Billing & Invoicing Software · Accounting Software

Xero vs FreshBooks

Both are billing & invoicing software and accounting software. The short answer: choose Xero if you are small businesses and accountants in the UK, Australia and New Zealand; choose FreshBooks if you are freelancers and service businesses billing clients for time.

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Xero logo XeroFreshBooks logo FreshBooks
Best forSmall businesses and accountants in the UK, Australia and New ZealandFreelancers and service businesses billing clients for time
Free planNo (trial may exist)No (trial may exist)
PricingSee providerSee provider
Built for IndiaGlobalGlobal
CategoriesBilling & Invoicing Software, Accounting SoftwareBilling & Invoicing Software, Accounting Software
Strengths
  • Clean, fast reconciliation
  • Unlimited users on plans
  • Big integration marketplace
  • Very easy invoicing
  • Time tracking built in
  • Good client experience
Watch out for
  • Payroll availability depends on country
  • Lower plans cap some transactions
  • Pricing tiers limit billable clients
  • Less suited to inventory businesses
Visit XeroVisit FreshBooks

Which should you choose?

Xero: Cloud accounting platform known for bank reconciliation, invoicing and a large app marketplace.

FreshBooks: Invoicing-first accounting software with time tracking, expenses and client portals.

The best way to decide is to run the same week of real work through both — most offer a free plan or trial — and compare how long tasks take, what your team prefers, and the total cost for your number of users including renewal pricing.

Not sure either fits? See all billing & invoicing software compared.