FreshBooks vs Xero: Choosing accounting software 2025

Keep all your paperwork in one place with both the invoices you send to clients and invoices you receive from vendors all under the same roof. Got a client that has a hard time remembering to pay their invoices? Let FreshBooks do the awkward nudging with automatic, customizable Payment Reminders. Pick your template, add your logo, and even adjust colors and fonts to make sure your invoices wow your clients. FreshBooks still syncs with more than a hundred other business apps, including crucial third-party apps like Gusto. Honestly, FreshBooks’ list of integrations is pretty impressive.

Both FreshBooks and Xero allow you to track business performance using your dashboard, and generate and download financial reports. But Xero’s reporting is more robust thanks to its detailed accounting features. Project tracking tools in higher-tier plans; lacks industry-specific reports and transaction tracking tags; users with multiple businesses must pay for separate subscriptions. 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). You can import expenses from our expense tracker by uploading a CSV file as well as having FreshBooks automatically track california taxes are among the highest in the nation them by connecting your bank accounts or credit cards.

Reporting and analytics

Explore Xero’s range of features, designed to streamline your accounting needs. Both vendors offer reporting, analytics and data visualization to meet the demands of companies that wish to become data-driven. TurboTax is owned by Intuit, the company that created QuickBooks—which means the software syncs with QuickBooks, but not with Xero, FreshBooks, or most other players in the game. See how Xero helps make it easy for small businesses to stay on top of their finances, so they can focus on doing what they love. So basically, if you need a robust suite that can do it all, go for Xero. But if you want something straightforward and user-friendly that gets the job done without fuss, FreshBooks is your go-to.

Like FreshBooks, it offers debit and credit card payments, bank-to-bank payments and Apple Pay or Google Pay via Stripe. While FreshBooks’ security is based solely on the Payment Card Industry Security Standards, Xero adds an additional layer of security to its online invoices and payments system. Xero is a cloud-based accounting software platform available to small and medium-sized businesses in over 180 countries. The company provides features and tools for businesses, accountants and bookkeepers to pay bills, claim expenses, make bank connections and more.

Payments

You can reach support by raising a case (similar to filing an IT ticket) on the Xero website. Xero’ business model is to get people ‘hooked’ and slowly up the price. Sometimes even charging for things that were already part of the product and calling it an add on feature.

Because FreshBooks cloud accounting charges you an additional $10 per person per month. Xero comes with built-in payroll capabilities, allowing users to handle payroll tasks directly without needing to rely on a third-party solution. FreshBooks doesn’t offer built-in payroll features and requires integration with Gusto for payroll services, which may involve additional costs.

Customer support

1. QuickBooks is better suited for larger companies as it enables more customization options, but it comes at an additional cost.
2. Xero offers built-in integrations for superior connections, including Shopify, Hubdoc, Stripe and HubSpot.
3. But if you want something straightforward and user-friendly that gets the job done without fuss, FreshBooks is your go-to.
4. Otherwise, you’ll need to upgrade to a heftier FreshBooks plan or consider invoicing software that doesn’t curtail the number of people you can charge each month.
5. Xero’ business model is to get people ‘hooked’ and slowly up the price.

There are a number of payment processors and payment options you can choose through FreshBooks. FreshBooks integrates with a number of payment processors so that you can choose the payment method that works best for you and your business (and can deal with multiple currencies). Whether you want to accept online credit card payments, set up bank transfers, or get paid through FreshBooks Payments, you can easily set up the method you prefer.

Includes tools that help automate the reconciliation process, along with a global search function; has a simple layout and a customizable dashboard. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. After the 4-month promotional period, you will be billed at full price for the plan you have selected.