We’ve encountered few platforms that make it so easy and low-cost to automate your payroll accounting. Xero is also an excellent fit if you want accounting software that suits your business at all growth stages. You get unlimited users no matter which Xero tier you opt into, and your subscription price won’t vary based on user numbers. You can jump from one tier to another whenever your business is ready, not when you hit an arbitrary user cap. The quality you get for the amount you spend is the essence of bang for your buck.

Zoho Books charges just $3 per month per extra user, and QuickBooks Online offers access for up to 25 users (depending on which plan you choose). Both Wave and FreshBooks have excellent invoice templates that are easy to customize and send to clients. Both accounting products let you accept payments within the invoice, set up automatic recurring invoices and send payment deadline reminders. However, the two tools differ in terms of how much they cost, how many automations they offer and which third-party apps they sync with for crucial tasks like payroll and time tracking. If snapping photos of receipts to claim expenses on the go is a key mobile feature you’d like to have, regardless of plan level, QuickBooks Online might be a better fit. Xero’s Early plan, recommended for self-employed people or brand-new businesses, allows 20 invoices per year.

1. Other great options you could try out include QuickBooks online, Zoho Books, and Stripe.
2. When it comes to making payments easy for you and your clients and comparing FreshBooks vs Xero it’s easy to see why people choose FreshBooks.
3. The offers that appear on the website are from software companies from which CRM.org receives compensation.
4. FreshBooks provides a software environment that blends accounting and project management, making it ideal for self-managed businesses and freelancers.

However, FreshBooks seems to have more in-depth client features, as it lets you store their contact info, communications and any internal notes you might have about them. Choosing the right accounting software can ensure your small business https://quickbooks-payroll.org/ manages its finances well. If you’re searching for the best accounting software, you might be on the fence between FreshBooks and Xero. Both made our list of top QuickBooks alternatives, meaning they’re functional, powerful and easy to use.

At 91%, FreshBooks has the best rating for customer support among all competitors. They are Lite at $15  per month, Plus $25 per month, and Premium at $50 per month. We have picked out some solid categories that can help you get an overview of the functionality of both online accounting desktop software.

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. You’ll find both FreshBooks and Xero useful if you’re a service-based business that works on projects or bills clients by the hour. You’ll have the option to set up hourly or flat-rate projects and assign them to your employees or customers.

FreshBooks vs Xero: Pricing

It’s full of user guides, help articles and other learning tools so you can hopefully find answers to your questions faster. Xero doesn’t offer the opportunity to call a representative directly for assistance. You can reach support by raising a case (similar to filing an IT ticket) on the Xero website. Plans are affordable, starting at $13 per month, but no free plan.

Even with FreshBooks Lite, I was able to create and send unlimited customized invoices, whereas Xero restricted me to 20 per month. There are a number of payment processors and payment options you can choose through FreshBooks. FreshBooks integrates with a number of payment processors so that you can choose the payment method that works best for you and your business (and can deal with multiple currencies). Whether you want to accept online credit card payments, set up bank transfers, or get paid through FreshBooks Payments, you can easily set up the method you prefer. You can also set up different payment methods for different clients, depending on what suits them best.

FreshBooks vs. Xero: Comparison table

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. is purchase ledger control account a debit or credit FreshBooks and Xero aren’t at the same level of difficulty in terms of ease of use. 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.

They also love their online accounting bookkeeping community which boasts a blog and community forum page. The good news is both Xero and FreshBooks cater to the needs of freelancers and small businesses to create customized, affordable options. Looking through the comments from reviewers they love the intuitive interface, time tracking capabilities and excellent customer service. 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.

FreshBooks pricing

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. Not only does FreshBooks allow small businesses to add their accountant to their account, but FreshBooks also has an Accountant Partner Program that pairs small business owners with accountants. This ensures that businesses are matched with accountants that suit their specific needs, and gives them access to the financial and accounting reports they need.

Best Accounting and Bookkeeping Apps for Small Businesses

We believe everyone should be able to make financial decisions with confidence. For example, Xero allows you to view accounting reports and specific budgets for any time period. You can even monitor your company’s performance by customizing and measuring specific KPIs.

This service costs $20 per month plus 3.5 percent and 30 cents per transaction. The basic features for small businesses centralize accounting operations in one place. Users can see their invoices and manage their contacts and accounting online. Additionally, they can connect their bank and financials to the cloud to collaborate in real time, no matter where workers, accountants, managers and bookkeepers are. When it comes to inventory management, Xero is also the name to beat for larger companies with lots of products and customers.

However, QuickBooks offers slightly more tools and a more intuitive user experience. Read our QuickBooks vs. Xero comparison to explore these platforms’ similarities and differences further. Xero offers more customizable reports than FreshBooks and makes accessing key financial data easier. We were impressed with Xero’s reporting suite compared to FreshBooks and when evaluated against many similarly priced competitors.