All FreshBooks plans, except for the highest-tier custom plan, come with one user. FreshBooks gives you six user roles to choose from, plus client access and project manager customization options. Includes project tracking tools in most expensive plan; limited transaction tracking tags; lacks industry-specific reports; users with multiple businesses must pay for separate subscriptions. Project tracking tools in higher-tier plans; lacks industry-specific reports and transaction tracking tags; users with multiple businesses must pay for separate subscriptions.

1. If you’re not a fan of manual entry, Clients, Expenses, and Items can be imported by you with the steps below.
2. Both feature mobile apps and sync with a variety of third-party business applications.
3. While I did appreciate the dashboard’s clear and customizable widget feature, the interface felt a bit intimidating initially.
4. Xero can integrate with PayPal, Shopify, and other known e-commerce options.
5. 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.
6. We have yet to encounter bill-pay tools as user-friendly and broad as Xero’s in any other accounting software platform we reviewed.

FreshBooks is ideal for the freelancer or solopreneur just coming to terms with budgeting, amongst other financial knowledge needed to run a small profitable business. FreshBooks comes with this option, and you can match your FreshBooks account to your Bank Account and monitor entry for entry. The size constraint also puts a strain on the addition of new team members. You would have to pay $10 per member, which tends to be on the more expensive side. With Zapier, you can create automated workflows that connect Xero and FreshBooks, allowing you to transfer data seamlessly between the two platforms.

Xero’s app includes the basics, like sending invoices and assigning expenses, but its capabilities are a bit limited. Plus, Xero doesn’t seem to care to consolidate its mobile experience into one app—there are different Xero apps for managing expenses, projects, and more. In fact, when signing up for an account, I had to download an entirely separate app just for two-factor authentication—a very unpopular requirement made clear by the app’s below-1.5 star rating. FreshBooks may not be as comprehensive an accounting platform as Xero, but it’s hard to deny that its invoicing features are top-tier. Even with FreshBooks Lite, I was able to create and send unlimited customized invoices, whereas Xero restricted me to 20 per month.

FreshBooks vs. Xero Highlights

You can call its customer service hotlines, ask them to call you, or contact them via email. There’s also self-help information for frequently asked questions (FAQs) about FreshBooks features and how-tos. 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.

Time Tracking

FreshBooks was originally designed as an invoicing tool and evolved into a full-fledged accounting solution over the years. Check out our growing YouTube channel where we go deeper into the digital tools and share more of our personal experiences growing our businesses. With the Standard and Premium package, you can also create customizable purchase orders, payroll direct deposits and checks, and there is a federal and state e-file and e-pay option. Access Xero features for 30 days, then decide which plan best suits your business. You have the option to either manually import data yourself or get a helping hand from your accountant.

Easy to Use, Stellar Support, It’s a No-Brainer ✔ FreshBooks vs ✘ Xero

Now, I’m here with other online business owners buying, testing, and evaluating the best digital tools, services, and software we can find – for every stage of the business. The good news is both Xero and FreshBooks cater to the needs of freelancers and small businesses to create customized, affordable options. For small business owners, these two products are a great match. Xero payment processing is hampered because payroll is more of an add-on and does not come built with the app or online software. FreshBooks offers a user-friendly interface and a fresh approach to accounting that keeps users learning in an engaging fashion how to work around the various features within the app. You can sync time tracking with invoicing on FreshBooks, allowing you to instantly add billable hours to an invoice.

Xero vs FreshBooks: Accounting Software Review

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. That’s why FreshBooks is built to save https://intuit-payroll.org/ you time and effort with an interface that lets you efficiently manage your books and navigate tax time. And if you need support, our award-winning team always has your back.

Accounts Payable

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. Once you’re done with a project, you can convert it into an invoice easily. We recommend FreshBooks for all business customers that prioritize invoicing tools. Of all the accounting software platforms we reviewed, FreshBooks’ invoicing functionality impressed us the most. Creating invoices in FreshBooks is much easier than in other platforms ― automatic invoice generation and customization are a breeze.

You can even connect your bank accounts for automatic bank reconciliation trusting your data will always be private and secure. FreshBooks is a cloud accounting solution that uses industry-leading secure servers. There are a number of payment processors operating margin formula with calculator 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).

Its price is very competitive and the platform has excellent features. In some ways, an accounting solution’s utility depends on how well it can exchange data with other back-end systems. Cloud-based accounting software is relatively simple, so you don’t have to worry too much about piecing together a multi-module product suite like you might with ERP or marketing automation.

Incorporation is the process of legally creating a corporate entity, which can be a separate legal entity from its owners, with its own … Our reviewers evaluate products and services based on unbiased research. Some of the links that appear on the website are from software companies from which CRM.org receives compensation.

Plus, with prices starting at $15 per month, Xero is affordable. The quality you get for the amount you spend is the essence of bang for your buck. We also recommend FreshBooks for freelancers and very small teams. These user bases must carefully monitor expenses and FreshBooks provides high-quality tools at low prices. Plus, freelancers and very small service-based businesses live and die by invoices ― FreshBooks’ bread and butter.

The Advanced Payments feature also allows companies to accept credit card payments in person and over the phone. At $40/month, this plan is meant for established businesses that need additional capabilities within their accounting software. Like the Standard plan, you get unlimited of everything plus the ability to automatically track gains and losses, invoice, and accept payments across multiple currencies. Both FreshBooks and Xero are cloud-based accounting software that operate under the software-as-a-service (SaaS) model.

Xero also includes unlimited users, whereas FreshBooks only provides access to multiple users for an additional monthly fee. This makes Xero a better choice for growing businesses that are constantly adding new employees. FreshBooks and Xero allow assisted bookkeeping services to help small businesses in keeping the books organized. These bookkeeping services aren’t part of the subscription price, and you’ll need to pay an additional fee to get the service.