FreshBooks is much simpler and straightforward, which is expected since the software caters primarily to people without accounting experience. Xero’s difficulty is average to someone who has been using accounting software programs for quite some time. However, first-time users might find a little bit of a learning curve. Xero has the majority of general accounting features we’d like to see, and this includes the features we’ve mentioned above that are missing on FreshBooks.
You can set the payment frequency, the period covered, and the payment date. Also, you have the option to create and manage employee records, including bank details, and generate electronic payslips showing earnings, deductions, and total pay. Cloud accounting software provides access to your data anytime, anywhere, from any device connected to the internet. Xero is the second-most popular accounting software program in the U.S. after QuickBooks, and is the market leader in several countries, such as Australia. The different features included in Xero’s tiered pricing make it ideal for growing businesses. FreshBooks is an accounting software program geared toward small businesses and independent contractors.
The company went public on the New Zealand Exchange in 2007 and is now worth an estimated $62 million. It’s packed with exactly what you need to succeed as a freelancer. Join 100,000+ monthly readers who are leveling up their freelance business. If you want even more options you can see how FreshBooks compares to QuickBooks, or QuickBooks compares to Wave. Xero has a somewhat similar pricing structure to FreshBooks, with three tiers of pricing starting at $20/month. FreshBooks also offers an annual discounted subscription, while Xero does not.
- If you’re searching for the best accounting software, you might be on the fence between FreshBooks and Xero.
- 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.
- Its price is very competitive and the platform has excellent features.
- We compare FreshBooks and Xero across 11 key areas that we want to see in an accounting software program.
- If invoicing is your most significant need within accounting software, choose FreshBooks over Xero.
- We took the liberty to drop our well-researched opinions on both software via this table.
Then there is the live chat option available for paid users; unfortunately, this does not extend to live calls. FreshBooks currently offers four paid plans based on a business’s number of clients. FreshBooks doesn’t offer assisted bookkeeping services directly. Instead, it has partnered with Bench, an online bookkeeping service that helps you find a bookkeeper. The only way to assign expenses to the appropriate checking account is by matching transactions in the bank feed.
Xero vs Freshbooks – Which Cloud Accounting Solution is Better?
Reviewers also praised its project tracking features and how easy it is to invoice clients if you use the project feature. The software’s biggest drawback is its inability to manage inventory, and users wished that FreshBooks had a live chat feature. These features are either not as robust with FreshBooks or are only accessible by upgrading to a more expensive plan. Xero is a cloud-based accounting software platform available to small and medium-sized businesses in over 180 countries.
And FreshBooks is a unique accounting software program in that it allows you to bring your software along with you while serving billable clients. When setting up a FreshBooks account, you can start fresh, or transfer over existing data from any previous accounting software solutions like Xero, QuickBooks Online, Zoho Books, or Invoice2Go. If you’re not a fan of manual entry, Clients, Expenses, and Items can be imported by you with the steps below. For Taxes, you can email our excellent customer support the details below and we’ll take care of it for you.
Xero vs Freshbooks
The company integrates all accounting tools to ensure accuracy, prove compliance, prepare detailed financial reports, make informed business decisions and work efficiently with accountants. Global digital transformation has redefined the day-to-day operations of accountants as they increasingly transition to data-driven cloud accounting platforms. Two leading solutions that have emerged in this sector are FreshBooks and Xero. This report offers an in-depth analysis of each software platform, comparing their pricing, features, pros and cons.
What is the difference between Xero and FreshBooks?
User-friendly interfaces, complete with dashboards and drag-and-drop features, make these software solutions accessible even for novices. Xero’s first major shortcoming is the arrangement of its pricing. Xero’s essential business features are under the more expensive plans, and its introductory plan is a funnel to drive people higher up the ladder. Xero offers Xero Central, allowing users to contact the Xero support team that is available for trial users.
You can track time on the go with a start-stop timer and location-based tracking on mobile to link costs to jobs and projects. Moreover, you can view job profit margins in an easy-to-read chart, with a breakdown of costs, and quickly determine how much remains to be invoiced. Accounts Payable in FreshBooks makes it easy to track every bill payment you make and owe to vendors. Automated bank reconciliation allows you to create a summary report and export it to Excel. You can also run reports like Profit & Loss and Cash Flow Statement to know exactly where you stand at tax time. The scalability of accounting software has also played a pivotal role in its popularity.
It creates this feel through bright colors, creative design, a straightforward layout, clear navigation, fun fonts, and a super casual tone. I never thought I’d hear the phrase «invoicing like a boss,» yet here we are. Plans are affordable, starting at $13 per month, but no free plan. To get the best possible experience please use the latest version of Chrome, Firefox, Safari, or Microsoft Edge to view this website. After the 4-month promotional period, you will be billed at full price for the plan you have selected.
Recurring Payments works together with Recurring Templates to automatically bill clients every time an invoice is generated and sent. 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 https://intuit-payroll.org/ 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. FreshBooks also has mileage tracking on iOS (coming soon to Android). Xero offers basic accounting features and advanced tools for bookkeepers and accountants.
How FreshBooks and Xero Stack Up
As a company, FreshBooks is a little older — founded in 2003 — but doesn’t necessarily own a bigger share of the market. 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). intuit w-9 You know who picks up and never transfers you when you call FreshBooks? FreshBooks has the best rating for customer support among all competitors at 91%. As you can see, both FreshBooks and Xero are great choices for small businesses looking to streamline their accounting processes.
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. On the other hand, A/P management is one of the strongest points of Xero. It showcases basic and advanced features like recording vendor credits and independent contractor billings.
Xero offers a choice of three subscription plans, which range from $15 to $78 per month. Regardless of which subscription you choose, you’ll have access for unlimited users. We evaluated pricing based on how each plan compares with similar software packages as well as how many users are included in each plan and the extra costs incurred per additional user. FreshBooks and Xero aren’t at the same level of difficulty in terms of ease of use.
You don’t have time to spend figuring out how to use complicated accounting software. With FreshBooks, you’ll confidently create invoices, input expenses, and do your bookkeeping in half the time. And with the best customer support in the industry, it’s easy to see why Xero customers switched to FreshBooks. FreshBooks Payments lets your customers pay directly through invoices and automatically records each payment in your account. It can accept payment via debit cards, credit cards, bank transfers, Stripe and PayPal. With FreshBooks, users can embed checkouts in websites, social media and apps.