While small businesses can use the software as well, the extra charge per team member could add up quickly. As with any comparison of close competitors, I can’t name a single one of these apps as “the best accounting software available”. Here’s where the difference between QuickBooks and Xero becomes clear.
- When you get into needing lesser-known integrations, more difficult accounting features such as inventory management, or if you need a bunch of users, then QuickBooks starts to become a better option.
- All FreshBooks plans, except for the highest-tier custom plan, come with one user.
- Xero also has one of the strongest contact management features in the game.
- If you want to add multiple users to your accounting software, Xero is likely a better choice than FreshBooks because it accommodates unlimited users in all plans.
- While small businesses can use the software as well, the extra charge per team member could add up quickly.
Mobile app
Our partners cannot pay us to guarantee favorable reviews of their products or services. Another key difference between the two companies is the maximum number of users it allows. Xero has no limit to how many users can access data, whereas QuickBooks limits this to 40 with its Enterprise plan. Plus, all three platforms integrate with a vast number of different apps to take advantage of business process automation.
Is Xero or FreshBooks better for handling payroll?
However, if you take advantage of this trial, you will not be able to receive a new user discount, so choose wisely. Saved payment information can always be removed if you want to opt-out of Recurring Payments at any time. After the 4-month promotional period, you will be billed at full price for the plan you minimum level of stock explanation formula example have selected.
You don’t have time to spend figuring out how to use complicated accounting software. With FreshBooks, you’ll confidently create invoices, input expenses, and do your bookkeeping in half the time. And with the best customer support in the industry, it’s easy to see why Xero customers switched to FreshBooks. Has a strong invoicing feature; app lets users send invoices on the go, scan receipts and track mileage; basic inventory tracking for billable items; least expensive plan lacks double-entry accounting reports.
Unfortunately, the lowest-priced Xero plan is quite limited, allowing users to enter only five bills and send 20 invoices per month. While this may be suitable for independent contractors or self-employed individuals, most users will need to upgrade to one of the more expensive plans. Xero offers three pricing plans that range from $15/month to $78/month.
Payments
Whether you’re sick of losing records, chasing up invoices, or just want a central hub through which you can manage your accounts, there’s an app to perfectly suit your needs. Both Xero and QuickBooks Online include invoicing, but there are a few reasons why QBO has the edge. Xero’s Growing and Established plans have unlimited invoicing, while the Early plan caps users at 20 invoices per month. The safety of your private data is our top priority, that’s why it’s protected by 256-bit SSL encryption—the gold standard in internet security.
Xero has more (and better) accounting features for established businesses
Where FreshBooks limits the number of clients to five on its Lite plan, QuickBooks is unlimited on all its plans. For FreshBooks users who don’t have a large book of business, this could be a non-issue, but for small business owners who must invoice a large number of clients, QuickBooks is the better solution. QuickBooks dashboard is more comprehensive than FreshBooks, which can be overwhelming to new users. It’s the difference in layout that makes FreshBooks easier to use than QuickBooks. Plus, there are fewer features, such as inventory management, which can confuse users new to QuickBooks. That being said, if a small business does need all the bells and whistles that QuickBooks offers, they’ll have to take the time to learn the program and master its features.
Jeff is a writer, founder, and small business expert that focuses on educating founders on the ins and outs of running their business. FreshBooks’ reports may be more aesthetically pleasing and easier to navigate, but Xero’s include the level of detail needed to stay organized as your company grows. It creates this feel through bright colors, creative design, a straightforward layout, clear navigation, fun fonts, and a super casual tone. I never thought I’d hear the phrase « invoicing like a boss, » yet here we are. 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. FreshBooks doesn’t have how to calculate sales tax native functionality to integrate with Xero.
If you can’t justify paying for QuickBooks Online or Xero or they have too many features your business doesn’t need, Wave might be an ideal alternative. It has comparable invoicing features, but lacks an audit trail and doesn’t integrate with third-party apps. If you need to give accounting access to more than five people, Xero could be the better option for you.
QuickBooks Online’s most popular Plus plan tops out at five users; its highest-tier Advanced plan allows up to 25 users, but that plan is expensive at $235 per month. In contrast, all Xero plans offer unlimited users and its highest-tier Established plan is a more affordable $78 per month. Both nonprofit kit for dummies cheat sheet accounting software products let users invite their accountants by email. If you’re located in the United States, though, there’s a better chance your accountant is familiar with QuickBooks Online than Xero. QuickBooks Online is an industry standard with more than 5 million users worldwide. If you count QuickBooks Desktop users, that number rises to 8 million.