freshbooks vs xero

Recurring Payments works together with Recurring Templates to automatically bill clients every time an invoice is generated and sent. FreshBooks offers mobile access with iOS (iPhone Mobile) and Android Mobile apps that let you painlessly invoice your clients and track expenses wherever and whenever you need to. FreshBooks also has mileage tracking on iOS (coming soon to Android). Xero has some of the worst customer service we have ever experienced, particularly for a company of their size.

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She holds a Bachelor’s degree from UCLA and has served on the Board of the National Association of Women Business Owners. She also regularly writes about business for various consumer publications. No, it isn’t possible to reconcile bank statements manually in FreshBooks because it doesn’t allow you to upload files of transactions unless you connect your bank account. You can only interact with a chatbot that’ll guide you through some common customer problems or redirect you to self-help articles on Xero’s support page.

Time Tracking

  1. If your business is service-based, you may need project management tools.
  2. Inventory management is one of those advanced features that you don’t get in FreshBooks.
  3. Below, we’ve outlined how FreshBooks stacks up with a few other popular platforms to help you decide which software best suits your business and accounting needs.
  4. The only way to assign expenses to the appropriate checking account is by matching transactions in the bank feed.

Plus, while Xero has thorough invoicing and receipt scanning capabilities, it doesn’t include business expense tracking with any plan except the most expensive. In our opinion, that’s a fairly glaring oversight—expense tracking is an incredibly common accounting feature that almost all of Xero’s key competitors include in their base plans. In contrast, QuickBooks Online builds user limits into each plan.

FreshBooks and Xero pricing

And if you need a hand, our phone support with a live rep extends to both you and your accountant, with no additional fees. Compared to Xero’s app, it’s more user-friendly and offers a wider selection of features, including entering bills, live time tracking, and billing clients for time worked. Xero’s interface feels a bit more clean-cut and professional, which is more what I’d expect from accounting software. While I did appreciate the dashboard’s clear and customizable widget feature, the interface felt a bit intimidating initially.

The app also lets you add contacts, and Xero gives you useful information about the person automatically, such as the average days to pay and billing activity. On the other hand, A/P management is one of the strongest points of Xero. It showcases basic and advanced features like recording vendor credits and independent contractor billings.

Ease of sharing with accountants

freshbooks vs xero

Essentials is aimed at small businesses that need basic CRM tools at an affordable rate. Professional, priced higher, offers advanced functionalities for larger businesses. At $25 per month, Essentials is an economical solution for small businesses. This pricing is attractive for startups or small teams that need essential CRM capabilities without a hefty investment. Priced at $80 per user, per month, Professional targets businesses with larger budgets and a need for more comprehensive CRM tools.

Many businesses are involved in the sales of products, so it’s essential that the best accounting software has a dedicated inventory management system. Our evaluation was based on a rubric scoring methodology in six categories, each with a designated how do i calculate profit appropriate percentage. The Xero app also has the basic features found in the cloud version, such as invoicing, bank reconciliation, cash flows, profit, and loss. A useful feature is its contact management integration with invoicing.

Of all the accounting software platforms we reviewed, FreshBooks’ invoicing functionality impressed us the most. Creating invoices in FreshBooks is much easier than in other platforms ― automatic invoice generation and customization are a breeze. We especially like the fact that you can generate invoices from estimates and quotes in two clicks.

freshbooks vs xero

Choosing the right accounting software can ensure your small business manages its finances well. If you’re searching for the best accounting software, you might be on the fence between FreshBooks and Xero. Both made our list of top QuickBooks alternatives, meaning they’re functional, powerful and easy to use. To know which might be right for your needs, check out our FreshBooks vs. Xero comparison. That said, Xero makes up for its user-friendliness shortcomings through tutorial videos and a demo company feature. In Xero, you can view the platform as a demo company with pre-recorded data, which makes it far easier to see how the platform will look and operate when you input your own business’s data.

All FreshBooks plans, except for the highest-tier custom plan, come with one user. FreshBooks gives you six user roles to choose from, plus client access and project manager customization options. 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. Additionally, Xero’s customizable dashboard and global search function make the software easy to navigate.

If you send dozens of invoices a month to dozens of clients, accounting software with truly unlimited invoicing will be a better fit for you than either Xero or FreshBooks. Starting at just $13 a month, Xero’s basic plan is one of the most affordable out there. It certainly beats QuickBooks Online’s starting price ($30 a month) by a mile. As you sift through the ocean of options, keep these features and considerations in mind. You’re not just choosing software; you’re choosing a financial partner for your business. Top Consumer Reviews has reviewed the best small business accounting software solutions to help you make this choice.

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. 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. You can generate traditional financial reports, but they aren’t available with all plans.

While testing QuickBooks Online, we were impressed by how many pre-built reports there are before you even create any custom reports. Many business owners will have everything they need in the reporting module already. Our favorite QuickBooks Online features that we tested are its customizable dashboard, comprehensive reporting tools, and accountant and bookkeeper integrations. Xero’s online accounting software will help you take control of your business. Nevertheless, both are similarly priced and have three different plans to choose from. Both are user-friendly and may work well for your business — and the answer to FreshBooks vs Xero really comes down to what you’re looking for.