A detailed comparison of Xero and FreshBooks to help you choose the right tool for your needs.
Accounting software built for service-based businesses.
| Plan | Xero | FreshBooks |
|---|---|---|
| Free Tier | ✗ No | ✗ No |
| Lowest Paid | $15/mo | $17/mo |
| Enterprise | $78/mo | $55/mo |
| Feature | Xero | FreshBooks |
|---|---|---|
| Invoicing | ✓ | ✓ |
| Bank reconciliation | ✓ | — |
| Expense claims | ✓ | — |
| Purchase orders | ✓ | — |
| Reporting | ✓ | — |
| Payroll | ✓ | — |
| Inventory | ✓ | — |
| Multi-currency | ✓ | — |
| Projects | ✓ | ✓ |
| Mobile app | ✓ | ✓ |
| Time tracking | — | ✓ |
| Expense tracking | — | ✓ |
| Estimates | — | ✓ |
| Reports | — | ✓ |
| Payments | — | ✓ |
| Bank connections | — | ✓ |
| Client portal | — | ✓ |
| Open Source | ✗ | ✗ |
| Rating | ⭐ 4.3 | ⭐ 4.3 |
Choose Xero if: You need small businesses outside the us. Xero excels with its beautiful interface and great bank reconciliation.
Choose FreshBooks if: You need freelancers and service businesses. FreshBooks stands out with its very user-friendly and great invoicing.
It depends on your needs. Xero is better for small businesses outside the us, while FreshBooks is better for freelancers and service businesses. Both are excellent tools rated 4.3 and 4.3 respectively.
Xero starts at $15/mo while FreshBooks starts at $17/mo. Neither offers a free tier.
Most tools offer import/export features to help you migrate. We recommend trying FreshBooks's trial before fully committing to a switch.
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