FreshBooks vs Xero — Which One Wins?
Pick FreshBooks if: Freelancers and service businesses that want gorgeous invoicing and time tracking without accounting headaches
Pick Xero if: International small businesses that need multi-currency support and a cleaner UI than QuickBooks
Our take: FreshBooks is easier to pick up, but Xero is more powerful long-term.
| FreshBooks | Xero | |
|---|---|---|
| Pricing | 30-day free trial | Lite $19/mo (5 clients) | 30-day free trial | Starter $15/mo |
| Features | Client-friendly invoicing, Time tracking and project costing, Expense management, Double-entry accounting, Proposals and contracts | Bank reconciliation, Invoicing and quotes, Inventory management, Multi-currency support, 1,000+ third-party integrations |
| Best for | Freelancers and service businesses that want gorgeous invoicing and time tracking without accounting headaches | International small businesses that need multi-currency support and a cleaner UI than QuickBooks |
| Learning Curve | Easy | Medium |
The Real Difference
Both offer free tiers, so the real question is what you get when you start paying.
FreshBooks stands out with Client-friendly invoicing and Time tracking and project costing. Xero counters with Bank reconciliation and Inventory management.
FreshBooks's Achilles heel: client limits on lower tiers are frustrating — lite caps you at 5 billable clients which is nothing. Xero's: the starter plan limits you to 20 invoices/month — most businesses outgrow it in the first quarter. Pick whichever weakness you can live with.
Bottom Line
If you value client-friendly invoicing and freelancers and service businesses, go with FreshBooks. If international small businesses that matters more, Xero is your pick. Neither is a bad choice — but one will fit your workflow better.