Xero vs FreshBooks

Xero and FreshBooks are both accounting options. Xero lists 8 features across 3 platforms; FreshBooks lists 8 features across 3 platforms — see the full breakdown below, sourced from each vendor's own site rather than ratings or reviews.

Side-by-side summary

ComparingXeroFreshBooks

CategoryAccountingAccounting

Alternatives tracked44

PlatformsWeb, iOS, AndroidWeb, iOS, Android

Pricing modelpaidpaid

Best for Xero

Small businesses that want lower-cost accounting software with unlimited user seats and work closely with an accountant or bookkeeper who already uses Xero.

Best for FreshBooks

Freelancers, consultants, agencies, and service-based small businesses that prioritize client invoicing, time tracking, and professional estimates over complex inventory management.

Feature comparison

Every feature listed here comes directly from each vendor's own official site.

Xero

Invoicing and online payment collection
Bank feed reconciliation
Expense claims
Multi-currency accounting
Inventory tracking
Project time and cost tracking
Unlimited users on every plan
Large third-party app marketplace

FreshBooks

Customizable client invoicing with automated payment reminders
Online payment acceptance via credit card, ACH, PayPal, and Stripe
Expense tracking with bank feeds and automated receipt scanning
Built-in time tracking with billable hours converted directly to invoices
Project profitability tracking and team timesheet management
Double-entry accounting reports including Balance Sheet, General Ledger, and Trial Balance
Client estimate creation with one-click conversion to active invoices
Mileage tracking via mobile iOS and Android applications

Pros and cons

Xero

Pros

Invoicing and online payment collection
Bank feed reconciliation
Expense claims
Multi-currency accounting
Inventory tracking
Project time and cost tracking
Unlimited users on every plan
Large third-party app marketplace

Cons

We don't publish a "cons" list for either product. No vendor's official site documents its own product's weaknesses, so there's no sourced basis for one — and we'd rather say that plainly than invent one.

FreshBooks

Pros

Customizable client invoicing with automated payment reminders
Online payment acceptance via credit card, ACH, PayPal, and Stripe
Expense tracking with bank feeds and automated receipt scanning
Built-in time tracking with billable hours converted directly to invoices
Project profitability tracking and team timesheet management
Double-entry accounting reports including Balance Sheet, General Ledger, and Trial Balance
Client estimate creation with one-click conversion to active invoices
Mileage tracking via mobile iOS and Android applications

Cons

Key differences

Xero lists Invoicing and online payment collection, Bank feed reconciliation, Expense claims, Multi-currency accounting, Inventory tracking, Project time and cost tracking, Unlimited users on every plan, Large third-party app marketplace that FreshBooks doesn't list.
FreshBooks lists Customizable client invoicing with automated payment reminders, Online payment acceptance via credit card, ACH, PayPal, and Stripe, Expense tracking with bank feeds and automated receipt scanning, Built-in time tracking with billable hours converted directly to invoices, Project profitability tracking and team timesheet management, Double-entry accounting reports including Balance Sheet, General Ledger, and Trial Balance, Client estimate creation with one-click conversion to active invoices, Mileage tracking via mobile iOS and Android applications that Xero doesn't list.

Choose Xero if…

Choose Xero if this fits: Small businesses that want lower-cost accounting software with unlimited user seats and work closely with an accountant or bookkeeper who already uses Xero.

Visit Xero

Choose FreshBooks if…

Choose FreshBooks if this fits: Freelancers, consultants, agencies, and service-based small businesses that prioritize client invoicing, time tracking, and professional estimates over complex inventory management.

Visit FreshBooks

Facts on this page are sourced from each vendor's official site (linked below), not from ratings or reviews. Products change — verify anything that matters to your decision directly on the vendor's own site before switching. See our Disclaimer and Sources Policy.