Xero is an accounting software best suited to small businesses looking for high-level accounting systems. FreshBooks is better geared toward freelancers and very small businesses that need to send a lot of invoices to clients. Though they have different functionalities, both made our list of the best accounting software. While FreshBooks has a live chat option for sales inquiries, you have to send an email or request a phone call for customer support. ET, so if you’re having a late-night issue trying to sort out an invoice, you’ll have to wait until understanding the balance sheet morning for in-person help. Since FreshBooks is mainly software for freelancers who often don’t follow traditional working schedules, this could be a drawback, especially if you’re working in a remote time zone.
How QuickBooks Online can help your business differently
Deciding to invest in bookkeeping software for your small business is already tough enough. Add choosing the right bookkeeping software for your business to the mix, and you can quickly become overwhelmed, especially with the countless choices available. Jeff is a writer, founder, and small business expert that focuses on educating founders on the ins and outs of running their business. Everything starts from the dashboards of FreshBooks and QuickBooks.
- Track mileage, send invoices and get a snapshot of your business cash flow with both Xero and QuickBooks.
- You can reach support by raising a case (similar to filing an IT ticket) on the Xero website.
- FreshBooks offers mobile access with iOS (iPhone Mobile) and Android Mobile apps that let you painlessly invoice your clients and track expenses wherever and whenever you need to.
- Number of users aside, Xero is a better fit for small businesses with multiple employees, whereas FreshBooks is more ideal for freelancers and independent contractors.
- A Live Bookkeeper cannot begin cleaning up your past books until they receive the required supporting documentation, which your bookkeeper will request from you after your first meeting.
Alternative Accounting Software Options
QuickBooks has more inventory management and budgeting tools than FreshBooks. QuickBooks also has a more intuitive interface than Xero as well as a desktop version. Both services let you track time for a project, meaning you’ll know exactly how long a certain job takes. However, FreshBooks seems to have more in-depth client features, as it lets you store their contact info, communications and any internal notes you might have about them. It does have the option to input your inventory as invoicing items, but this is clunky and not as intuitive as Xero’s inventory process.
Explore additional comparisons
If a bank statement line meets the set of criteria you specified, Xero will suggest creating a matching transaction for you. Additionally, Xero’s customizable dashboard and global search function make the software easy to navigate. If you can’t justify the $99-per-month QuickBooks Online Plus plan, you won’t get inventory management, because QuickBooks Online’s lower-tier plans don’t come with it. This could be a real shortcoming for small online retail businesses, for instance, that need to keep track of their products and the materials used to make them. All of Xero’s plans come with inventory management so business owners can track what’s in stock and which products are selling.
Xero doesn’t have a phone number customers can call, but it can provide a callback if necessary. These ratings are meant to provide clarity in the decision-making process, but what’s best for your business development, fundraising, and marketing will depend on its size, growth trajectory and which features you need most. We encourage you to research and compare multiple accounting software products before choosing one. Its intuitive interface and helpful guides make it easy to navigate, even if you have no prior accounting knowledge.
Xero is also gearing up to launch Just Ask Xero (JAX), a generative AI assistant designed to help businesses complete accounting tasks like creating invoices or paying bills. While details on pricing and a hard launch date are still under wraps, JAX promises to reduce admin time by giving users a more intuitive, hands-free way to manage their finances. Xero also offers Analytics Plus, available on the Established plan, to analyze your cash flow. This feature uses AI to predict future recurring transactions up to 90 days in advance based on patterns from the last three months. Xero’s app includes the basics, like sending invoices and assigning expenses, but its capabilities are a bit limited.
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. The best accounting software received top reasons companies have subsidiaries marks when evaluated across 10 categories and more than 30 subcategories. QuickBooks is a popular accounting software used by small businesses, solopreneurs and freelancers.
Xero Established is a comprehensive plan for businesses managing multiple projects and tracking in-depth financials. It includes everything in Growing, plus multi-currency accounting, project costing and tracking, expense claims, and in-depth analytics. FreshBooks is one such option that has gained popularity in recent years. It’s designed specifically for small businesses and offers invoicing, time tracking and expense management. If you’re in the market for accounting software, you might be feeling overwhelmed by all the options out there. While Xero and QuickBooks are wildly popular, they’re not the only options available.
When it comes to accounting software, QuickBooks is the clear winner. It offers a wide range of features that can help small businesses keep track of their finances. From tracking income and expenses to creating invoices and paying bills, QuickBooks has everything you need to manage your books. FreshBooks is very easy to set up, and you can be up and running within minutes. You also don’t need to be an accounting expert to use it, and it integrates seamlessly with most banks in order to import your transactions.