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Xero vs Freshbooks Which Cloud Accounting Solution is Better?

freshbooks vs xero

You have the option to either manually import data yourself or get a helping hand from your accountant. 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 still syncs with more than a hundred other business apps, including crucial third-party apps like Gusto. 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.

  • You don’t need an accountant to use FreshBooks, but you can still give them access and collaborate with them, if that’s what you prefer.
  • Xero offers built-in integrations for superior connections, including Shopify, Hubdoc, Stripe and HubSpot.
  • This kept our costs comparatively low as we tested the platform at different team sizes.
  • Two popular small business accounting software programs are FreshBooks and Xero.

Xero provides up-to-date accounting reports that enable you to track your finances and collaborate with your advisor in real-time. You can tailor the content and layout of your reports and reuse customized report layouts. Xero enables you to stay on top of bills and gives you a clear overview of your business cash flow and accounts payable. FreshBooks provides you with an intuitive and insightful dashboard where you can conveniently access important reports like Profit & Loss, sales tax summary, expenses, and more.

Company’s Address

And you can always give your accountant immediate access to FreshBooks to get support during tax season and key financial decisions. Xero is a cloud-based accounting software platform available to small and medium-sized businesses in over 180 countries. The company provides features and tools for businesses, accountants and bookkeepers to pay bills, claim expenses, make bank connections and more.

freshbooks vs xero

You can quickly mark your business expenses as billable, add a markup, and then automatically pull them onto an invoice for your client. You can also snap and store pictures of receipts in the FreshBooks mobile app (touched upon later). Xero is a more popular name in this industry, and it’s the better choice if you deal with inventory. It has a more comprehensive set of features than FreshBooks, including financial reporting and analysis. Choose Xero if your specific accounting needs aren’t present in FreshBooks, such as more advanced A/P features. In addition to user interface (UI) and navigation, we also consider the available customer support options, including live chat and email and phone support.

Compare FreshBooks vs Xero

Mobile apps are evaluated based on their ability to perform certain tasks like invoicing, online payment processing, and expense receipt capture. You can call its customer service hotlines, ask them to call you, or contact them via email. There’s also self-help information for frequently asked questions (FAQs) about FreshBooks features and how-tos. Xero offers certification programs for bookkeepers and certified public accountants (CPAs).

Reviewers were extremely likely to recommend Xero’s software, and praised their platform for it’s performance, availability and product scalability. Unhappy reviews were hard to locate, and the lowest score we were able to find for this company was 5 out of 10. But even these reviews were quick to state that the pros definitely outweighed the cons. But that really depends on your needs and which package you choose. They offer their starter package for $9/mo which is less than you would pay for Freshbooks’ introductory package. Both companies are clearly committed to providing some of the best accounting services available.

freshbooks vs xero

For instance, since Xero only includes project tracking with its most expensive plan, it’s a better pick for product-based freelancers and businesses than for service-based business owners. It also lacks multicurrency support for all but its most expensive plan. So if you’re selling products outside of the United States, FreshBooks or Zoho (which do have multicurrency support) will make your life a little easier. Both FreshBooks and Xero have a hearty number of apps you can integrate for further functionality. Xero offers built-in integrations for superior connections, including Shopify, Hubdoc, Stripe and HubSpot. You can also browse the Xero App Store to connect to over 1,000 third-party apps.

Xero vs. FreshBooks Match-up

The Advanced Payments add-on for storing your clients’ payment details and automating recurring payments costs $20 monthly. Each transaction you make through this add-on will cost you 3.5 percent plus 30 cents every time a client makes a payment. We recommend Xero for businesses looking to streamline their vendor payments, especially when you deal with many vendors. We have yet to encounter bill-pay tools as user-friendly and broad as Xero’s in any other accounting software platform we reviewed. We like how easy Xero makes it to batch-schedule advance payments to one or many vendors, removing late payment fees from your expenses.

  • FreshBooks, on the other hand, has one of the fastest and easiest invoicing processes across accounting tools.
  • Its features combine project management and accounting with helping professionals self-manage their business.
  • 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.
  • We took the liberty to drop our well-researched opinions on both software via this table.
  • FreshBooks offers a user-friendly interface and a fresh approach to accounting that keeps users learning in an engaging fashion how to work around the various features within the app.
  • Includes tools that help automate the reconciliation process, along with a global search function; has a simple layout and a customizable dashboard.

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.

Accounts Payable

You can lightly customize each invoice to include your company logo, assign issue dates and the frequency of billing, and add all items to the invoice. When we created and sent invoices to clients, we found that they were delivered instantly. FreshBooks enables you to connect your self-employed bank account to the tool so it will be updated with your most recent spending and thus, your business is always automatically up-to-date. You don’t have to manually track your expenses on spreadsheets. A cost-effective yet powerful cloud-based accounting tool is a must-have for any small to medium-sized business today.

Best expense tracking: FreshBooks

However, we’ve chosen Xero as our winner since Xero’s Gusto payroll integration doesn’t incur additional fees. Xero integrates with Stripe, HubSpot CRM, Mailchimp and Spotify. Additionally, as with FreshBooks, Xero includes a Gusto integration ― however, this integration doesn’t incur extra fees. Across the board, we found Xero’s built-in integrations ― and roughly 100 additional integrations ― to be approachable and powerful. Of course, even though Xero is more comprehensive than similar accounting products, you should make sure it has the right features for you before committing to a plan. Hubdoc is included with all Xero plans, allowing you to capture, extract and store data from documents scanned using your smartphone.

Its users need to integrate these services using Bench Accounting. Under the bills dashboard 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. These ratings are meant to provide clarity in the decision-making how do i compute the delaware franchise tax process, but what’s best for your business will depend on its size, growth trajectory and which features you need most. We encourage you to research and compare multiple accounting software products before choosing one. Both FreshBooks and Xero allow you to track business performance using your dashboard, and generate and download financial reports.

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