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
Cloud-first accounting software optimized for global small businesses and freelancers.
Cloud-based invoicing and accounting platform designed for freelancers and small 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: No (single entity)
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 tracking with 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: 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: 2.4% (Xero Payments) | FreshBooks: N/A
Xero: 4.8/5 | FreshBooks: 4.7/5 (42,000 reviews)
Xero: $5-10 extra | FreshBooks: Included
Xero: 195 currencies | FreshBooks: 160 currencies
Xero: Advanced (multi-location, real-time tracking) | FreshBooks: Basic (single-location, limited)
Max Client Accounts (Accountant Edition)
Xero: Unlimited with portal | FreshBooks: N/A
Xero: Third-party integration only | 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: Basic (payment reminders, invoice scheduling)
Xero: N/A | FreshBooks: Basic (quantity only)
Xero: N/A | FreshBooks: Full invoicing, expense entry, receipt capture
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 163 attribute comparisons, 5 FAQ pairs.
Xero vs FreshBooks — Attribute Category Vocabulary
Taxonomy of attribute categories used to classify comparison data for Xero vs FreshBooks.
Is Xero or FreshBooks better for freelancers?
FreshBooks is typically better for freelancers. It's designed around the freelance workflow: create beautiful invoices, track time and bill by the hour, set up recurring invoices for retainer clients, send automatic payment reminders, and accept online payments. The client portal lets clients view and pay invoices professionally. The Lite plan ($19/month for up to 5 clients) covers most freelancers who have a handful of ongoing clients. FreshBooks' mobile app makes it easy to invoice on the go. Xero is more capable for bookkeeping, but its complexity is overkill for most freelancers. The exception: freelancers with an accountant who uses Xero, or those whose business has grown to require payroll and employee management.
Does Xero have better reporting than FreshBooks?
Yes — significantly. Xero's reporting suite is one of its core strengths: full balance sheet, profit & loss, cash flow statement, general ledger, aged receivables/payables, detailed bank reconciliation reports, fixed asset schedule, and custom report builder. Xero is built on true double-entry accounting, which means every transaction has a debit and credit — the reports are always in balance and GAAP-compliant. FreshBooks offers adequate reporting for small service businesses (P&L, expense reports, invoice aging, time entries) but lacks the depth required for complex businesses or accountants who need complete financials. If your accountant or investors need proper financial statements, Xero is the better choice.
Can I switch from FreshBooks to Xero later?
Yes, you can migrate from FreshBooks to Xero, but it requires effort. FreshBooks allows data export (CSV) of clients, invoices, expenses, and time entries. Xero can import some of this data via CSV imports or third-party migration tools (Movemybooks, Xerocon-certified advisors). The challenge: migrating historical transaction data and recreating the chart of accounts requires an accountant or bookkeeper familiar with both platforms. Practical advice: migrate at year-end or the start of a new fiscal year when your historical data is cleanest. Budget for 4–8 hours of setup and data review, or $200–500 for a bookkeeper to handle the migration properly. Most businesses outgrow FreshBooks when they hire employees or need inventory management.
Yes — FreshBooks offers payroll in the US through FreshBooks Payroll, powered by SurePayroll. It's an add-on to your existing FreshBooks subscription, not included in base plans. Features include: unlimited payroll runs, direct deposit, federal and state tax filing, W-2/1099 generation, and new hire reporting. Pricing is separate from FreshBooks — SurePayroll charges a monthly base fee plus per-employee fee. For full-service payroll with direct tax filing, Gusto (which integrates with both FreshBooks and Xero) is often recommended as the better standalone payroll option — it has a more modern interface and broader benefits administration features.
Can I use FreshBooks as my only accounting software for tax filing?
Yes, for most freelancers and sole proprietors. FreshBooks generates profit and loss statements, expense reports, and tax summaries (including 1099 tracking for contractors) sufficient for Schedule C filing. Its double-entry accounting module (added in 2019) produces standard financial reports your accountant can use. For simple service businesses — consultants, designers, photographers — FreshBooks alone covers tax reporting needs. It's less ideal for product-based businesses (limited inventory management), businesses with employees (payroll requires an add-on or separate tool), or businesses with complex multi-entity structures. Growing businesses that need investor-grade financials or complex accounting are better served by Xero or QuickBooks.
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.