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Freshbooks vs Xero
March 09, 2025 | Author: Michael Stromann
13★
FreshBooks is an online invoicing software as a service for freelancers, small businesses, agencies, and professionals. The product includes a myriad of other related features, such as time tracking, expense tracking, recurring billing, online payment collection, the ability to mail invoices through the U.S. Post, and support tickets.
18★
Xero is accounting software for small business. Like alternatives, Xero allows to manage invoicing, reconciliation, accounts payable, bookkeeping and more. Share access to your latest business numbers with your team & your accountant – so everyone is up to speed. Xero accounting software lets you work anywhere.
See also:
Top 10 Online Accounting software
Top 10 Online Accounting software
FreshBooks and Xero are remarkably similar in that they both exist, which is a feat in itself. They are cloud-based, meaning you don’t need to worry about having a physical filing cabinet stuffed with receipts, which is a relief for those who were never quite sure what to do with the pile of invoices steadily growing on the kitchen counter. Both offer invoicing, expense tracking and reporting, which is convenient for anyone who has ever wondered how much of their income was eaten up by takeaway coffee. They also have mobile apps, which means you can track your finances on the go, perhaps while standing in a queue for an improbable number of sandwiches.
But FreshBooks is like a cheerful, well-organized office assistant who’s eager to make sure freelancers, self-employed individuals and small business owners don't get bogged down in the relentless march of accounting. It was birthed in Canada in 2003 and it’s known for its user-friendly interface, so simple that even the most spreadsheet-averse person could manage without needing a degree in finance. If you’re a sole trader with more creativity than accounting skills, it offers messaging and proposal tools to make your life a little easier, though if you need to track inventory, you’ll have to look elsewhere because, frankly, it just can’t be bothered.
Xero, on the other hand, is what you might call a small business accountant’s dream, though perhaps a slightly more sophisticated one, like the sort of accountant who’d wear a bowtie and offer sage advice about your business structure. Born in New Zealand in 2006, Xero is great for small to medium-sized businesses that need slightly more robust financial tracking. It includes features like multi-currency support, payroll (depending on your location) and detailed financial reports to help you sleep at night when the taxman inevitably arrives. So, while FreshBooks makes it easy to invoice and track a few expenses, Xero is a bit more like a full-fledged accounting department—if your accounting department was in the cloud and never needed coffee breaks.
See also: Top 10 Online Accounting software
But FreshBooks is like a cheerful, well-organized office assistant who’s eager to make sure freelancers, self-employed individuals and small business owners don't get bogged down in the relentless march of accounting. It was birthed in Canada in 2003 and it’s known for its user-friendly interface, so simple that even the most spreadsheet-averse person could manage without needing a degree in finance. If you’re a sole trader with more creativity than accounting skills, it offers messaging and proposal tools to make your life a little easier, though if you need to track inventory, you’ll have to look elsewhere because, frankly, it just can’t be bothered.
Xero, on the other hand, is what you might call a small business accountant’s dream, though perhaps a slightly more sophisticated one, like the sort of accountant who’d wear a bowtie and offer sage advice about your business structure. Born in New Zealand in 2006, Xero is great for small to medium-sized businesses that need slightly more robust financial tracking. It includes features like multi-currency support, payroll (depending on your location) and detailed financial reports to help you sleep at night when the taxman inevitably arrives. So, while FreshBooks makes it easy to invoice and track a few expenses, Xero is a bit more like a full-fledged accounting department—if your accounting department was in the cloud and never needed coffee breaks.
See also: Top 10 Online Accounting software
