Freshbooks and xero are both cloud-based accounting software tools that offer similar features such as invoicing, expense tracking, and time tracking. Freshbooks and xero are two cloud-based accounting software tools that have gained a lot of popularity among small business owners.
Both software programs offer similar features such as invoicing, expense tracking, and time tracking. However, there are significant differences between the two that may make one better suited for a particular business over the other. This article will compare and contrast freshbooks and xero to help you decide which is the best fit for your business needs.
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Comparison Of Features
Freshbooks and xero are two highly-rated accounting software platforms that offer various features to help businesses manage their finances. In this section, we will compare the key features of freshbooks and xero.
Invoicing And Payment Processing
Both freshbooks and xero offer easy and efficient invoicing and payment processing features. Here are some key points to consider:
- Freshbooks allows users to create customized invoices with their own logo and branding. It also offers a variety of payment options, including credit/debit cards, paypal, and e-transfer.
- Xero lets users automate invoicing with recurring templates and reminders. It also provides online payment options, such as credit/debit cards and paypal.
Time Tracking
Tracking time accurately is important for businesses to ensure they are billing clients correctly and managing resources. Here are some key points to consider:
- Freshbooks allows users to track time manually or with a timer that can be started and stopped as needed. It also has the option to invoice clients based on hours worked.
- Xero offers users multiple time tracking tools, including manual input, timesheet entry, and project-based tracking. It also has integrations with various time-tracking apps.
Expense Tracking
Tracking business expenses is crucial for managing the finances of your company. Here are some key points to consider:
- Freshbooks allows users to track expenses by simply uploading receipts or bills. It also offers automatic expense tracking through bank connections.
- Xero provides expense tracking features such as importing bank transactions and connecting directly to financial institutions. It also allows users to categorize expenses and generate reports.
Project Management
Project management is a crucial feature for businesses that undertake multiple projects simultaneously. Here are some key points to consider:
- Freshbooks project management tools include task assignments, team collaboration, and time tracking. It also lets users track project progress and generate detailed reports.
- Xero’s project management tools allow users to track time and expenses, and create invoices from billable time and costs. It also lets users analyze project performance and profitability.
Reporting And Analytics
Generating reports and analyzing data is important for businesses to make informed decisions. Here are some key points to consider:
- Freshbooks offers various detailed reports that help businesses track their performance over time. It also provides a dashboard with key performance indicators (kpis) to analyze financials at a glance.
- Xero provides customizable reports that allow users to track expenses, cash flow, and profitability. It also offers a dashboard with real-time data and cash flow forecasting.
Both freshbooks and xero offer various features to suit the unique needs of businesses. However, when it comes to deciding which platform to choose, businesses should consider their specific requirements and choose the platform that can address them best.
Ease Of Use
User Interface
When it comes to ease of use, the user interface (ui) of an accounting software plays a crucial role. Let’s compare the ui of freshbooks and xero to see which one makes the user’s life easier:
- Freshbooks ui emphasizes simple and intuitive design with a modern look and feel, providing easy access to all features and comprehensive navigation.
- Xero ui is sleek and modern, and offers a customizable dashboard with a clean design. However, some users have found that the sheer number of features can make it overwhelming.
Mobile Compatibility
In today’s fast-paced world, business owners want an accounting software that they can use on the go. Now let’s review how freshbooks and xero perform when it comes to mobile compatibility:
- Freshbooks offers an intuitive and user-friendly mobile app that is available on both ios and android platforms. The app allows users to access all features as they would on their desktop.
- Xero has a mobile app that is highly rated, but it is more complex to use than freshbooks. The app offers the ability to create invoices and reconcile bank transactions, but it can be difficult to navigate for new users.
Integration With Other Applications
Integrations with other applications can enhance the functionality of accounting software. Let’s see how freshbooks and xero measure up in this category:
- Freshbooks has a user-friendly integration platform, which now includes more than 150 different apps, including stripe, shopify, and trello.
- Xero offers a wide range of integrations with over 800 apps, including leading apps in industries like retail, ecommerce, and invoicing.
Both freshbooks and xero offer an impressive array of features and multiple integrations that can streamline your business operations. However, freshbooks might be the better choice if you’re looking for a software that is easier to use and has a more intuitive mobile app.
Xero might be the better choice if you require complex accounting functionalities and need access to a wider range of integrations.
Cost
How Do Freshbooks And Xero Compare?: Cost
Pricing Plans Comparison
Both freshbooks and xero have various pricing plans that cater to different needs, making them affordable based on the size of your business. However, freshbooks has slightly less expensive plans than xero.
Freshbooks offers four pricing plans: lite, plus, premium, and select. Lite is the cheapest plan, suitable for self-employed individuals and costs $6 per month. Plus is best for small businesses and freelancers, costing $10 per month. Premium is perfect for established companies and costs $20 per month, while the select plan is tailored for large corporations, with prices that are customizable.
On the other hand, xero offers three pricing plans: early, growing, and established. Early is the cheapest plan, suitable for freelancers, and costs $11 per month. Growing is best for small teams and costs $32 per month, while established is perfect for larger companies and costs $62 per month.
Hidden Costs
One downside of using xero is that it charges additional fees, such as transaction fees, payroll fees, and third-party app fees. These costs can add up and increase your expenses, unlike freshbooks, which has no hidden costs.
Value For Money
When it comes to value for money, both freshbooks and xero offer great deals. Freshbooks is more affordable for small businesses and self-employed individuals, while xero is suitable for companies with larger budgets. It all depends on the size and needs of your business.
Both freshbooks and xero offer affordable pricing plans that are suitable for different types of businesses. However, freshbooks has slightly less expensive pricing plans, while xero has additional fees that may increase your expenses. Choose the one that fits your budget and requirements best.
Customer Support
Freshbooks and xero are two of the most widely used accounting software systems available today. Their features, pricing, and overall performance are often compared by businesses who want to choose the best software that fits their needs and budgets. One of the most critical factors to consider when comparing these two systems is customer support.
Let’s take a closer look at how freshbooks and xero’s customer support stack up against each other.
Availability Of Customer Support
When selecting business software, it is essential to have access to reliable customer support. Here’s what you need to know about freshbooks and xero’s availability of customer support:
- Freshbooks offers customer support via email and phone from monday to friday, 8 am to 8 pm edt. They also offer live chat support from monday to friday, 8 am to 8 pm edt, as well as support articles and videos available 24/7 through their online resources.
- Xero offers customer support via email and phone 24/7. They also have support articles and videos available on their website, as well as an online community forum where users can ask questions and collaborate with other users.
Quality Of Customer Support
Having readily available customer support is crucial, but the quality of customer support is even more critical. Here’s how freshbooks and xero’s quality of customer support differs:
Freshbooks users tend to praise their customer service team for their quick response times and helpfulness, and their support representatives are generally friendly and knowledgeable. However, some users have reported inconsistencies in customer service quality, with some representatives being more helpful than others.
Xero users also generally report positive experiences with their customer support team. Users praise their extensive knowledge base, as well as their helpful and friendly customer service staff. Some users have reported difficulty reaching customer support during peak times, though.
User Reviews And Ratings
User reviews and ratings are excellent resources that can help businesses evaluate customer support offerings.
Freshbooks has generally positive user reviews, with users frequently praising their customer support team’s responsiveness and helpfulness. However, some users have reported that the company’s phone support can have long wait times and that the quality of customer support varies.
Xero also has generally positive user reviews, with users frequently praising their customer support team’s knowledge and helpfulness. However, some users have reported difficulty reaching customer support during peak times.
Response Time
Response time is crucial when it comes to customer support. Here’s how freshbooks and xero’s response times compare:
- Freshbooks’ average response time is 12 hours, according to their website. However, some users have reported longer wait times to receive responses.
- Xero’s average response time is less than 24 hours, according to their website. The response times may vary depending on the complexity of the inquiry.
To summarize, both freshbooks and xero offer reliable customer support options, though they differ in terms of availability, quality, and response time. When selecting the best accounting software for your business, it’s essential to consider these factors to make the best choice for your business’s needs and budget.
Security And Reliability
Ensuring the security and reliability of financial data is crucial in any accounting software. In this section, we will compare freshbooks and xero on measures taken to ensure data security, backups and data recovery, service uptime, user reviews, and ratings.
Measures Taken To Ensure Data Security
Both freshbooks and xero have multiple layers of security measures in place to ensure the safety of sensitive data. Some of these measures include:
- Ssl encryption: Both freshbooks and xero use ssl encryption to protect data transfers between servers and the client.
- Two-factor authentication: Both platforms offer two-factor authentication, which provides an added layer of security by requiring users to verify their identity with a second factor, such as a mobile device or app.
- Data centers with security controls: Freshbooks and xero use world-class data centers that are equipped with strict physical security controls, environmental monitoring, power backups, and redundant internet connections.
- Pci-dss compliance: Both platforms comply with the payment card industry data security standard (pci-dss), which is a set of requirements designed to ensure that all companies that accept, process, store, or transmit credit card information maintain a secure environment.
Backups And Data Recovery
Data loss can be disastrous, and additional measures should be taken to protect important data. Both freshbooks and xero have implemented measures to ensure that data is backed up and available for recovery. Some of these measures include:
- Multiple data backups: Both platforms create multiple backups of data to ensure that data is available in case of hardware failures, system crashes, or other disasters.
- Cloud-based storage: Both platforms use cloud-based storage, which provides greater scalability, accessibility, and redundancy.
- Cross-data center replication: Both platforms use cross-data center replication to ensure that data is available even in case of a catastrophic event such as a power outage, natural disaster, or terrorist attack.
Service Uptime
Service uptime is critical for any accounting software, as downtime can cause extensive damage to businesses. In terms of service uptime, both freshbooks and xero have a good track record, with both boasting an uptime of over 99. 9%. Both platforms offer service level agreements (slas) that guarantee uptime and provide compensation in case of downtime.
User Reviews And Ratings
User reviews and ratings are a useful tool for evaluating the security and reliability of accounting software. Both freshbooks and xero have a high rating on review sites such as trustpilot, g2, and capterra, with many users praising the security, ease of use, and reliability of both platforms.
Freshbooks has an average rating of 4. 7 out of 5 on trustpilot, while xero has an average rating of 4. 3 out of 5.
Both freshbooks and xero are excellent accounting software that prioritize security and reliability. With their multi-layered security measures, backup and data recovery solutions, good service uptime, and high user ratings, both platforms provide an excellent choice for businesses of all sizes.
Frequently Asked Questions For How Do Freshbooks And Xero Compare?
What Is Freshbooks, And How Does It Work Compared To Xero?
Freshbooks and xero are both cloud-based accounting software applications designed for small businesses. Freshbooks is an invoicing and time tracking software while xero is an accounting software that includes invoicing, bank reconciliation, accounts payable, and inventory management.
Can Xero And Freshbooks Be Integrated?
Yes, xero and freshbooks can be integrated, and the integration process is seamless. By connecting freshbooks to xero, users can automate their invoicing and payments, and monitor their cash flow in real-time.
How Much Does Freshbooks And Xero Cost?
Freshbooks offers a free plan and three paid plans starting at $15 per month. Xero offers three pricing plans starting at $11 per month, and all plans come with a 30-day free trial. Freshbooks and xero offer affordable pricing plans, which make them feasible for small businesses.
Which Software Is More User-Friendly?
Both freshbooks and xero are user-friendly, but freshbooks is more intuitive and easier to set up. Despite having a steeper learning curve, xero provides a cleaner interface with better customization options.
Which Software Offers Better Functionality?
Both freshbooks and xero offer robust functionality that meets the needs of small businesses. Freshbooks primarily focuses on invoicing and time tracking, which make it ideal for service-based businesses. On the other hand, xero offers advanced accounting features such as bank reconciliation, purchase orders, and inventory management.
Xero is a better choice for businesses that need more advanced accounting features.
Conclusion
After comparing freshbooks and xero, it’s clear that both of these accounting software platforms have their own unique strengths and weaknesses. Freshbooks provides an easier and more user-friendly experience, especially for small business owners and freelancers. It offers less integrations than xero, but its customer support is impeccable.
On the other hand, xero provides robust features with more integrations, making it a better choice for larger businesses. It also offers a more customizable interface and more powerful reporting tools. Overall, the choice between freshbooks and xero depends on the needs of your business.
Both solutions can help you to streamline your business finances and save time, but only if you choose the software that is best-suited for your individual needs. Hopefully, this comparison helps you to make the right decision and improve your business’s financial management in the long run.