xero vs freshbooks: Which Is Better? [Comparison]
Xero is a cloud-based accounting software designed for small to medium-sized businesses. Its primary purpose is to streamline financial management through features like invoicing, expense tracking, and reporting.
Quick Comparison
| Feature | xero | freshbooks |
|---|---|---|
| Pricing | Starts at $13/month | Starts at $15/month |
| Invoicing | Customizable invoices | Simple invoicing |
| Expense Tracking | Yes | Yes |
| Time Tracking | Yes | Yes |
| Integrations | 800+ integrations | 200+ integrations |
| Multi-Currency Support | Yes | No |
| User Limit | Unlimited users | Limited to plan |
What is xero?
Xero is a cloud-based accounting software designed for small to medium-sized businesses. Its primary purpose is to streamline financial management through features like invoicing, expense tracking, and reporting.
What is freshbooks?
FreshBooks is a cloud-based invoicing and accounting software aimed primarily at freelancers and small businesses. Its primary purpose is to simplify billing and financial tracking with user-friendly tools.
Key Differences
- User Interface: Xero offers a more complex interface suitable for comprehensive accounting needs, while FreshBooks focuses on simplicity and ease of use.
- Multi-Currency Support: Xero supports transactions in multiple currencies, whereas FreshBooks does not.
- Integrations: Xero has a wider range of integrations with over 800 apps compared to FreshBooks' 200+.
- Target Audience: Xero is suitable for businesses with more extensive accounting needs, while FreshBooks is tailored for freelancers and small service-based businesses.
- Pricing Structure: Xero's pricing is based on features and user count, while FreshBooks has tiered pricing based on the number of billable clients.
Which Should You Choose?
- Choose Xero if you need advanced accounting features, multi-currency support, or have a larger team that requires unlimited users.
- Choose FreshBooks if you are a freelancer or small business focused on invoicing, prefer a simpler interface, or need basic expense tracking.
Frequently Asked Questions
Is Xero suitable for large businesses?
Yes, Xero can accommodate larger businesses due to its advanced features and unlimited user access.
Can FreshBooks handle multiple currencies?
No, FreshBooks does not support multi-currency transactions.
Does Xero offer a free trial?
Yes, Xero offers a free trial period for new users to explore its features.
Is FreshBooks easy to use for beginners?
Yes, FreshBooks is designed with a user-friendly interface, making it accessible for beginners.
Conclusion
Xero and FreshBooks serve different purposes and target audiences. Xero is more comprehensive for businesses with complex accounting needs, while FreshBooks is simpler and ideal for freelancers and small service providers. Consider your specific requirements when choosing between the two.