The differences between FreshBooks and Xero is essential for choosing the best accounting and invoicing solution, as both platforms cater to different user requirements and corporate goals.
The FreshBooks and Xero invoicing solutions come with basic features like time and cost tracking, periodic billing automation and custom templates. FreshBooks offers over 50 expert templates while Xero offers easily navigable accounting solutions and customizable templates.
FreshBooks offers four tiers of pricing, starting with Lite at $8.40, followed by Plus at $15.20, Premium at $26 and a custom Select plan. Xero offers three main plans, Early at $20, Growing at $47 and Established at $80.
Xero provides a more sophisticated experience but FreshBooks offers an easy-to-use accounting solution with a straightforward interface. Mobile apps for iOS and Android are available on both platforms.
Key payment gateways like Square, PayPal, WePay and Stripe are supported by both platforms. More integration options and broad accounting software compatibility are provided by Xero. Whereas Xero serves solopreneurs, FreshBooks provides round-the-clock customer support. Both systems cater to small and medium-sized enterprises as well as independent contractors.
FreshBooks provides better value for small businesses and freelancers on a tight budget who value invoicing over intricate accounting. However, Xero‘s additional features and scalability options will make its higher price point justified for businesses that need extensive integrations, round-the-clock support and comprehensive accounting features.
| FreshBooks | Xero | |
|---|---|---|
| Core Features | ||
| Custom Templates | 50+ professional templates with branding | Customizable invoice templates |
| Send Estimates/Quotations | Yes | Yes |
| Recurring Billing Automation | Yes | Yes |
| Expense Tracking | Yes | Yes |
| Time Tracking | Yes | Yes |
| Mileage Tracking | Yes | Yes |
| Automated Payment Reminders | Yes | Yes |
| Project-Based Billing | Yes | Yes |
| Tax Handling | Yes | Yes |
| User Permissions/Role Management | Yes | Yes |
| File Uploads | Yes | Yes |
| Pricing and Plans | ||
| Free Plan Availability | No | No |
| Pricing Range | Lite: $8.40/month Plus: $15.20/month Premium: $26/month Select: Custom |
Early: $20/month Growing: $47/month Established: $80/month |
| Trial Period | 30 days | 30 days |
| User Limits | Lite–Premium: 1 user (+$11/additional) Select: 2 users |
Varies by plan |
| Client Limits | Lite: 5 clients Plus: 50 clients Premium & Select: 500 clients |
Plan-specific limits |
| Storage Limits | Unlimited | Not specified |
| Payment Processing Fees | 2.9% + $0.30 | Standard gateway fees |
| Ease of Use | ||
| User Interface | Simple to Moderate | Simple and user-friendly |
| Onboarding Experience | Yes | Yes |
| Mobile App Availability | iOS and Android | iOS and Android |
| Mobile App Functionality | Invoicing, time, expense & mileage tracking | Invoicing & core accounting |
| Integration | ||
| Payment Gateways Supported | Stripe, PayPal, WePay, Square | Stripe, PayPal, GoCardless |
| Accounting Software Compatibility | QuickBooks, Xero | Yes |
| CRM Integration | HubSpot, Salesforce, Pipedrive | Multiple CRMs |
| API Availability | Yes | Yes |
| Reporting & Analytics | ||
| Bank Connections | Yes | Yes |
| Pre-Built Financial Reports | Yes | Yes |
| Custom Report Creation | Yes | Yes |
| Security & Compliance | ||
| Dashboard Metrics | Yes | Yes |
| Data Encryption | Yes | Yes |
| GDPR Compliance | Yes | Yes |
| Backup Options | Automatic | Automatic |
| Customer Support | ||
| Support Channels | Email, Phone, Live Chat | 24/7 online support |
| Help Center/Knowledge Base | Yes | Yes |
| 24/7 Support | No | Yes |
| Adaptability | ||
| Multi-Currency Support | Yes | Yes |
| Localization | Multiple languages | Yes |
| Industry-Specific Customization | Limited | Yes |
| Scalability | Freelancers to SMBs | Freelancers to SMBs |
| Read FreshBooks Review | Read Xero Review |
