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FreshBooks vs Xero: 2023 Accounting Software Comparison

Popular categories include payroll, inventory, time tracking, payments and CRM. Sage Intacct offers versatile features for businesses with diverse needs. For mid-sized nonprofits with finance teams, Sage Intacct’s comprehensive accounting program streamlines fund accounting, activity-based budgeting, and real-time data access. Venture capitalists also find it handy because it can quickly put together data from many different companies, especially if they work with different currencies and subsidiaries. Xero is one of the most popular and well-known accounting software platforms you can find.

  • After the 4-month promotional period, you will be billed at full price for the plan you have selected.
  • QuickBooks Online accounting software is a popular choice for small and mid-sized businesses,  but it has drawbacks.
  • Customizing a report within the QuickBooks accounting software.
  • FreshBooks reserves the right to change this offer at any time.
  • This way, it is easier to connect and sync the different business systems that you are using for your operations.

So, if you ever sign-up for a plan for them in the middle of the year, you do not have to worry about the data from the first half of the year. For this category, we rank Xero first due to its free 24/7 online customer support across all its plans. QuickBooks’ support is available Monday through Friday, 6 a.m. QuickBooks’ customers with issues may have to wait for business hours to get a resolution. If your company is small and scaling and your accounting team does not require advanced features, FreshBooks is an attractive option.

When you might choose Xero instead

We encourage you to research and compare multiple accounting software products before choosing one. QuickBooks Online is an industry standard for small-business accounting and delivers on its robust feature set, ease of sharing with accountants and range of integrations. On the downside, it can be expensive compared to other options like FreshBooks and Xero. All Xero plans come with accountant access, but FreshBooks’ least expensive option does not.

But if you use an outside accountant, this option may be useless. Another difference is the ease of set-up, or the lack thereof. FreshBooks set-up is simple and the interface is very beginner user-friendly. should i claim my adult child with a disability as a dependent But QuickBooks requires a lot of calibration to get it to where it needs to be. And there are some glaring differences between FreshBooks and QuickBooks that may be deal-breakers for either one.

FreshBooks does not offer built-in payroll tools, while Xero is known for its simple and effective payroll features. Customers that use FreshBooks and want to run payrolls can integrate the PEO solution Gusto – an easy-to-use payroll solution designed for small businesses. Under the bills dashboard https://capitalprof.space/ in Xero, customers can store bills in one place and see an overview of unpaid bills, expenses and purchase orders. They can also schedule payments and view bills that are in draft, waiting for approval or ready to be paid. The features included with FreshBooks are dependent on the plan.

FreshBooks vs. Xero: Which accounting software is best?

Includes tools that help automate the reconciliation process, along with a global search function; has a simple layout and a customizable dashboard. Xero, on the other hand, will grow with your business and is robust enough to handle even a large company’s finances. The disadvantage is that it is more difficult to install and set up. So unless you are more technically inclined than the typical start-up owner, you will probably want to hire an outside technology person to handle the initial set-up. However, there’s a 30-day free trial period to test out FreshBooks, thereafter, a plan has to be purchased. Then, we award each piece of software a rating out of five for each of these categories to understand how they compare against each other.

FreshBooks vs. Xero: At a Glance

But the two apps are geared toward different audiences, which explains their functional differences. Just keep in mind that unlike the inventory feature in QuickBooks Online’s higher-tier plans, Xero doesn’t let users set up reorder points that flag when stock is running low. For example, when you purchase the Pro Plus Desktop plan, you can have up to three concurrent users but each of those users must pay for their own account (at $349.99 each per year).

You can customize these reports slightly to show data for a specific period, as well as download these reports as PDF or Excel files. If you didn’t receive an email don’t forgot to check your spam folder, otherwise contact support. While both products can get the job done, each has its own technology concept, strengths and weaknesses. As previously mentioned, FreshBooks treats bills as if they were an expense. Furthermore, app developers can choose to use the platform’s API functionality to integrate it with third-party applications such as Shopify and PayPal. This way, it is easier to connect and sync the different business systems that you are using for your operations.

It also integrates with a number of other software programs, making it an excellent choice for businesses that need to track their finances in multiple ways. Intuit QuickBooks is a popular accounting software program that has been around for years. It’s beloved by many small business owners for its comprehensive features and its ability to integrate with pretty much anything out there. FreshBooks, on the other hand, hasn’t traditionally been as popular because it focuses on the much smaller end of the business market.

Popular FreshBooks Alternatives

At some point, every business will have to review how it’s performing. Analyzing inventory will tell you what’s moving and what’s sitting on the shelves. Customer reports could reveal that it’s time to cut ties with a delinquent customer. Reports consolidate and condense the data of invoices, bills and other transactions to enable business owners to run their business better. This ensures that businesses are matched with accountants that suit their specific needs. FreshBooks integrates with a number of payment processors so that you can choose the payment method that works best for you and your business.

What customers are saying about FreshBooks

When calling the hotline…It takes a long time, and when a human finally answers, they don’t have the decision-making autonomy to help. Collaborative accounting means no more back and forth with your accountant. Give them access, and they can see your info right in the FreshBooks platform, keeping you ready https://capitalprof.team/ for tax time. The limitations of accounting software include inaccuracies due to incorrect information being input or put into the wrong category, the risk of data loss and the fraud risk. Accounting software can also prevent costly bookkeeping mistakes and can also work in tandem with payroll software.

QuickBooks Review

Software that operates in the same category and industry is often very similar. However, in the case of FreshBooks and Xero, this is not necessarily the case. While both platforms cover essential accounting operations and offer modern features like reporting and BI analysis, each caters for different business needs. 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. That said, Xero makes up for its user-friendliness shortcomings through tutorial videos and a demo company feature.

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