Budget, complexity and business size all play a role in the decision between FreshBooks and QuickBooks Online. Although they target different user segments both offer robust invoicing features.
Starting at $10.50 per month, FreshBooks is a more affordable option for small teams and solopreneurs than QuickBooks Online’s Simple Start plan which costs $11.40 per month. Lower-tier plans are limited to five clients for Lite and fifty for Plus and each additional user costs $11. On the other hand, QuickBooks Online supports up to 25 users on its Advanced plan and offers unlimited client access. For agencies that oversee numerous clients, this distinction is crucial.
Both platforms offer a wide range of invoicing features including time tracking, expense tracking, recurring billing automation, custom templates and payment reminders. Additionally, they provide project-based billing, mileage tracking and automatic tax computations. However, QuickBooks Online is better suited for specialized industries because it has more depth, scalability and industry-specific customization than FreshBooks. While QuickBooks supports a wider range of business sizes, FreshBooks mainly caters to independent contractors and small to medium-sized enterprises.
While QuickBooks Online has a moderate learning curve because of its many features, FreshBooks is renowned for its straightforward user interface. Through mobile apps for iOS and Android both platforms provide complete invoicing, expense management and mileage tracking. While QuickBooks Online offers native payment options and compatibility with QuickBooks Desktop, making migration simple for users, FreshBooks integrates with major payment gateways and third-party accounting software.
FreshBooks and QuickBooks Online have comparable payment processing fees: FreshBooks charges 2.9% + $0.30 per transaction, while QuickBooks Online charges 2.9% + $0.25. Additionally, QuickBooks Online offers 1% ACH bank transfers (up to $10) which could help businesses save money on larger invoices. Both platforms have robust security features, such as data encryption and GDPR compliance as well as a wide range of bank connections and financial reporting tools.
For independent contractors and small business owners who require straightforward and reasonably priced invoicing for fewer than fifty clients, FreshBooks is perfect. On the other hand, QuickBooks Online works well for expanding companies that need multi-user access, unlimited clients and extensive accounting features. QuickBooks Online’s scalability and comprehensive functionality make it worth the higher price for larger businesses but FreshBooks offers better value for solopreneurs concentrating on invoicing.
| FreshBooks | QuickBooks Online | |
|---|---|---|
| Core Features | ||
| Custom Templates | 50+ professional invoice templates | Yes |
| 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, automatic tax calculations | Yes |
| User Permissions/Role Management | Yes | Yes |
| File Uploads | Yes | Yes |
| Pricing and Plans | ||
| Free Plan Availability | No | No |
| Pricing Range | Lite: $10.50/month Plus: $19.00/month Premium: $32.50/month Select: Custom |
Simple Start: $11.40/month Essentials: $22.50/month Plus: $34.50/month Advanced: $82.50/month |
| Trial Period | 30 days | 30-day free trial available |
| User Limits | Lite: 1 user Plus: 1 user (+$11 per additional) Premium: 1 user (+$11 per additional) Select: 2 users |
Simple Start: 1 user Essentials: 3 users Plus: 5 users Advanced: 25 users |
| Client Limits | Lite: 5 clients Plus: 50 clients Premium: unlimited clients Select: unlimited clients |
Unlimited clients |
| Storage Limits | Unlimited | No specific limits |
| Payment Processing Fees | 2.9% + $0.30 per transaction | Online Payments: 2.9% + $0.25 per transaction Mobile/Card Reader: 2.4% per swipe, 3.4% + $0.25 per keyed transaction ACH Bank Transfers: 1% (max $10 per transaction) |
| Ease of Use | ||
| User Interface | Simple to Moderate | Moderate |
| Onboarding Experience | Yes | Comprehensive Onboarding Resources Available |
| Mobile App Availability | Available for iOS and Android | Available for iOS and Android |
| Mobile App Functionality | Full invoicing, time tracking, expense management, mileage tracking | Invoice creation, expense tracking, receipt capture, mileage tracking |
| Integration | ||
| Payment Gateways Supported | Stripe, PayPal, WePay, Square | QuickBooks Payments, Stripe, PayPal, Square |
| Accounting Software Compatibility | QuickBooks, Xero via third-party integrations | QuickBooks Desktop, Xero, Sage, and FreshBooks |
| CRM Integration | HubSpot, Salesforce, Pipedrive | Native CRM, Third-party CRMs, Contact Management |
| API Availability | Yes | Yes |
| Reporting & Analytics | ||
| Bank Connections | Yes, 11,000+ bank connections | 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 – Cloud-based backup system |
| Customer Support | ||
| Support Channels | Email, Phone, Live Chat | Phone, Live Chat, Email, User community forums |
| Help Center/Knowledge Base | Yes | Yes |
| 24/7 Support | No | No |
| Adaptability | ||
| Multi-Currency Support | Yes | Yes |
| Localization | multiple languages | Yes |
| Industry-Specific Customization | Limited | Yes |
| Scalability | Freelancers to SMBs | Full Scalability Across All Business Sizes |
| Read FreshBooks Review | Read QuickBooks Online Review |
