You want the best accounting software for your business/lifestyle, but aren’t sure which? Xero and FreshBooks are titans of the industry, extremely popular, and highly-used, so they’re both worth consideration.
Today in this Xero vs. FreshBooks comparison review, we’ll look through commonalities & differences, pricing, and customer reviews to give you a really wide and informed perspective of both. So without further adieu, let’s get started!
Recommended: Hiring an accountant can save your company thousands of dollars in taxes each year. Get a free tax consultation with 1-800Accountant.
FreshBooks & Xero Commonalities
Xero and Freshbooks have a ton in common, which is why they come so highly-recommended from happy customers. Both have loaded their accounting software with useful solutions, some of which include:
1) Compatible Mobile Apps: Both have a mobile app available on most devices.
2) Widget/Third-party Integration: Both can connect to many different third-party apps like Shopify, Paypal, Squarespace, Square and more.
3) User-friendly: Both software companies have super intuitive systems, plus how-to videos on every feature under the sun.
4) Tracking Tools: Keep an eye on your business with expenses and income tracking, along with budgeting and forecasting tools.
5) Scalability: Both offer accounting solutions for small or medium sized business, freelancers, accountants and more.
6) Customizable Invoices: Set up invoices any way you like, personalize it with your logo and color scheme, and send it off to your clients in one click.
7) Time Tracker: Keep track of billable hours accurately and easily.
8) Bank Integration: Xero & Freshbooks allow you to use their bank reconciliation features to sync your bank/credit card transactions with your accounting profile.
9) Accessible: Both systems are cloud-based, which allows you to access their full platform anywhere that you have an internet connection.
Where Freshbooks & Xero Differ
Both companies are clearly committed to providing some of the best accounting services available. But this wouldn’t be a proper comparison review if we didn’t go a step forward and look at the areas in which they differ.
- If you’re a smaller business or independent freelancer, the Freshbook starter package might be better suited for you. Their pricing scale is based on number of active clients, so if you receive a large amount of business from a small number of current clients, you’ll end up paying much less while still receiving all of the available features.
- Multi-currency features are available for all packages, while Xero only offers this in their premium package.
- Xero offers a tons of great add-ons and third-party widgets (Over 500!), most of which are available to you for free with your subscription.
- Using multiple platforms to run your business? Along with third-party apps, you can also integrate one account from an additional accounting software program.
- You can invite team members to collaborate with you and help manage your business seamlessly. Many other companies in the industry have not yet mastered this feature or don’t offer it to their subscribers yet.
- Xero offers relationship history, so all of your points of contact are easy to keep track of and sort through when necessary.
- When sending out invoices or wholesale orders to suppliers, Xero has produced a number of email templates for multiple different occasions to streamline this process and make it as simple for you as possible.
Pricing & Packages
Looking at prices, both FreshBooks and Xero use a tiered, subscription-based payment plan so you can pick the option that most suits your needs. We’ve included the basics of each package below to give you an idea of what to expect from both companies.
At first glance, Xero is the most cost effective option. But that really depends on your needs and which package you choose. They offer their starter package for $9/mo which is less than you would pay for Freshbooks’ introductory package.
Once we move into the higher tiered packages however, Xero’s packages get a bit pricier. For their premium package, you’ll end up paying $20 more than Freshbook’s accounting software.
But, there’s more important price distinctions to be made than just their base plan. A couple of those key differences include:
- A few customers have mentioned that along with Freshbooks base fees, some of their third party apps also have one-time or monthly charges, which can add a significant amount of money to your monthly accounting expenses.
- Freshbooks charges based on number of active clients, so regardless of your package selection, you’ll still have access to all available features.
- Xero charges based on number of transactions/invoices sent, so it may be more difficult to stay under the limit that they require for the introductory package. The Starter package allows you to send 5 invoices, enter 5 bills and reconcile 20 bank transactions.
- Even with their Premium 10 package, they only allow payroll for less than 10 people, so their packages might not be suited for a medium sized operation.
Getting down to Customer reviews, these two companies aren’t our top two for no reason. Their customers think they’re fantastic as well!
Freshbooks maintained a score of 8.0 on TrustRadius. Looking through the comments from reviewers they love the intuitive interface, time tracking capabilities and excellent customer service.
Neither company has any 1 or 2 star reviews, but the few lower ratings that FreshBook’s has received concentrated on their cost for third-party widgets and some rigidity in the design of their software. We’ve included a snapshot of their ratings below so you can see exactly how other’s have rated their software.
Xero has one of the highest Trust Radius ratings we’ve seen in accounting software. They have over 120 reviews, and score an 8.9 out of 10.
Reviewers were extremely likely to recommend Xero’s software, and praised their platform for it’s performance, availability and product scalability. Unhappy reviews were hard to locate, and the lowest score we were able to find for this company was 5 out of 10. But even these reviews were quick to state that the pros definitely outweighed the cons.
The Final Tally?
These two were neck and neck, but in the end, Xero took our #1 spot. Their customer reviews cannot be beat, and they offer tons of fantastic features.
If that sounds good to you, click the link below and head over to their website where you can learn even more. Cheers!
Try Xero Free or Try FreshBooks Free
Try either accounting software for 30 days free