Xero vs FreshBooks: Accounting Software Review

Deskripsi ] Xero vs FreshBooks: Accounting Software Review

As a result, you and your employees will no longer have to be concerned about or work on accounting processes in detail; instead, you can perform everything in just a few clicks. Xero and FreshBooks are just among many accounting software solutions that can be used to manage your e-commerce business and other businesses. Other great options you could try out include QuickBooks online, Zoho Books, and Stripe. You might check all the necessary features, including if the software is cloud-based or not. If the customer support is strong or not, and other essential factors.

If you want to further customize a user profile, you can give users additional permissions to particular features, like reports, projects and new expenses. As mentioned before, Xero offers more advanced inventory management features than FreshBooks, which is relevant regarding products and services. FreshBooks beats Xero decisively when it comes to invoicing capabilities. The FreshBooks design suite allows for more customization and is easier to use compared to Xero. Xero also lacks the seamless integration with time tracking that FreshBooks offers.

Xero vs FreshBooks Comparison 2023: Which Is Better for You?

FreshBooks also offers customized pricing for large enterprise customers, while Xero only offers three preset plans. Xero also provides 24/7 support, which may or may not be a dealbreaker for you. However, it is worth remembering that Xero’s plan prices are higher than FreshBooks’, and that its more advanced features come at a cost.

FreshBooks is a cloud accounting solution that uses industry-leading secure servers. FreshBooks offers mobile access with iOS (iPhone Mobile) and Android Mobile apps that let you painlessly invoice your clients and track expenses wherever and whenever you need to. FreshBooks also has mileage tracking on iOS (coming soon to Android). Xero’s number of third-party integrations puts it far ahead of FreshBooks and other accounting software applications. While there is some overlap in third-party integrations, both FreshBooks and Xero include some syncing options that the other doesn’t. Make a list of the business productivity apps that you use most often and check for compatibility on the Xero and FreshBooks app stores.

While the inventory management isn’t the most advanced on the market—for example, Zoho Books is much more nuanced—it’s a viable mid-tier choice. The dashboard is also customizable, allowing you to choose what’s displayed first. When it comes to small business accounting, creating invoices is one of the key accounting features that endear small business owners to an accounting provider amongst other providers. Xero grants users access to 800+ integrations to third-party apps to improve the overall running of your small business. Xero can integrate with PayPal, Shopify, and other known e-commerce options. Customer support is essential for the user experience of business owners and freelancers alike.

With FreshBooks, you get simplified and automated accounting, invoicing, project management, and more. Plus, with industry-leading customer support, you’ll never struggle alone. Find out how two of the top accounting software options, FreshBooks and Xero, compare in features, pricing and ease-of-use. We’ll break down the details to help you decide which is the best fit for you. Xero is a more popular name in this industry, and it’s the better choice if you deal with inventory.

While they have an app for the iPhone, they have three for their Android counterparts. The second and third are Xero Projects and Xero Expenses, both used for more fieldwork. The accounting software that fits your business could be the difference in a better CRM direction for your business.

FreshBooks vs QuickBooks vs Xero: Other Factors

As two of QuickBooks Online’s biggest competitors in the small-business accounting software space, Xero and FreshBooks each have their own strengths. When you compare them head-to-head though, Xero pulls through as the more scalable, easy-to-use solution for small businesses looking to grow their operations. It includes stronger accounting features across all its plans, as well as unlimited users, inventory management and access to over 1,000 third-party integrations. Xero offers accounts payable features with all plans — although you can enter only five bills per month with the Early plan. The software’s bill management tools are detailed, giving you the ability to access all of your bills online in one place, make batch payments and schedule them in advance. In contrast, FreshBooks includes basic accounts payable tools like bill tracking with the Premium plan and doesn’t offer them with the Lite or Plus plans.

• All businesses should use an accounting software to manage and track their finances.
• FreshBooks integrates with a number of payment processors so that you can choose the payment method that works best for you and your business (and can deal with multiple currencies).
• For expediency, we’d prefer just to enter the bank statement balance and reconcile directly.
• We especially like that FreshBooks includes in-house payment software that removes the friction of getting paid from invoices.
• In that case, they have resources like articles, guides, walk-through videos, and guides all available for you either as a visitor or as a user.

Still, if the pricing is unsuitable, it could be a barrier to getting on a plan. It includes inventory in every pricing plan, mainstains stock levels and runs reports. FreshBooks requires you to sign up and pay for a separate app if you want inventory management that syncs with your accounting.

Bills

However, missing features like purchase orders (POs) and vendor credits are forgivable for FreshBooks since it didn’t include inventory management as a feature. Therefore, we see a situational approach here wherein we see FreshBooks and Xero’s A/P management as the best in their respective fields. FreshBooks may not be as comprehensive an accounting platform as Xero, but it’s hard to deny that its invoicing features are top-tier. Even with FreshBooks Lite, I was able to create and send unlimited customized invoices, whereas Xero restricted me to 20 per month. Due to its limited accounting features when compared to Xero, FreshBooks doesn’t offer as many report options, and within its reports, customization is pretty sparse. Can support larger small businesses with dozens of employees; all three plans include an unlimited number of users.

Bills in Xero can be paid by check or bill.com, neither of which is as convenient as paying from a bank account or credit card in the software. Product-based businesses carry inventory on hand and will want an invoice that pulls in quantities. To save time, FreshBooks puts “make recurring” on the screen after you hit “save” on an invoice. It doesn’t need you to have already received a payment from the customer like QuickBooks Online does. Read our QuickBooks Online review to see why we think requiring such is a significant drawback of the program. If you want to know more about the individual programs, we recommend that you check out our FreshBooks review and Xero review.

• Their ideal customer is an Internet-based service company run by a single person or a small group.
• Business owners, on the other hand, might not have the in-depth accounting knowledge needed to make Xero work for them.
• However, with the sheer abundance of SaaS business solutions available in the market, finding the best accounting software to integrate with can prove to be a challenging task.
• All FreshBooks plans, except for the highest-tier custom plan, come with one user.
• When it comes to inventory management, Xero is also the name to beat for larger companies with lots of products and customers.

The main value of using FreshBooks is having a software that takes mere minutes to set up and begin using for your business. The project management and time tracking features are particularly helpful because that isn’t found for free in all competitors. It’s priced fairly similarly to Xero, which is a drawback as it offers fewer features and details. Most accounting solutions include features like invoicing, expense tracking, accounting reports, payroll, and accounting or bookkeeping services.

FreshBooks provides a software environment that blends accounting and project management, making it ideal for self-managed businesses and freelancers. On the contrary, Xero has more accounting features, making it an excellent choice for growing businesses, especially product-based companies. NerdWallet’s accounting software ratings favor products that are easy to use, have a robust feature set and can grow with your business. Ratings are based on weighted averages of scores in several categories, including scope of features and integrations, customer support and cost, among others. Learn more about how we rate small-business accounting software.

FreshBooks offers basic project management capabilities allowing you to create and manage projects, track time spent on tasks, and assign team members to specific projects. However, its project management features are relatively simpler compared to dedicated project management tools. It allows you to set up tax Statement of account What is a statement of account rates based on your business location and apply them to your invoices. FreshBooks automatically calculates the tax amount based on the tax rate and applies it to the total invoice amount. However, it does not provide advanced tax features or extensive tax reporting options compared to QuickBooks or Xero.

Services for Accountants

And while the software automatically suggests some transaction matches for you during the reconciliation process, you cannot create your own custom bank rules. Integrates with more than 100 third-party apps; limited choices for direct payroll and point-of-sale integrations. We believe everyone should be able to make financial decisions with confidence.

There weren’t tips guiding me through the process of adding clients and invoices or creating reports. With Xero, all plans include a bank reconciliation tool that suggests transaction matches for you, making it easy to reconcile bank accounts. If a bank statement line meets the set of criteria you specified, Xero will suggest creating a matching transaction for you. Additionally, Xero’s customizable dashboard and global search function make the software easy to navigate. The Xero Marketplace has integrations with third-party applications across categories like payroll, time tracking, payments, and more.

What is Xero?

FreshBooks’ unlimited time tracking feature and invoicing capabilities are better-suited for freelancers, independent contractors and other self-employed professionals. The offers that appear on the website are from software companies from which CRM.org receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This site does not include all software companies or all available software companies offers. Xero’s first major shortcoming is the arrangement of its pricing.