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You can quickly know how your entire team is spending their time and get a daily, weekly, and monthly breakdown of the work hours, too. 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. The Digital Merchant has the best strategies and tools to grow your digital business. The easiest way to answer that question is to start out with your preferred investment approach. On the other hand, Xero works well with startups that have hit the ground running and possibly have an employee with a good grasp of accounting.

You’ll be able to save time by scheduling upcoming payments and batch pay suppliers with multiple bills in one transaction. Additionally, you can email bills and other essential documents to your files inbox in Xero for paperless record-keeping. FreshBooks’ Double-Entry Accounting tool identifies revenue items and their related expenses, giving you an accurate calculation of profits and losses. It helps you make choices based on actual business data and insights. It provides you a web-based centralized place for file storage and sharing and gives you an overview of the project status. You can chat and assign project deadlines from within the accounting tool.

Speaking of the cloud, both software earned a spot on our best cloud accounting software list. Xero is a powerhouse accounting software, with the ability to create and send purchase orders, quotes, invoices and more with a few clicks. You’ll also get inventory management, accounting reports and cloud file storage, all on the base plan. Plus, Xero integrates with over a thousand apps, meaning you can personalize your inventory, payroll, CRM or time-tracking experience however you’d like.

1. In the dynamic world of business, having real-time insights is crucial.
2. It does have the option to input your inventory as invoicing items, but this is clunky and not as intuitive as Xero’s inventory process.
3. That’s why FreshBooks is built to save you time and effort with an interface that lets you efficiently manage your books and navigate tax time.
4. And yes, we’re talking about more than just a glorified calculator or a digital ledger.

Sometimes even charging for things that were already part of the product and calling it an add on feature. Ya know who always picks up and never transfers you when you call FreshBooks? At 91%, FreshBooks has the best rating for customer support among all competitors. Additionally, Xero also has an online knowledge base full of videos, webinars, and self-paced e-learning courses that help accountants succeed on the job and earn qualified CPE hours. All Xero plans are priced per month and include 24/7 support and free updates. FreshBooks has simple, transparent pricing that fits your budget.

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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. Beyond the credit card billing cycles software itself, Xero and Quickbooks offer a variety of tools and services to help accounting professionals maximize job success. If you’re an independent CPA, this could be a pretty big selling point, so it’s important to know where the two vendors diverge.

Other great options you could try out include QuickBooks online, Zoho Books, and Stripe. 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.

Create Xero invoices for new Stripe payments

QuickBooks also has a more intuitive interface than Xero as well as a desktop version. In the battle of FreshBooks vs. Xero, we don’t think one is the ultimate winner. FreshBooks is the go-to solution for freelancers and solopreneurs who want freedom with managing and billing https://intuit-payroll.org/ their clients. While small businesses can use the software as well, the extra charge per team member could add up quickly. You can enjoy project conversations, file sharing and project due dates, but these features are most helpful for individual or small-team projects.

Both FreshBooks and Xero have 14 out of 16 reports that we expect to see in an accounting software service. 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. When setting up a project estimate in both FreshBooks and Xero, you have the option to add sales taxes, inventories, and labor.

FreshBooks vs Xero: Pros & Cons

Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you. So basically, if you need a robust suite that can do it all, go for Xero. But if you want something straightforward and user-friendly that gets the job done without fuss, FreshBooks is your go-to. At the end of the day, weigh your needs and your budget, and if all else fails, flip a coin. FreshBooks’ reports may be more aesthetically pleasing and easier to navigate, but Xero’s include the level of detail needed to stay organized as your company grows.

However, there are minor features we didn’t see on Xero, and these missing features pertain to note payable amortization. Although it won’t affect the overall user experience, it would be helpful if Xero could generate an amortization schedule for long-term notes automatically. 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.

Our support team is here to make switching to FreshBooks from any other software (even spreadsheets) super easy, with no interruptions to your business. 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. Ultimately, Xero and FreshBooks are both solid software options targeting different users. In contrast, Xero can run payrolls without customers needing to integrate other solutions, which comes at a cost.

Now let’s look at the features and functionality of both accounting services to determine which fits you best. The accounting software that fits your business could be the difference in a better CRM direction for your business. Xero offers three paid plans based on the various stages of a business’s growth. Moreover, viewing unbilled charges and time is possible on FreshBooks, but you can’t generate a report for it. Furthermore, Xero’s reporting features are expected with complete functionality like viewing compact and detailed financial reports.

FreshBooks and Xero are both powerful accounting tools that can help businesses keep their financial information and assets organized and accessible. But the two apps are geared toward different audiences, which explains their functional differences. Zoho Books stands out for its 24/5 customer support, strong feature set and affordability. It’s ideal for businesses that already use in-house Zoho apps, since it has limited third-party integrations beyond that.