Xero excels with 500+ third-party integrations and advanced mobile accounting features, while FreshBooks prioritizes streamlined invoicing with superior invoicing-specific mobile tools and simpler setup for service businesses.
Xero vs FreshBooks — Side-by-side comparison on A Versus B
Premium cloud accounting platform with advanced features for growing businesses
Cloud invoicing and time-tracking platform optimized for freelancers and service businesses.
Third-Party Integrations. Mobile App Focus. AI Document Processing. Best Use Case. Setup Complexity. Team Member Pricing. Data Migration Support
Choose Xero if you need extensive integrations (500+), advanced mobile accounting features, AI-powered document scanning, and serve scaling businesses. Choose FreshBooks if you're a service business prioritizing invoicing excellence, prefer a simpler setup experience, and want specialized mobile invoicing tools.
Xero: Unlimited/Higher | FreshBooks: N/A
Xero: Good but secondary focus | FreshBooks: N/A
Xero: Separate paid tool | FreshBooks: N/A
Xero: Strong alternative | FreshBooks: N/A
Xero: Comprehensive accounting-focused | FreshBooks: Invoicing-specific optimized
Xero: LLM-powered (2026) | FreshBooks: Standard OCR
Xero: Moderate to high | FreshBooks: Low to moderate
Xero: Standard tools included | FreshBooks: Simplified migration service
Xero: Native multi-entity support | FreshBooks: Limited multi-entity capabilities
Xero: Available (Select tier+) | FreshBooks: No FreshBooks branding (Select tier+)
Xero: Third-party required | FreshBooks: N/A
Xero: $8-15 (Standard plan) | FreshBooks: N/A
Xero: 5 (Standard), Unlimited (Premium) | FreshBooks: N/A
Xero: Full capability with offline mode | FreshBooks: N/A
Xero: Advanced (SKU tracking, stock levels) | FreshBooks: N/A
Xero: Unlimited (all tiers) | FreshBooks: N/A
Xero: 60 (standard tier) | FreshBooks: 120 requests/min
Xero: Unlimited organizations | FreshBooks: N/A
Xero: Yes (Snap Invoice) | FreshBooks: N/A
Xero: 4.7/5 (45K reviews) | FreshBooks: 4.6/5 (12,400+ reviews)
Xero: Third-party add-on (Guidepoint, Namely) | FreshBooks: N/A
Xero: $13-62 depending on plan | FreshBooks: N/A
Xero: 50+ customizable reports | FreshBooks: N/A
Xero: Full accounting and expense tracking | FreshBooks: N/A
Xero: Advanced automation saves ~8 hours | FreshBooks: N/A
Xero: Varies by Starter plan | FreshBooks: N/A
Xero: Full (multi-user simultaneous editing) | FreshBooks: N/A
Xero: Full invoicing, payments, expense tracking | FreshBooks: N/A
Xero: 1-3 limited (unlimited on higher tiers) | FreshBooks: N/A
Xero: 1,200+ (US/UK/AU/NZ) | FreshBooks: N/A
Xero: 4.6 stars (18,000+ reviews) | FreshBooks: N/A
Xero: 500+ native integrations | FreshBooks: N/A
Xero: Manual entry + basic matching | FreshBooks: N/A
Xero: $13/month (Early plan) | FreshBooks: $17.50
Xero: No, 1-3 users max | FreshBooks: N/A
Xero: 1,000+ integrations | FreshBooks: N/A
Xero: 24/7 phone + email + chat | FreshBooks: N/A
Xero: N/A | FreshBooks: Limited by additional per-user charges
Xero: N/A | FreshBooks: Included as core feature
Xero: N/A | FreshBooks: Basic automation
Xero: N/A | FreshBooks: Yes, included in all plans
Xero: N/A | FreshBooks: 1-3 (plan dependent)
Xero: N/A | FreshBooks: Advanced - project, task, and user-level tracking
Xero: N/A | FreshBooks: Built-in with Stripe/PayPal integration
Xero: N/A | FreshBooks: 100+ integrations
Xero: N/A | FreshBooks: 12+ report types (P&L, Balance Sheet, Cash Flow, Tax Summary)
Xero: N/A | FreshBooks: Included with payment collection
Xero: N/A | FreshBooks: Receipt scanning only
Xero: N/A | FreshBooks: 30% faster with automated reminders
Xero: N/A | FreshBooks: $240/year (Plus plan, billed annually)
Xero: N/A | FreshBooks: Unlimited with timer
Xero: N/A | FreshBooks: 1 day (real-time)
Xero: N/A | FreshBooks: $30.00 (Plus plan)
Xero: N/A | FreshBooks: No - proposals only
Xero: N/A | FreshBooks: Full double-entry accounting
Xero: N/A | FreshBooks: 40+ (P&L, balance sheet, tax, aging, project profitability)
Xero: N/A | FreshBooks: No (requires third-party or manual)
Xero: N/A | FreshBooks: 100+ (Stripe, QuickBooks, Shopify, Zapier)
Xero: N/A | FreshBooks: 4.7/5 (42,000 reviews)
Xero: N/A | FreshBooks: Basic (payment reminders, invoice scheduling)
Xero: N/A | FreshBooks: Basic (quantity only)
Xero: N/A | FreshBooks: Full: projects, file sharing, payment tracking
Xero: N/A | FreshBooks: No (integration only)
Xero: N/A | FreshBooks: 1 user (Lite plan)
Xero: N/A | FreshBooks: Basic (1099 tracking only)
Xero: N/A | FreshBooks: Yes (with payment processing)
Xero: N/A | FreshBooks: Not available (contractor 1099s only)
How to choose between Xero and FreshBooks
Xero vs FreshBooks — Structured Comparison Data
Machine-readable comparison dataset for Xero vs FreshBooks. Contains 141 attribute comparisons, 5 FAQ pairs.
Xero vs FreshBooks — Attribute Category Vocabulary
Taxonomy of attribute categories used to classify comparison data for Xero vs FreshBooks.
Which accounting software is better for service-based businesses?
FreshBooks is superior for service businesses prioritizing invoicing. It offers specialized mobile invoicing features, streamlined onboarding, and simplified data migration. Xero is better if you need multi-entity support, extensive integrations, or advanced accounting beyond invoicing.
How many integrations does each platform support?
Xero supports 500+ third-party integrations, making it significantly more connected than FreshBooks, which offers 100+ integrations. This advantage makes Xero better for businesses using specialized industry tools, inventory systems, and payment processors.
What are the total costs for a growing team?
For a 5-person team, Xero's per-user cost is $3-5/month ($15-25 total for additional users), while FreshBooks costs $11/month per user ($44 for additional users). Over a year, Xero saves $228-348 on team member costs for a 5-person setup.
Does either platform use AI for document processing?
Yes. Xero launched LLM-powered document processing in 2026 that automatically extracts data from receipts, sales invoices, and financial documents. FreshBooks uses standard OCR technology, which requires more manual review.
Which platform has better mobile accounting capabilities?
Xero's mobile app includes comprehensive accounting features like expense tracking, bank reconciliation, and reporting. FreshBooks' app excels at invoicing-specific functions. Choose Xero for complete mobile accounting; choose FreshBooks if invoicing is your primary mobile need.
How to Choose Between Xero and FreshBooks
Third-Party Integrations: Xero has 500+ integrations, while FreshBooks has 100+ integrations.
Mobile App Focus: Xero has Comprehensive accounting features, while FreshBooks has Invoicing-specific features.
AI Document Processing: Xero has LLM-powered receipt/invoice scanning, while FreshBooks has Standard document capture.
Best Use Case: Xero has Multi-feature accounting & inventory, while FreshBooks has Service businesses & invoicing.
Setup Complexity: Xero has More features, steeper learning curve, while FreshBooks has Simplified onboarding process.
Team Member Pricing: Xero has $3-5 per additional user/month, while FreshBooks has $11 per additional team member/month.
Data Migration Support: Xero has Standard migration tools, while FreshBooks has Simplified data migration service.