Xero vs QuickBooks Online: Features Comparison, Pros, Cons

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xero vs freshbooks

The platform has a user-friendly interface, making it ideal for small business owners without extensive accounting knowledge. FreshBooks is a freelancer’s dream accounting software, as it comes with unlimited invoicing, estimates and time tracking. You can even set up recurring invoices each month, late payment reminders and scheduled late fees for overdue invoices. For tracking your expenses, FreshBooks’ base plan comes with mobile receipt scanning and bill line item capture.

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. https://accountingcoaching.online/ For custom integration, you can use the FreshBooks API and webhooks to sync data with third-party applications. If you’re managing project-based work, you can also draw up estimates and easily convert them to invoices when the project is completed.

You can quickly know how your entire team is spending their time and get a daily, weekly, and monthly breakdown of the work hours, too. In this article, we compare FreshBooks vs Xero head-to-head, presenting their pricing differences and pros & cons so you can better decide which one is right for your business. In today’s fast-paced world, Paleo meal delivery services are a true blessing for those committed to ancestral eating habits. If you’re experiencing changes in the appearance of your nails and they’ve become thickened, crumbly, ragged, or brittle, you probably figured out … The easiest way to answer that question is to start out with your preferred investment approach. On the other hand, Xero works well with startups that have hit the ground running and possibly have an employee with a good grasp of accounting.

On the contrary, Xero has more accounting features, making it an excellent choice for growing businesses, especially product-based companies. Xero is an accounting powerhouse that can handle anything from freelancers to big-shot enterprises. With features like invoicing, payroll, and inventory management, it’s got all the bells and whistles. Meanwhile, FreshBooks is perfect for freelancers and small businesses that want simplicity without sacrificing functionality. Apart from FreshBooks’ user-friendliness for those who aren’t accounting experts, it also appeals to freelancers through its time tracking and client management tools. All plans offer unlimited time tracking and allow you to bill clients for the time you track.

What are the disadvantages of Xero accounting software?

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’ small business reporting tools allow users to know exactly how their business is performing. Using straightforward dashboards and reports, companies benefit from accurate and valuable information. From centralized dashboards to reports like profit and loss, paid taxes and more, FreshBooks offers several reporting tools. A significant difference between FreshBooks and Xero is their payroll capabilities. FreshBooks does not offer built-in payroll tools, while Xero is known for its simple and effective payroll features.

xero vs freshbooks

In addition, you can bill for tracked hours, track and manage time for a specific project and allow your employees to track their time (if you’re using the team members add-on). The company integrates all accounting tools to ensure accuracy, prove compliance, prepare detailed financial reports, make informed business decisions and work efficiently with accountants. Those interested in a full trial can get access to a 30-day free option. FreshBooks is an easy-to-use accounting and invoice cloud platform popular among small businesses with clients in over 160 countries. The software enables the accounting of enterprises and self-employed with a wide array of features including tax tools, visibility and reports. And remember, Xero and Freshbooks aren’t the only cloud-based accounting solutions.

It also lets you track time and billable hours so clients can see exactly what you’re charging for. We prefer Xero if you’re a larger business looking for more potent features, such as bank account reconciliation and Gusto payroll software. Xero also has robust file storage that lets you manage and share documents, bills, contracts and receipts on the cloud. Speaking of the cloud, both software earned a spot on our best cloud accounting software list. Xero offers accounts payable features with all plans — although you can enter only five bills per month with the Early plan.

Xero vs FreshBooks: Accounting Software Review

It has a more comprehensive set of features than FreshBooks, including financial reporting and analysis. Choose Xero if your specific accounting needs aren’t present in FreshBooks, such as more advanced A/P features. In addition to user interface (UI) and navigation, we also consider the available customer support options, including live chat and email and phone support. FreshBooks integrates with several apps commonly used by small businesses, but its integration options aren’t as vast as Xero’s.

  1. It does have the option to input your inventory as invoicing items, but this is clunky and not as intuitive as Xero’s inventory process.
  2. Xero is a more popular name in this industry, and it’s the better choice if you deal with inventory.
  3. However, users often report Xero as a not-so-intuitive platform and may require you to invest in employee training.
  4. As a complete accounting software, we’re not surprised to see these features on Xero because they covered everything from vendor creation to billings management.
  5. It’s expected that accountants have recommendations when choosing your cloud accounting tool.
  6. And with the best customer support in the industry, it’s easy to see why Xero customers switched to FreshBooks.

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. As a full-featured accounting software program, there are many features to explore. However, once you get the navigational flow, it’s a matter of remembering where to find specific accounting information based on the menu categories. 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.

FreshBooks’ Double-Entry Accounting tool identifies revenue items and their related expenses, giving you an accurate calculation of profits and losses. It helps you make choices based on actual business data and insights. It is fast, secure, and has no hidden fees, similar to Stripe and PayPal. You can post-checkout links on your website, social, or anywhere else online to allow customers to click and pay easily with their credit card.

FreshBooks vs. Xero: Comparing Top Accounting Software Platforms

The right accounting software for you will depend on a multitude of factors though, so scroll down to see how Xero, FreshBooks, and Sage compare across specific categories. As you can see, both FreshBooks and Xero are great choices for small businesses looking to streamline their accounting processes. That being said, both solutions are designed to cater to different types of businesses and needs, so the battle of FreshBooks vs Xero isn’t exactly a fair one. You’ll be able to save time by scheduling upcoming payments and batch pay suppliers with multiple bills in one transaction.

Mobile apps are evaluated based on their ability to perform certain tasks like invoicing, online payment processing, and expense receipt capture. Xero offers certification programs for bookkeepers and certified public accountants (CPAs). You can hire independent Xero Advisors or integrate with Bookkeeper360 to get bookkeeping assistance. Both FreshBooks and Xero have downloadable apps in the App Store and Google Play that you can use on your phone, tablet, or mobile device. Internet connection is needed to use the app, and users can add, edit, or remove data through the app. In terms of user experience, FreshBooks isn’t intimidating to people with no accounting experience.

FreshBooks is a bit complicated and limited in its banking features, especially with bank reconciliation. What we noticed is that FreshBooks deducts all entered expenses from the Petty Cash account manually. FreshBooks falls behind Xero in terms of general features because it trades advanced features in favor of ease of use. a complete guide to different cushion fabrics ET from Monday to Friday; offers email support, but not live chat support with a human. You can enjoy project conversations, file sharing and project due dates, but these features are most helpful for individual or small-team projects. Talk to your accountant and start a free trial to see how easy it is to work together.

Xero’s interface feels a bit more clean-cut and professional, which is more what I’d expect from accounting software. While I did appreciate the dashboard’s clear and customizable widget feature, the interface felt a bit intimidating initially. There weren’t tips guiding me through the process of adding clients and invoices or creating reports. 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. QuickBooks Online is an industry standard for small-business accounting and delivers on its robust feature set, ease of sharing with accountants and range of integrations.

There’s time tracking in all plans and phone support is available from 8 a.m. The first two plan tiers put a limit on billable clients, but not on invoices. When ranking and reviewing different accounting software, our in-house team of experts zeroed in on nine specific metrics. These categories of interest included factors like price, software functionality, advanced features, bookkeeping, financial reporting, and customer support tools, to name a few.

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