Intuitive, customizable invoicing capabilities compete with those of more robust accounting solutions. Saved payment information can always be removed if you want to opt-out of Recurring Payments at any time. One thing about Xero – when you have a question their first response is to tell you to have your accountant look at it. I was using this software as a replacement for an accountant, in order to save money, so that advice didn’t help much. Our simple yet robust interface has a very short learning curve, so you and your team can hit the ground running. Plus, with automations that reduce your workload, you’ll be saving time in no time.

What Sets FreshBooks Apart

Meanwhile, Xero offers certification programs for bookkeepers and CPAs. You can hire independent Xero Advisors or integrate with Bookkeeper360 to get bookkeeping assistance. Another minor drawback with Xero would be the inability to enter the ending balance of the checking account in the bank statement. For expediency, we’d prefer just to enter the bank statement balance and reconcile directly. Instead, Xero requires users to upload a bank statement before reconciliation. Entry-level plan limits bills and invoices to five and 20 per month, respectively.

Third-party Integrations

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. Service or project-based businesses should choose accounting software that can track project costs, revenues, and profits.

From Xero to Hero: 95% Of Small Businesses Say FreshBooks Is Easier to Use

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1. One thing about Xero – when you have a question their first response is to tell you to have your accountant look at it.
2. 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.
3. We believe that it is easier to use and more intuitive than Xero, especially for freelancers and users with limited accounting knowledge.
4. For this section, we considered customer service, support network, and a subjective expert opinion score.
5. 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.

For one thing, it’s hard to maintain balanced books if you aren’t tracking expenses alongside income. For another, many small-business owners rely on end-of-year tax write-offs to finance major purchases or keep their business in the black for another year. When it comes to inventory management, Xero is also the name to beat for larger companies with lots of products and customers.

Xero isn’t simply more affordable than either FreshBooks or QuickBooks Online. It also has more comprehensive accounting features—though there are a few notable exceptions. No, it isn’t possible to reconcile bank statements manually in FreshBooks because it doesn’t allow you to upload files of transactions unless you connect your bank account. In evaluating pricing, we considered the billing cycle (monthly or annual) and number of users.

However, due to its limited feature set and lack of audit trails and third-party integrations, it’s not ideal for small businesses that have the potential to grow. All FreshBooks plans, except for the highest-tier custom plan, come with one user. FreshBooks gives you six user roles to choose from, plus client access and project manager customization options. Project tracking tools in higher-tier plans; lacks industry-specific reports and transaction tracking tags; users with multiple businesses must pay for separate subscriptions. Can support freelancers, contractors and small businesses with a handful of employees; highest-tier plan includes two users (additional users research and development randd expenses definition can be added for a fee).