FreshBooks VS Xero

UPDATED Apr. 2018

If you are thinking about investing in a FreshBooks or Xero subscription, you might be happy to know that you have narrowed your choice down to two of the best online accounting services currently available. This FreshBooks vs. Xero comparison can help you better understand what each of the services offers and which one may better suit your needs.

Side by Side Comparison

TYPE OF CLIENTS
Freelancers
Small Businesses
Mid-Size Businesses
Enterprises
SUPPORTED PLATFORMS
Web-Based
iPhone App
Android App
SERVICE HIGHLIGHTS & FEATURES
Income/Expense Tracking
Invoicing
Create/Customize Invoices
Invoice Management
Invoice Processing
Payment Reminders
Tax Calculations
Multi-Currency Billing
Multi-Language Invoices
Invoice Summary
Bill Payment
Schedule Payments
Bill Status Tracking
Customizable Billing
Recurring Billing
Create Purchase Orders
Create Quotes
Discount Management
Electronic Payments
Credit Card Processing
Financial Reports
Project Management
Project Time Tracking
Billable Hours
Deadline Tracking
Collaboration Tools
Tracking Miles
Inventory Tracking
Low Stock Alerts
Email Integration
Mobile Integration
Real Time Updates
PLANS & PRICING
Subscription Plans
Free Version
Free Trial
CUSTOMER SUPPORT
Email Support
Phone Support
Live Chat
Knowledge Base
 
Yes
Yes
Yes
No
 
Yes
Yes
Yes
 
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
N/A
Yes
Yes
Yes
 
Lite, Plus, Premium
No
Yes
 
Yes
Yes
No
Yes
$15.00
 
No
Yes
No
No
 
Yes
Yes
Yes
 
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
N/A
Yes
N/A
Yes
Yes
N/A
Yes
No
N/A
 
Starter, Standard, Premium
No
Yes
 
Yes
No
Yes
Yes
$10.00

Ratings

Here is a quick overview of our comparison process. First, we analyze the two brands of software independently and rate them based on how well they satisfy our 6 major criteria, including ease of use, product quality, features, privacy and security, value for money, and overall experience. Based on the scores they receive on every criterion, we calculate their total scores. The software with the higher final score is the winner of the comparison.

Ease Of Use
Product Quality
Features
Privacy & Security
Value For Money
Final Rating9.4/109.2/10

Ease Of Use

If you have used online accounting services before, it should take you virtually no time to get used to FreshBooks and Xero. First-time users may need some time to figure out how all the features work, but the basics are rather straightforward with both services. Although FreshBooks and Xero are both rather user-friendly, we have to say that FreshBooks remains one tiny step ahead, thanks to its new and improved interface.

Product Quality

About a year ago, FreshBooks would certainly get the higher score on this criterion. Just like its loyal users, we were absolutely in love with the former version of FreshBooks and we found it much more impressive than Xero. We are not saying that the new edition of FreshBooks is not impressive. However, some of its aspects are still underdeveloped in comparison to the old version, which is the reason for the somewhat lower score.

Features

FreshBooks and Xero are both feature-rich and open up a world of possibilities for their users. From invoicing, reporting, and online payment solutions to facilitated time tracking and project and asset management, they offer equally amazing sets of useful tools to their clients. However, while FreshBooks lacks some valuable features like inventory tracking (which was included in the previous version), Xero needs to work more on a couple of important features, such as payroll.

Privacy & Security

Both FreshBooks and Xero go to great lengths to provide their users with a high level of security and privacy. They employ intrusion protection systems, protect users’ financial and personal information with a layer of encryption, and perform regular vulnerability scans. However, we would like them to ask for users’ consent prior to sharing user information with third-party service providers they cooperate with instead of just informing users about it in their privacy policies.

Value For Money

In spite of the few flaws mentioned above, we believe FreshBooks and Xero are both premium choices and more than worth the money you invest in a subscription. Still, after reviewing their plans and pricing and the quality of service provided, we can conclude that FreshBooks provides slightly better value for your money.

 

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