FreshBooks vs Xero

by Gralio Feb 03, 2025

FreshBooks and Xero are popular accounting software solutions for small businesses. FreshBooks shines with its user-friendly design and focus on simplifying core accounting tasks, making it ideal for freelancers and small businesses with basic accounting needs. Xero offers more advanced features and broader integrations, making it a better fit for growing businesses that require more robust accounting functionalities.

At Gralio.ai we help to simplify your decision-making process by offering detailed, side-by-side software comparisons like this one, to help you confidently choose the tool that aligns with your business goals.

This comparison was created by analysing 6403 reviews and 60 websites, saving 1 day, 12 hours, 4 minutes of reading.

FreshBooks

Website LinkedIn Twitter

Xero

Website LinkedIn Twitter

About

FreshBooks is cloud-based accounting software designed for small and medium-sized businesses. It simplifies tasks like invoicing, expense tracking, time management, and online payments. FreshBooks aims to make financial management more accessible and less time-consuming for business owners.

Xero is online accounting software designed for small to medium-sized businesses. It offers a range of features including automated bank reconciliation, online billing, and financial reporting. Xero integrates with hundreds of third-party business apps and offers a real-time view of your business finances. Its focus on automation and user-friendly design makes it a popular choice for businesses looking to streamline their financial management.

Summary

Main difference

FreshBooks is tailored for small businesses and freelancers prioritizing ease of use and simple invoicing, while Xero caters to a broader range of small to medium-sized businesses needing more robust accounting features, such as comprehensive reporting and bank reconciliation. Xero offers more extensive integrations, while FreshBooks excels in time tracking for service-based businesses.

Relative strengths of FreshBooks (compared to Xero)

Intuitive and user-friendly interface simplifies accounting tasks.
Excellent time tracking capabilities, ideal for service-based businesses.
Strong invoicing features with customizable templates and automation.

Relative weaknesses of FreshBooks (compared to Xero)

Limited reporting capabilities compared to Xero.
Fewer integrations with third-party apps.
Customer support has mixed reviews, with some users experiencing slow response times.

Who should use FreshBooks VS. Xero

FreshBooks is cloud accounting software praised for its user-friendly interface and efficient invoicing. Ideal for small to medium-sized businesses needing simple online payments and expense tracking. Some users have reported issues with forced migration and customer service responsiveness.

Xero is user-friendly online accounting software ideal for small and medium-sized businesses. It simplifies financial management with features like automated bank reconciliation and customizable reports. Users praise its ease of use and integrations, but some have noted issues with bank feed reliability and recent price increases.

Best for small and medium-sized businesses.
Suitable for most industries, including Healthcare, Finance, E-commerce, and more.

Best fit for small to medium-sized businesses.
Suitable for most industries, including Healthcare, Finance, E-commerce, and Retail.

FreshBooks and Xero features

Supported

Partially supported

Not supported

Type in the name of the feature or in your own words tell us what you need

Invoicing

Supported

FreshBooks supports creating and sending custom invoices, recurring invoices, tracking, and online payments.

Supported

Xero supports creating and sending customized invoices, recurring invoices, tracking and online payments.
Online Payments

Supported

FreshBooks accepts credit cards, debit cards, and ACH transfers, and automates payment reminders.

Supported

Xero accepts credit cards, debit cards, and bank transfers. It also automates payment reminders.
Time Tracking

Supported

FreshBooks supports time tracking, enabling accurate invoices based on time worked.

Partially supported

Xero offers basic time tracking but generating invoices based on time requires integration with other tools.
Accounting software integration

Supported

FreshBooks supports accounting software integrations.

Supported

Xero supports the ability to connect to accounting software for financial management through various integration methods.
Bank reconciliation

Supported

Freshbooks supports automatic bank reconciliation.

Supported

Xero supports the ability to automatically import bank transactions and reconcile them with accounting records.
Accounts receivable

Supported

FreshBooks allows to generate and track invoices and payments from customers.

Supported

Xero supports the ability to generate and track invoices and payments from customers.

Qualities

Value and Pricing Transparency

-0.26

Neutral sentiment

-0.13

Neutral sentiment
Customer Service

+0.27

Neutral sentiment

-0.11

Neutral sentiment
Ease of Use

+0.78

Strongly positive sentiment

+0.83

Strongly positive sentiment
Reliability and Performance

+0.22

Neutral sentiment

+0.34

Rather positive sentiment
Ease of Implementation

+0.27

Neutral sentiment

+0.64

Rather positive sentiment
Scalability

-0.82

Strongly negative sentiment

-0.29

Neutral sentiment

FreshBooks and Xero Pricing

No data

User sentiment

Neutral

-0.26

We couldn't find a pricing page for FreshBooks.

Xero is a cloud-based accounting software that offers a range of plans to suit businesses of all sizes. All plans include features such as sending invoices and quotes, entering bills, reconciling bank transactions, and capturing bills and receipts with Hubdoc.

Plans

User sentiment

Neutral

-0.13

See full Pricing page

FreshBooks and Xero review insights

6319 reviews analysed from and

Users love

FreshBooks is praised for its user-friendly interface, making it easy to navigate and learn.
Invoicing is simple and efficient, with customizable templates and automated features like recurring invoices and payment reminders.
Time tracking is seamless, with the ability to easily log hours and integrate with invoicing.
The software offers good value for money for freelancers and small businesses with basic accounting needs.
The mobile app is generally well-received, providing convenient access to key features on the go.

User-friendly interface, easy to learn and use
Excellent bank reconciliation features, including bank rules
Comprehensive reporting options available
Seamless integration with other apps like Hubdoc

Users dislike

Forced migration to the new FreshBooks platform has caused numerous issues, including data loss, bugs, and slow performance.
Many users find customer service unresponsive, with long wait times and unhelpful responses.
The software lacks robust accounting features, making it unsuitable for businesses with complex needs.
Pricing can be expensive, especially for growing businesses that need to add team members or clients.
Bank connections and payment processing through WePay have been unreliable for some users, leading to payment delays and account closures.

Bank feeds can be unreliable and sometimes disconnect
New invoicing system is clunky and less efficient
Payroll features have been removed from the starter plan
Price has increased significantly in recent years with minimal new features

FreshBooks and Xero Ratings

G2

4.5/5

(760)
Capterra

4.5/5

(2486)
TrustPilot

2.6/5

(84)
Glassdoor

3.6/5

(294)

G2

4.3/5

(684)
Capterra

4.4/5

(2425)

Company health

Employee growth

23% decrease in the last year

No data

Web traffic

10% decrease in the last quarter

No data

Financing

August 2022 - $332M

No data

How do FreshBooks and Xero compare in customer satisfaction ratings?

Customer satisfaction ratings for FreshBooks and Xero are fairly close. FreshBooks has slightly higher ratings on G2 (4.5/5) and Capterra (4.48/5) compared to Xero's 4.3/5 on G2 and 4.39/5 on Capterra. However, FreshBooks has significantly lower ratings on TrustPilot (2.6/5) than Xero, though Xero doesn't have publicly available TrustPilot reviews for comparison. Both products have positive reviews regarding ease of use, but FreshBooks has more negative feedback concerning customer service and recent platform migrations.

Which product best integrates with existing, non-accounting tools?

Xero integrates with hundreds of third-party business apps, making it better suited for businesses that need to connect their accounting software with other tools. While Freshbooks does offer some integrations, including QuickBooks, Xero's more extensive integration ecosystem provides greater flexibility and potential for streamlining workflows with existing non-accounting tools.

What are the advantages of FreshBooks?

FreshBooks is praised for its user-friendly interface and ease of use, especially regarding invoicing and time tracking. It is often considered good value for smaller businesses with basic accounting needs, and its mobile app provides convenient access to core features. FreshBooks also offers integrations with QuickBooks and other accounting software.

What are the disadvantages of FreshBooks?

FreshBooks users report dissatisfaction with the forced migration to a new platform, citing data loss, software bugs, and decreased performance. Customer service is frequently criticized for slow response times and unhelpful support. The software's accounting functionality is considered limited, making it unsuitable for businesses with complex needs. Finally, pricing is a common complaint, particularly for growing businesses requiring additional users or client management. Unreliable bank connections and payment processing through WePay have also caused issues for some users.

Alternatives to FreshBooks and Xero

QuickBooks Online

QuickBooks Online is cloud-based accounting software designed to help businesses manage their finances. It offers tools for tracking income and expenses, creating invoices, managing inventory, and generating financial reports. QuickBooks Online is primarily geared towards small to medium-sized businesses and offers a user-friendly interface for managing financial data.

BQE CORE

BQE CORE is an all-in-one business management software designed specifically for architecture, engineering, and professional services firms. It combines project management, time tracking, billing, accounting, and reporting into a single platform. This helps firms manage projects, track time and expenses, invoice clients, and gain insights into their financial health. BQE CORE aims to streamline operations, improve efficiency, and increase profitability for professional service providers. It offers a range of features including project accounting, real-time reporting, and integrations with other business tools. BQE CORE is accessible from any device with a browser or through their mobile app.

Billomat

Billomat is a cloud-based accounting software designed to simplify invoicing and accounting for small and medium-sized businesses. It allows you to create and manage invoices, track payments and expenses, and generate financial reports, even if you're not an accountant. Billomat aims to streamline your billing process, improve cash flow with features like automated reminders, and ensure compliance with tax regulations. It also offers integrations with other business tools you might be using.

Coupa

Coupa is a cloud-based software platform that helps businesses of all sizes manage their spending. It brings together all your spending information, from sourcing and purchasing to invoices and expenses, in one place. This gives you greater control and visibility, helping you save money, improve efficiency, and make smarter decisions. Coupa integrates with other systems like your ERP, and offers tools for managing vendors, automating tasks, and analyzing spending patterns.

BigTime

BigTime is a project management and billing software designed for growing service-based businesses in the USA. It helps companies track employee hours, manage project budgets, and streamline invoicing to improve cash flow. BigTime aims to simplify complex projects with features like resource planning, time and expense tracking, and project profitability forecasting. It also offers integrations with popular tools like QuickBooks, Salesforce, and Slack. BigTime is highly rated for customer satisfaction and boasts a large customer base of over 3,000 firms.

Multiview ERP

Multiview ERP is a cloud-based accounting and financial management software designed for mid-sized to enterprise-level businesses across various industries. It aims to replace manual processes and spreadsheets with automated workflows, multi-entity financial consolidation, and real-time data analysis. Multiview promises improved accuracy, faster reporting, and time savings for finance teams. Its strengths include robust reporting and customization options, along with strong security measures to protect sensitive financial data.

Page co-authored by

Michal Kaczor

CEO at Gralio

Michal has worked at startups for many years and writes about topics relating to software selection and IT management. As a former consultant for Bain, a business advisory company, he also knows how to understand needs of any business and find solutions to its problems.

Tymon Terlikiewicz

CTO at Gralio

Tymon is a seasoned CTO who loves finding the perfect tools for any task. He recently headed up the tech department at Batmaid, a well-known Swiss company, where he managed about 60 software purchases, including CX, HR, Payroll, Marketing automation and various developer tools.

How are we doing?

Is this information helpful to you? Is there anything we are missing?

Did this help you select your product?

Other issues? Vote & Let us know