Our verdict
Choose Xero for complete accounting that scales and works with your accountant. Choose FreshBooks if you mainly bill clients for time and want the easiest invoicing.
Xero is full double-entry accounting software loved by accountants, with unlimited users. FreshBooks started as invoicing for service businesses and excels at time tracking, proposals and client billing.
Choose Xero if…
- You need full accounting with an accountant
- Several people need access
- You have inventory or multi-currency needs
Choose FreshBooks if…
- You are a freelancer or service business
- Invoicing and time tracking matter most
- You want the friendliest interface
Side by side
| Criterion | Xero | FreshBooks |
|---|---|---|
| Overall score | 8.5 / 10 | 8.1 / 10 |
| Features & fit | 8.7 | 7.6 |
| Ease of use | 8.6 | 9.0 |
| Value for money | 8.4 | 7.9 |
| Support & reliability | 7.8 | 8.4 |
| Security & privacy | 8.4 | 8.2 |
| Integrations & ecosystem | 9.0 | 7.8 |
| Starting price (indicative) | From around $20–29 / month | From around $19–23 / month |
| Free plan | No | No |
| Free trial | Yes | Yes |
| Best for | Teams wanting unlimited users | Freelancers and consultants |
Feature by feature
| Feature | Xero | FreshBooks |
|---|---|---|
| Users | Unlimited | Extra cost per team member |
| Invoicing | Good | Excellent |
| Time tracking | Via projects on higher tiers | Built in |
| Inventory | Basic tracked inventory | Limited |
| Bank reconciliation | Excellent | Good |
| Best for | Growing small businesses | Freelancers and service firms |
Pricing compared
Xero
| Plan | Indicative price | Notes |
|---|---|---|
| Starter | ≈ $20 / mo | Limits on invoices and bills |
| Standard | ≈ $40 / mo | — |
| Premium | ≈ $55 / mo | Multi-currency |
FreshBooks
| Plan | Indicative price | Notes |
|---|---|---|
| Lite | ≈ $19 / mo | Up to 1 user |
| Plus | ≈ $33 / mo | Up to 1 user |
| Premium | ≈ $60 / mo | Up to 1 user |
| Team member add-on | ≈ $11 / user / mo | Per additional team member |
| Team size | Xero | FreshBooks |
|---|---|---|
| 5 seats | Flat pricing | $55 (Team member add-on) |
| 10 seats | Flat pricing | $110 (Team member add-on) |
| 25 seats | Flat pricing | $275 (Team member add-on) |
Indicative USD list prices; excludes tax, add-ons and promotions. Confirm on each vendor’s site.
Core focus
Xero is accountant-grade bookkeeping. FreshBooks is built around invoicing, time and expenses for service work.
Users
Xero includes unlimited users. FreshBooks charges for additional team members.
Accountant preference
Xero is widely used by accountants; FreshBooks has accountant access but is less common in practices.
Pros & cons
Xero
- Unlimited users on every plan
- Clean reconciliation workflow
- Strong app marketplace
- Entry plan transaction limits
- Support is mainly online
FreshBooks
- Excellent invoicing and time tracking
- Very easy to learn
- Client portal and retainers
- Client limits on lower plans
- Fewer advanced accounting features
Key features of each
Xero
- Bank reconciliation. Match transactions quickly with suggestions.
- Invoices & bills. Send invoices and track payables.
- Multi-currency. Trade in many currencies on higher plans.
- App marketplace. Hundreds of connected apps.
Integrates with: Gusto, Shopify, Stripe, HubSpot, Square.
FreshBooks
- Invoicing. Professional invoices with reminders and payments.
- Time tracking. Track billable hours and add them to invoices.
- Expenses. Capture receipts and categorise spending.
- Proposals. Send estimates and convert them to invoices.
Integrates with: Stripe, Gusto, Shopify, Zapier.
Who should avoid each
Skip Xero if…
- High-volume invoicing on the entry tier
- Complex US payroll inside one tool
Best for: Teams wanting unlimited users; UK, AU and NZ businesses; Businesses with app-heavy workflows.
Skip FreshBooks if…
- Inventory-heavy businesses
- Larger finance teams
Best for: Freelancers and consultants; Agencies billing by time; Owners new to accounting.
Switching between Xero and FreshBooks
Migration difficulty: Moderate
Contacts, invoices and opening balances move easily; full transaction history is best moved with a conversion service or kept read-only.
- Choose a switch date at a period end.
- Reconcile the old system to that date.
- Import contacts, items and opening balances.
- Recreate invoice templates and recurring invoices.
- Keep read-only access to the old system for history.
Weigh it your way
Adjust the weights to your priorities to see which tool comes out ahead for you. Print or export the result for your team.
| Tool | Features | Ease | Value | Support | Security | Integrations | Your score |
|---|---|---|---|---|---|---|---|
| 1. Xero | 8.7 | 8.6 | 8.4 | 7.8 | 8.4 | 9.0 | 8.54 |
| 2. FreshBooks | 7.6 | 9.0 | 7.9 | 8.4 | 8.2 | 7.8 | 8.11 |
Drag the sliders to match your priorities. Scores are our editorial sub-scores; weights start at the values we publish on the methodology page. Nothing you change is stored or sent anywhere.
How our scores and weights work · Add a third tool side by side
Frequently asked questions
Is FreshBooks real accounting software?
Yes, it includes double-entry accounting, but its strength is invoicing and time tracking.
Which do accountants prefer?
Many accountants prefer Xero or QuickBooks for full bookkeeping.
Does Xero or FreshBooks have a free plan?
Xero has a free trial but no permanent free plan; FreshBooks has a free trial but no permanent free plan. Indicative starting prices: Xero — From around $20–29 / month; FreshBooks — From around $19–23 / month.
Which scores higher in our review, Xero or FreshBooks?
Xero scores 8.5/10 and FreshBooks 8.1/10 on our weighted rubric. Xero leads on 4 of six criteria. A higher score does not make it right for every buyer — see the “choose if” lists above.
