Xero reports are comparative, especially for the basic financial statements. 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 does not offer built-in payroll tools, while Xero is known for its simple and effective payroll features.
- Check out our full review of Gusto HR software to determine if the partnership with Xero is worthwhile for your business.
- Of all the accounting software platforms we reviewed, FreshBooks’ invoicing functionality impressed us the most.
- Unless you need to generate particularly advanced accounting reports, this section should suffice for small businesses.
- This service costs $20 per month plus 3.5 percent and 30 cents per transaction.
This makes tax time easy as you have all the numbers in one place. 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 is fast, secure, and has mrp and mrp ii 310 exam flashcards no hidden fees, similar to Stripe and PayPal. You can post-checkout links on your website, social, or anywhere else online to allow customers to click and pay easily with their credit card. It provides you a web-based centralized place for file storage and sharing and gives you an overview of the project status.
FreshBooks vs. Xero Comparison
Coming from someone who’s not a numbers person, anyone who does accounting is a brave and admirable soul, and I’m glad that there are excellent tools out there to make your job easier. 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. It’s full of user guides, help articles and other learning tools so you can hopefully find answers to your questions faster.
- The customizable “Let’s Talk” plan stands out as a unique option, allowing users to select the features they want.
- FreshBooks is much simpler and straightforward, which is expected since the software caters primarily to people without accounting experience.
- Overall, FreshBooks is a solid starting option for those who need to get up and running with accounting software in just a few minutes.
- They also have a more advanced project management tool that costs extra, but that keeps track of far more factors.
- Plus, Xero integrates with over a thousand apps, meaning you can personalize your inventory, payroll, CRM or time-tracking experience however you’d like.
- We like how easy Xero makes it to batch-schedule advance payments to one or many vendors, removing late payment fees from your expenses.
As previously mentioned, FreshBooks treats bills as if they were an expense.
FreshBooks vs Xero: Comparing Features
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. Now that you have a clear idea of what features both tools offer and their pricing structure, let’s take a look at the pros and cons of each.
Transparent Pricing and Plans
It showcases basic and advanced features like recording vendor credits and independent contractor billings. As a complete accounting software, we’re not surprised to see these features on Xero because they covered everything from vendor creation to billings management. You can set sales prices, create customers, email invoices, accept short payments, and manage customer accounts in both FreshBooks and Xero. Xero’s app includes the basics, like sending invoices and assigning expenses, but its capabilities are a bit limited. Plus, Xero doesn’t seem to care to consolidate its mobile experience into one app—there are different Xero apps for managing expenses, projects, and more.
This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This site does not include all software companies or all available software companies offers. While they have an app for the iPhone, they have three for their Android counterparts.
FreshBooks vs Xero: Pricing
It includes both the monthly discount outlined above, as well as an additional 10% discount for selecting a yearly plan. Xero also provides 24/7 support, which may or may not be a dealbreaker for you. However, it is worth remembering that Xero’s plan prices are higher than FreshBooks’, and that its more advanced features come at a cost. FreshBooks’ small business reporting tools allow users to know exactly how their business is performing.
Xero integrations
These ratings are meant to provide clarity in the decision-making 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. Wave Accounting is free, but it doesn’t skimp on invoicing capabilities, making it a good solution for very small service-based businesses and consultants.
Xero has the majority of general accounting features we’d like to see, and this includes the features we’ve mentioned above that are missing on FreshBooks. 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 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, whereas Xero restricted me to 20 per month. Includes project tracking tools in most expensive plan; limited transaction tracking tags; lacks industry-specific reports; users with multiple businesses must pay for separate subscriptions.
FreshBooks vs. Xero Highlights
This article will discuss the main differences between Xero and FreshBooks by highlighting differences in features, price, and usability. We’ll highlight notable strengths and drawbacks of each tool and make recommendations to help you pick the best software for your business. The apps examined on this page are merely a small part of our entire Accounting Software category and you should remember that there may be more reliable options out there. If you would like to make sure you make the optimal decision for your business we strongly encourage you to test more apps first. It may also be a good idea to check out our top 10 Accounting Software ranking to find out which software are now the best ones and dominate the market.
With Xero, you can also add payroll with Gusto for $39 per month. I started The Digital Merchant to test the tools, services, and products I use in my digital business. Now, I’m here with other online business owners buying, testing, and evaluating the best digital tools, services, and software we can find – for every stage of the business. Navigating the small business accounting software offerings available today can feel like venturing into a maze – but don’t worry, you’re about to get a map. Accounting software options serve as the backbone of a small business, helping you manage every cent that comes in or goes out. And yes, we’re talking about more than just a glorified calculator or a digital ledger.
