Freshbooks vs. Quickbooks vs. Xero is one of the most common debates within the accounting software space as each program has its upsides and downsides.
In this article we will be comparing the three most popular accounting software programs to help you figure out which is best for your situation.
Freshbooks is best for freelancers and small businesses as it simple to use but lacks some functionality and features needed to run a larger enterprise.
Quickbooks is the most popular bookkeeping and accounting software on the market today.
Quickbooks is great for small, medium, and large businesses as the software features a multitude of features and integrations to handle the accounting workflows of larger organizations.
Xero is a newer player to the accounting software game compared to the other options on this list, however this program is purpose built for modern business and has a short learning curve in relation to the amount of powerful features that are available to businesses owners with this software.
Freshbooks, Quickbooks, and Xero all boast the normal accounting features needed to run your business, however the differences between their features and usability can have a large impact on how well they support your business.
In this Freshbooks vs. Quickbooks vs. Xero guide, we will be comparing these three different bookkeeping software programs based on four categories:
Freshbooks is incredibly easy to use and set up, which makes it perfect for the new businesses owner or freelancer looking to get started quickly and easily.
Freshbooks also has a suite of fantastic tutorials and videos that make the set-up process absolutely seamless, even for someone just starting out in business.
Quickbooks has many more features and can support much larger businesses compared to Freshbooks, however this does come at the cost of simplicity and ease of use.
Quickbooks is not the most complex accounting software option available right now, but it definitely isn't the most simple either.
Since Quickbooks has a lot more features and functionality compared to other software, there is slightly more of a learning curve for new users.
Much like Quickbooks, Xero also has the features to support larger companies and is not as simple or easy to use as Freshbooks.
Xero is almost like the modern version of Quickbooks, where you have much of the same functionality but with a better user interface and more streamlined usability.
Freshbooks is wonderful when it comes to sending invoices and getting paid.
The invoicing feature is straightforward and can very easily be used and understood by someone that has never touched invoicing software before.
There are plenty of customization options for your invoices as well that allow you to add a personalized touch to your business.
Furthermore, Freshbooks also allows you to easily accept payments through credit cards, e-checks, and bank transfers.
Quickbooks also offers a simple way to send invoices and receive payment, however this accounting software allows for much more customization compared to Freshbooks.
Another added benefit of Quickbooks is the ability to accept payments on the go using the mobile card reader from Quickbooks. However, in order to access mobile payments you will need to sign up for Quickbooks' GoPayment plan.
Xero makes it quick and easy to send invoices with it's simple web-based interface.
Some new users may find the customization options a bit overwhelming but once you get used to using Xero, sending invoices and receiving payments will become a breeze.
Xero also includes a plethora of payment options including online payments, credit cards, and direct debit payments.
Fresbooks offers simple, easy reporting for freelancers, independent contractors, and small businesses that are just looking for the basics in financial reporting.
Although Freshbooks reporting is not as comprehensive as that of Quickbooks and Xero, the software makes up for it with reports that are much easier to use and interpret.
The five basic reports offered by Freshbooks include outstanding revenue, revenue streams, spending, total profit, and unbilled time.
You can customize these reports slightly to show data for a specific period, as well as download these reports as PDF or Excel files.
Quickbooks is a behemoth when it comes to reporting with over 75 built-in reports that can immediately be used to keep your finances organized right out of the box.
Although this amount of customization within reporting can be overwhelming to some, it is a standout feature for many advanced users that need to stay on top of very specific financial data points within their business.
Xero doesn't offer quite as much customization within financial reports as Quickbooks, but still provides a great detailed breakdown of common reports that most businesses rely on, such as the income statement and balance sheet.
Freshbooks has three main pricing options that are based on the amount of billable clients under management and a "custom pricing" option for larger organizations.
The three pricing plans are:
Quickbooks has five pricing options based mainly on the amount of users that can access your account.
The five pricing plans for Quickbooks are:
Xero offers three different pricing plans that are based on the amount of invoices you can send as well as the suite of features included such as using multiple currencies ('Established' plan) and reconciling build transactions ('Growing' plan).
The three pricing options include:
So, when it comes to Freshbooks vs. Quickbooks vs. Xero, which is the best option for you?
If you are a freelancer or small business owner just getting started in the world of business, most might advise you to choose Freshbooks as it is simple and straightforward to use.
The drawback to Freshbooks' simplicity, however, is the lack of customization and other features that are included with Quickbooks and Xero.
If you are run a growing business that will eventually need more robust features, many would advise choosing Xero as it has most of the features included with Quickbooks but without the complexity and with a smoother, more modern user interface.
If you are in charge of a larger organization that depends on highly-detailed financial reporting, Quickbooks is most likely your best option due to its deep customization and multitude of included features.
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