All plans include free customer service, import and export data, credit card processing, and data backup. You can save 10% off the following pricing if you pay annually. FreshBooks has grown to more than 10 million users since being created in 2003 out of a small business owner’s sheer frustration with his billing options. It’s geared toward service-based small businesses, so if you need inventory support, look elsewhere. If you send dozens of invoices a month to dozens of clients, accounting software with truly unlimited invoicing will be a better fit for you than either Xero or FreshBooks.
This takes the burden of remembering to follow up off your shoulders. You can set the follow-up times and customize them by customer, too. If someone says they don’t want to be bothered until they’re 30 days past due, you can change their settings without affecting other customers. FreshBooks doesn’t include robust inventory management in its product suite. When setting up a new account, you can upload existing inventory spreadsheets, including SKUs and quantities on hand.
How Much Does Xero Cost?
FreshBooks pricing begins at $15 per month for the Lite Plan and costs up to $50 per month with the Premium Plan. The pricing plans and structure are relatively similar to Xero’s plans. Xero and FreshBooks operate on pricing tiers, and both tools have three pricing plans to choose from. Xero is just a bit more expensive per month than FreshBooks. This article will discuss the main differences between Xero and FreshBooks by highlighting differences in features, price, and usability. We’ll highlight notable strengths and drawbacks of each tool and make recommendations to help you pick the best software for your business.
Arguably, the smallest of small businesses benefit the most from expense tracking, so it’s downright bizarre that Xero doesn’t include it. Xero payment processing is hampered because payroll is more of an add-on and does not come built with the app or online software. revenue recognition principles Xero grants users access to 800+ integrations to third-party apps to improve the overall running of your small business. Xero also connects with Zapier giving access to more add-ons. Xero can integrate with PayPal, Shopify, and other known e-commerce options.
FreshBooks vs Xero: The Best Low-Cost Accounting Program for 2023
For example, FreshBooks is weak on inventory and Xero is strong, but FreshBooks beats Xero in its easy processes for booking invoices and expenses. The only changes between FreshBooks’s Plus and Premium levels are the price and number of clients. The monthly fee of $50 a month covers that, plus all the features available at cheaper price points. The main “bills” screen in Xero presents the total of bills in draft form, awaiting approval or payment and overdue in boxes.
- Promotional offers for both monthly and yearly plans are for a limited period.
- FreshBooks may not be as comprehensive an accounting platform as Xero, but it’s hard to deny that its invoicing features are top-tier.
- You may not have thought about personalization and customization when it comes to accounting software.
- With FreshBooks, you get simplified and automated accounting, invoicing, project management, and more.
So if you’re selling products outside of the United States, FreshBooks or Zoho (which do have multicurrency support) will make your life a little easier. And if you need a hand, our phone support with a live rep extends to both you and your accountant, with no additional fees. The FreshBooks app offers a convenient solution because of its invoicing on-the-go feature, which speeds up collections from clients.
FreshBooks vs Xero: How They Compare in 2023
Coming from someone who’s not a numbers person, anyone who does accounting is a brave and admirable soul, and I’m glad that there are excellent tools out there to make your job easier. Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. Here is a list of our partners and here’s how we make money. Xero is a better platform if you do not have clients and run a physical business like a restaurant or farm.
In some ways, an accounting solution’s utility depends on how well it can exchange data with other back-end systems. If you’re shopping for a small business accounting solution, you’ve probably come across Xero and FreshBooks and wondered how the two are different. Both offer affordable, cloud-based platforms that simplify and automate accounting for the small business user. FreshBooks doesn’t offer assisted bookkeeping services directly. Instead, it has partnered with Bench, an online bookkeeping service that helps you find a bookkeeper.
Switching Made Easy
Both vendors offer reporting, analytics and data visualization to meet the demands of companies that wish to become data-driven. As previously mentioned, FreshBooks treats bills as if they were an expense. Plans are affordable, starting at $13 per month, but no free plan. Includes tools that help automate the reconciliation process, along with a global search function; has a simple layout and a customizable dashboard.
- That said, we have to conclude that FreshBooks is generally a better choice than Xero.
- They are not a full accounting system, meaning they do not generate balance sheets with credits and debits, handle sales taxes, etc.
- The project management and time tracking features are particularly helpful because that isn’t found for free in all competitors.
- Sage Business Cloud Accounting (50cloud) offers a 30-day free trial for either package (no credit card required).
- FreshBooks has grown to more than 10 million users since being created in 2003 out of a small business owner’s sheer frustration with his billing options.
Both Xero and FreshBooks have various customer support options; let’s look at both options. Xero only recently rolled out projects, so it’s hard to tell how it compares. While you can track time, money and profitability with it, too, it doesn’t have a due dates function.