As a client, receiving a FreshBooks invoice with line items for subscription-based products or services, it’s easy to pay. All you have to do is save your credit card, banking or other payment details online in the FreshBooks application so you’re automatically billed each time an invoice comes due. Imagine doing this without invoicing software—dealing with paper invoices and receipts and having to keep track of phone and address records separately. Xero also allows companies to be paid via invoice and it can also help businesses receive payments in time by automatically debiting customers’ bank accounts whenever invoices are due.
- Often a tedious process, bank reconciliation becomes a breeze with Xero’s suggested matches.
- 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.
- Unlike both FreshBooks and QuickBooks Online (and, frankly, nearly every other accounting tool), Xero includes inventory management with each plan.
- In addition to its more robust reports, Xero proves itself to be the better fit for established and growing organizations with its bank reconciliation feature.
With FreshBooks, users can embed checkouts in websites, social media and apps. The Advanced Payments feature also allows companies to accept credit card payments in person and over the phone. If you want to add multiple users to your accounting software, Xero is likely a better choice than FreshBooks because it accommodates unlimited users in all plans.
Suppose you have any questions with regard to cash flow, bookkeeping, expense tracking, and other accounting features provided by Xero. 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. Customer support is essential for the user experience of business owners and freelancers alike. Both Xero and FreshBooks have various customer support options; let’s look at both options. Starting at just $13 a month, Xero’s basic plan is one of the most affordable out there.
Best Accounting and Bookkeeping Apps for Small Businesses
FreshBooks claims 5 million users, which probably divides down to a similar size customer base as Xero. Check out our growing YouTube channel where we go deeper into the digital tools and share more of our personal experiences growing our businesses. With the Standard and Premium package, you can also create customizable purchase orders, payroll direct deposits and checks, and there is a federal and state e-file and e-pay option. As you can see, both FreshBooks and Xero are great choices for small businesses looking to streamline their accounting processes.
It’s expected that accountants have recommendations when choosing your cloud accounting tool. Accountants feel comfortable with Xero because it’s built for them. Business owners, on the other hand, might not have the in-depth accounting knowledge needed to make Xero work for them. When choosing software vendors you need to prioritize the one that fits your business needs. Xero lacks tax tools for business users but operates a powerful tax platform for accountants. This combination of factors makes it worth hiring a certified public accountant if your business uses Xero as its accounting software.
FreshBooks and Xero offer easy-to-use software to send invoices, maintain your business’s books, and perform other accounting functions. Both feature mobile apps and sync with a variety of third-party business applications. There are also some crucial differences, but the best choice depends on your business’s individual needs. Meanwhile, users who left Xero reviews said that the software is easy to set up and use, adding that it has a simple and clean user interface along with intuitive features. Some also praised its fixed assets manager and project accounting capabilities. However, its inability to reconcile transactions without bank feeds and its lack of live phone and chat support are its biggest drawbacks.
FreshBooks vs Xero features & functionality
ET from Monday to Friday; offers email support, but not live chat support with a human. That said, Xero makes up for its user-friendliness shortcomings through tutorial videos and a demo company feature. In Xero, you can view the platform as a demo company with pre-recorded data, which makes it far easier to see how the platform will look and operate when you input your own business’s data. There’s a reason FreshBooks made it on Zapier’s list of the best self-employed accounting software, while Xero made it on the list of the best accounting software for bigger businesses. You are charged an additional month beyond your cancelation date.
As a more robust solution, Xero is a better choice for whole-business financial management or independent accounting. In some ways, an accounting solution’s utility depends on how well it can exchange data with other back-end systems. Cloud accounting software takes away the burden of accounting for your business, which is fantastic news to creative folk like me, so owners can focus more on making money than accounting for it. Nevertheless, both are similarly priced and have three different plans to choose from. Both are user-friendly and may work well for your business — and the answer to FreshBooks vs Xero really comes down to what you’re looking for. Now that you have a clear idea of what features both tools offer and their pricing structure, let’s take a look at the pros and cons of each.
FreshBooks vs Xero online versions
Additionally, canceling your account incurs no fees if you do so at least 30 days in advance. While there’s some considerable overlap in functionality, Xero and FreshBooks are two very different products. FreshBooks is a great choice for small teams or sole proprietorships that need to simplify client billing.
I started The Digital Merchant to test the tools, services, and products I use in my digital business. Now, I’m here with other online business owners buying, testing, and evaluating the best digital tools, services, and software https://www.kelleysbookkeeping.com/ we can find – for every stage of the business. This cloud-based accounting solution is popular with contracting, legal, consulting, personal services, and creative agencies in large part because of its time-tracking feature.
FreshBooks’ 5 Best Features:
Like FreshBooks, it offers debit and credit card payments, bank-to-bank payments and Apple Pay or Google Pay via Stripe. While FreshBooks’ security is based solely on the Payment Card Industry Security Standards, Xero adds an additional layer of security to its online invoices and payments system. 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. As two of QuickBooks Online’s biggest competitors in the small-business accounting software space, Xero and FreshBooks each have their own strengths.
Choosing the Best Accounting Solution for Your Needs
Xero has some of the worst customer service we have ever experienced, particularly for a company of their size. Combine this with terrible user experience in some parts of the app, unintuitive subscription models, and bad resources https://www.quick-bookkeeping.net/ online, and it takes about 20x longer than it should to get anything done. The entire premise of Xero is cloud-based accounting, but it feels like traveling back in time 25 years when trying to get anything done with them.
Dive into these ready-to-use workflows and give your business the boost it deserves. If you’re running a small business with simple finances, you might be able to handle it https://www.online-accounting.net/ all on your own with Xero. But if you have intricate transactions or can’t tell a balance sheet from a grocery list, it’s probably time to call in the bookkeeping cavalry.
