One complained that they are often transferred to different departments when they contact QuickBooks. We believe the quality of customer service you’ll receive varies a lot based on the agent. Additionally, some users complained that QuickBooks Online is a bit expensive. While it is moderately priced, it can be cost-effective considering the value it can provide to your business. A satisfied Xero user shared that the program is the most user-friendly accounting software on the market. Xero can be easy to use after you become familiar with it, but we believe QuickBooks Online is generally more intuitive and easier to set up.
- Ease of use includes the layout of the dashboard and whether new transactions can be initiated from the dashboard rather than having to navigate to a particular module.
- Both software programs have a 30-day free trial for you to test the product and see if it will be sufficient for your needs.
- However, if you want a more scalable solution with the option to hire additional services like payroll and tax filing, then Xero is the more suitable choice.
- And we do more than just invoicing and payments – we have award-winning support, are twice as easy to use, and cost half the price.
- But Xero’s reporting is more robust thanks to its detailed accounting features.
Zoho Books vs QuickBooks: Price, Features & What’s Best in 2024
Like we said above, while FreshBooks has unlimited invoices, it limits the number of clients you can bill each month. You’ll have to sign up for FreshBooks’ mid-tier plan to increase that number to 50. FreshBooks’ cheapest plan uses the less-reliable single-entry accounting system, is net income an asset which introduces a higher possibility of accounting errors. Worse, FreshBooks doesn’t include free accountant access with its cheapest plan. In contrast, QuickBooks Online builds user limits into each plan. For instance, its cheapest plan allows for one user plus accountant access.
Xero vs. QuickBooks Online: Features Comparison, Pros, Cons
Ya know who always picks up and never transfers you when you call FreshBooks? At 91%, FreshBooks has the best rating for customer support among all competitors. Our simple yet robust interface has a very short learning curve, so you and your team can hit the ground running. Plus, with automations that reduce your workload, you’ll be saving time in no time. After the 4-month promotional period, you will be billed at full price for the plan you have selected.
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Arguably, the smallest of small businesses benefit the most from expense tracking, so it’s downright bizarre that Xero doesn’t include it. Unlike both FreshBooks and QuickBooks Online (and, frankly, nearly every other accounting tool), Xero includes inventory management with each plan. QuickBooks is best for medium to large organizations that need access to a comprehensive accounting system that includes inventory management. The choice between FreshBooks and QuickBooks comes down to what features you need and how much you’re willing to pay.
Xero is ideal for businesses that keep a team of bookkeepers or accountants in-house. FreshBooks integrates with a number of payment processors so that you can choose the payment method that works best for you and your business. 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. FreshBooks’ least expensive Lite plan doesn’t allow for accountant access, which can be limiting for micro businesses that want an accountant to look over their financials every so often. And regardless of plan tier, the software doesn’t provide audit trails, which help your accountant verify information and catch errors. Alternatively, QuickBooks includes accountant access in all plans.
Third-party integrations
FreshBooks beats Xero decisively when it comes to invoicing capabilities. The FreshBooks design suite allows for more customization and is easier to use compared to Xero. Xero also lacks the seamless integration with time tracking that FreshBooks offers. Xero offers more than 80 reports, including standard financial reports, and lets you add tracking categories to monitor performance in different areas of your business. You can generate traditional financial reports, but they aren’t available with all plans. You’ll need the Plus plan to access a general ledger, trial balance or chart of accounts and the Premium plan to create any accounts payable reports.
It’s expected that accountants have recommendations when choosing your cloud accounting tool. Accountants feel comfortable with Xero because liquidity ratio definition it’s built for them. Business owners, on the other hand, might not have the in-depth accounting knowledge needed to make Xero work for them.
The total price for a Yearly plan is billed at the time of purchase. It includes both the monthly discount outlined above, as well as an additional 10% discount for selecting a yearly plan. Importantly, FreshBooks bookkeeping for franchises allows you to send unlimited invoices to five clients on its entry-level plan, while Xero caps you at 20 monthly invoices. FreshBooks currently offers four paid plans based on a business’s number of clients.
Has robust reporting tools and report customization options, invoicing for an unlimited amount of clients, inventory tracking in higher tier plans, plus a capable mobile app. 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.
If you only send out an invoice or two each month, the Early plan is an affordable option at $15 per month. Otherwise, you’ll have to bump up your subscription or consider QuickBooks Online plans. Track mileage, send invoices and get a snapshot of your business cash flow with both Xero and QuickBooks. While Xero’s lowest-tiered plan allows you to send and approve up to 20 invoices, partner apps that initiate transactions can automatically contribute to your limit. It’s available online 24/7, which is great for businesses that have unusual operating hours. You’ll just submit a support ticket, where you can attach any files that may make things easier to troubleshoot.
Her work has been featured on US News and World Report, Business.com and Fit Small Business. She brings practical experience as a business owner and insurance agent to her role as a small business writer. Jeff is a writer, founder, and small business expert that focuses on educating founders on the ins and outs of running their business.
Like most accounting programs, FreshBooks’ expense tracking automatically syncs expenses to your FreshBooks account and helps categorize expenses by tax category. Xero is a strange outlier in that it doesn’t include basic expense tracking with every plan—instead, expense tracking only comes with Xero’s priciest plan, which starts at $62 a month. Even though we love FreshBooks’ invoicing capabilities, it’s not the right software choice for business owners who bill more than five clients a month.
As a client, receiving a FreshBooks invoice with line items for subscription-based products or services, it’s easy to pay. All you have to do is save your credit card, banking or other payment details online in the FreshBooks application so you’re automatically billed each time an invoice comes due. Imagine doing this without invoicing software—dealing with paper invoices and receipts and having to keep track of phone and address records separately. Xero accounting software is a cloud-based system that helps small businesses manage their finances. This means it can be accessed from any internet-connected device. The software offers a variety of features, including invoicing, tracking expenses and creating financial reports.
Integrates with more than 750 apps and offers live, in-house bookkeeping add-on. Includes audit trails and easy accountant access; has millions of users so your accountant will likely be familiar with it. That said, Xero makes up for its user-friendliness shortcomings through tutorial videos and a demo company feature. In Xero, you can view the platform as a demo company with pre-recorded data, which makes it far easier to see how the platform will look and operate when you input your own business’s data.