Xero is likely best suited for somewhat bigger businesses that don’t want to pay a high monthly fee for additional users and need advanced accounting features like budgeting and inventory management. 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. Each additional user costs $11 per month if you wish to grant access to more employees. Transactions made using FreshBooks Payments, which allows you to accept credit cards online, cost 2.9 percent plus 30 cents per transaction. FreshBooks also offers a product called Advanced Payments, which is used to accept credit card payments by phone and in person.
- We believe everyone should be able to make financial decisions with confidence.
- You can reach support by raising a case (similar to filing an IT ticket) on the Xero website.
- But if you want something straightforward and user-friendly that gets the job done without fuss, FreshBooks is your go-to.
- Even the best accounting software is not without limitations, and for these two, considering these limitations could determine your eventual choice.
- But this wouldn’t be a proper comparison review if we didn’t go a step forward and look at the areas in which they differ.
Plus, with industry-leading customer support, you’ll never struggle alone. 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. All https://intuit-payroll.org/ plans include 24/7 live chat support; phone support is available 5 a.m. You can easily create custom purchase orders from templates and email them as PDFs from within Xero. Plus, you can convert purchase orders into bills for payment, or into invoices with added notes to recoup costs.
This site does not include all companies or all available Vendors. To categorically pick which is better between FreshBooks and Xero is a difficult task as both accounting services have proven to appeal to people for different reasons. While they have an app for the iPhone, they have three for their Android counterparts. The second and third are Xero Projects and Xero Expenses, both used for more fieldwork. Now let’s look at the features and functionality of both accounting services to determine which fits you best.
The safety of your private data is our top priority, that’s why it’s protected by 256-bit SSL encryption—the gold standard in internet security. 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. 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). 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.
Freelancers, solopreneurs, and small businesses with few employees.
How similar is Xero to QuickBooks?
It also has more comprehensive accounting features—though there are a few notable exceptions. The biggest benefit of cloud-based apps is that you don’t need to install a desktop version of the software. Hubdoc is included with all Xero plans, allowing ytd financial definition of ytd you to capture, extract and store data from documents scanned using your smartphone. Web pages aren’t cluttered, and Xero uses a lot of negative white space so that the web page window can adjust when opening two web browsers during multitasking.
FreshBooks invoicing capabilities
It includes both the monthly discount outlined above, as well as an additional 10% discount for selecting a yearly plan. Xero used a timesheet that can be used to track time at a location, but it is not often considered its greatest strength, and there are provisions for integration options. The interface though neat is something more easily understood by accountants and people with prior accounting knowledge.
Ease of sharing with accountants
FreshBooks is the go-to solution for freelancers and solopreneurs who want freedom with managing and billing their clients. While small businesses can use the software as well, the extra charge per team member could add up quickly. 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. Our partners cannot pay us to guarantee favorable reviews of their products or services. That said, Xero makes up for its user-friendliness shortcomings through tutorial videos and a demo company feature. In Xero, you can view the platform as a demo company with pre-recorded data, which makes it far easier to see how the platform will look and operate when you input your own business’s data.
We’ve included the basics of each package below to give you an idea of what to expect from both companies. Xero’s online accounting software will help you take control of your business. Check out our other picks for the year’s best small-business accounting software. While FreshBooks lets you send an unlimited amount of invoices each month, it restricts the number of clients you can invoice per plan.
These features are ideal for a freelancer or a self-managing business owner. The FreshBooks app is considered among the best iPhone apps to get you through the workday, helping you create invoices, accept payments, track time and record expenses from your smartphone. Comparing FreshBooks and Xero side by side shows that their starting prices aren’t bad—though Xero is the cheaper option for both the introductory and regular offers. If you’re looking to pay bills regularly, it makes more sense to Xero, as you can pay five of them on the base plan. However, time tracking and invoicing lean in favor of FreshBooks, which offers unlimited use compared to Xero’s restrictions.
But if you want something straightforward and user-friendly that gets the job done without fuss, FreshBooks is your go-to. At the end of the day, weigh your needs and your budget, and if all else fails, flip a coin. FreshBooks’ reports may be more aesthetically pleasing and easier to navigate, but Xero’s include the level of detail needed to stay organized as your company grows.
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. And if you’re on the fence, you should definitely give both of them a whirl as they both offer a 30-day free trial, so you can get a hands-on feel of both before committing to one. FreshBooks also offers an annual discounted subscription, while Xero does not. 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.
These two were neck and neck, but in the end, Xero took our #1 spot. Their customer reviews cannot be beat, and they offer tons of fantastic features. But that really depends on your needs and which package you choose.
