FreshBooks is a freelancer’s dream accounting software, as it comes with unlimited invoicing, estimates and time tracking. You can even set up recurring invoices each month, late payment reminders and scheduled late fees for overdue invoices. For tracking your expenses, FreshBooks’ base plan comes with mobile receipt scanning and bill line item capture. For more advanced features, such as accounts payable and accountant access, you’ll need to upgrade to a higher plan. accounting for bonds payable As a client, receiving a FreshBooks invoice with line items for subscription-based products or services, it’s easy to pay.

Bank reconciliation

Wave Accounting is free, but it doesn’t skimp on invoicing capabilities, making it a good nonprofit board responsibilities solution for very small service-based businesses and consultants. 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. Xero only offers time tracking in its Established plan as part of the Expenses and Projects feature sets. Can support freelancers, contractors and small businesses with a handful of employees; highest-tier plan includes two users (additional users can be added for a fee).

FreshBooks provides a software environment that blends accounting and project management, making it ideal for self-managed businesses and freelancers. In comparison, Xero has more accounting features, making it an excellent choice for growing businesses, especially product-based companies. Xero is an accounting powerhouse that can handle anything from freelancers to big-shot enterprises.

FreshBooks vs. Xero: Which accounting software is best?

Whether you want to accept credit card payments, set up bank transfers, or get paid through FreshBooks Payments, you can easily set up the method you prefer. Ease of use gets the highest weight in this case study because we want to give more credit to easy accounting software. For this section, we considered customer service, support network, and a subjective expert opinion score. Users must have easy access to customer service channels in case of problems, questions, or assistance. We believe that it is easier to use and more intuitive than Xero, especially for freelancers and users with limited accounting knowledge.

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. Xero includes extensive features that make it suitable to handle complex accounting processes for small- and medium-sized businesses as well as larger ones. The software makes it easy to pay bills, claim expenses, accept payments, track projects, manage contracts, store files and more. For an extra cost, the Plus plan offers a more robust selection of features and is better suited for solo business owners who have more than five clients.

1. While there’s some considerable overlap in functionality, Xero and FreshBooks are two very different products.
2. The app also lets you add contacts, and Xero gives you useful information about the person automatically, such as the average days to pay and billing activity.
3. You don’t have time to spend figuring out how to use complicated accounting software.
4. You’ll find both FreshBooks and Xero useful if you’re a service-based business that works on projects or bills clients by the hour.
5. Plus, with automations that reduce your workload, you’ll be saving time in no time.
6. There’s also self-help information for frequently asked questions (FAQs) about FreshBooks features and how-tos.

FreshBooks offers a free webinar where accountants can earn 2CPE/CPD credits and a FreshBooks Certified badge to help promote their services. FreshBooks also helps accountants manage client reports and journal entries through their free Accountant Center portal. Easy-to-use invoicing, payments, project management, accounting features, and so much more, does paying an account payable affect net income is why over 30 million businesses in 160+ countries have used FreshBooks.

What Sets FreshBooks Apart

Cloud-based accounting software can save small businesses from tedious spreadsheets, complicated filing systems, and hours of redundant data entry. But if you choose a product that’s ill-suited for your business, you can end up doing more harm than good. Xero vs. FreshBooks is one of the more common face-offs in cloud accounting software. They’re similar in price, functionality, and user experience, and they both cater to the small business niche. In this post, we’ll take a closer look at both vendors to help you choose the best solution for your needs. FreshBooks integrates with a number of payment processors so that you can choose the payment method that works best for you and your business.

Invoicing

Least expensive plan lacks double-entry accounting reports, bank reconciliation and accountant access. Promotional offers for both monthly and yearly plans are for a limited period. No free trial period is included when availing this promotional discount. Kristy Snyder is a freelance writer and editor with 12 years of experience, currently contributing to the Forbes Advisor Small Business vertical.