Home / Compare / Xero vs FreshBooks
Xero vs FreshBooks
Xero: Charges by plan, not by seat, so adding people does not change the bill. FreshBooks: Built around invoicing and billing clients, with a limit on billable clients per plan.
Plans and prices
| Tool | Plan | Price | Included |
|---|---|---|---|
| Xero | Early | $27/mo | No per-user fee. 20 invoices and 5 bills a month |
| Xero | Growing | $59/mo | No per-user fee |
| Xero | Established | $97/mo | No per-user fee |
| FreshBooks | Lite | $23/mo | Extra team members $11/mo each. 5 billable clients |
| FreshBooks | Plus | $43/mo | Extra team members $11/mo each. 50 billable clients |
| FreshBooks | Premium | $70/mo | Extra team members $11/mo each. Unlimited billable clients |
The cheapest paid plan is $27 a month at Xero and $23 a month at FreshBooks, a gap of $48 a year ($144 over three years).
Where each one rates higher
- Xero rates higher on payroll, inventory, accountant access, several users.
- FreshBooks rates higher on invoicing, ease of learning.
| Our fit rating | Xero | FreshBooks |
|---|---|---|
| Payroll | Good | Limited |
| Inventory | Good | Minimal or none |
| Invoicing | Good | Strong |
| Accountant access | Strong | Good |
| Several users | Strong | Limited |
| Ease of learning | Good | Strong |
| Free plan | Minimal or none | Minimal or none |
Ratings are our editorial judgments, published on How we score. They are not vendor claims.
Who wins for four typical setups
Same scoring as the quiz, limited to these two tools, for US businesses.
| Setup | Better fit |
|---|---|
| Solo freelancer, 5 invoices a month, wants free | FreshBooks |
| Product shop, 3 users, works with an accountant | Xero |
| Small team with payroll and an accountant | Xero |
| Invoice-heavy, wants to stay under $30 a month | FreshBooks |
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