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Professional Services · head to head

FreshBooks vs Xero

FreshBooks logo

FreshBooks

Professional Services

Accounting software that makes you look good

From
Free
Rated
-
Full reviewWebsite
Xero logo

Xero

All industries

Beautiful accounting software

From
$13/month
Rated
-
Full reviewWebsite

The short version

  • Only FreshBooks has a free tier, so it costs nothing to try first.
  • Each has a real cost: FreshBooks lite tier limited to 5 clients maximum; Xero the Early plan caps you at 20 invoices and 5 bills per month, and the invoice limit counts both approving and sending
  • They diverge on capability: FreshBooks covers Expense tracking, Xero covers Bank reconciliation.

Where they differ

Only the attributes on which FreshBooks and Xero actually diverge.

Attributes where FreshBooks and Xero differ
AttributeFreshBooksXero
Starting priceFree$13/month
Pricing modelUnknownsubscription
Free tierYesNo
PlatformsWeb, iOS, AndroidWeb, Ios, Android, Api
CategoryProfessional ServicesAll industries
Founded20032006

Identical on both: user rating (Not yet rated).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in FreshBooks

  • Expense tracking
  • Time tracking
  • Project management
  • Payments
  • Proposals
  • Mileage tracking
  • G Suite
  • Mailchimp

Only in Xero

  • Bank reconciliation
  • Bill payment
  • Expense claims
  • Inventory tracking
  • Project tracking
  • Mobile apps
  • Square
  • Shopify

Both cover

  • Invoicing
  • Financial reporting
  • Stripe
  • PayPal
  • HubSpot
  • 2FA

What people use each for

The jobs each tool is most often brought in to do.

FreshBooks

  • Invoicing and payment processingnot Xero
  • Time tracking and expense managementnot Xero
  • Multi-client project accountingnot Xero

Xero

  • Small business bookkeeping, invoicing and bank reconciliationnot FreshBooks
  • Bill payment and purchase order managementnot FreshBooks
  • Sharing books with an accountant or bookkeepernot FreshBooks

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

FreshBooks

  • Lite tier limited to 5 clients maximum
  • E-signatures, proposals, and client retainers unavailable on Lite and Plus tiers
  • Advanced payment processing fee of £20/month on Plus tier (extra cost)
  • Email customization and project profitability tracking restricted to Premium tier and above
  • Offline mode not available; web-based only

Xero

  • The Early plan caps you at 20 invoices and 5 bills per month, and the invoice limit counts both approving and sending
  • Invoices created by connected app partners count against the Early plan invoice limit
  • Multiple currencies, project time and cost tracking, employee expense and mileage claims and industry benchmarking are restricted to the top Established plan at $90 per month
  • Cash flow forecasting is capped at 30 days on Early and 60 days on Growing, with 180 days only on Established
  • Payroll is not included in any plan and costs an extra $36 a month plus $6 per employee or contractor through Gusto
  • Inventory Plus is a paid optional add-on rather than part of any plan
  • The advertised 90% off applies only to the first 6 months, after which the regular $25, $55 or $90 monthly price auto-renews
  • The introductory discount excludes add-ons, usage charges and payment fees
  • Payment fees apply to online invoice payments and to bill payments other than standard domestic ACH, and are billed on top of the subscription
  • Subscriptions are billed monthly with no annual payment option, and after upgrading you must wait one month before downgrading to a cheaper plan
  • Xero states subscription prices are increasing from October 1, 2026

Pricing, plan by plan

FreshBooks

Free

No published plan breakdown. See the FreshBooks review.

Xero

$13/month
  • Early$13/month
    • Send 20 invoices
    • Enter 5 bills
    • Reconcile bank transactions
  • Growing$37/month
    • Unlimited invoices & bills
    • Bulk reconcile transactions
    • Short-term cash flow
  • Established$70/month
    • Everything in Growing
    • Use multiple currencies
    • Track projects

Which should you pick?

Choose FreshBooks if

  • You need expense tracking.
  • You want to start without paying.
  • You work on Web, iOS, Android.
  • You also want time tracking.
FreshBooks review

Choose Xero if

  • You need bank reconciliation.
  • You work on Web, Ios, Android, Api.
  • You also want bill payment.
Xero review

Questions people ask

Is FreshBooks or Xero better?
Neither clearly leads. FreshBooks starts at Free and Xero at $13/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, FreshBooks or Xero?
FreshBooks has a free tier; the other does not. Paid plans start at Free for FreshBooks and $13/month for Xero.
Does FreshBooks or Xero run on more platforms?
FreshBooks runs on Web, iOS, Android. Xero runs on Web, Ios, Android, Api.
Can I use FreshBooks for free?
Yes. FreshBooks has a free tier, so you can try it without paying. Xero starts at $13/month.
What is FreshBooks best used for?
FreshBooks is most often used for invoicing and payment processing, time tracking and expense management, multi-client project accounting. Of those, invoicing and payment processing and time tracking and expense management are not what Xero is typically brought in for.
What can FreshBooks do that Xero cannot?
FreshBooks covers Expense tracking, Time tracking, Project management, Payments. Xero covers Bank reconciliation, Bill payment, Expense claims, Inventory tracking. Both handle Invoicing, Financial reporting, Stripe, PayPal.
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