Regularly occurring invoices can be established on a predictable schedule where the customer has their credit card information saved to be regularly processed. Automated processes assign a stakeholder to the workflow so that someone is overseeing the process to ensure accuracy and accountability. QuickBooks Online takes the lead because it’s generally easier to use than Xero. While Xero is easier to set up, QuickBooks has a more intuitive and customizable dashboard and has time-saving features.
How the Products Stack Up
For business owners working with an accountant, this keeps both parties synced to data that is meaningful to operations. For example, you can track sales based on sales representatives working on ways to motivate the sales force to generate more revenues. FreshBooks doesn’t allow users to get deep into the weeds with customizations. As a QuickBooks ProAdvisor, Mark has extensive knowledge of QuickBooks products, allowing him to create valuable content that educates businesses on maximizing the benefits of the software. Yes, both have a fixed asset manager that allows you to track fixed assets and calculate depreciation. Fixed asset accounting is part of all Xero’s plans, while it’s offered only in the most expensive plan of QuickBooks Online—Advanced.
- Its features combine project management and accounting with helping professionals self-manage their business.
- The software is also updated automatically, so businesses always have the latest features and security patches.
- The main dashboard gives you an overview of your business’ finances.
- FreshBooks, QuickBooks, and Xero all have the essential accounting features businesses need to manage their finances.
- If you often need to record bills and bill payments on the go, Xero’s mobile app might be preferable.
Xero has more (and better) accounting features for established businesses
You can add new users via email and assign them one of seven different user roles, including “read only” and “advisor” access. If you want to further customize a user profile, you can give users additional permissions to particular tax credits vs tax deductions features, like reports, projects and new expenses. Has robust reporting tools and report customization options, basic inventory tracking in all plans and a capable mobile app; Early plan limits the number of invoices and bills.
Xero and QuickBooks Online alternatives
We called a tie for this criterion because both software need third-party providers for assisted bookkeeping. The bookkeeping service isn’t included in the subscription price, so you’ll need to pay an additional fee to get it. Both FreshBooks and Xero have downloadable apps in the App Store and Google Play that you can use on your phone, tablet, or mobile device.
Does FreshBooks offer a mobile app?
An internet connection is needed to use the app, and users can add, edit, or remove data through the app. However, that doesn’t make FreshBooks an underperforming software in terms of A/R. We recommend Xero if you want all the necessary features in A/R, such as invoice customizing and full-scale A/R management. FreshBooks is ideal for simple invoicing and small-scale A/R management. The only way to assign expenses to the appropriate checking account is by matching transactions in the bank feed. Therefore, without a bank feed, you can’t designate which accounts for subtracting expenses, making FreshBooks unusable if you have more than one bank account and no live feed established.
Accounts Payable: Xero Wins
In comparison, Xero has more accounting features, making it an excellent choice for growing businesses, especially product-based companies. Each additional user costs $11 per month if you wish to grant access to more employees. Transactions made using FreshBooks Payments, which allows you to accept credit cards online, cost 2.9 percent plus 30 cents per transaction. FreshBooks also offers a product called Advanced Payments, which is used to accept credit card payments by phone and in person. This service costs $20 per month plus 3.5 percent and 30 cents per transaction. Xero is the second-most popular accounting software program in the U.S. after QuickBooks, and is the market leader in several countries, such as Australia.
Choosing the right accounting software can ensure your small business manages its finances well. If you’re searching for the best accounting software, you might be on the fence between FreshBooks and Xero. Both made our list of top QuickBooks alternatives, meaning they’re functional, powerful and easy to use.
Kristy’s work also appears in Newsweek and Fortune, focusing on personal finance. Xero, on the other hand, is best for small businesses that want to take the step up from tracking expenses in Excel. It has all the functionality you need to manage transactions, calculate payments and track projects at an affordable entry point. For example, you can connect your customer relationship management (CRM) system with your accounting software. When a new client is added to your CRM, it will automatically be added to your accounting software. The main differences between these plans are the number of users (the number of people who can access your account) and the included features.
In this section, we look at the main features businesses should evaluate before deciding which accounting software is a better fit. Quickbooks is probably the most popular financial software available. Quickbooks is a full accounting software program, so it gives you more options than Freshbooks. Still, it’s an extra step you’ll avoid with most other accounting tools.
That’s why FreshBooks is built to save you time and effort with an interface that lets you efficiently manage your books and navigate tax time. And if you need support, our award-winning team always has your back. Xero doesn’t offer the opportunity to call a representative directly for assistance. You can reach support by raising a case (similar to filing an IT ticket) on the Xero website. Intuitive, customizable invoicing capabilities compete with those of more robust accounting solutions.
The right accounting software can greatly simplify a small business’s finances. Stay in touch with clients through the FreshBooks mobile app and get notified when invoices have been viewed or become overdue. Our partners cannot pay us to guarantee accounting articles favorable reviews of their products or services. For example, Xero allows you to view accounting reports and specific budgets for any time period. You can even monitor your company’s performance by customizing and measuring specific KPIs.
On the downside, it can be expensive compared to other options like FreshBooks and Xero. Least expensive plan lacks double-entry accounting reports, bank reconciliation and accountant access. NerdWallet’s accounting software ratings favor products that are easy to use, reasonably priced, have a robust feature set and can grow with your business.
It also lacks multicurrency support for all but its most expensive plan. So if you’re selling products outside of the United States, FreshBooks or Zoho (which do have multicurrency support) will make your life a little easier. Where QuickBooks is a software loved by accountants, FreshBooks is loved by small business owners who don’t have accounting as their top skill set. The dashboard makes it easy to get to what you need, whether that is the general ledger or invoicing.
FreshBooks, in comparison, offers a simpler and more intuitive experience while sacrificing some advanced features. We recommend it to freelance service providers who only need to track income and expenses for projects. FreshBooks can be a good option what is time and a half and how to get it right for freelancers and contractors looking for an affordable, simple accounting software. There’s time tracking in all plans and phone support is available from 8 a.m. The first two plan tiers put a limit on billable clients, but not on invoices.
As FreshBooks states, this is to “simplify everything from payment to payroll.” You can integrate popular apps such as Indeed, Acuity Scheduling and NiceJob. For example, integrating with NiceJob can automate FreshBooks to solicit and capture reviews and referrals from your existing client base. Yes, you can use Xero to track inventory, and the feature is available in all plans. Note that fixed asset accounting isn’t part of our case study, so there are no scores. One reviewer mentioned that a critical feature missing in Xero is the inability to export expense receipts and attach them to invoices. This feature is available in QuickBooks Online, and it even allows you to create a digital transaction using the uploaded receipt.
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