Xero vs FreshBooks for January 2024 Accounting Software Programs
Customer support is essential for the user experience of business owners and freelancers alike. Both Xero and FreshBooks have various customer support options; let’s look at both options. Sending online invoices is one of the easiest ways a business can automate repetitive tasks and look professional in front of clients.
Both FreshBooks and Xero are cloud-based accounting software that operate under the software-as-a-service (SaaS) model. FreshBooks provides a software environment that blends accounting and project management, making it ideal for self-managed businesses and freelancers. On the contrary, Xero has more accounting features, making it an excellent choice for growing businesses, especially product-based companies.
FreshBooks vs Xero: Integrations
Xero is an accounting powerhouse that can handle anything from freelancers to big-shot enterprises. With features like invoicing, payroll, and inventory management, it’s got all the bells and whistles. Meanwhile, FreshBooks is perfect for freelancers and small businesses that want simplicity without sacrificing functionality. It excels at invoicing, expense tracking, and time management. Xero offers more than 80 reports, including standard financial reports, and lets you add tracking categories to monitor performance in different areas of your business. In comparison, FreshBooks offers fairly basic reporting tools.
If you’re a small business owner looking for more automation and insights, this may be the right plan for you. For $25/month, you can bill up to 50 clients, set up recurring billing and client retainers, run business health reports, and send unlimited proposals (in addition to the Lite features). The FreshBooks mobile app allows you to create and send invoices, snap pictures of receipts, chat with clients, get important updates, and manage expenses on the go. Xero is also an excellent fit if you want accounting software that suits your business at all growth stages. You get unlimited users no matter which Xero tier you opt into, and your subscription price won’t vary based on user numbers. You can jump from one tier to another whenever your business is ready, not when you hit an arbitrary user cap.
- Call us and a friendly agent with accounting knowledge picks up.
- The FreshBooks design suite allows for more customization and is easier to use compared to Xero.
- You can prepare budgets and can send customized quotes while choosing the level of details to show customers.
- If you need both strong inventory accounting and a mobile app, we recommend QuickBooks Online.
- FreshBooks currently offers four paid plans based on a business’s number of clients.
All plans offer unlimited time tracking and allow you to bill clients for the time you track. Compared side by side, Xero is clearly the winner when it comes to features. FreshBooks includes unlimited time and mileage tracking with all plans. You can automatically track time using the mobile app, a browser extension or third-party apps like Trello and Asana. In addition, you can bill for tracked hours, track and manage time for a specific project and allow your employees to track their time (if you’re using the team members add-on).
FreshBooks vs Xero: Features
It showcases various third-party apps that seamlessly integrate with Xero’s environment. Web pages aren’t cluttered, and Xero uses a lot of negative white space so that the web page window can adjust when opening two web browsers during multitasking. It utilizes the tabular format in most of its modules, making it easy for users to pick up important information without clicking further. Another minor drawback with Xero would be the inability to enter the ending balance of the checking account in the bank statement.
Customer support
Accountants feel comfortable with Xero because it’s built for them. Business owners, on the other hand, might not have the in-depth accounting knowledge needed to make Xero work for them. When choosing software vendors you need to prioritize the one that fits your business needs. With Xero, all plans include a bank reconciliation tool that suggests transaction matches for you, making it easy to reconcile bank accounts. If a bank statement line meets the set of criteria you specified, Xero will suggest creating a matching transaction for you.
FreshBooks vs. Xero Comparison
FreshBooks is ideal for the freelancer or solopreneur just coming to terms with budgeting, amongst other financial knowledge needed to run a small profitable business. With Zapier, you can create automated workflows that connect Xero and FreshBooks, allowing you to transfer data seamlessly between the two platforms. The integration between what is a t account Xero and FreshBooks can be set up through a third-party integration service called Zapier. You can only use Xero online when working on your laptop or desktop. Navigating from feature to feature is not difficult, but it has a small tick of having multiple access points to one feature, which can make the process feel repetitive.
Company Incorporation Services
We also recommend FreshBooks for freelancers and very small teams. These user bases must carefully monitor expenses and FreshBooks provides high-quality tools at low prices. Plus, freelancers and very small service-based businesses live and die by invoices ― FreshBooks’ bread and butter. Many businesses are involved in the sales of products, so it’s essential that the best accounting software has a dedicated inventory management system.
Xero vs. FreshBooks: Key basic plan features
These features are either not as robust with FreshBooks or are only accessible by upgrading to a more expensive plan. You don’t have time to spend figuring out how to use complicated accounting software. With FreshBooks, you’ll confidently create invoices, input expenses, and do your bookkeeping in half the time. And with the best customer support in the industry, it’s easy to see why Xero customers switched to FreshBooks.