FreshBooks is an accounting software program geared toward small businesses and independent contractors. In addition to standard double-entry accounting and report functions, FreshBooks specializes in generating invoices. The ability to get paid on the go by converting an estimate and/or billable hours into an invoice makes FreshBooks a particularly appealing option for service-based businesses. We recommend Xero for businesses looking to streamline their vendor payments, especially when you deal with many vendors. 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 and Xero pricing
FreshBooks offers almost the exact same integration features as Xero including the accrual principle applied to bank accounting on jstor offering developers APIs and integrating with Zapier for more add-on access. Where it falls behind is its original integration options as it grants about 100 integration to third-party apps. You might check all the necessary features, including if the software is cloud-based or not. If the customer support is strong or not, and other essential factors. Still, if the pricing is unsuitable, it could be a barrier to getting on a plan. And remember, Xero and Freshbooks aren’t the only cloud-based accounting solutions.
However, time tracking and invoicing lean in favor of FreshBooks, which offers unlimited use compared to Xero’s restrictions. Both made our list of the top invoicing software, however, so you really can’t go wrong with either. Bank transactions can easily go awry if not properly monitored, and more accounting software services are beginning to provide bank reconciliation options within their accounting tools. FreshBooks has its time tracking feature, considered one of the best in its class of accounting software. Suppose you have any questions with regard to cash flow, bookkeeping, expense tracking, and other accounting features provided by Xero. In that case, they have resources like articles, guides, walk-through videos, and guides all available for you either as a visitor or as a user.
Xero vs FreshBooks pricing
Xero is also gearing up to launch Just Ask Xero (JAX), a generative AI assistant designed to help businesses complete accounting tasks like creating invoices or paying bills. While details on pricing and a hard launch date are still under wraps, JAX promises to reduce admin time by giving users a more intuitive, hands-free way to manage their finances. In addition to its more robust reports, Xero proves itself to be the better fit for established and growing organizations with its bank reconciliation feature. Xero’s interface feels a bit more clean-cut and professional, which is more what I’d expect financing activities cash flow from accounting software.
Bill Pay Features
FreshBooks is better geared toward freelancers and very small businesses that need to send a lot of invoices to clients. Though they have different functionalities, both made our list of the best accounting software. FreshBooks doesn’t offer quite as many connections, with just 100 partner apps. However, you’ll be able to find integrations to help you analyze data, book appointments, manage projects, run payroll and so much more. When it comes to small business accounting, creating invoices is one of the key accounting features that endear small business owners to an accounting provider amongst other providers.
- Many business owners like to use the free versions of apps, especially when they are just starting out.
- FreshBooks and Xero are excellent accounting software options whose features and focuses may make one or the other better for specific businesses.
- However, you may be able to use the AI chatbot and robust support center to get answers to your questions.
- The bank reconciliation predictions help make those tedious end-of-month tasks a little easier by using past transaction data to suggest matches for your bank statements.
- When it comes to AI, Xero has a few tricks up its sleeve that FreshBooks currently lacks.
Now let’s look at the features and functionality of both accounting services to determine which fits you best. The accounting software that fits your business could be the difference in a better CRM direction for your business. Importantly, FreshBooks allows you to send unlimited invoices to five clients on its entry-level plan, while Xero caps you at 20 monthly invoices. Xero offers three paid plans based on the various stages of a business’s growth. The right accounting software can greatly simplify a small business’s finances. You can easily test out expense tracking, team expense claims, and expense importing during your 30-day free trial.
We encourage you to research and compare multiple accounting software products before choosing one. Can support freelancers, contractors and small businesses with a handful of employees; highest-tier plan includes two users (additional users can be added for a fee). 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 beats Xero decisively when it comes to invoicing capabilities. The FreshBooks design suite allows for more customization and is easier to use compared to Xero. Xero also lacks the seamless integration with what is the difference between operating and non time tracking that FreshBooks offers.