Mon 04 Jan 2016 | By:

FreshBooks vs Xero: Which is Better?

FreshBooks Vs Xero

Welcome to Startup Savant’s comparative FreshBooks vs Xero review where we dive into both of these small-biz accounting software solutions to see which is not the best objectively, but the best for you and your platform. Here’s the first thing you should know:

Both have well over 500,000 users. In fact, if you put them together, they’re in to the millions!

That said, let’s dive into their commonalities, differences, package options, pricing, and more. Enjoy!


10 Things FreshBooks and Xero have in common

  1. They have their own mobile app that have the basic info you need on the go.
  2. Allows third party integration with a selection of numerous business-boosting apps.
  3. Modern and easy to use software, user-friendly.
  4. Expense tracking tool for cash flow management.
  5. Caters to all kinds of professionals – freelancers, bookkeepers, accountants, entrepreneurs, contractors, etc.
  6. Designed for small and mid-sized businesses.
  7. Invoice tool which allows you to create any type of invoice, customize them according to your specifications and send them in one click.
  8. Time tracker that enables you to accurately bill every minute of your hours worked.
  9. Bank reconciliation features that allow you to sync your bank and credit/debt card transactions with your account.
  10. Cloud-based programs which can be accessed from any operating system or web browser. All you need is an internet connection.


Package Pricing: FreshBooks vs Xero

FreshBooks pricing

FreshBooks has 4 (creatively named) plans: Sprout, Seedling, Evergreen and Mighty Oak. FreshBooks Pricing

For just $8.96 per month if you pay annually, you can manage your business finances with ease then work your way into more extensive services as you need them. It’s a great approach, especially for beginners who want to learn from the ground up rather than being bombarded all at once.


A Quick Look Inside FreshBooks

Send Professional Looking Invoices in Seconds

FreshBooks Invoices

Track Your Expenses By Category

FreshBooks Expense Tracking

Effortless Time Tracking

FreshBooks Time Tracking

FreshBooks Time Tracking Projects

Keep a Close Eye on Business Finances

FreshBooks Accounting Reports


Xero pricing

Pricing wise, Xero’s a little more affordable than FreshBooks. It has three simple plans which are Starter, Standard and Premium. Xero’s plans vary depending on your location, the table below shows US pricing. The premium plan which is the most expensive at $49 per month but delivers a full suite of features. Here again, it’s designed for you to begin where you need to begin depending on the size and complexity of your platform’s accounting needs.

Xero Pricing and FeaturesXero Pricing and Features 2


A Quick Look Inside Xero

Create Custom Invoices

Xero Invoicing

Store and Manage Your Files

Xero Accounting Files

Manage Your Bills and Keep an Eye on Cashflow

Xero Bills

Track Your Small Business Expenses
Xero Expense Tracking

Create and Send Custom Purchase Orders

Xero Purchase Orders


Final Verdict

At the end of the day it's really a toss up because both Xero and FreshBooks are amazing and competitively priced. However, Startup Savant uses Xero because we feel they have a slight advantage in terms of overall features and intuitive design. Either way, you're going to love the modern-tech.

Try Xero Or Try FreshBooks

About Ryan James

Half hardworking hermit, half avid adventurer, Ryan founded Startup Savant to simplify entrepreneurship and pay it forward by donating a portion of all revenue to support children's education via