FreshBooks vs Xero: Choosing accounting software 2024
Instead of your server “living” in the back room of your business, it “lives” on a cloud like in the picture above. Before the advent of cloud technology, if you wanted to access your accounting data it involved traveling to your business to log in to view your financial records. Using the cloud, you can access this same accounting information in your pajamas on a Friday night at 11 p.m. Today’s leading accounting platforms offer standard security features like data encryption, secure credential tokenization and more. While human error will always play some role in security breaches, you can be confident in your accounting platform when it comes to keeping your information safe. Given that there are several invoicing software on the market, it’s worth putting in some time to research your options before choosing one for your business.
What is the difference between FreshBooks and QuickBooks?
One thing about Xero – when you have a question their first response is to tell you to have your accountant look at it. I was using this software as a replacement for an accountant, in order to save money, so that advice didn’t help much. Ya know who always picks up and never transfers you when you call FreshBooks? At 91%, FreshBooks has the best rating for customer support among all competitors. Xero doesn’t offer the opportunity to call a representative directly for assistance. You can reach support by raising a case (similar to filing an IT ticket) on the Xero website.
FreshBooks Pricing and Plans
When comparing the reports generated by FreshBooks vs. Xero, I found Xero’s to consistently provide more detail and offer more flexibility with data presentation than FreshBooks’. Coming from someone who’s not a numbers person, anyone who does accounting is a brave and admirable soul, and I’m glad that there are excellent tools out there to make your job easier. Saved payment information can always be removed if you want to opt-out of Recurring Payments at any time.
Xero Pricing
QuickBooks Online includes all the components of the desktop version, plus additional features such as more app integrations, a fully functional mobile app and more attractive pricing. The Online plans start at $30 per month, whereas the Desktop plans must be paid annually and start at $492 per year. FreshBooks is an easy-to-use accounting and invoice cloud platform popular among small businesses with clients in over 160 countries. The software enables the accounting of enterprises and self-employed with a wide array of features including tax tools, visibility and reports.
- FreshBooks is known for its intuitive interface that’s easy to navigate.
- 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.
- 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.
- FreshBooks starts at $15 per month for the Lite plan, while Xero’s plans begin at $13 per month.
- In this article, I’ll compare Xero and FreshBooks, two of the most popular entry-level accounting software platforms for digital businesses today.
- The software makes it easy to stay organized, keep track of payments owed and expenses made, send invoices and accept payments.
FreshBooks is a freelancer’s dream accounting software, as it comes with unlimited invoicing, estimates and time tracking. You can even set up recurring invoices each month, late payment reminders and scheduled late fees for overdue invoices. how to understand the basics of annuities For tracking your expenses, FreshBooks’ base plan comes with mobile receipt scanning and bill line item capture. For more advanced features, such as accounts payable and accountant access, you’ll need to upgrade to a higher plan.
Honestly, FreshBooks’ list of integrations is pretty impressive. Its integrations only pale in comparison to Xero’s because, well, everyone’s app integrations pale in comparison to Xero. No, it isn’t possible to reconcile bank statements manually in FreshBooks because it doesn’t allow you to upload files of transactions unless you connect your bank account. In evaluating pricing, we considered the billing cycle (monthly or annual) and the number of users.
Plus, while Xero has thorough invoicing and receipt scanning capabilities, it doesn’t include business expense tracking with any plan except the most expensive. In our opinion, that’s a fairly glaring oversight—expense tracking is an incredibly common accounting feature that almost all of Xero’s key competitors include in their base plans. Because FreshBooks cloud accounting charges you an additional $10 per person per month. Eric is an accounting and bookkeeping expert for Fit Small Business. He has a CPA license in the Philippines and a BS in Accountancy graduate at Silliman University. The banking section of this case study focuses on cash management, bank reconciliation, and bank feed connections.
You can sort and group bank transactions, then code groups in bulk. You’re also equipped to make fast and informed budget forecasts based on current figures with powerful built-in analytics. Having this functionality can really change how you run your business financially. Similar to FreshBooks, you can take a photo of receipts and track mileage on the go on the mobile app.
FreshBooks is a cloud accounting solution that uses industry-leading secure servers. You can import expenses from our expense tracker by uploading a CSV file as well as having FreshBooks automatically track them by connecting your bank accounts or credit cards. 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).
Xero’s accounting software is highly rated among small businesses. Read our 2024 Xero review to find out if financial ratios definition categories key solvency ratios it’s the right solution for your business. The FreshBooks dashboard is the starting point for the platform.
FreshBooks also has help resources such as its ‘How to guides,’ an faq section, on-demand webinars, and a mobile help guide. Its intuitive design also helps users catch on to using it well. Phone support is available Monday-Friday from 8 am to 8 pm Eastern time.
Both feature mobile apps and sync with a variety of third-party business applications. There are also some crucial differences, but the best choice depends on your business’s individual needs. Predictable costs what are payroll expenses without the need for add-ons or additional app integrations and transparent pricing that fits your budget. All our plans are equipped with invoicing, expense, and project management features at no extra cost.
