Xero also offers two stand-alone apps — Xero Expenses and Xero Projects — for users on its Established plan. These apps allow you to capture photos for receipts, submit expense reports, track time, and attach billable expenses and time to individual projects. Unlike FreshBooks, however, Xero does not charge for additional users to access the software. Through Xero, you can also integrate with HR software provider Gusto for $40 per month plus $6 per employee. FreshBooks is an accounting software program geared toward small businesses and independent contractors.

Inventory management

This is because QuickBooks only allows up to 40 users for its highest-tiered plan, and even then, some plans require every user to pay for their own account. Xero how to calculate absolute liquid ratio or cash ratio with equations test of liquidity is ideal for businesses that keep a team of bookkeepers or accountants in-house. On the other hand, Xero may be the better choice for your business. Xero is strong accounting software that has everything you need to track the financials of your business. Some of its features really stand out, such as its customer management system.

Xero has a few helpful AI features

Alternatively, QuickBooks includes accountant access in all plans. And thanks to the software’s popularity, most accountants should be how to start your own bookkeeping business for nonprofits familiar with it. With Xero, all plans include a bank reconciliation tool that suggests transaction matches for you, making it easy to reconcile bank accounts. If a bank statement line meets the set of criteria you specified, Xero will suggest creating a matching transaction for you. Additionally, Xero’s customizable dashboard and global search function make the software easy to navigate. Project tracking tools in higher-tier plans; lacks industry-specific reports and transaction tracking tags; users with multiple businesses must pay for separate subscriptions.

QuickBooks Online does offer phone support for its customers but doesn’t have email support. Phone wait times are often short, but the helpfulness and knowledge of representatives vary, so resolving your issue may take some time. QuickBooks Online has a number of other support resources, including a help center, in-software help, training, and guides, to help you get the answers what is prepaid rent its importance in the accounting sphere you need.

Plans & pricing

You can reach support by raising a case (similar to filing an IT ticket) on the Xero website. If you invoke the guarantee, QuickBooks will conduct a full n evaluation of the Live Bookkeeper’s work. QuickBooks has a wide network of banking partners, making it easy to securely import your bank feeds from a variety of banks and credit card companies. This seamless integration saves time, ensures accuracy, and eliminates manual errors.

1. However, QuickBooks Online offers features you won’t find with Xero, such as mileage tracking and built-in lending, and also has stronger invoicing.
2. At 91%, FreshBooks has the best rating for customer support among all competitors.
3. All FreshBooks plans, except for the highest-tier custom plan, come with one user.
4. It also offers mileage tracking, tax support, and (for a fee) bookkeeping services, which you won’t find with Xero.
5. QuickBooks Online has over 750 integrations encompassing everything from customer management and payment processing to tax preparation and lending.

Each additional user costs $11 per month if you wish to grant access to more employees. Transactions made using FreshBooks Payments, which allows you to accept credit cards online, cost 2.9 percent plus 30 cents per transaction. FreshBooks also offers a product called Advanced Payments, which is used to accept credit card payments by phone and in person.

Audit trails show all changes within the software, who made them and when they were made to help accountants track down errors or unauthorized entries. Can support freelancers, contractors and small businesses with a handful of employees; highest-tier plan includes two users (additional users can be added for a fee). It’s easy to see why QuickBooks is a standout choice for small-to mid-size businesses. Its intuitive interface, robust feature set, and readily available customer support make it a comprehensive and user-friendly solution designed to help grow—and scale with—your business. Wave Accounting is a free accounting solution for very small service-based businesses, contractors, freelancers and consultants.

FreshBooks, on the other hand, charges $11 per month per additional user and is better suited for contractors and freelancers. Each FreshBooks plan comes with just one user with the exception of the custom Select plan, which includes two. While FreshBooks also has different subscription tiers, its reporting capabilities and other functions aren’t as varied or advanced as QuickBooks. Xero and QuickBooks Online are both powerful accounting software solutions for small businesses. However, when you compare features, QuickBooks Online inches ahead for its stronger feature set, ease of sharing with accountants and customer support.

Includes tools that help automate the reconciliation process, along with a global search function and customizable dashboard; however, there is a learning curve. Includes tools that help automate the reconciliation process, along with a global search function and customizable dashboard; has a simple layout. Katherine Haan is a small business owner with nearly two decades of experience helping other business owners increase their incomes. FreshBooks doesn’t have native functionality to integrate with Xero.

However, due to its limited feature set and lack of audit trails and third-party integrations, it’s not ideal for small businesses that have the potential to grow. Zoho Books stands out for its 24/5 customer support, strong feature set and affordability. It’s ideal for businesses that already use in-house Zoho apps, since it has limited third-party integrations beyond that. Both FreshBooks and Xero allow you to track business performance using your dashboard, and generate and download financial reports.