- FreshBooks is best for freelancers and very small businesses in need of service-focused bookkeeping.
- Xero is best for small to mid-sized businesses needing strong collaboration features.
- QuickBooks is best for growing SMBs that need comprehensive support for expansion.
Choosing the right bookkeeping software can be a challenge, especially when there are so many strong contenders. To help you find the best fit, we break down the features, pricing, pros, and cons of today’s most popular solutions: FreshBooks, QuickBooks, and Xero.
| Feature | FreshBooks | QuickBooks | Xero |
|---|---|---|---|
| Price | $22–$60/mo | $30–$220/mo | $25–$75/mo |
| G2 Rating | 4.5/5 | 4/5 | 4.4/5 |
| User Seats | Limited per plan | 1–25 per plan | Unlimited |
| Time & Mileage | Yes | Yes | No |
| Inventory Tracking | No | Plus & Advanced | No |
| Custom Reporting | No | Yes | Yes |
| Multi-Currency | No | Essentials & up | Premium |
| Collaboration | Limited | Limited | Unlimited users |
FreshBooks Overview
FreshBooks is one of the leading bookkeeping solutions for service-focused small businesses, popular among freelancers, contractors, and self-employed individuals for built-in time tracking, custom invoicing, and easy-to-create proposals and estimates. It also costs less than many competitors. Its four plans run Lite ($22) to custom Select. Top features: very intuitive interface, built-in time and mileage tracking, cheaper than competitors. Drawbacks: limited billable clients on the starter plan, $11/user fee, smaller report library.
QuickBooks Overview
QuickBooks has long been one of the most widely used bookkeeping solutions, making it a popular choice among accountants and bookkeepers and a convenient option for outsourcing. Its plans run EasyStart ($30) to Advanced ($220). Its main advantage is that it serves a wider range of business sizes, significantly deepening functionality with every upgrade. Top features: popular among professionals, unlimited invoicing on all plans, accommodates a wider breadth of business sizes. Drawbacks: pricier than competitors, set user limits per plan.
Xero Overview
Xero is a popular alternative to QuickBooks for small to mid-sized businesses who value simplicity over QuickBooks’ comprehensive functionality. Its three plans run Starter ($25), Standard ($55), and Premium ($75). Xero stands out for its affordable collaboration support — unlimited user seats on all plans with customizable permissions. Top features: simple interface, unlimited users on all plans, over 1,000 third-party integrations. Drawbacks: limited bills and clients on starter plans, no live customer support channels.
Feature-by-Feature Look
- Scalability — FreshBooks and Xero serve small to mid-sized businesses with incremental tier improvements; QuickBooks is better at accommodating growing businesses with substantial feature upgrades per tier.
- Interface — FreshBooks and Xero offer equally clean interfaces; QuickBooks requires more customization via shortcuts and bookmarks.
- Invoicing & estimates — QuickBooks supports unlimited invoicing on all plans; FreshBooks limits billable clients per plan; Xero limits invoices to 20/month on entry-level plans.
- Bill management — QuickBooks offers the most robust tools; Xero offers full bill management (5/month on entry plans); FreshBooks is the most limited.
- Reporting — QuickBooks provides the most extensive library, Xero is in the middle with custom reports, and FreshBooks offers the most basic with no customization.
- Customer support — FreshBooks is the most accessible (phone, live chat, email); Xero offers only email; QuickBooks offers phone and live chat but no email.
Bottom Line
FreshBooks, Xero, and QuickBooks are all strong bookkeeping options, but they cater to different types of businesses. FreshBooks is the best solution for freelancers, contractors, and self-employed individuals, as it tailors its plans and features to service-based work. Xero is a strong option for small businesses with large bookkeeping teams, providing a clean interface and unlimited users for free. Finally, QuickBooks provides the in-depth functionality necessary to support businesses with long-term growth plans.
Start Your Bookkeeping Journey with EpicBooks
Work with EpicBooks to simplify your financial management processes. Our team of experts can manage the nitty-gritty of bookkeeping — revenue tracking, tax preparation, financial reporting, payroll, budgeting, and forecasting — so you can focus on growing your business.
Echo Wang is an accomplished Canadian entrepreneur and the driving force behind EpicBooks, bringing a wealth of experience and a passion for excellence to the realm of bookkeeping.
Start your bookkeeping journey with EpicBooks
Revenue tracking, tax preparation, financial reporting, payroll, budgeting, and forecasting.