Accounting Software

FreshBooks vs Xero

Compare FreshBooks and Xero side-by-side. See feature differences and pricing in the Accounting Software category.

by FreshBooks

No reviews yet

Pricing: Lite $23 a month, Plus $43, Premium $70, Select quote-only; extra team members $11 each. 30-day trial signup, no no-cost tier. Checked September 2026.

FreshBooks is cloud accounting and invoicing software for freelancers and small service businesses, with a billable client cap on every plan.

12 /17 features Full profile

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Xero

by Xero

No reviews yet

Pricing: Early $25 a month, Growing $55, Established $90 in USD billed monthly; Xero Payroll add-on $36 a month plus $6 per person; checked September 2026

Xero is cloud accounting software for small businesses and their bookkeepers, covering bank feeds, invoicing and bills. Payroll is a paid add-on.

13 /17 features Full profile

Feature Comparison

Accounting Software features side-by-side

Feature	FreshBooks 12/17 features	Xero 13/17 features
General ledger with custom chart of accounts Double-entry ledger where accounts can be added, renamed and nested rather than picked from a fixed list.	Yes	No
Automatic bank feeds Transactions import live from connected bank and card accounts instead of a manual statement upload.	Yes	Yes
Bank reconciliation with matching rules Suggested matches and user-defined rules reconcile imported bank lines against ledger entries.	Yes	Yes
Customer invoicing with online payment Branded invoices go out with a pay-now link so customers settle by card or bank transfer.	Yes	Yes
Recurring invoices An invoice can be set to repeat on a fixed interval and send itself without re-entry.	Yes	Yes
Bill entry and vendor payments Supplier bills are recorded against the ledger and paid by bank transfer from inside the product.	Yes	Yes
Receipt capture by photo or email A snapped or forwarded receipt becomes a transaction with amount, date and vendor extracted.	Yes	Yes
Sales tax calculation and reporting Tax rates apply on invoices and the product produces a return-ready summary by period.	Yes	Yes
Financial statements out of the box Profit and loss, balance sheet and cash flow statement are generated without configuration.	Yes	Yes
Budgets against actuals A budget entered by account and period is reported against posted figures with the variance.	No	No
Project or job cost tracking Income and expenses tag to a project so its profitability can be reported on its own.	Yes	Yes
Inventory tracking Stock quantities and cost of goods sold update when items are purchased and sold.	No	Yes
Fixed asset register with depreciation Assets are recorded once and depreciation entries post on a schedule automatically.	No	No
Multi-currency ledger Transactions can be entered in foreign currencies with automatic revaluation gains and losses.	No	Yes
Free accountant or bookkeeper seat An external advisor gets their own login without consuming one of the paid user seats.	Yes	Yes
First-party payroll module Payroll runs and payroll tax filings come from the same vendor, built in or as its own add-on.	Yes	Yes
Location and department tagging A second dimension on every transaction supports reporting by location, department or fund.	No	No
Overall Rating	No reviews yet	No reviews yet

FreshBooks 12/17 features

General ledger with custom chart of accounts: Yes
Automatic bank feeds: Yes
Bank reconciliation with matching rules: Yes
Customer invoicing with online payment: Yes
Recurring invoices: Yes
Bill entry and vendor payments: Yes
Receipt capture by photo or email: Yes
Sales tax calculation and reporting: Yes
Financial statements out of the box: Yes
Budgets against actuals: No
Project or job cost tracking: Yes
Inventory tracking: No
Fixed asset register with depreciation: No
Multi-currency ledger: No
Free accountant or bookkeeper seat: Yes
First-party payroll module: Yes
Location and department tagging: No

No reviews yet

Xero 13/17 features

General ledger with custom chart of accounts: No
Automatic bank feeds: Yes
Bank reconciliation with matching rules: Yes
Customer invoicing with online payment: Yes
Recurring invoices: Yes
Bill entry and vendor payments: Yes
Receipt capture by photo or email: Yes
Sales tax calculation and reporting: Yes
Financial statements out of the box: Yes
Budgets against actuals: No
Project or job cost tracking: Yes
Inventory tracking: Yes
Fixed asset register with depreciation: No
Multi-currency ledger: Yes
Free accountant or bookkeeper seat: Yes
First-party payroll module: Yes
Location and department tagging: No

No reviews yet

Pricing

FreshBooks

Lite $23 a month, Plus $43, Premium $70, Select quote-only; extra team members $11 each. 30-day trial signup, no no-cost tier. Checked September 2026.

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Xero

Early $25 a month, Growing $55, Established $90 in USD billed monthly; Xero Payroll add-on $36 a month plus $6 per person; checked September 2026

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