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FreshBooks vs Xero: Which Accounting Software Is Better?


Disclosure: We may earn commissions if you shop through the links below.

Last Updated: May 22, 2025

Both FreshBooks and Xero are leading accounting software solutions, but which one is better for you and your business?

Below we compare FreshBooks and Xero across nearly 50 different data points to help you make find the right one.

FreshBooks vs Xero Reviews

FreshBooksXero
Trustpilot Rating3.44.3
Number of Trustpilot Reviews7796,232
iPhone App Rating4.74.6
Number of iPhone App Reviews10,900982
Android App Rating4.44.3
Number of Android App Reviews5,49012,400

FreshBooks vs Xero Pricing

FreshBooksXero
Free TrialYesYes
Free Trial Length30 days30 days
Cheapest Plan NameLiteEarly
Cheapest Plan Cost Per Month$33$42
Mid Priced Plan NamePlusGrowing
Mid Priced Plan Cost Per Month$33$42
Top Plan NamePremiumEstablished
Top Plan Cost Per Month$60$78

FreshBooks vs Xero Features

FeaturesFreshBooksXero
Target Business SizeMediumEnterprise
Tax HelpYesYes
Income & ExpensesYesYes
BookkeepingYesYes
Send InvoicesYesYes
Collect Payments Via Bank TransferYesYes
Collect Payments Via Credit CardYesYes
Recurring PaymentsYesYes
Enter BillsYesYes
Reconcile Bank TransactionsYesYes
Bank Account IncludedNoNo
Cash Flow ReportYesYes
W-9 + 1099 ManagementYesYes
Help With Sales TaxYesYes
Use Multiple CurrenciesYesYes
Expense TrackingYesYes
Payroll Software IntegrationYesYes
Tax DeductionsYesYes
Receipt CaptureYesYes
Mileage TrackingYesYes
Time ManagementYesYes
Inventory ManagementYesYes
User Access ControlsYesYes
Financial PlanningYesYes
Import/Export To & From ExcelYesYes
Free SupportYesYes
APIYesYes

List of Other Software Integrations

FreshBooksXero
  • Square
  • Squarespace
  • Google G Suite
  • Stripe
  • Hubspot
  • Fundbox
  • Bench
  • Zapier
  • Stripe
  • Vend
  • Dext
  • GoCardless
  • Shopify

FreshBooks Lite Features

  • Billable Clients
  • Client Profiles and Account Statements
  • Clients Can Store Credit Card Info
  • Client Account Portal
  • Client Credits
  • Unlimited Estimates
  • Unlimited + Customized Invoices
  • Automated Recurring Invoices
  • Scheduled Late Fees
  • Automated Late Payment Reminders
  • Accept Deposits
  • Manage Budget and Billing for Projects
  • Online Credit Card Payments
  • Online Bank Transfers (ACH)
  • Checkout Links Get You Paid Without Invoicing
  • Unlimited Time-Tracking
  • Unlimited Expenses
  • Automated Bank Import
  • Mobile Mileage Tracking
  • Tax Time Reports
  • Business Health Reports
  • At-A-Glance Performance Dashboards

Xero Early Features

  • Send invoices and quotes
  • Enter bills
  • Reconcile bank transactions
  • Capture bills and receipts with Hubdoc
  • Short-term cash flow and business snapshot
  • W-9 + 1099 Management
  • Sales Tax

FreshBooks Premium Features

NA

Xero Established Features

NA

FreshBooks vs Xero Pro & Cons

FreshBooksXero
Pros
  • Built-in time and project tracking
  • Intuitive and user-friendly
  • Good invoicing functionality
  • Competitively pricing plans
  • All plans support unlimited users
  • Most user-friendly accounting software
Cons
  • Extra cost for additional team member
  • Limited features with cheapest plan
  • Limited functionality for big businesses
  • Multiple currencies only available for top plan
  • Lack of customer support call
  • Payroll is limited to 36 U.S. states

Other Accounting Software Comparisons

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  • Xero vs Patriot Software
  • Odoo Accounting vs ZarMoney
  • FreeAgent vs Akounto
  • gnucash vs Akaunting
  • TaxSlayer Pro vs ZarMoney
  • Sage Accounting vs Akounto
  • FreshBooks vs Patriot Software
  • Sage Accounting vs gnucash
  • Acclux vs TrulySmall Accounting

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