However, some of FreshBooks’ reports seem to lack expanded functionality. For example, the balance sheet of FreshBooks only shows the parent accounts and omits important details like subaccounts. Meanwhile, Xero’s banking and cash management system allows but doesn’t require a bank feed connection. You can set up different cash accounts, reconcile book and bank statements, and print checks.
- FreshBooks offers many more discounts than Xero, and it wins here in terms of pricing since it offers significantly affordable pricing plans compared with Xero.
- Freshbooks pricing is also excellent for a startup or small business, freelancer, and a self-employed individual.
- At $50 a month, this FreshBooks plan gives you everything you need to grow your business.
- If you’re running a small business with simple finances, you might be able to handle it all on your own with Xero.
Xero is a better platform if you do not have clients and run a physical business like a restaurant or farm. You may be tempted to go with the first financial software you come across. And as a freelancer, you may work closely with your clients to collaborate on projects. You can customize these reports to show data for a specific period. As far as ease of use is concerned, Xero wants to convert QuickBooks users to their platform.
Freshbooks vs. Quickbooks vs. Xero: Comparison
The total price for a Yearly plan is billed at the time of purchase. It includes both the monthly discount outlined above, as well as an additional 10% discount for selecting a yearly plan. This doesn’t mean QuickBooks Online is the right choice for all businesses, though. Xero’s unlimited-users feature makes it a winner among larger businesses and well-established small businesses that require more than five users. It’s also less expensive than QuickBooks Online and a bit easier to use, thanks to its customizable dashboard and simple layout.
For FreshBooks users who don’t have a large book of business, this could be a non-issue, but for small business owners who must invoice a large number of clients, QuickBooks is the better solution. Bookkeeping and accounting can be a hassle for any small business. Not only can it be difficult to keep track of all your income and expenses, but it can be even more of a challenge to keep your books in order. That’s why many small business owners turn to accounting software to help them out.
Best Free Accounting Software for Small Businesses
There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. The drawback to Freshbooks’ simplicity, however, is the lack of customization and other features that are included with Quickbooks and Xero. If you are a freelancer or small business owner just getting started in the world of business, most might advise you to choose Freshbooks as it is simple and straightforward to use. Although self-employment tax Freshbooks reporting is not as comprehensive as that of Quickbooks and Xero, the software makes up for it with reports that are much easier to use and interpret. The invoicing feature is straightforward and can very easily be used and understood by someone that has never touched invoicing software before. Freshbooks also has a suite of fantastic tutorials and videos that make the set-up process absolutely seamless, even for someone just starting out in business.
Prominent Clients
I also appreciated that you discussed the options for invoice customization. A company’s invoice is by far the most important client facing document, especially in this growing digital age. Think about how many bills you receive every month either in the mail or by email then ask yourself what do they all have in common? Other than the occasional company logo that was added, they all pretty much look the same. It is important to remember that your invoice is just another bill to someone else, that is unless you make it stand out more! For more advanced and tech savvy users, they even offer the ability to upload your own custom .docx file that can be as unique as your business.
Bonus Feature: Integration With Other Software
So, what happens to the freelancer who simply wants to make professional invoices? Well, you can pay for upgraded plans on Xero to have access to more features even if you don’t have employees. FreshBooks makes it easy to take care of financial details without needing an accountant to see this essential part of the business. FreshBooks also integrates with other software programs, so you can keep all your financial information in one place. And if you have any questions, FreshBooks offers excellent customer support.
You are paired with a dedicated bookkeeping team that prepares accurate financial statements, financial forecasts, and can also pay bills or run payroll for you. Come tax time, everything is organized and ready to go, so you don’t need to worry. If you choose Quickbooks or Xero, we at Unloop can be your partner in running the tools. We have experienced bookkeepers and accountants who are well-versed in various accounting software. Give us a call today, and let us help you with your business’s bookkeeping. Freshbooks pricing is also excellent for a startup or small business, freelancer, and a self-employed individual.
FreshBooks brings some serious pizzazz and excitement to accounting, while Xero takes a more polished, business-like approach. 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. Includes tools that help automate the reconciliation process, along with a global search function; has a simple layout and a customizable dashboard. Another advantage of Xero is that it works easily with multiple currencies. This is perhaps the result of Xero being started by a New Zealand company where they are more used to working internationally than the U.