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FreshBooks vs Xero
Xero offers similar cloud accounting but targets slightly larger businesses and provides extensive third-party app integrations.
Short answer: Pick FreshBooks if you want all-in-one accounting for small businesses; pick Xero if you want all-in-one cloud accounting. FreshBooks starts at $4.60/month; Xero has a free plan.
Which to pick
Pick FreshBooks if you want…
- All-in-one accounting for small businesses
Pick Xero if you want…
- All-in-one cloud accounting
- Cloud accounting with extensive integrations
- A free plan to start with
Side by side
- What it is
- FreshBooks:FreshBooks is a cloud-based accounting platform for small businesses that handles invoicing, expenses, time tracking, payroll and online payments.
- Xero:Xero is online accounting software that connects banks, accountants, and business apps to manage finances.
- Best for
- FreshBooks:All-in-one accounting for small businesses
- Xero:All-in-one cloud accounting
- Who it’s for
- FreshBooks:Freelancers, solopreneurs and small businesses that need simple, all-in-one accounting.
- Xero:Small to medium businesses needing accounting, invoicing, payroll, and cash-flow tools.
- Pricing
- FreshBooks:Paid
- Xero:Freemium
- Starting price
- FreshBooks:$4.60/month (Lite)
- Xero:—
- Free plan or trial
- FreshBooks:Free trial
- Xero:Free trial
- Plans
- FreshBooks:Lite $4.60 per month · Plus $8.60 per month · Premium $14.00 per month
- Xero:—
- Works with
- FreshBooks:Android app
- Xero:—
FreshBooks features
- Invoicing. Create professional invoices, add tracked time and expenses, calculate taxes and customize payment options.
- Expense Tracking. Capture receipts via mobile scan, import bank transactions and auto-categorize expenses.
- Payroll. Run payroll for yourself and team, calculate taxes and manage employee payments.
- Time Tracking & Billing. Track billable hours, generate estimates and proposals, and automate recurring invoices.
- Reporting & Accounting. Double-entry accounting, tax-time reports, profit-and-loss statements and bank reconciliation.
Xero features
- Smart Document Capture. Automatically pulls bills and receipts into Xero for organized records.
- Real-time cash-flow insights. Provides live reports and forecasts to help manage cash flow.
- Invoicing & payments. Create, send, and accept online invoice payments with ACH included.
- Bank reconciliation. Auto-reconcile bank transactions to keep books up to date.
- Payroll integration. Xero Payroll powered by Gusto handles payroll taxes and compliance.
- Performance dashboards. Customizable dashboards and health scorecards for financial analytics.
FreshBooks vs Xero FAQ
What is the difference between FreshBooks and Xero?+
Xero offers similar cloud accounting but targets slightly larger businesses and provides extensive third-party app integrations.
Should I use FreshBooks or Xero?+
Pick FreshBooks if you want all-in-one accounting for small businesses. Pick Xero if you want all-in-one cloud accounting, cloud accounting with extensive integrations or a free plan to start with.
Is FreshBooks or Xero free?+
FreshBooks is paid, from $4.60/month (Lite), with a free trial. Xero has a free plan and paid plans.
On DevHunt
Based on each tool's website and DevHunt data. Details may change; check the official sites.