Xero vs FreshBooks
A detailed comparison of Xero and FreshBooks to help you choose the right tool for your needs.
💰 Pricing Comparison
| Plan | Xero | FreshBooks |
|---|---|---|
| Free Tier | ✗ No | ✗ No |
| Lowest Paid | $15/mo | $17/mo |
| Enterprise | $78/mo | $55/mo |
⚡ Feature Comparison
| Feature | Xero | FreshBooks |
|---|---|---|
| Invoicing | ✓ | ✓ |
| Bank reconciliation | ✓ | — |
| Expense claims | ✓ | — |
| Purchase orders | ✓ | — |
| Reporting | ✓ | — |
| Payroll | ✓ | — |
| Inventory | ✓ | — |
| Multi-currency | ✓ | — |
| Projects | ✓ | ✓ |
| Mobile app | ✓ | ✓ |
| Time tracking | — | ✓ |
| Expense tracking | — | ✓ |
| Estimates | — | ✓ |
| Reports | — | ✓ |
| Payments | — | ✓ |
| Bank connections | — | ✓ |
| Client portal | — | ✓ |
| Open Source | ✗ | ✗ |
| Rating | ⭐ 4.3 | ⭐ 4.3 |
Pros & Cons
Xero
Pros
- ✓ Beautiful interface
- ✓ Great bank reconciliation
- ✓ Large app ecosystem
- ✓ Good for non-US businesses
Cons
- ✗ Limited US payroll
- ✗ Can be pricey
- ✗ Reporting limitations
- ✗ Learning curve
FreshBooks
Pros
- ✓ Very user-friendly
- ✓ Great invoicing
- ✓ Time tracking built-in
- ✓ Beautiful design
Cons
- ✗ Limited for complex accounting
- ✗ Expensive for features
- ✗ Basic inventory
- ✗ Client limits on plans
🏆 The Verdict
Choose Xero if: You need small businesses outside the us. Xero excels with its beautiful interface and great bank reconciliation.
Choose FreshBooks if: You need freelancers and service businesses. FreshBooks stands out with its very user-friendly and great invoicing.
❓ Frequently Asked Questions
Is Xero better than FreshBooks?
It depends on your needs. Xero is better for small businesses outside the us, while FreshBooks is better for freelancers and service businesses. Both are excellent tools rated 4.3 and 4.3 respectively.
Which is cheaper, Xero or FreshBooks?
Xero starts at $15/mo while FreshBooks starts at $17/mo. Neither offers a free tier.
Can I switch from Xero to FreshBooks?
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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