A detailed comparison of Xero and FreshBooks to help you choose the right tool for your needs.
Cloud accounting platform popular with UK and Australian small businesses.
Accounting software built for service-based businesses.
| Plan | Xero | FreshBooks |
|---|---|---|
| Free Tier | ✗ No | ✗ No |
| Lowest Paid | $15/mo | $17/mo |
| Enterprise | Custom | $55/mo |
| Feature | Xero | FreshBooks |
|---|---|---|
| Bank reconciliation | ✓ | — |
| Invoicing | ✓ | ✓ |
| Payroll | ✓ | — |
| Inventory | ✓ | — |
| 800+ integrations | ✓ | — |
| Multi-currency | ✓ | — |
| Time tracking | — | ✓ |
| Expense tracking | — | ✓ |
| Projects | — | ✓ |
| Estimates | — | ✓ |
| Reports | — | ✓ |
| Payments | — | ✓ |
| Bank connections | — | ✓ |
| Mobile app | — | ✓ |
| Client portal | — | ✓ |
| Open Source | ✗ | ✗ |
| Rating | ⭐ 4.5 | ⭐ 4.3 |
Choose Xero if: You need uk, australian, and new zealand small businesses wanting modern cloud accounting. Xero excels with its cleaner interface than quickbooks and strong uk/au support.
Choose FreshBooks if: You need freelancers and service businesses. FreshBooks stands out with its very user-friendly and great invoicing.
It depends on your needs. Xero is better for uk, australian, and new zealand small businesses wanting modern cloud accounting, while FreshBooks is better for freelancers and service businesses. Both are excellent tools rated 4.5 and 4.3 respectively.
Xero starts at $15/mo while FreshBooks starts at $17/mo. Neither offers a free tier.
Most tools offer import/export features to help you migrate. We recommend trying FreshBooks's trial before fully committing to a switch.
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