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
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.
Cloud accounting software designed for small businesses with inventory and multi-location capabilities.
Cloud-based invoicing and accounting platform designed for freelancers and small service businesses.
Structured comparison data for Xero vs FreshBooks with 159 attributes.
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.