Xero Review: Pricing, Features, Pros and Cons

You get to use all the user-friendly features and you don’t need a credit card to sign up. Since 2003, over 30 million people have used FreshBooks to send, receive and pay invoices. Today FreshBooks has paying customers in over 160 countries and is the #1 cloud accounting solution designed for small business owners.

1. FreshBooks is a cloud accounting solution that uses industry-leading secure servers.
2. Both vendors offer reporting, analytics and data visualization to meet the demands of companies that wish to become data-driven.
3. Everyday processes become simplified, allowing organizations to focus on their most important work.
4. Global digital transformation has redefined the day-to-day operations of accountants as they increasingly transition to data-driven cloud accounting platforms.
5. All our plans are equipped with invoicing, expense, and project management features at no extra cost.
6. Xero has a mobile app, Xero Expenses, that allows you to snap pictures of receipts and create an expense instead of having to manually enter all the information.

One thing we recommend while comparing Xero vs FreshBooks is to learn all about the FreshBooks Accountant Partner Program. It’s a unique part of FreshBooks that you won’t get from other cloud based accounting solutions. When it comes to making payments easy for you and your clients and comparing FreshBooks vs Xero it’s easy to see why people choose FreshBooks. Our support staff is with you every step of the way, starting the moment you make the switch from spreadsheets or any other accounting software.

Easy-to-Use Accounting & Bookkeeping Features

It has unlimited customizable invoices, a client portal, built-in project and time tracking and a highly rated mobile app. FreshBooks has a deal running where you can save 50% for the next six months. With its most basic plan options, it comes equipped with bank reconciliation, unlimited user access (for entire accounting teams to access company financials), and comprehensive accounts payable management. These features are either not as robust with FreshBooks or are only accessible by upgrading to a more expensive plan. As a client, receiving a FreshBooks invoice with line items for subscription-based products or services, it’s easy to pay. All you have to do is save your credit card, banking or other payment details online in the FreshBooks application so you’re automatically billed each time an invoice comes due.

Capture data automatically

Combine this with terrible user experience in some parts of the app, unintuitive subscription models, and bad resources online, and it takes about 20x longer than it should to get anything done. The entire premise of Xero is cloud-based accounting, but it feels like traveling back in time 25 years when trying to get anything done with them. For security of transactions, we use the Secure Sockets Layer (SSL) protocol, which encrypts any information such as credit card number and billing information that you send us electronically. The encryption process protects your information by scrambling it before it is sent to us from your computer. In addition, your data is backed up automatically and is accessible from any device, so you can always stay connected and up-to-date.

Get 50% off for 6 months

Least expensive plan lacks double-entry accounting reports, bank reconciliation and accountant access. FreshBooks accounting software has accounting reports for small businesses, like the Profit and Loss Report and Sales Tax Summary, which have the key numbers you need to fill out and file your tax return. We’ve even put together a list of handy resources to help you get ahead of tax time, which you can check out below. If you need double-entry accounting or bookkeeping help with filling out your return, check out our Accounting Partner Program to get matched with one of our vetted accounting or tax professionals. Xero’s simple invoicing tool (Figure A) makes it easy to upload your logo and choose from several branding themes, but I’d love to see more extensive customization options. Xero does offer an invoice template to help get you started, and you can choose to create and save your own templates.

Expenses

The larger your business is, the better equipped Xero becomes to meet your needs. FreshBooks brings some serious pizzazz and excitement to accounting, while Xero takes a more polished, business-like approach. Xero doesn’t offer the opportunity to call a representative directly for assistance. You how to learn ifrs can reach support by raising a case (similar to filing an IT ticket) on the Xero website. It can be easily accessed from any device, from your PC (Windows desktop) or Mac desktop to your mobile phone.

This is just one example of a time-saving workflow in FreshBooks, but you can easily convert an estimate or proposal into a project with a single click. The same customer that got your estimate or proposal now has a project assigned to them, and any and all services that were added in the estimate or proposal are now added to the project. To review this software, I signed up for a free trial of the Xero Established plan. I also reviewed official product documentation, watched demo videos, consulted user reviews and cross-referenced software reviews in industry publications. If you’re looking for an accountant who specializes in Xero, you can search for an accounting advisor through their website by location and industry.

Due to its limited accounting features compared what is unearned revenue a definition and examples for small businesses to Xero, FreshBooks doesn’t offer as many report options, and within its reports, customization is pretty sparse. FreshBooks and Xero are both powerful accounting tools that can help businesses keep their financial information and assets organized and accessible. But the two apps are geared toward different audiences, which explains their functional differences. QuickBooks Online is an industry standard for small-business accounting and delivers on its robust feature set, ease of sharing with accountants and range of integrations.

The tradeoff for Xero’s unlimited users on the Early plan is that it enforces pretty stiff limits on other things, only allowing 20 invoices types of assets and 5 bills per month. Most small businesses will exceed that limit quickly and be forced to upgrade to a more expensive plan. Xero offers accounts payable features with all plans — although you can enter only five bills per month with the Early plan. The software’s bill management tools are detailed, giving you the ability to access all of your bills online in one place, make batch payments and schedule them in advance. In contrast, FreshBooks includes basic accounts payable tools like bill tracking with the Premium plan and doesn’t offer them with the Lite or Plus plans. FreshBooks is another one of our favorites for small businesses — especially freelancers.