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 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 is a more popular name in this industry, and it’s the better choice if you deal with inventory.
- However, once you get the navigational flow, it’s a matter of remembering where to find specific accounting information based on the menu categories.
- Xero also offers two stand-alone apps — Xero Expenses and Xero Projects — for users on its Established plan.
- Xero is a cloud-based accounting software platform available to small and medium-sized businesses in over 180 countries.
- FreshBooks and Xero allow assisted bookkeeping services to help small businesses in keeping the books organized.
Hazel Raoult is a freelance marketing writer and works with PRmention. She has 6+ years of experience in writing about business, entrepreneurship, marketing and all things SaaS. Hazel loves to split her time between writing, editing, and hanging out with her family. 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.
Does FreshBooks offer a mobile app?
And FreshBooks is a unique accounting software program in that it allows you to bring your software along with you while serving billable clients. It’s expected that accountants have recommendations when choosing your cloud accounting tool. Accountants feel comfortable with Xero because it’s built for them.
You can jump from one tier to another whenever your business is ready, not when you hit an arbitrary user cap. Plus, with prices starting at $15 per month, Xero is affordable. The quality you get for the amount you spend is the essence of bang for your buck. Like most accounting programs, FreshBooks‘ expense tracking automatically syncs expenses to your FreshBooks account and helps categorize expenses by tax category. Xero is a strange outlier in that it doesn’t include basic expense tracking with every plan—instead, expense tracking only comes with Xero’s priciest plan, which starts at $62 a month. Plus, while Xero has thorough invoicing and receipt scanning capabilities, it doesn’t include business expense tracking with any plan except the most expensive.
Xero vs Freshbooks – Which Cloud Accounting Solution is Better?
Some also praised its fixed assets manager and project accounting capabilities. However, its inability to reconcile transactions without bank feeds and its lack of live phone and chat support what small business owners need to know about sales tax are its biggest drawbacks. If you want super user-friendly software that accountants and bookkeepers use daily all over the world, QuickBooks Online is definitely a solid choice.
You can group bank transactions into bulk to reconcile them all at once. In this article, we compare FreshBooks vs Xero head-to-head, presenting their pricing differences and pros & cons so you can better decide which one is right for your business. Check out our full review of Gusto HR software to determine if the partnership with Xero is worthwhile for your business.
Best Accounting and Bookkeeping Apps for Small Businesses
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. Xero also offers some excellent optional add-ons at good value. Those interested in a full trial can get access to a 30-day free option. Has robust reporting tools and report customization options, basic inventory tracking in all plans and a capable mobile app; Early plan limits the number of invoices and bills.
- FreshBooks beats Xero decisively when it comes to invoicing capabilities.
- Now that you have a clear idea of what features both tools offer and their pricing structure, let’s take a look at the pros and cons of each.
- A small company may find that FreshBooks offers more than they will ever need and is straightforward, accessible and provides a wide range of automations and reports.
- A cost-effective yet powerful cloud-based accounting tool is a must-have for any small to medium-sized business today.
- Choose Xero over FreshBooks if you want to organize and expedite your vendor payments.
Worse, FreshBooks doesn’t include free accountant access with its cheapest plan. Because FreshBooks cloud accounting charges you an additional $10 per person per month. Xero’s number of third-party integrations puts it far ahead of FreshBooks and other accounting software applications. While there is some overlap in third-party integrations, both FreshBooks and Xero include some syncing options that the other doesn’t. Make a list of the business productivity apps that you use most often and check for compatibility on the Xero and FreshBooks app stores.
Xero has more (and better) accounting features for established businesses
Compared to FreshBooks, Xero is a more powerful accounting software tool that will likely be better for most businesses. It offers more features for a very similar price as FreshBooks, and many bookkeepers and accountants are trained in using Xero. FreshBooks customers that we spoke to emphasized that FreshBooks is simple with limited functionality. It lacks inventory management features, which will limit the types of businesses that will find significant value in the platform. Overall, FreshBooks is a solid starting option for those who need to get up and running with accounting software in just a few minutes. Meanwhile, users who left Xero reviews said that the software is easy to set up and use, adding that it has a simple and clean user interface along with intuitive features.
Best third-party app integrations: Xero
On the other hand, A/P management is one of the strongest points of Xero. It showcases basic and advanced features like recording vendor credits and independent contractor billings. As a complete accounting software, we’re not surprised to see these features on Xero because they covered everything from vendor creation to billings management. 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. We recommend FreshBooks for all business customers that prioritize invoicing tools. Of all the accounting software platforms we reviewed, FreshBooks’ invoicing functionality impressed us the most.
It creates this feel through bright colors, creative design, a straightforward layout, clear navigation, fun fonts, and a super casual tone. I never thought I’d hear the phrase „invoicing like a boss,“ yet here we are. Kristy Snyder is a professional writer and editor living in Pittsburgh with over 10 years of content creation experience. In addition to being a Content Editor for Clever Real Estate, she has contributed to numerous leading financial and tech websites, including Bankrate, The Simple Dollar, NextAdvisor, and more. Our simple yet robust interface has a very short learning curve, so you and your team can hit the ground running. Plus, with automations that reduce your workload, you’ll be saving time in no time.