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FreshBooks Pricing

The software will automatically categorize expenses to simply tax write-offs. While both software programs offer all the bells and whistles you need to manage your business’s finances, Xero limits the number of quotes and invoices you can send each month. The maximum is 20, which can be quite limiting to a busy professional. Overall, FreshBooks is easier to use but limits the number of billable clients to five. So it will be up to the business owners to determine which limit will be more detrimental to business needs. QuickBooks’ customization options are more elaborate than FreshBooks, but are also designed for larger companies and businesses that need more flexibility in their accounting systems.

• FreshBooks is accessible for non-accountants, using plain language to describe financial processes and simplify invoicing, expense tracking, and reporting.
• Read on for a full breakdown of Xero vs FreshBooks and find out which one is best suited for your business.
• QuickBooks contains more features and robust functionalities for growing businesses; FreshBooks offers a low-cost, easy-to-use option for freelancers.
• FreshBooks has the edge when it comes to customer service, as Wave only offers some of its support avenues to paid customers.
• One of the things we like most about FreshBooks is that you can upgrade your package as you grow.

Free Trial and Discounts

Read on for a full breakdown of Xero vs FreshBooks and find out which one is best suited for your business. FreshBooks’ accounts receivable tools are stronger than its accounts freshbooks review payable ones. Client records contain extended contact information, but they’re not as fleshed out as what you get from even the less expensive Wave Pro. This is one area where the site provides context-sensitive settings, which allow you to easily personalize settings for each client. FreshBooks’ most serious competition is QuickBooks Online Plus ($99 per month for five users), which has more cutting-edge capabilities. Wave Pro is the least expensive full-featured accounting app at $16 per month.

It’s a great in between package that allows for quite a bit of versatility. You’ve got a solid amount of billable clients, as well as complete access to their entire platform. FreshBooks is known for its user-friendly interface and customer-centric approach. It emphasizes providing excellent customer support, reflected in its high support approval ratings.

Xero is responsive and intuitive, with core accounting features in billing, invoicing, purchasing, and expense tracking. If your company plans to remain relatively small, it’s hard to beat the simple, comprehensive package of features the software has to offer. Overall, Freshbooks is a smart, affordable choice for small business owners new to accounting. FreshBooks claims to save business owners an average of 16 hours per month, which means you’ll be using tools focused on the owner’s side of the business rather than the accountant’s side. You’ll streamline your billing and cash flow so that everything will be squared away for your accountant to take over when it’s time for tax time or other big tasks. You can also take some tasks into your own hands before passing them off, like creating your own powerful reports.

Honest, Objective, Lab-Tested Reviews

Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Despite a few navigational difficulties and a few missing integrations, FreshBooks is very easy to use and is a great choice for beginner and experienced users alike.

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• This site does not include all software companies or all available software companies offers.
• We consider how quick and easy it is to execute the tasks defined in the core functionality using the accounting software.
• The rubric is designed to capture the nuances of software selection, and what makes accounting software effective, focusing on critical aspects of the decision-making process.
• Personally, I would love to see more options than this limited selection to allow for greater customization, but it will suffice for most small businesses.

Additionally, the software’s security safeguards are consistently provided across all plans, ensuring data protection for users. The Plus plan targets growing businesses requiring more advanced client management and billing options. It includes key features like recurring billing and client retainers, as well as sales tax-time reports and accountant access. While these are compatible qualities, this plan isn’t ideal for larger corporations, as it only allows invoicing for up to 50 clients. The company is headquartered in Toronto, Canada and reports having a global user base across 160+ countries.

Xero vs FreshBooks: Pricing Plans

FreshBooks is a good option for those who don’t have a lot of experience in accounting and want an easy-to-use way to manage their business finances. The software allows you to do everything from tracking expenses to sending invoices and collecting payments. It will make tax time easier by providing the required reports that your tax preparer needs to accurately file your taxes. The Lite plan offers the essentials and is best for people who only have a couple of clients and do not have a business model that focuses on attaining more. Still, you’re able to send payments with credit cards and bank transfers and track unlimited expenses, some of the key tools freelancers need. This plan also allows you to easily keep track of payroll through a Gusto Payments integration.

While QuickBooks has the more expensive pricing plans, you likely will ultimately save money if you have to add dozens of users to your account. FreshBooks is a web-based accounting platform designed to help manage small or medium-sized businesses. You can also tack on optional add-on features to each plan, such as inviting team members onto the account or the ability to accept payments for your business online, at an additional cost. FreshBooks in 2025 is still a solid choice for small businesses, especially if invoicing is your main gig.

The Select plan is the only FreshBooks plan to have custom pricing and requires businesses to request a quote. The main limitation of the Plus plan compared to the Premium plan is that there’s still a limit on the number of clients you can invoice. Changes to your plan are typically effective immediately, allowing you to adjust your subscription based on your current business needs without delay. In the table below, you’ll find a quick at-a-glance overview of how Xero and FreshBooks compare to several other accounting platforms. Of course, Xero and FreshBooks are far from the only accounting platforms on the market. Depending on your business priorities, there are solutions out there to suit sole traders, large enterprises, and everything in between.

When it comes to invoicing, Bill.com lacks the customizable proposals and integrated time tracking available with FreshBooks. Bill.com also only offers invoice automation with its Corporate plan, while FreshBooks offers this feature on their Plus plan, which is the more affordable option. Both companies recommend their Plus plan, but QuickBooks offers a greater variety of features. They also include five users, whereas FreshBooks charges $10.00 per person to add team members. Zoho Books is an accounting software that is a popular alternative to QuickBooks, offering easy-to-use features.

However, QuickBooks’ Advanced plan supports up to 25 concurrent users. FreshBooks only permits one user, charging an extra $11 per month for each additional team member. Everything you need is included in the monthly fee for the plan you choose, and you’ll never have to commit to a contract. You can also take advantage of a 30-day Free Trial (including full customer support access), with no credit card required and the ability to cancel anytime.

Paying for the year upfront results in a 10% discount compared to paying month to month. However, FreshBooks might not be worth it for more established businesses looking to grow, since it’s missing some key reporting tools. These businesses might want to pay more to get access to powerful features with competitors like QuickBooks or Xero. Next to features, it’s also important for any accounting software to connect with your existing tech stack to ensure smooth workflows.