But Xero’s reporting is more robust thanks to its detailed accounting features. FreshBooks’ unlimited time tracking feature and invoicing capabilities are better-suited for freelancers, independent contractors and other self-employed professionals. 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.

On the other hand, FreshBooks has limitations for larger companies or teams. Adding a team member to your account will cost an extra $11 per month, for example, and the lower-tier plans have a limit to how many clients you can have. The lowest price tier costs $4.25 per month for your first three months, then what is fica is it the same as social security $17 per month thereafter, but is limited to five clients.

After a 30-day trial period, Xero will bill a monthly charge of $13 per month for the Early plan, $37 per month for the Growing plan and $70 per month for the Established plan. For free invoicing platforms, consider Zoho Invoice, Square Invoices or PayPal Invoicing, although these platforms provide fewer capabilities. Given that there are several invoicing software on the market, it’s worth putting in some time to research your options before choosing one for your business. 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. TechnologyAdvice is able to offer our services for free because some vendors may pay us for web traffic or other sales opportunities.

1. Integrates with more than 100 third-party apps; limited choices for direct payroll and point-of-sale integrations.
2. FreshBooks is a super-easy-to-use accounting software built specifically for small business owners, letting you easily do everything yourself.
3. Keep in mind that these services charge a fee to process payments (usually around 2.9% plus 25 cents per transaction, though this varies by the payment processor).
4. But Xero’s reporting is more robust thanks to its detailed accounting features.
5. FreshBooks charges $17 per month and QuickBooks charges $30 per month).
6. While human error will always play some role in security breaches, you can be confident in your accounting platform when it comes to keeping your information safe.

How do FreshBooks and Xero compare with QuickBooks?

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. FreshBooks may not be as comprehensive an accounting platform as Xero, but it’s hard to deny that its invoicing features are top-tier. Even with FreshBooks Lite, I was able to create and send unlimited customized invoices for up to five clients, whereas Xero restricted me to 20 total invoices per month.

FreshBooks vs Xero

FreshBooks and Xero have 14 out of the 16 reports that we expect to see in the amortization of premium on bonds payable an accounting software service. However, some of FreshBooks’ reports seem to lack expanded functionality. For example, its balance sheet only shows the parent accounts and omits important details like subaccounts.

Popular add-ons include Salesforce, Shopify, PayPal, ADP, and Zendesk. For any other integration needs, you can use Xero’s REST API service or consult a developer in their partner network. The software must have features that allow users to set sales tax rates, apply them to invoices, and enable users to pay sales tax liability. You can call its customer service hotlines, ask a rep to call you, or contact the provider via email.

Plus Plan

FreshBooks integrates with a number of payment processors so that you can choose the payment method that works best for you and your business (and can deal with multiple currencies). Whether you want to accept online credit card payments, set up bank transfers, or get paid through FreshBooks Payments, you can easily set up the method you prefer. You can also set up different payment methods for different clients, depending on what suits them best. Being able to create and send invoices on the go means no delays and no accounting headaches waiting for you. You can use the FreshBooks automated bookkeeping software does an expense appear on the balance sheet wherever you have access to the internet, so let FreshBooks take care of your invoicing worries while you sit back and relax.

After the 4-month promotional period, you will be billed at full price for the plan you have selected. FreshBooks doesn’t have native functionality to integrate with Xero. However, you may be able to use a third-party app, such as Zapier, to connect the two. It’s full of user guides, help articles and other learning tools so you can hopefully find answers to your questions faster. Xero is cheaper when comparing the two base plans, but it quickly becomes more expensive in higher tiers. However, both Xero and FreshBooks are cheaper than the more popular QuickBooks software.