freshbooks vs xero

FreshBooks and Xero offer various plans with different features and inclusions. FreshBooks offers 60% off for the first six months and an additional 10% off if you take the annual billing option if you buy immediately. Otherwise, you can try FreshBooks for free for 30 days and choose a plan at regular prices. Additionally, clients can acquire add-ons, such as Advanced Payments for $20 per month or Gusto Payroll. Xero, on the other hand, is best for small businesses that want to take the step up from tracking expenses in Excel.

freshbooks vs xero

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. Xero is an accounting software best suited to small businesses looking for high-level accounting systems. FreshBooks is better geared toward freelancers and very small businesses that need to send a lot of invoices to clients.

How FreshBooks and Xero Stack Up

The second and third are Xero Projects and Xero Expenses, both used for more fieldwork. The interface though neat is something more easily understood by accountants and people with prior accounting knowledge. Now let’s look at the features and functionality of both accounting https://www.bookkeeping-reviews.com/ services to determine which fits you best. Xero offers Xero Central, allowing users to contact the Xero support team that is available for trial users. Then there is the live chat option available for paid users; unfortunately, this does not extend to live calls.

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. While FreshBooks requires you to upgrade to its Plus plan to access this feature, even the most basic Xero plan offers bank reconciliation, including its new AI-powered predictions feature. FreshBooks and Xero are both powerful accounting tools that can help businesses keep their financial information and assets organized and accessible. But the two apps are geared toward different audiences, which explains their functional differences.

  1. Xero limits users to 20 invoices per month on its basic plan while its other two plans offer unlimited invoicing access.
  2. FreshBooks Payments lets your customers pay directly through invoices and automatically records each payment in your account.
  3. Read our QuickBooks review to learn why this platform is our pick for the best small business accounting software.

Like FreshBooks, Xero comes with built-in, albeit basic project management capabilities so you can keep track of time, costs, and project profitability within the same tool. You can prepare budgets and can send https://www.quick-bookkeeping.net/ customized quotes while choosing the level of details to show customers. A basic feature that you’d expect, Xero gets it right as creating custom branded invoices is super straightforward with this tool.

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freshbooks vs xero

You have the option to either manually import data yourself or get a helping hand from your accountant. 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. They are Lite at $15  https://www.online-accounting.net/ 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. We took the liberty to drop our well-researched opinions on both software via this table.

The ability to connect Xero to your bank account means you won’t have to move back and forth between two systems, entering and re-entering financial data. 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. If you are a small digital business owner like me, I’m willing to bet you are not super excited about shopping for accounting software.

FreshBooks Review: Features, Pricing & Alternatives

And FreshBooks is a unique accounting software program in that it allows you to bring your software along with you while serving billable clients. 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. And remember, Xero and Freshbooks aren’t the only cloud-based accounting solutions. To see a list of options sorted by deployment, industry, and features, check out our accounting software selection tool. If you’re managing project-based work, you can also draw up estimates and easily convert them to invoices when the project is completed. FreshBooks offers native mobile apps for iOS and Android devices and is compatible with almost any currency.

You know who picks up and never transfers you when you call FreshBooks? FreshBooks has the best rating for customer support among all competitors at 91%. FreshBooks makes it easy to transfer all of your financial data over from another platform so you can get up and running. Hazel Raoult is a freelance marketing writer and works with PRmention.

Though they have different functionalities, both made our list of the best accounting software. 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. 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.

However, it is worth remembering that Xero’s plan prices are higher than FreshBooks’, and that its more advanced features come at a cost. FreshBooks’ small business reporting tools allow users to know exactly how their business is performing. Using straightforward dashboards and reports, companies benefit from accurate and valuable information. From centralized dashboards to reports like profit and loss, paid taxes and more, FreshBooks offers several reporting tools.

See how Xero helps make it easy for small businesses to stay on top of their finances, so they can focus on doing what they love. FreshBooks, on the other hand, has the restriction of business size. If your business is already experiencing a growth spurt, FreshBooks might not be able to meet the customization demands that alternatives like QuickBooks online can. FreshBooks also has help resources such as its ‘How to guides,’ an faq section, on-demand webinars, and a mobile help guide. Phone support is available Monday-Friday from 8 am to 8 pm Eastern time. TurboTax is owned by Intuit, the company that created QuickBooks—which means the software syncs with QuickBooks, but not with Xero, FreshBooks, or most other players in the game.

Xero reports are comparative, especially for the basic financial statements. Meanwhile, Xero’s banking and cash management system allows but doesn’t require a bank feed connection. You can set up different cash accounts, reconcile book and bank statements, and print checks. We compare FreshBooks and Xero across 11 key areas that we want to see in an accounting software program.

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