If you didn’t receive an email don’t forgot to check your spam folder, otherwise contact support. While both products can get the job done, each has its own technology concept, strengths and weaknesses. Both vendors offer reporting, analytics and data visualization to meet the demands of companies that wish to become data-driven.

  • It adds more functions, such as multi-currency, expenses and projects.
  • They are both strong options for freelancers and small teams.
  • Anyone on your team can login to the software and input data, like deposits into the business’ bank accounts, checks written, or bills paid.
  • Both FreshBooks and Xero are cheaper than QuickBooks while offering many of the same functionalities.
  • Because it more than doubles in price, to $30, we prefer FreshBooks.

Project tracking tools in higher-tier plans; lacks industry-specific reports and transaction tracking tags; users with multiple businesses must pay for separate subscriptions. Xero is one of the most popular and well-known accounting software platforms you can find. Their pricing is affordable and they help customers manage all the details of accounting they could possibly need. Essential features are available in all FreshBooks plans, like invoicing, time tracking, expense tracking, online payments, and reporting. FreshBooks’ features automate most of your accounting so you can spend more time focusing on your work and your clients.

Xero’ business model is to get people ‘hooked’ and slowly up the price. Sometimes even charging for things that were already part of the product and calling it an add on feature. You are charged an additional month beyond your cancelation date. So either you have to plan to cancel 2 months in advance or you have to plan to pay an additional month of service after you actually cancel. Our support team is here to make switching to FreshBooks from any other software (even spreadsheets) super easy, with no interruptions to your business.

FreshBooks vs Xero: Pricing

It’s easier to setup time-saving functions, late payment reminders are individualized and it includes hourly billing. 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. We compare FreshBooks and Xero across 11 key areas that we want to see in an accounting software program. You can check out our detailed case study analysis by reading our FreshBooks review and Xero review. Next, setting up Xero is a bit more complicated than setting up FreshBooks.

The Desktop plan offered by QuickBooks starts at $349.99 per year, goes up to $804 for your first year and renews at $1,340 per year. 95% of users agree that FreshBooks makes it easy to work with your accountant. Our simple yet robust interface has a very short learning curve, so you and your team can hit the ground running. Plus, with automations that reduce your workload, you’ll be saving time in no time. Includes tools that help automate the reconciliation process, along with a global search function and customizable dashboard; has a simple layout.

  • While Xero Analytics and Sales Taxes can help keep your numbers on track if you sell products taxable in multiple states.
  • However, missing features like purchase orders (POs) and vendor credits are forgivable for FreshBooks since it didn’t include inventory management as a feature.
  • There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data.
  • You can also set up different payment methods for different clients, depending on what suits them best.

With FreshBooks, you pay for what you actually need based on how many clients you have instead of paying more for employees you don’t actually have. If you need just a little more from your accounting software, the next level is the Essentials plan. This plan is $35 a month and includes everything from the Simple Start plan. You may not have thought about personalization and customization when it comes to accounting software. But FreshBooks offers a fresh and simple look to financial software.

However, you may be able to use a third-party app, such as Zapier, to connect the two.

Company’s Address

Xero also allows companies to be paid via invoice and it can also help businesses receive payments in time by automatically debiting customers’ bank accounts whenever invoices are due. Like FreshBooks, it offers debit and credit card payments, bank-to-bank payments and Apple Pay or Google Pay via Stripe. While FreshBooks’ security is based solely on the Payment Card Industry Security Standards, Xero adds an additional layer of security to its online invoices and payments system. As two of QuickBooks Online’s biggest competitors in the small-business accounting software space, Xero and FreshBooks each have their own strengths. When you compare them head-to-head though, Xero pulls through as the more scalable, easy-to-use solution for small businesses looking to grow their operations. It includes stronger accounting features across all its plans, as well as unlimited users, inventory management and access to over 1,000 third-party integrations.

Time Tracking

FreshBooks integrates with several apps commonly used by small businesses, but its integration options aren’t as vast as Xero’s. All are third-party apps that can help you further streamline your accounting and project management processes. As a full-featured accounting software program, there are many features to explore.

A Practical Comparison of Xero, Quickbooks, and Freshbooks

We are able to keep our service free of charge thanks to cooperation with some of the vendors, who are willing to pay us for traffic and sales opportunities provided by our website. However, there are some key differences between the three programs. For example, Freshbooks is a beginner’s champion because it is easy to use. Quickbooks’ Live Bookkeeping and Priority Circle can help you with bookkeeping tasks. While Xero Analytics and Sales Taxes can help keep your numbers on track if you sell products taxable in multiple states. You will also find Quickbooks Online’s payroll management feature helpful if you have employees.

If you don’t pay your electric fees, vendors, supplies or rent, your business will shut down. That said, bills aren’t a profit center, so you don’t want to waste a lot of time on them. debt service coverage ratio If you need to collect a deposit before work begins, you can request a percentage or flat deposit amount. Project-based businesses will find that to be an invaluable feature.

Freshbooks, Quickbooks, and Xero are some of the best accounting software available, and they have many similarities. They are all cloud-based, double-entry accounting systems that allow you to manage your inventory, invoices, taxes, track your projects and time, and reconcile your bank’s information. Additionally, they each offer a free trial and various payment gateways. Xero and QuickBooks are both great accounting software options for small businesses.

Unlimited users for a low cost

However, its inability to reconcile transactions without bank feeds and its lack of live phone and chat support are its biggest drawbacks. A winner of our 2021 Best Accounting Software Award, this robust cloud accounting app for small businesses makes billing easy and efficient. FreshBooks allows users to manage key processes easily from turning receipts into expense files to tracking billable hours. Special modules to manage projects and tax are also available.

What is the difference between Xero and FreshBooks?

Talk to your accountant and start a free trial to see how easy it is to work together. And if you need a hand our phone support with a live rep extends to both you and your accountant with no additional fees. FreshBooks is a super-easy-to-use accounting software built specifically for small business owners, letting you easily do everything yourself. However, when it comes to using all the tools available to you as a small business owner, your accountant should definitely be part of your toolbox. Xero offers BI, reports and visualizations via different hubs, dashboards and features.