FreshBooks is a super-easy-to-use accounting software built specifically for small business owners, letting you easily do everything yourself. However, when it comes to using all the tools available to you as a small business owner, your accountant should definitely be part of your toolbox. You can import expenses from our expense tracker by uploading a CSV file as well as having FreshBooks automatically track them by connecting your bank accounts or credit cards. Xero has some of the worst customer service we have ever experienced, particularly for a company of their size. The entire premise of Xero is cloud-based accounting, but it feels like traveling back in time 25 years when trying to get anything done with them.
You can even connect your bank accounts for automatic bank reconciliation trusting your data will always be private and secure. FreshBooks is a cloud accounting solution that uses industry-leading secure servers. Being able to create and send invoices on the go means no delays and no accounting headaches waiting for you. You can use the FreshBooks automated bookkeeping software wherever you have access to the internet, so let FreshBooks take care of your invoicing worries while you sit back and relax. It’s expected that accountants have recommendations when choosing your cloud accounting tool.
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- What we noticed is that it deducts all entered expenses from the Petty Cash account manually.
- The software must have tools to track time, record billable hours or expenses, send invoices for progress billings, or monitor project progress and performance.
- Yes, FreshBooks offers a robust mobile app for both iOS and Android devices.
- Of all the accounting software platforms we reviewed, FreshBooks’ invoicing functionality impressed us the most.
When it comes to AI, Xero has a few tricks up its sleeve that FreshBooks currently lacks. The bank reconciliation predictions help make those tedious end-of-month tasks a little easier by using past transaction data to suggest matches for your bank statements. This saves you from repetitive clicks by automatically identifying business names and common expenses. Due to its limited accounting features compared to Xero, FreshBooks doesn’t offer as many report options, and within its reports, customization is pretty sparse. We went to user review websites to read first-hand reviews from actual software users. This user review score helps us give more credit to software products that deliver a consistent service to their customers.
Lastly, our expert opinion score is our subjective rating based on our experience in trying the software. The A/P section focuses on vendor management, bill management, bill payments, and other payable-related transactions. A/P features include creating vendors and bills, recording purchase orders and converting them to bills, creating service items, and recording full or partial bill payments. This section focuses more on first-time setup and software settings. Even after initial setup, the software must also let users modify information like company name, address, entity type, fiscal year-end, and other company information. Both FreshBooks and Xero have downloadable apps in the App Store and Google Play that you can use on your phone, tablet, or mobile device.
Each transaction you make through this add-on will cost you 3.5 percent plus 30 cents every time a client makes a payment. We recommend Xero for businesses looking to streamline their vendor payments, especially when you deal with many vendors. We have yet to encounter bill-pay tools as user-friendly and broad as Xero’s in any other accounting software platform we reviewed. We like how easy Xero makes it to batch-schedule advance payments to one or many vendors, removing late payment fees from your expenses. Compared side by side, Xero is clearly the winner when it comes to features. FreshBooks is a great option for freelancers, small business owners and anyone who needs to send invoices and accept payment as part of a business.
Plus Plan
The left sidebar will help you navigate through payments, expenses and any other functions you need. The simple layout is easy to understand, leaving little space for confusion. Our support team is here to make switching to FreshBooks from any other software (even spreadsheets) super easy, with no interruptions to your business. At Business.org, our research is meant to offer general product and service recommendations.
Accessibility
Viewing unbilled charges and time is possible on FreshBooks, but you can’t generate a report for it. When setting up a project estimate on both platforms, you have the option to add sales taxes, inventories, and labor. You can also compare cost estimates to actual costs, which is useful for contractors. The only project accounting feature lacking in FreshBooks is the ability to assign actual inventory costs to a project, which is expected since FreshBooks doesn’t provide inventory accounting. We’ve noticed several setbacks on Xero that aren’t material per se, and these mainly focus more on practical expediency.
Features: FreshBooks vs. Xero
A useful feature is its contact management integration with invoicing. The app also lets you add contacts, and Xero gives you useful information about research and development randd expenses definition the person automatically, such as the average days to pay and billing activity. All Xero plans come with accountant access, but FreshBooks’ least expensive option does not. In the same vein, FreshBooks does not provide audit trails for accountants.
