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FreshBooks vs Xero

A side-by-side look at FreshBooks and Xero: what each costs to start, whether there is a free plan, how easy they are to pick up, and which features and integrations they cover.

Which should you choose?

Choose FreshBooks if

  • Freelancers and consultants who bill by the hour or by project
  • Small agencies and service firms with a modest number of clients
  • People who find full accounting packages intimidating

Choose Xero if

  • Businesses that want owners, staff and an accountant in one file without per-user fees
  • Companies based in the UK, Australia or New Zealand
  • Growing businesses that connect ecommerce, payment and CRM apps

Cheapest to start

Not confirmed

Free plan

Neither

Highest editor rating

Xero · 4.3

Comparison of FreshBooks and Xero
CompareFreshBooks
Free planNo
Free trialYes
Starting priceFrom $21/mo
Editor rating4.1
Ease of useVery easy (5/5)
CategoryFinance & Accounting
Pricing modelLite, Plus and Premium at approximately $21, $38 and $65 per month billed monthly, priced by number of billable clients; additional team members cost about $11 per user per month and introductory promotions are common.
Plans
  • Lite $21/mo
  • Plus $38/mo
  • Premium $65/mo
  • Select Custom
PlatformsWeb, iOS, Android, API
IntegrationsGmail, Make, PayPal, Stripe, Zapier
Best for
  • Freelancers and consultants who bill by the hour or by project
  • Small agencies and service firms with a modest number of clients
  • People who find full accounting packages intimidating
Pros
  • Very easy to set up and use, with polished invoices and estimates
  • Built-in time tracking, projects and a client portal suit hourly and project work
  • Good iOS and Android apps
  • Clients can pay by card or bank transfer directly from the invoice
Cons
  • Billable client caps on Lite (5) and Plus (50)
  • Each additional team member costs about $11 per month
  • Weaker general ledger and reporting than QuickBooks Online or Xero
  • No inventory management
API accessYes
App marketplaceNo
Bank connectionsYes
Client portalYes
Expense trackingYes
Inventory managementNo
Mobile appYes
Multi-currency invoicingYes
Payment processingYes
Quotes & invoicesYes
Recurring invoicesYes
Reporting & dashboardsYes
Roles & permissionsNo
Tax reportsYes
Time trackingYes

Common questions

Does FreshBooks or Xero have a free plan?
Neither offers a permanently free plan. FreshBooks and Xero offer a free trial instead.
How long is the FreshBooks and Xero free trial?
FreshBooks offers a 30-day free trial.
Which is easier to use, FreshBooks or Xero?
In VERILO's editorial assessment FreshBooks is the easier of the two, scoring 5 out of 5 against 3 for Xero. That is a judgement about how quickly a new team gets productive, not a measured benchmark.

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