Overview
ProductRatingMost Used ByProduct SummaryStarting Price
FreshBooks
Score 6.5 out of 10
Small Businesses (1-50 employees)
FreshBooks is an accounting service for small businesses. The solution enables users to send and manage invoices, track billable time and collect online payments. The vendor’s value proposition this that their solution provides a straightforward service that simplifies the billing process.
$15
per month
Xero
Score 8.5 out of 10
N/A
Xero is an online accounting software product for small businesses and personal finance. Its features beyond general ledger and double-bookkeeping include quotable invoicing, bank reconciliation, purchase order and expense management, and tax management. Third party apps can extend its features further.
$13
per month
Pricing
FreshBooksXero
Editions & Modules
Lite
$15
per month
Plus
$30
per month
Premium
$55
per month
Select
Custom Pricing
Early
$13
per month
Growing
$37
per month
Established
$70
per month
Offerings
Pricing Offerings
FreshBooksXero
Free Trial
YesYes
Free/Freemium Version
NoNo
Premium Consulting/Integration Services
NoNo
Entry-level Setup FeeNo setup feeNo setup fee
Additional DetailsPrices in table are in USD and just apply to the US - other markets & prices are listed below: Canada - Starter $18 CAD/month, Standard $45 CAD/month, Premium 5 $58 CAD/month UK - Starter £14/month, Standard £28/month, Premium £36/month AU - Starter $29 AUD/month, Standard $59 AUD/month, Premium 5 $76 AUD/month NZ - Starter $31 NZD/month, Standard $66 NZD/month, Premium $84 NZD/month
More Pricing Information
Community Pulse
FreshBooksXero
Considered Both Products
FreshBooks
Chose FreshBooks
Freshbooks is an extra cost when used with Xero (or even QuickBooks) and I wouldn't suggest it. Freshbooks needs to find a pivot as they are known as invoicing software, but every other platform (that does more) has that feature built in. Time tracking was a good move, now they …
Chose FreshBooks
Don't get me wrong — I like Xero for accounting purposes. But Xero's invoicing isn't great. There's too many features I depend on that FreshBooks has that Xero just does not. I need to be able to take deposits, send automatic reminders, and create an extremely user-friendly …
Chose FreshBooks
I really liked Wave Apps for a bit. It had some limitations, but I really like how easy it was to use and intuitive. Great pricing too. So I would recommend that over Freshbooks at this point for someone who is just getting started. Quickbooks is great for accounting. Super …
Chose FreshBooks
FreshBooks is an invoicing software that wants to do accounting.
Xero is an accounting software that wants to do billing.
Both are pretty solid at their core functionality, and weak on the other. However, it's a shorter step for Xero to add interest and recurring CC billing, so …
Chose FreshBooks
We do not consider other options since our client wants the implementation of this platform in order to use it in the two countries where it has operations. At the moment, full integration was not possible and we still share the information with a Mexican system to complete …
Chose FreshBooks
Harvest was not as flexible interactively. That is, you could not sort columns online. Made it hard to manage invoices.
Xero
Chose Xero
We switched off of FreshBooks to Xero. It is somewhat apples to oranges, in that FreshBooks is not a general ledger nor does it claim to be (at least at the time 2 years ago). Our business grew though and having a general ledger with reconcillation features like Xero was …
Chose Xero
Used FreshBooks when the business was first starting out because they had a free plan. Quickly needed more features, and switched to QBO.

QBO worked well for many years, but they continually increased their fees and the interface got more and more difficult to use. Also, it had …
Chose Xero
Xero is really basic and our team can easily adapt with it rather than using other some other non-user friendly apps. We could focus on the work itself rather than having problems with learning its complexity. Xero is very user-friendly and also gives tutorial which is great! …
Chose Xero
Xero stands out as the industry leader in terms of ease of use, functionality, integration possibilities, usability, and reporting functionality. Having extensive experience with various accounting software as a business owner and mentor, Xero consistently proves to be my top …
Chose Xero
Xero ranks highly among the competitors, however multi-level reporting is better done in QuickBooks. More price sensitive, micro-businesses can find decent cheaper or free alternatives. Those wanting integration with other apps like cashflow management, inventory, reporting …
Chose Xero
Xero has enterprise capabilities but can be used for small businesses. Coming from a large enterprise, I had a certain way of looking at the business that I was used to. Xero met that whereas the other products didn't - they appealed directly to small businesses with a …
Chose Xero
Ignoring pricing, Xero is among the best options available. It has the most complete feature set along with Quickbooks. It is more user-friendly compared to most of its competitors. It has well-designed mobile apps that can actually do something in contrast with most …
Chose Xero
Seamless integration with all accounts, much more user-friendly, I chose Xero because of these 2 factors.
Chose Xero
We really liked Xero because it was incredibly affordable when compared to the other solutions that we evaluated. There are some things that need to be improved but overall it's a really enjoyable online accounting solution. I'm happy with my experience of Xero and I know there …
Chose Xero
Xero hits our "maximum point" on the curves of simplicity, usability, and feature set. In my opinion it is by far the best in class, and the only reason it hasn't taken over Quickbooks entirely is that industry-standard products, no matter how inferior, are difficult to …
Chose Xero
Previously exclusively a desktop QuickBooks "shop". Hate the version control issues and need to collect and transfer data files to get source documents. Auto bank downloads clunky and not as intuitive as Xero bank recon features. Few clients use FreshBooks - nice customer …
Chose Xero
Xero is the best. Xero thinks about the accountants and supports that role very well. Xero "makes sense" to average business owners and also is very powerful tool for the accountants. They have built the product right and keep improving it with every release they do. We picked …
Chose Xero
QBO - UI/UX and integrations are far superior. The only area where QBO is currently ahead is job costing

Freshbooks - we recommend for some pre-revenue and solopreneur clients only. Xero provides a full-featured solution
Chose Xero
Four years ago, Xero was the market leader. I had written an article on cloud accounting and compared all of the offerings. I had concerns as Xero was from New Zealand and preferred to use a UK company. However, Xero had more flexibility via its APIs and was, at that time, …
Chose Xero
Quicken is really old, that's what I used to use and I like it but there is no bank feed support.
QuickBooks is incredibly bloated.
Freshbooks is just for invoicing (we still use it for that).
Chose Xero
Xero was chosen by the client simply because it integrates with FreshBooks. I prefer QuickBooks for its ease of use, but it doesn't integrate with FreshBooks. The bank reconciliation feature of Xero is very similar to QuickBooks which is a benefit. The reporting feature in …
Chose Xero
I have written several reviews comparing Quickbooks/Freshbooks/Xero. In many categories they offer very similar features. What sets them apart and will continue to set them apart in the long run is their approach to the market. Quickbooks has a closed ecosystem approach, while …
Top Pros
Top Cons
Features
FreshBooksXero
Customization
Comparison of Customization features of Product A and Product B
FreshBooks
1.3
32 Ratings
138% below category average
Xero
7.6
124 Ratings
7% above category average
API for custom integration1.327 Ratings7.779 Ratings
Plug-ins1.223 Ratings7.5111 Ratings
Security
Comparison of Security features of Product A and Product B
FreshBooks
6.5
38 Ratings
19% below category average
Xero
8.2
156 Ratings
4% above category average
Single sign-on capability10.01 Ratings7.772 Ratings
Role-based user permissions3.138 Ratings8.7154 Ratings
Reporting & Analytics
Comparison of Reporting & Analytics features of Product A and Product B
FreshBooks
4.5
52 Ratings
51% below category average
Xero
8.0
177 Ratings
5% above category average
Dashboards4.752 Ratings7.8173 Ratings
Standard reports4.150 Ratings8.2176 Ratings
Custom reports4.82 Ratings7.8156 Ratings
General Ledger and Configurable Accounting
Comparison of General Ledger and Configurable Accounting features of Product A and Product B
FreshBooks
4.8
51 Ratings
43% below category average
Xero
7.4
186 Ratings
0% below category average
Accounts payable1.336 Ratings8.7173 Ratings
Accounts receivable2.850 Ratings8.9174 Ratings
Cash management7.03 Ratings8.1158 Ratings
Bank reconciliation7.02 Ratings9.2181 Ratings
Expense management3.346 Ratings7.8165 Ratings
Time tracking4.039 Ratings7.458 Ratings
Multi-currency support7.01 Ratings7.4107 Ratings
Regulations compliance1.318 Ratings8.291 Ratings
Self-service portal9.13 Ratings7.6104 Ratings
Fixed asset management00 Ratings7.6114 Ratings
Multi-division support00 Ratings7.291 Ratings
Electronic tax filing00 Ratings9.091 Ratings
Global Financial Support00 Ratings5.749 Ratings
Primary and Secondary Ledgers00 Ratings7.049 Ratings
Intercompany Accounting00 Ratings6.240 Ratings
Localizations00 Ratings8.039 Ratings
Journals and Reconciliations00 Ratings9.190 Ratings
Enterprise Accounting00 Ratings4.733 Ratings
Configurable Accounting00 Ratings6.159 Ratings
Centralized Rules Framework00 Ratings5.433 Ratings
Standardized Processes00 Ratings6.559 Ratings
Order Management
Comparison of Order Management features of Product A and Product B
FreshBooks
4.0
44 Ratings
59% below category average
Xero
7.0
89 Ratings
5% below category average
Pricing2.534 Ratings6.862 Ratings
Order entry1.434 Ratings7.056 Ratings
Credit card processing2.136 Ratings7.558 Ratings
Cost of goods sold10.01 Ratings7.566 Ratings
Order Orchestration00 Ratings6.621 Ratings
End-to-end order visibility00 Ratings6.524 Ratings
Order exception Resolution00 Ratings6.717 Ratings
Payroll Management
Comparison of Payroll Management features of Product A and Product B
FreshBooks
-
Ratings
Xero
7.8
73 Ratings
4% above category average
Pay calculation00 Ratings7.965 Ratings
Benefit plan administration00 Ratings8.223 Ratings
Direct deposit files00 Ratings8.049 Ratings
Salary revision and increment management00 Ratings7.941 Ratings
Reimbursement management00 Ratings7.354 Ratings
Inventory Management
Comparison of Inventory Management features of Product A and Product B
FreshBooks
-
Ratings
Xero
6.5
85 Ratings
8% below category average
Inventory tracking00 Ratings5.981 Ratings
Automatic reordering00 Ratings7.224 Ratings
Location management00 Ratings7.129 Ratings
Manufacturing module00 Ratings6.316 Ratings
Best Alternatives
FreshBooksXero
Small Businesses
Patriot Software
Patriot Software
Score 9.0 out of 10
Patriot Software
Patriot Software
Score 9.0 out of 10
Medium-sized Companies
Accounting Seed
Accounting Seed
Score 8.3 out of 10
Accounting Seed
Accounting Seed
Score 8.3 out of 10
Enterprises
Oracle Fusion Cloud ERP
Oracle Fusion Cloud ERP
Score 8.2 out of 10
Oracle Fusion Cloud ERP
Oracle Fusion Cloud ERP
Score 8.2 out of 10
All AlternativesView all alternativesView all alternatives
User Ratings
FreshBooksXero
Likelihood to Recommend
1.5
(70 ratings)
8.7
(201 ratings)
Likelihood to Renew
7.6
(18 ratings)
9.9
(32 ratings)
Usability
4.8
(15 ratings)
8.8
(126 ratings)
Availability
10.0
(2 ratings)
9.0
(10 ratings)
Performance
8.0
(1 ratings)
10.0
(8 ratings)
Support Rating
4.7
(11 ratings)
8.8
(36 ratings)
In-Person Training
-
(0 ratings)
9.1
(1 ratings)
Online Training
-
(0 ratings)
10.0
(5 ratings)
Implementation Rating
10.0
(1 ratings)
7.3
(10 ratings)
Configurability
-
(0 ratings)
9.0
(1 ratings)
Ease of integration
-
(0 ratings)
6.4
(86 ratings)
Product Scalability
-
(0 ratings)
10.0
(6 ratings)
Vendor post-sale
-
(0 ratings)
9.0
(2 ratings)
Vendor pre-sale
-
(0 ratings)
10.0
(2 ratings)
User Testimonials
FreshBooksXero
Likelihood to Recommend
FreshBooks
FreshBooks is the perfect tool for businesses who have hundreds of clients and customers whom they invoice regularly. It removes the need to manually send invoices to clients and customers, by streamlining inputted information to create an automated invoicing system which keeps clients and customers up to date with their bills. It is also a great tool for managing expenses, especially for companies with different teams working on varying projects, ensuring these teams do not exceed the budget ceiling.
Read full review
Xero
Xero is one of the easy-to-learn accounting software that anyone could start and settle with! Even a teenager could learn on how to use it. Accountants and Bookkeepers who are new to the industry could give them a good boost on their profile if they have certification and fluency with using Xero. Xero is kind of one of the basic requirement
Read full review
Pros
FreshBooks
  • FreshBooks is pretty intuitive to use. I did have some questions when I first started using the system, but it wasn't a long learning curve.
  • FreshBooks provides more capability than other billing applications such as PaySimple or BlinkSale. FreshBooks does provide an easy invoicing function. It's easy to create invoices that can be sent via email or snail mail to one or more individuals (for example, the decision-maker and the accounting dept). Clients can pay online or send a check and then I note that the payment has been received. If paid by credit card, the system automatically marks the invoice paid. Your business accounts such as bank accounts can be linked to FreshBooks. Then, the system can automatically draw in expenses and will create simple P&L reports, overdue invoices, client history, etc. If you don't have inventory and complex payroll, etc. FreshBooks provides just the right level of capability to make financial tracking simple.
  • FreshBooks integrates with a number of credit card companies. I use Stripe, which has fees similar to Paypal, but much more reliable processing. I can accept all credit cards, including American Express, for a reasonable fee.
Read full review
Xero
  • Their method of moving between screens was very logical and intuitive which is not a "given" attribute among software packages.
  • Finding transactions was relatively easy with just common sense.
  • The use of this software was generally well received in that the accountants did not discredit the software as cheap, poorly organized, or timely to learn. No one at Corporate had a vendetta against using Xero.
  • It does a good job of allowing the users to drill down to the final detail of an account balance - which is fundamental to the accounting department's needs.
Read full review
Cons
FreshBooks
  • I can brand invoices with my business logo, but I might like to change colours of the invoices themselves to match the rest of my business documents. That isn't a major point at all, but it's something that I'd like to see.
  • Freshbooks doesn't remember the categories that similar expenses were previously assigned to. It would be nice if Freshbooks would suggest a category for an already saved vendor, to ensure the consistency of expense reporting.
  • The home page of a Freshbooks account has a great graph display of expenses and income, but it only shows the last 6 months. This is still very useful, but I'd like to be able to see this kind of graph for different periods of time.
Read full review
Xero
  • We also use XPM for our CRM. When creating tasks in XPM, it would be helpful if the entire chart of accounts was an option in the Income Account drop-down box. Sometimes, tasks or costs need to be coded back to an expense or COG's account.
  • When editing an invoice in Xero, that change is not reflected in XPM. Since I am the only employee privy to the Xero side, other employees only accessing XPM cannot see the change unless I make a note.
  • When setting up third-party payment apps such as Stripe. Xero would not allow me to code transaction fees back to an expense or COGS account. Each morning, I must go in and find and recode these fees.
Read full review
Likelihood to Renew
FreshBooks
At the current needs of our business, FreshBooks suits us perfectly - it allows online access by our accountant to the system for GST purposes, easy input of expenses and tracking of Profit and Loss statements. FreshBooks customer service is great as well - very understanding and accommodating.
Read full review
Xero
In addition to the matters covered in this review, my reason for renewing this product is that Xero's functionality and the constant updates that the company provides, makes the software even more business friendly. The software therefore builds a brand loyalty among customers.
Read full review
Usability
FreshBooks
FreshBooks is very easy to use even for novices. If you're looking for an online accounting software that is full of features, has great aesthetics and is user-friendly, then this is definitely the software for you. I've been using it for several years now and despite being tempted to switch by other vendors, I like the feel of FreshBooks and it's mobile features.
Read full review
Xero
I rate Xero 10/10 for overall usability because it's incredibly user-friendly and easy to understand. Its seamless functionality ensures a smooth experience, and the fact that it operates online makes it accessible anytime, anywhere. In my opinion, it stands out as the favorite program in the industry.
Read full review
Reliability and Availability
FreshBooks
FreshBooks is easy to use and always works!
Read full review
Xero
We have been actively using and 100% Xero based for our ecommerce accounting practice for over 4 years. There has on been one real outage for more than 5 minutes. Xero was open and transparent about the outage, what they were doing to resolve the issue, and provided 15 minute updates. Showing how they care about their customers and partners. Plus, showing that their customers care too, were understanding, and went surfing or in our case took a nap. Couldn't run our business without Xero as a partner.
Read full review
Performance
FreshBooks
No answers on this topic
Xero
Pages generally load quickly, but it's a fairly common occurrence to have pages taking a bit longer than I'd like to load (as in, 4+ seconds). Occasionally I have to refresh a page to get it to work. Bank feed and integrations tend to be slow in general, but that could easily be due to API latency on the side of the other parties. Most of the time, though, the bank feeds refresh before I login so it's not a huge problem. Not necessarily good performance compared to a local app like QuickBooks desktop, but definitely good performance for a cloud application. Room for growth? yes.
Read full review
Support Rating
FreshBooks
I think the support level for FreshBooks is on par with a 6 because the folks behind this application do a fairly good job at providing support for their customer base. I still don't think they are at an elite level when it comes to supporting but are getting there although too slow in my opinion.
Read full review
Xero
Always respond and keep issues open until you are satisfied with the result. Generally good responses, in the past, I had some support responses that were really basic and really annoying. They type where "have your tried restarting your computer" style of answers. Well, of course, I went through all the basics before contacting them. Duh, but I suppose not everyone does. Otherwise, it would be a 10. The last year has shown a marked improvement in the support responses however.
Read full review
In-Person Training
FreshBooks
No answers on this topic
Xero
The format was great; someone was there to ask questions or help if you were stuck.
Read full review
Online Training
FreshBooks
No answers on this topic
Xero
All of Xero's training is online and available for anyone (business owner or accountants) to learn and become experts in their system. There is a range of content from product training to real world webinars from their partners. Xero is beautiful accounting software and their training is the same.
Read full review
Implementation Rating
FreshBooks
I haven't changed my mind since my first evaluation. Freshbooks is still meeting my needs, easy to use, etc.
Read full review
Xero
If it can be done, time the implementation near a new fiscal year so you can start clean. Otherwise, you have to go back and do historical data from the beginning of the fiscal year, which can be brain draining.
Read full review
Alternatives Considered
FreshBooks
We do not consider other options since our client wants the implementation of this platform in order to use it in the two countries where it has operations.

At the moment, full integration was not possible and we still share the information with a Mexican system to complete everything necessary.
Read full review
Xero
I've used a lot of different accounting systems. Many of them so big and powerful, but a hassle to get set up. Xero is light, inexpensive, and easy to use. When I originally selected them they seemed like they were developing new features at a quick rate as well. I was invited to be part of focus sessions to make the product better. That part has slowed down significantly though.
Read full review
Scalability
FreshBooks
No answers on this topic
Xero
I have yet to fully stress test the product given the size of the company where I am using it. I am sure as we scale to more customers, more vendors and more reporting requirements, I will have a better understanding of what it is capable of in terms of bandwidth and processing
Read full review
Return on Investment
FreshBooks
  • Freshbooks saves me time compared to when I managed to invoice without an app.
  • Freshbooks make keeping my invoices organized which saves me time.
  • Freshbooks helps me to know who is late on payments. When I was doing this by hand, some invoices would get lost in the clutter and I would not find out I haven't been paid until much later.
Read full review
Xero
  • Cafeful attention to the P&L has resulted in improved margins across all my skus thanks to Xero
  • Input errors into xero by bookkeepers has caused incorrect payments which took time and money to resolve
  • Payroll administration has significantly reduced as xero makes this process easy
Read full review
ScreenShots

FreshBooks Screenshots

Screenshot of DashboardScreenshot of Invoice OverviewScreenshot of Beautiful, Customizable InvoicesScreenshot of Invoice seamlessly across devicesScreenshot of ExpensesScreenshot of Time Tracking

Xero Screenshots

Screenshot of Screenshot of Screenshot of Screenshot of Screenshot of Screenshot of