FreshBooks
FreshBooks Alternatives
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FreshBooks Alternatives: A Comprehensive Review
FreshBooks is a cloud-based accounting software designed primarily for small businesses and freelancers. It offers features such as invoicing, expense tracking, time tracking, and reporting. While it is a popular choice for many, there are several alternatives that offer similar or enhanced features.
In this review, we’ll explore the best FreshBooks alternatives, including QuickBooks, Xero, and Wave, comparing them across key features, pricing, and usability. FreshBooks initially focused on small businesses, startups, and single-owner businesses.
Over time, it expanded its product to suit various business entities, including large enterprises. Let’s now compare each of the FreshBooks alternatives.
FreshBooks Overview
Before diving into the alternatives, it’s essential to understand what FreshBooks offers and why someone might look for alternatives.
Key Features of FreshBooks:
- Easy invoicing and payment tracking
- Expense and time tracking
- Financial reports such as profit & loss
- Integration with multiple payment gateways
- Client management
- Automated reminders for unpaid invoices
Pricing:
- Lite: $17 per month (billed annually) for up to 5 clients
- Plus: $30 per month (billed annually) for up to 50 clients
- Premium: $55 per month (billed annually) for unlimited clients
While FreshBooks is user-friendly and designed for small business owners, some users may find the pricing higher compared to alternatives or might need more advanced features for managing larger businesses.
QuickBooks: The Feature-Rich Alternative
The two products, FreshBooks and QuickBooks, may seem similar at first. They both target small and growing businesses as accounting tools. However, there are significant differences in features and pricing between the two. Let’s compare FreshBooks vs QuickBooks to understand each of them better.
QuickBooks is a widely used accounting software solution, popular among businesses of all sizes. When comparing FreshBooks and QuickBooks, QuickBooks stands out for its comprehensive features that cater to small, medium, and large businesses.
Key Features of QuickBooks:
- Invoicing, expense tracking, and payment processing
- Advanced accounting features such as bank reconciliation and double-entry accounting
- Payroll integration (an additional cost)
- Inventory tracking for product-based businesses
- Customizable financial reports
- Integration with hundreds of third-party apps, including PayPal, Shopify, and Stripe
Freshbooks vs. Quickbooks Features
First, most of the features are the same. So, the battle between Freshbooks vs. QuickBooks will be mainly between the features that set them apart. The latest is more oriented towards all businesses. FreshBooks has developed over time into a more feature-diverse product suitable for a larger spectrum of companies.
FreshBooks vs. QuickBooks have three features in common: invoicing, expenses, and cloud accounting. So these would be the similarities the two software share.
Second, each one chose to differentiate from the other with district features. For example, in contrast to QuickBooks offering Projects, FreshBooks does the tracking and collaboration directly with the client, while QuickBooks offers an online inventory feature.
Third, QuickBooks repeatedly underlines its security, and while FreshBooks offers the same security level, its emphasis is more on the features. Less on these aspects, as we think, is expected from a company that you share all your financial information.
Fourth, while the two share many standard features, FreshBooks has gained some extra points with fantastic features such as the Time tracking feature and millage tracking, which we enjoyed. Finally, we would say that FreshBooks took the extra step and managed to integrate some excellent project management features into its software.
Fourth, looking at the integration between FreshBooks vs. QuickBooks, FreshBooks is outshined by QuickBooks as it comes with 650 + integrations.
Last, both apps are compatible with all devices and are great on the go.
FreshBooks vs. QuickBooks Value For Money
When comparing FreshBooks and QuickBooks, pricing and features are key differentiators. FreshBooks starts at $5.70/month for the first three months (Lite plan), which is ideal for freelancers or small businesses, but limits you to 5 clients. The Plus plan ($9.90/month) adds features like recurring invoices and can handle up to 50 clients. The Premium plan ($18/month) offers unlimited clients and project profitability tracking.
QuickBooks starts higher at $17.50/month (Simple Start) but doesn’t limit client numbers. Its Essentials plan ($32.50/month) adds features like bill management and multi-currency support, while the Plus plan ($49.50/month) includes inventory tracking and project profitability. The Advanced plan ($117.50/month) is designed for larger businesses, offering custom reporting, workflow automation, and up to 25 users.
For smaller businesses, FreshBooks offers excellent value with easy invoicing, expense tracking, and basic reports. It’s ideal for freelancers or small service-based companies looking for straightforward accounting tools at a lower cost. QuickBooks, on the other hand, offers a more robust feature set, including inventory management, payroll integration, and more advanced accounting tools, making it better suited for growing businesses or those needing more comprehensive accounting solutions.
In summary, FreshBooks is best for small, service-based businesses and freelancers, while QuickBooks is more suitable for businesses that need advanced accounting, payroll, and scalability options.
Pros and Cons:
- FreshBooks: Easier for freelancers and service-based businesses. Simpler user interface.
- QuickBooks: Extensive features for accounting, inventory, payroll, and large-scale business management.
- FreshBooks: Limited accounting features compared to QuickBooks.
- QuickBooks: Can be more complex for new users or those with smaller businesses.
QuickBooks vs FreshBooks – Key Differences:
- Accounting Features: QuickBooks provides more advanced accounting tools, including bank reconciliation, which FreshBooks lacks.
- Inventory Management: QuickBooks is ideal for businesses that need inventory management, a feature FreshBooks does not include.
- Payroll Integration: While FreshBooks handles invoicing and payments well, QuickBooks integrates payroll, making it better suited for businesses with employees.
Zoho Invoice vs. FreshBooks
Zoho Invoice is an online invoicing service provided by Zoho, which offers an entire suite of software meant to help you run your business. While we will be looking strictly at Zoho Invoice vs. Freshbooks today, we have to admit that we were pretty impressed with the arsenal of tools Zoho has.
Moving on to FreshBooks Competitor – Zoho Invoice. The two apps are even more similar to FreshBooks and QuickBooks. As you are probably used to, we will look at the similarities and differences between the two and give you a verdict that we think brings more value.
Zoho Invoice vs. FreshBooks Features
First, both tools are compatible with all devices and portable. Second, they come with customizable invoices, recurring payments, and multiple currencies. However, Zoho Invoice vs. FreshBooks has multiple languages support (10+ languages) to accommodate all your customers.
Third, Zoho Invoice and FreshBooks are integrated with multiple payment gateways, giving you detailed reports and sending friendly payment reminders. Fourth, both also come with an estimate function that works similarly and a client portal that enables collaboration between you and your clients. Fifth, Zoho Invoice and Freshbooks have time tracking and expense features. So far, so good, you might say; what is the difference? Well, there aren’t many, to be fair.
Last, the only feature that sets them aside is the mileage tracking that FreshBooks offers. Pretty amazing one, we can say but not enough for us to say that FreshBooks wins the Zoho Invoice vs. FreshBooks battle. Therefore, let’s move on, and maybe we can settle this in the pricing comparison section.
Value For Money
The Zoho Invoice vs. FreshBooks pricing battle is the first thing that draws our attention. The Zoho Invoice free package essentially comes with a full feature availability for up to 5 customers. This is a competitive advantage against Freshbooks, which charges $15/month for the same number of customers and a limited number of features. But, above all, FreshBooks doesn’t offer any freemium.
Furthermore, looking at the pricing of the other packages Zoho Invoice offers, we must say that it brings more value for money than FreshBooks. Therefore, while it is evident that we like FreshBooks and think it provides a great product, we believe that this FreshBooks Alternative offers a product that is 95% the same at a better price point.
Xero: The Cloud-Based Competitor
Xero is another excellent alternative to FreshBooks, designed for small to medium-sized businesses. The FreshBooks vs Xero comparison is often driven by the need for more advanced accounting features in Xero.
Key Features of Xero:
- Double-entry accounting system
- Automated bank reconciliation
- Inventory tracking
- Fixed asset management
- Payroll integration (available in some regions)
- Integration with over 800 third-party apps, including Stripe and PayPal
- Multi-currency accounting (available in the Premium plan)
Pricing:
- Early: $13 per month
- Growing: $37 per month
- Established: $70 per month
FreshBooks vs Xero – Pros and Cons:
- FreshBooks: Simpler invoicing and user interface for freelancers and service-based businesses.
- Xero: More powerful accounting features, particularly for businesses needing inventory tracking and asset management.
- FreshBooks: Lacks advanced accounting features like inventory management.
- Xero: Higher learning curve for new users, especially for those without an accounting background.
Key Differences:
- Accounting Depth: Xero offers more advanced accounting features, such as bank reconciliation, double-entry accounting, and inventory management, making it more suitable for medium-sized businesses.
- Third-Party Integrations: Xero integrates with a broader range of third-party apps, giving it a more customizable experience.
- Multi-Currency Support: Xero provides multi-currency functionality, making it ideal for businesses operating in multiple countries.
Best for:
Xero is the best FreshBooks alternative for growing businesses that need a robust accounting solution with more advanced features like inventory management, fixed asset tracking, and multi-currency support.
Wave: The Free Option for Small Businesses
Wave is a highly attractive alternative to FreshBooks due to its entirely free accounting features. For freelancers and small businesses, Wave vs FreshBooks is a common comparison, as Wave offers many of the essential features at no cost.
Key Features of Wave:
- Invoicing and payment tracking
- Expense tracking
- Basic accounting reports
- Integration with payment gateways like Stripe and PayPal
- Bank reconciliation
- Payroll (available as a paid feature in some regions)
Pricing:
Wave’s core features, including accounting and invoicing, are free. Payroll and payment processing have additional costs:
- Payroll: Starts at $20 per month plus $6 per employee (available in the U.S. and Canada).
- Payment Processing: 2.9% + 30¢ per credit card transaction.
FreshBooks vs Wave – Pros and Cons:
- FreshBooks: More advanced invoicing and client management features.
- Wave: Free to use for core features, making it ideal for small businesses and freelancers with limited budgets.
- FreshBooks: Paid plans can be expensive for small businesses.
- Wave: Fewer advanced accounting tools, no built-in project management.
Key Differences:
- Cost: Wave’s free model is its most significant advantage over FreshBooks, making it the preferred choice for budget-conscious users.
- Features: While FreshBooks offers more robust client management and integrations, Wave is sufficient for basic accounting needs.
- Scalability: FreshBooks is better suited for businesses looking to scale and needing more extensive features, while Wave is best for smaller businesses with simpler requirements.
Best for:
Wave is the ideal FreshBooks alternative for freelancers and small businesses that want to manage basic accounting functions without any upfront costs.
FreshBooks Alternatives Conclusion
When considering FreshBooks alternatives, the right choice depends on your business size, accounting needs, and budget.
FreshBooks remains a strong contender for freelancers and small service-based businesses, offering an intuitive interface and features tailored to invoicing and expense management. However, businesses with more complex requirements or a need for scalability may find better options with QuickBooks, Xero, or Wave.
Ultimately, the best choice will depend on your business’s current and future needs, but all of these alternatives offer valuable features for effective accounting and financial management.
