. QuickBooks and Xero both have good support and training options, but QuickBooks has phone support while Xero does not, earning it a research score of 4.7 – nearly double Xero’s 2.4/5. Similarly, all of Xero’s plans are often 50% off for the first three months.
No matter which software you choose, make sure to review the features and pricing carefully to ensure you’re getting the best value for your money. Depending on the size and scope of your business, you might need professional assistance with your bookkeeping software. Thanks to Xero’s support system, you can get the help you need when you need it. You’ll also find handy cloud support, and it will support multiple currencies. These are just a few of the important functions to look for in bookkeeping software.
And it’s easy to adjust settings to make it work best for your individual needs. A small company may find that FreshBooks offers more than they will ever need and is straightforward, accessible and provides a wide range of automations and reports. To remain competitive and keep up with the latest technology, FreshBooks and Xero offer a wide range of features, resources and tools — some more advanced than others.
FreshBooks vs Xero Comparison
However, with all of that said, FreshBooks is incredibly easy to use and will be sufficient for the needs of most small businesses or freelancers. It compares really well to QuickBooks at the lower plan level but is even more affordable if you don’t need more than a single user. Intuit QuickBooks is arguably the most well-known and widely used online accounting software.
User Satisfaction
The dashboard makes it easy to get to what you need, whether that is the general ledger or invoicing. On the dashboard, you get a quick glimpse of your business’s financial health, allowing you to plan for upcoming expenses. Predictable costs without the need for add-ons or additional app integrations and transparent pricing that fits your budget. All our plans are equipped with invoicing, expense, and project management features at no extra cost. Xero also offers some excellent optional add-ons at good value.
Xero Cons
QuickBooks also takes the lead when it comes to custom reports. Both QuickBooks and Xero let you set up automated data tracking and report generation, but QuickBooks has more granular options, making it faster to compare reports against historical data. You’ll still be able to accomplish everything you need with both, but it’ll be a little faster with QuickBooks. That said, both QuickBooks and Xero often offer a special entry deal for your first few months, although these deals can vary. At different times in the last year, QuickBooks plans have been between 50% and 70% off for the first three months. Whatever the current deal, users will need to skip their free trial to qualify.
At $60 a month, you receive the same basic features as the Simple Start and Essentials plans with a few key differences. Add on more team members as you need them to track projects, time, and expenses. If your company is small and scaling and your accounting team does not require advanced features, FreshBooks is an attractive option.
FreshBooks is a cloud accounting solution that uses industry-leading secure servers. You can import expenses from our expense tracker by uploading a CSV file as well as having FreshBooks automatically track them by connecting your bank accounts or credit cards. Being able to create and send invoices on the go means no delays and no accounting headaches waiting for you. You can use the FreshBooks automated bookkeeping software wherever you have access to the internet, so let FreshBooks take care of your invoicing worries while you sit back and relax. FreshBooks offers mobile access with iOS (iPhone Mobile) and Android Mobile apps that let you painlessly invoice your clients and track expenses wherever and whenever you need to.
QuickBooks is best for medium to large organizations that need access to a comprehensive accounting system that includes inventory management. It’s expected that accountants have recommendations when choosing your cloud accounting tool. Accountants feel comfortable with Xero because it’s built for them.
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 writing your program description 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.
