Xero is a better option for businesses that need to track project profitability. This is because Xero allows you to see how much each project is costing you in real time and compare that to your estimated profits. Xero is also a better option for businesses that are expanding internationally as it offers multicurrency support.

Xero also has robust file storage that lets you manage and share documents, bills, contracts and receipts on the cloud. Speaking of the cloud, both software earned a spot on our best cloud accounting software list. QuickBooks is the leading accounting software for small businesses, designed to simplify financial management and empower growth. From automating payments to managing payroll, QuickBooks offers a scalable solution that can adapt to your business needs. Xero and QuickBooks are two the of most popular accounting software solutions for small businesses looking to keep track of finances. While the two both offer similar features, such as tax management, financial reports, integrated payroll, inventory and file storage, the two are not without their differences.

Xero also has inventory management, but it’s not one of its core functions. When it comes to inventory management, Xero is also the name to beat for larger companies with lots of products and customers. Apart from FreshBooks’ user-friendliness for those who aren’t accounting experts, it also appeals to freelancers through its time tracking and client management tools. All plans offer unlimited time tracking and allow you to bill clients for the time you track. And if you need a hand, our phone support with a live rep extends to both you and your accountant, with no additional fees.

1. In contrast, all Xero plans offer unlimited users and its highest-tier Established plan is a more affordable $78 per month.
2. We encourage you to research and compare multiple accounting software products before choosing one.
3. 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.
4. Xero offers accounts payable features with all plans — although you can enter only five bills per month with the Early plan.

FreshBooks vs Xero: Accounting Software Comparison

Create professional custom invoices with your logo that you can send from any device. Katherine Haan is a small business owner with nearly two decades of experience helping other business owners increase their incomes.

Accounting

You can also browse the Xero App Store to connect to over 1,000 third-party apps. These are separated by function and industry to make it easier to search. Popular categories include payroll, inventory, time tracking, payments and CRM. 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.

Easy-to-Use Accounting & Bookkeeping Features

FreshBooks cloud based accounting software is built for non-accountants running small and medium sized businesses – making it easy to create invoices and get paid. And you can always give your accountant immediate access to FreshBooks to get support during tax season and key financial decisions. You don’t have time to spend figuring out how to use complicated accounting software. With FreshBooks, you’ll confidently create invoices, input expenses, and do your bookkeeping in half the time. And with the best customer support in the industry, it’s easy to see why Xero customers switched to FreshBooks. Xero offers more than 80 reports, including standard financial reports, and lets you add tracking categories to monitor performance in different areas of your business.

If you didn’t receive an email don’t forgot to check your spam folder, otherwise contact support. Both vendors offer reporting, analytics and data visualization to meet the demands of companies that wish standardized earnings surprise to become data-driven. As previously mentioned, FreshBooks treats bills as if they were an expense.

When it comes to making payments easy for you and your clients and comparing FreshBooks vs Xero it’s easy to see why people choose FreshBooks. The total price for a Yearly plan is billed at the time of purchase. It includes both the monthly discount outlined above, as well as an additional 10% discount for selecting a yearly plan. Just keep in mind that unlike the inventory feature in QuickBooks Online’s higher-tier plans, Xero doesn’t let users set up reorder points that flag when stock is running low. You can do a lot with QuickBooks Online, but all the options may feel like information overload starting out.

Invoicing

QuickBooks’ user-friendly interface makes navigating your finances a breeze, even if you’re not an accounting expert. The layout and simple design ensure that you can find what you need quickly and efficiently. QuickBooks also offers Payroll, but this service is an additional fee starting at $45 to $125 per month. Zapier is the leader in workflow automation—integrating with thousands of apps from partners like Google, Salesforce, and Microsoft.