Choosing the right accounting software is not simple. Small businesses need simplicity, while large companies need the power of adaptability.
According to Forbes, FreshBooks started when Mike, a web designer in Toronto, lost an invoice. Frustrated, he built a better solution. Today, FreshBooks helps over 30 million users worldwide send invoices, track time, and get paid faster.
Meanwhile, Xero is trusted by global giants. Puma Energy (over $18B revenue), H&R Block, and KPMG Australia use Xero to easily manage complex finances, payroll, and compliance. It’s created for teams that need up-to-date understandings and uninterrupted enterprise resource planning integration.
Still unsure which one fits your business best? Let’s help you decide—reach out today!
Features Comparison: Xero vs FreshBooks
There are several key differences between FreshBooks and Xero. Let’s look at it:
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1. Ease of use
Xero
- In Xero, all plans include a smart bank reconciliation tool with upgraded match suggestions.
- Bank rules upgrade transaction matching based on your set criteria.
- Once approved, Xero immediately creates the matched transaction.
- The customizable dashboard makes navigating finances less mind-blowing.
- A powerful global search bar helps you quickly find what you need.
FreshBooks
- FreshBooks Lite does not include a full bank reconciliation feature.
- It suggests matches during reconciliation but has limited rules.
- You can’t create custom bank rules to modernize your process.
- The interface is clean, but navigation is more manual compared to Xero.
2. Scalability
Xero
- All Xero plans include unlimited users with no extra charges.
- New users can be added via email and assigned specific roles.
- Xero provides seven roles, like advisor, read-only, or standard access.
- You can improve user permissions for projects, reports, and expenses.
- Xero is perfect for growing teams and multi-employee businesses.
FreshBooks
- FreshBooks has all plans, except the custom one, which includes only one user.
- In FreshBooks, adding team members costs $10 per user per month.
- FreshBooks provides six user roles, plus options for clients and project managers.
- FreshBooks Integration is better suited for freelancers or solo entrepreneurs needing simple tools.
- Scalability is limited unless you're on the highest pricing tier.
3. Ease of sharing with accountants
Xero
- All Xero plans include accountant access at no extra cost.
- Xero makes it easy to collaborate with your accountant anytime or anywhere.
- Xero Integration has inherent audit trails that track every change and who made it.
- Accountants can spot errors or unauthorized entries quickly with Xero Integration.
- Xero is perfect for businesses that want uninterrupted tax-time support.
FreshBooks
- FreshBooks Lite does not include accountant access.
- FreshBooks' higher-tier plans provide access but with limited tools.
- FreshBooks Integration lacks an audit trail feature, making error tracking harder.
- FreshBooks may not suit businesses needing deep financial collaboration.
- FreshBooks Integration is a better fit for solo users with simple bookkeeping.
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4. Integrations
Xero
- Xero connects with over 1,000 third-party apps for flexibility.
- Xero Integrations includes tools for eCommerce, CRM, inventory, and time tracking.
- Xero makes it easy to build a custom tech stack for your business.
- Xero Integrates smoothly with leading payroll and POS platforms.
- Xero is perfect for scaling businesses needing wide integration support.
FreshBooks
- FreshBooks integrates with 100+ apps across leading categories.
- FreshBooks covers basics like payments, CRM, and time tracking tools.
- FreshBooks Integration has fewer built-in options for payroll and point-of-sale systems.
- You may need workarounds for deeper integrations.
- FreshBooks is better suited for freelancers or small teams with simpler needs.
5. Customer support
Xero
- Doesn’t offer direct phone support for incoming calls.
- Users must submit a support request via Xero's website.
- Xero will call you back if a phone number is provided.
- Includes a helpful support library and community forum.
- Best suited for users who prefer self-service and email follow-ups.
FreshBooks
- FreshBooks Offers phone support Monday to Friday, 8 a.m. – 7 p.m. ET.
- Includes live chat and quick-response email support within 90 minutes.
- Easy to connect with a real person when you need help.
- Great for users who prefer direct and fast human interaction.
- Designed to assist freelancers and small business owners efficiently.
6. Pricing
Xero
- Early plan starts at $20/month, perfect for new startups.
- Growing plan at $47/month fits expanding small businesses.
- Established plan costs $80/month, designed for complex needs.
FreshBooks
- FreshBooks Lite plan starts at $21/month for solo freelancers.
- Plus plan is $38/month, ideal for growing businesses.
- Premium plan at $65/month suits teams and bigger projects.
- Select plan offers custom pricing with advanced features and support.
7. Advanced features
Xero
- Project tracking tools are available only in higher-tier plans of Xero Integrations.
- No industry-specific reports or transaction labeling flexibility.
- Separate subscriptions are required for each business entity.
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FreshBooks
- Project tracking is included in the most expensive pricing tier.
- FreshBooks integration offers limited options for transaction tracking tags across all plans.
- FreshBooks lacks built-in industry-specific financial reporting features.
- Users with multiple businesses need multiple paid accounts for FreshBooks.
8. Time and Mileage Tracking
Xero
- Time tracking is available only in the Established plan.
- Xero includes time tracking as part of the Projects and Expenses features.
- No built-in time tracking in lower-tier plans.
FreshBooks
- Unlimited time and mileage tracking is included in all plans of FreshBooks.
- Track time automatically via mobile app, browser extension, or integrations.
- Bill clients for tracked hours and assign hours by project or team.
9. Reporting
Xero
- Xero provides 80+ detailed reports, including standard financial statements.
- Xero uses tracking categories to analyze performance across business areas.
- All plans include reporting features with customizable insights.
FreshBooks
- Basic reports like profit & loss and invoices are included in all plans of FreshBooks.
- Advanced reports like the general ledger require the Plus or Premium plan.
- Fewer customization options compared to Xero's reporting tools.
Conclusion
FreshBooks API Integration Services is perfect for freelancers and service-based businesses requiring inherent invoicing, time tracking, and client management in one place.
Xero suits growing teams and small to mid-sized businesses looking for adaptable features, powerful reporting, and unlimited user access across all plans.
At APITech, we help you choose and integrate the right accounting software to modernize operations. Whether it’s FreshBooks or Xero, our API integration services ensure uninterrupted connectivity, saving you time and effort.
Let us help you pick the right platform and power up your finances today!
FAQ
1. Can both FreshBooks and Xero handle invoicing?
Yes, both support invoicing. FreshBooks is known for strong billing features, while Xero provides customizable templates and repeated invoices.
2. Does Xero Integration support unlimited users?
Yes, Xero allows unlimited users on all plans. FreshBooks limits users unless you pay extra or choose a custom plan.
3. What are the key differences in reporting of FreshBook or Xero?
Xero provides over 80 detailed reports and tracking categories. FreshBooks has basic reports, with more advanced ones only in higher-tier plans.
4. Is payroll integration available in FreshBooks and Xero?
Xero provides more payroll integration options. FreshBooks has limited payroll and point-of-purchase integration ability.
5. Xero vs FreshBooks: Which one is more scalable for growing teams?
Xero is more expandable with advanced permissions, reporting tools, and multiple client access.
6. How is the customer support experience?
FreshBooks provides phone, live chat, and email support. Xero requires raising a support case; they’ll call you if needed.
7. Can APITech help me integrate FreshBook or Xero into my business?
Absolutely! APITech specializes in API integration, which can help connect your accounting software with other systems smoothly.
