Xero is a cloud-based accounting platform stronger for inventory management and multi-entity businesses, while FreshBooks excels in invoicing and time tracking for service-based freelancers and small teams. Xero starts at $13/month with limited features, whereas FreshBooks starts at $17/month with more comprehensive invoicing tools included.
Xero vs FreshBooks — Side-by-side comparison on A Versus B
Cloud accounting software designed for small businesses with inventory and multi-location capabilities.
Cloud invoicing and accounting platform optimized for freelancers and service-based businesses.
Primary User Focus. Starting Price (USD/month). Built-in Time Tracking. Inventory Management. Invoice Customization Templates. Multi-Currency Support. Free Trial Period
Choose Xero if you operate a retail business, manage multiple locations, need advanced inventory tracking, or sell internationally—it excels at complex accounting scenarios. Choose FreshBooks if you're a freelancer, service provider, or small agency that prioritizes invoicing speed, built-in time tracking, and client management without accounting complexity.
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 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)
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: 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 153 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 is better for freelancers: Xero or FreshBooks?
FreshBooks is significantly better for freelancers. It includes time tracking, expense management, and an intuitive client portal in all paid plans, whereas Xero requires additional subscriptions for time tracking. FreshBooks' interface also requires less accounting knowledge. However, if you sell physical products, Xero's inventory features become more valuable.
Does Xero or FreshBooks offer better international support?
Xero is superior for international businesses. It supports 195 currencies with automatic tax compliance in 30+ countries (Australia, UK, US, Canada, NZ, etc.), whereas FreshBooks supports 160 currencies but requires more manual tax setup. Xero is purpose-built for multi-country operations.
How much does time tracking cost with each platform?
FreshBooks includes time tracking at no extra cost in all paid plans starting at $17/month. Xero charges an additional $5-10/month for time tracking via integrations or add-ons. For time-intensive businesses, FreshBooks saves $60-120 annually.
Which platform has better customer support?
FreshBooks generally receives higher marks for customer support, offering 24/7 chat and email to most users. Xero's support quality varies by subscription tier, with phone support limited to premium plans. Both offer extensive knowledge bases and community forums.
Can I use Xero or FreshBooks for retail inventory?
Xero is purpose-built for retail with advanced multi-location inventory management, barcode scanning, and stock alerts. FreshBooks has basic inventory tracking suitable only for small service businesses or simple product lists. For any serious retail operation, Xero is the clear choice.
How to Choose Between Xero and FreshBooks
Primary User Focus: Xero has Small businesses, retailers, multi-location companies, while FreshBooks has Freelancers, service-based businesses, agencies.
Starting Price (USD/month): Xero has $13, while FreshBooks has $17.
Built-in Time Tracking: Xero has Add-on ($5-10/month extra), while FreshBooks has Included in all paid plans.
Inventory Management: Xero has Full multi-location inventory system included, while FreshBooks has Basic inventory tracking, limited features.
Consider: Invoice Customization Templates
Invoice Customization Templates: Xero has 50+ templates, while FreshBooks has 90+ templates with AI customization.
Multi-Currency Support: Xero has 195+ currencies, full compliance, while FreshBooks has 160+ currencies with conversion fees.
Free Trial Period: Xero has 30 days, while FreshBooks has 30 days.