When picking between the three accounting solutions, it really comes down to the needs of your individual business. If you’d like to see a simpler breakdown of our top providers, check our handy form today. Basically, if you often find yourself in need of support none of these options will really cut the mustard — we would recommend going with QuickBooks instead.

• But if you want something straightforward and user-friendly that gets the job done without fuss, FreshBooks is your go-to.
• Global digital transformation has redefined the day-to-day operations of accountants as they increasingly transition to data-driven cloud accounting platforms.
• At Millo, we strive to publish only the best, most trustworthy and reliable content for freelancers.
• Once an items is sold, pick from its inventory on the invoice’s drop-down menu.
• FreshBooks makes it easy to transfer all of your financial data over from another platform so you can get up and running.

Less scalable products are typically simpler, but diminished functionality can cause headaches down the road for growing businesses. We encourage you to research and compare multiple accounting software products before choosing one. Can support freelancers, contractors and small businesses with a handful of employees; highest-tier plan includes two users (additional users can be added for a fee).

Xero vs. FreshBooks: Key basic plan features

In this section, we look at the main features businesses should evaluate before deciding which accounting software is a better fit. While FreshBooks has a live chat option for sales inquiries, you have to send an email or request a phone call for customer support. ET, so if you’re having a late-night issue trying to sort out an invoice, you’ll have to wait until morning for in-person help. Since FreshBooks is mainly software for freelancers who often don’t follow traditional working schedules, this could be a drawback, especially if you’re working in a remote time zone. All FreshBooks plans, except for the highest-tier custom plan, come with one user.

To see a list of options sorted by deployment, industry, and features, check out our accounting software selection tool. FreshBooks’ add-on marketplace doesn’t disappoint, even if it’s less expansive. They offer a few options for marketing (HubSpot, ActiveCampaign, MailChimp, Wufoo) and project management (Basecamp, Citrix Podio, Proposify) that you won’t find with Xero. For custom integration, you can use the FreshBooks API and webhooks to sync data with third-party applications. The FreshBooks mobile app allows you to create and send invoices, snap pictures of receipts, chat with clients, get important updates, and manage expenses on the go. Unlike FreshBooks, however, Xero does not charge for additional users to access the software.

Make a list of the business productivity apps that you use most often and check for compatibility on the Xero and FreshBooks app stores. It includes inventory in every pricing plan, mainstains stock levels and runs reports. FreshBooks requires you to sign up and pay for a separate app if you want inventory management that syncs with your accounting. Xero has reports on sales and purchases, inventory and fixed assets, payroll and projects.

Accounting Software Program Reviews

The FreshBooks app is considered among the best iPhone apps to get you through the workday, helping you create invoices, accept payments, track time and record expenses from your smartphone. FreshBooks is a super-easy-to-use cloud-based accounting software built specifically for freelancers, soletraders and SMBs, letting you easily do everything yourself. FreshBooks is built to make accounting easy for non-accountants running small and medium sized businesses. Accounting software has become so important to businesses that other programs and platforms often are made to integrate with them to make things more streamlined. The software can usually be accessed online with any device that has internet connection. The complexity of the accounting software, and what it is used for, will greatly affect the overall cost.

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FreshBooks is best equipped to serve freelancers without much accounting experience. The larger your business is, the better equipped Xero becomes to meet your needs. FreshBooks brings some serious pizzazz and excitement to accounting, while Xero takes a more polished, business-like approach.

Why Xero wins

Both are user-friendly and may work well for your business — and the answer to FreshBooks vs Xero really comes down to what you’re looking for. Now that you have a clear idea of what features both tools offer and their pricing structure, let’s take a look at the pros and cons of each. We will summarize their key benefits and drawbacks so you can reach a decision based on your preferences. You can use your accounting tool as an online filing system, too. That is, you can upload and share documents, contracts, bills, receipts, and what have you from your phone or computer.

👋 Welcome to FreshBooks

Do your own books and create better connections with clients, the easy way. In today’s interconnected digital world, maintaining a strong credit profile is essential. Incorporation is the process of legally creating a corporate entity, which can be a separate legal entity from its owners, with its own … FreshBooks has simple, transparent pricing that fits your budget. FreshBooks makes it easy to transfer all of your financial data over from another platform so you can get up and running. FreshBooks still syncs with more than a hundred other business apps, including crucial third-party apps like Gusto.

FreshBooks Tiered Features Table

Combine this with terrible user experience in some parts of the app, unintuitive subscription models, and bad resources online, and it takes about 20x longer than it should to get anything done. 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. FreshBooks and Xero are both powerful accounting tools that can help businesses keep their financial information and assets organized and accessible. But the two apps are geared toward different audiences, which explains their functional differences. Xero offers BI, reports and visualizations via different hubs, dashboards and features.

FreshBooks claims 5 million users, which probably divides down to a similar size customer base as Xero. The company has yet to release an IPO (initial public offering). Inventory management is one of those advanced features that you don’t examples of key journal entries get in FreshBooks. You can keep a count of up to 4,000 items you have in stock as you buy and sell. Xero provides up-to-date accounting reports that enable you to track your finances and collaborate with your advisor in real-time.

However, users often report Xero as a not-so-intuitive platform and may require you to invest in employee training. You can quickly mark your business expenses as billable, add a markup, and then automatically pull them onto an invoice for your client. You can also snap and store pictures of receipts in the FreshBooks mobile app (touched upon later).