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The lack of attention FreshBooks gives to reports is puzzling, given its otherwise robust options. FreshBooks lost the round for the same reason in our FreshBooks vs. Wave article. In FreshBooks, the “make recurring” option appears on every bill you input. FreshBooks lets you pick between adding a logo and changing the color or font, but you only get two templates to choose from otherwise. While there are boxes to add notes they don’t show when the invoice is printed or emailed. There also isn’t a place to add terms, such as 1 percent, net 30.

For American Express transactions, the fee is 3.5 percent plus 30 cents per transaction. This rate is also the fee for all card payments made via the FreshBooks Advanced Payments add-on. Although FreshBooks’ per-month subscription prices are lower, the per-user add-on fee only makes FreshBooks less expensive than Xero tax experts for very small teams. Plus, Xero offers a competitive feature set at every price point, making its value per dollar you spend better than with FreshBooks. In our research, Gusto ranks among the best payroll services in the industry. Read our in-depth Gusto payroll review to learn about its features and pricing.

Xero has more (and better) accounting features for established businesses

Still, it’s an extra step you’ll avoid with most other accounting tools. Unfortunately, both Xero and FreshBooks offer pretty stringent client limits. So, if you collaborate with a high number of customers, Sage’s generous limits will be better for you.

NerdWallet’s accounting software ratings favor products that are easy to use, have a robust feature set and can grow with your business. Ratings are based on weighted averages of scores in several categories, including scope of features and integrations, customer support and cost, among others. Learn more about how we rate small-business accounting software. Xero is an accounting powerhouse that can handle anything from freelancers to big-shot enterprises. With features like invoicing, payroll, and inventory management, it’s got all the bells and whistles. Meanwhile, FreshBooks is perfect for freelancers and small businesses that want simplicity without sacrificing functionality.

  • Automatic Recurring Invoices in FreshBooks combined with Recurring Payments makes it simple for clients to pay and for you to accept payments for products or services rendered—hands-free.
  • Xero is cheaper when comparing the two base plans, but it quickly becomes more expensive in higher tiers.
  • The quality you get for the amount you spend is the essence of bang for your buck.
  • After researching each product extensively, we awarded each piece of software a five-star ranking for each category.
  • With plans starting at $15 a month, FreshBooks is well-suited for freelancers, solopreneurs, and small-business owners alike.

Essential features are available in all FreshBooks plans, like invoicing, time tracking, expense tracking, online payments, and reporting. When it comes to features, Xero trumps FreshBooks and Sage — offering the most https://capitalprof.team/ varied toolkit of any other accounting software we’ve researched. In fact, FreshBooks will be a better choice for retail and hospitality businesses due to its top-tier stock management toolkit and ecommerce add-ons.

Create Xero invoices for new Stripe payments

FreshBooks provides you with an intuitive and insightful dashboard where you can conveniently access important reports like Profit & Loss, sales tax summary, expenses, and more. This makes tax time easy as you have all the numbers in one place. It is fast, secure, and has no hidden fees, similar to Stripe and PayPal. You can post-checkout links on your website, social, or anywhere else online to allow customers to click and pay easily with their credit card. FreshBooks Payments lets your clients pay directly through invoices and automatically records each payment in your account. It’s difficult to choose between FreshBooks and Xero because where one is weak the other is strong.

Xero: Overview and Features

With a value score of 3.5/5 and a comparatively steeper starting price of $12 per month, Xero’s value offering is slightly less attractive than Sage. FreshBooks includes unlimited time and mileage tracking with all plans. You can automatically track time using the mobile app, a browser extension or third-party apps like Trello and Asana. In addition, you can bill for tracked hours, track and manage time for a specific project and allow your employees to track their time (if you’re using the team members add-on). Compared side by side, Xero is clearly the winner when it comes to features. The basic features for small businesses centralize accounting operations in one place.

If you want super user-friendly software that accountants and bookkeepers use daily all over the world, QuickBooks Online is definitely a solid choice. But if you’re looking for more affordable software that still offers comprehensive features and better customer service, FreshBooks and Xero could suit too. Expense tracking is fundamental to small-business accounting. 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.


Read our QuickBooks review to learn why this platform is our pick for the best small business accounting software. Offer clients multiple payment options and send automated reminders to get paid twice as fast. Accept online payments via credit card, debit card, Stripe, PayPal and checkout links.

So if you’re selling products outside of the United States, FreshBooks or Zoho (which do have multicurrency support) will make your life a little easier. Well, FreshBooks’ fantastic invoicing capabilities make it one of https://lamdatrade.pro/ our favorite accounting software for service-based freelancers. If you frequently collaborate on finances with your business’s co-owners, Xero saves you more money than just about any other accounting service provider.

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. With FreshBooks, you get simplified and automated accounting, invoicing, project management, and more. Plus, with industry-leading customer support, you’ll never struggle alone. Xero’s app includes the basics, like sending invoices and assigning expenses, but its capabilities are a bit limited.

FreshBooks is an accounting software solution built exclusively for small business owners. Their product assists with everything from invoicing to expense tracking to creating project estimates. Their platform has a simple, easy-to-use layout that would work well for both novice and experienced accountants.