FreshBooks vs Xero: Choosing accounting software 2025
QuickBooks has more inventory management and budgeting tools than FreshBooks. QuickBooks also has a more intuitive interface than Xero as well as a desktop version. 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.
They both run a 30-day free trial that affords users access to all the available features, such as time tracking, bank reconciliation, bookkeeping, and other options. FreshBooks Payments lets your customers pay directly through invoices and automatically records each payment in your account. It can accept payment via debit accounting and the theory of the firm cards, credit cards, bank transfers, Stripe and PayPal. With FreshBooks, users can embed checkouts in websites, social media and apps. The Advanced Payments feature also allows companies to accept credit card payments in person and over the phone. We also recommend Xero for businesses that prioritize financial reporting tools in their accounting software.
Xero can integrate with PayPal, Shopify, and other known e-commerce options. Both FreshBooks and Xero offer online services and are cloud-based accounting software that can be used on the go. 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. For custom integration, you can use the FreshBooks API and webhooks to sync data with third-party applications.
You can import and organize bank statements without leaving the software and reconcile statement lines with transactions in Xero. Another perk, Xero is one of the leading alternatives to Quickbooks. If you’re looking to switch products, they can migrate your accounting data in as little as three hours. As a business, we need to generate revenue to sustain our content. We have financial relationships with some companies we cover, earning commissions when readers purchase from our partners or share information about their needs. These relationships do not dictate our advice and recommendations.
- Intuitive, customizable invoicing capabilities compete with those of more robust accounting solutions.
- Across the board, we found Xero’s built-in integrations ― and roughly 100 additional integrations ― to be approachable and powerful.
- 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.
- However, when it comes to using all the tools available to you as a small business owner, your accountant should definitely be part of your toolbox.
Early is priced at $12 per month, Growing is priced at $34 per month, and Established is priced at $65 per month. Additionally, Xero also has an online knowledge base full of videos, webinars, and self-paced e-learning courses that help accountants succeed on the job and earn qualified CPE hours. As a company, FreshBooks is a little older — founded in 2003 — but doesn’t necessarily own a bigger share of the managing customer relationships market. FreshBooks claims 5 million users, which probably divides down to a similar size customer base as Xero. TechnologyAdvice is able to offer our services for free because some vendors may pay us for web traffic or other sales opportunities.
Projects
Xero also has a centralized BI analytics dashboard where users can check cash flow and financial health, and track metrics. For a fee, users who want to leverage more advanced BI analytics tools can upgrade from Xero Analytics to Analytics Plus. FreshBooks takes on business intelligence analytics and reports with a friendly user interface and minimalistic simplicity. In contrast, Xero offers more in-depth BI analytics tech, but these add-ons often come with a cost.
What is the difference between FreshBooks and Xero?
You can also browse the Xero App Store to connect to over 1,000 third-party apps. These are separated by function and industry to make it easier to search. Popular categories include payroll, inventory, time tracking, payments and CRM. On the surface, Xero seems to cover a wider spectrum of accounting features, which gives it a slight advantage over FreshBooks in terms of utility.
FreshBooks vs Xero online versions
Xero offers BI, reports and visualizations via different hubs, dashboards and features. They can also track projects, manage contacts, use the Xero Hubdoc and file storage hub, or through reporting, inventory, sales and other features. Xero offers basic accounting features and advanced tools for bookkeepers and accountants. To remain competitive and keep up with the latest technology, FreshBooks and Xero offer a wide range of features, resources and tools — some more advanced than others. In this section, we look at the main features businesses should evaluate before deciding which accounting software is a better fit.
Inventory management
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. If you’re not a fan of manual entry, Clients, Expenses, and Items can be imported by you with the steps below. For Taxes, you can email our excellent customer support the details below and we’ll take care of it for you. Xero has some of the worst customer service we have ever experienced, particularly for a company of their size. Combine this with terrible user experience in some parts of the app, unintuitive subscription models, and bad resources online, and it takes about 20x longer than it should to get anything done.
The safety of your private data is our top priority, that’s why it’s protected by 256-bit SSL encryption—the gold standard learn more about estimated tax form 1040 es 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. Xero comes with built-in payroll capabilities, allowing users to handle payroll tasks directly without needing to rely on a third-party solution. FreshBooks doesn’t offer built-in payroll features and requires integration with Gusto for payroll services, which may involve additional costs.
