FreshBooks vs Xero is a much discussed topic and common face-offs in cloud accounting software. Both FreshBook and Xero are similar when it comes to functionality, user experience and price. Moreover, both of them cater to the small business niche. As a small business owner, deciding whether to use FreshBooks or Xero can be quite confusing. Here, we list down the features of both the software and help choose the right one for your business.
FreshBooks Vs Xero: Main Features
FreshBooks is based in a virtual environment and is a cloud-based accounting solution that can be accessed from any place where there is Wi-Fi connection available. Hence, you can get to it either through laptop, mobile phone, digital tablet, or other ways. Apart from billing, expenditure management and invoicing, FreshBooks also offers team timesheets and time tracking. It is also possible for users to track time right from the scratch in case of work after hours or outside of the office.
Xero on the other hand is web-based accounting software for small business, bookkeepers and accountants. You will require a web-enabled device to access this software. It is also possible to download Xero’s free applications for BlackBerry, iOS, Android, and a lot more. When it comes to business, Xero offers clients an easy and centralized dashboard where they can view real-time financial information and see costs and payments charts and graphs. Creating, reports, tracking invoiced and accounts are some of Xero’s other features.
FreshBooks Vs Xero: Installation Evaluation
Both these software are easy to set up and requires no extra installation fee. There is no need to sign any contract either. Moreover, both FreshBooks and Xero offer a free trial period to help you assess if this is the accounting software that you want for your business.
In case of FreshBooks, you are shown a how-to video as soon as you sign in for the first time that explains in detail how to create an invoice. They also offer several explanatory videos and webinars to help serve you better.
FreshBooks Vs Xero: Cost
Even though both offer a trial period, you will be required to make monthly payment since they are subscription-based. The features you get will otherwise be limited as you can manage not more than three accounts.
Why Choose Xero?
1) Provides same features as FreshBooks is offered at a lower cost on Xero
2) Enables you to set up unlimited number of customers while FreshBooks enables a maximum of 50 customers
3) Help manage bills
4) Payroll processing for up to 5 employees
5) Enables you to give easy access to your data to unlimited number of users at no extra cost. FreshBooks comes with one user only. You would need to pay $10 per user each month if you want to add extra users
6) Xero comes with 3 financial statements – Profit and Loss (Income) statement, Cash Flow Statement, and Balance Sheet
Why Choose FreshBooks?
1) Enables the management of multiple businesses with a single sign on unlike Xero that allows you to handle one only business per account.
2) FreshBooks is a good time tracking tool that enables you to handle the time of big and small teams
3) You are allowed to manage multiple business under one account even though there might be additional fee for that feature
Xero Vs FreshBooks – Which One is Better?
FreshBooks and Xero are a lot alike in many ways. Both are easy to use tools and introduce novices to the software with very little effort.
However, while Xero tries to extend and offer services beyond the basics, FreshBooks does not make any such effort. FreshBooks covers only the essential features and is not at all a full accounting suite unlike what they claim.
The Bottom Line
There are various reliable accounting software available online. Xero is becoming a popular choice for small businesses. So, when it comes to a faceoff between FreshBooks vs Xero, Xero is clearly the winner.