Xero vs FreshBooks: Full Comparison (2026)
Quick Answer
Xero is a full accounting platform with unlimited users. FreshBooks is invoicing-first software that's incredibly easy to use. Xero for businesses that need real accounting. FreshBooks for freelancers who just need to invoice clients and track time.
Xero vs FreshBooks at a Glance
| Dimension | Xero | FreshBooks | Winner |
|---|---|---|---|
| Ease Of Use | 8.0/10 | 9.0/10 | FreshBooks |
| Features | 7.5/10 | 6.5/10 | Xero |
| Overall | 7.8/10 | 7.2/10 | Xero |
| Pricing | 7.5/10 | 7.0/10 | Xero |
Pricing Comparison
| Plan | Xero | FreshBooks |
|---|---|---|
| Starter / Select | $15/monthly | $Custom/quote |
| Standard / Lite | $42/monthly | $19/monthly |
| Premium / Plus | $78/monthly | $33/monthly |
| Premium | $60/monthly |
Feature Comparison
| Feature | Xero | FreshBooks |
|---|---|---|
| Receipt scanning | No | Yes |
| Audit trail | Yes | Yes |
| Tax preparation | No | Yes |
| Accountant access | Yes | Yes |
| Bank reconciliation | Yes | Yes |
| Bill pay | Yes | Yes |
| Double-entry accounting | Yes | Yes |
| Expense tracking | Yes | Yes |
| Inventory tracking | No | No |
| Invoicing | Yes | Yes |
| Mobile app | Yes | Yes |
| Multi-currency | Yes | No |
| Multi-entity | Yes | No |
| Role-based permissions | Yes | Yes |
| Time tracking | No | Yes |
| API access | Yes | Yes |
| Bank feeds | Yes | Yes |
| Payroll integration | Yes | Yes |
| Budgeting | Yes | No |
| Custom reports | Yes | Yes |
| Financial reports (P&L, Balance Sheet, Cash Flow) | Yes | Yes |
| Project profitability | Yes | Yes |
Ease Of Use: Xero vs FreshBooks
FreshBooks is easier to learn and use day-to-day. Xero is intuitive for an accounting platform but still requires understanding basic accounting concepts.
Features: Xero vs FreshBooks
Xero has stronger accounting fundamentals — bank reconciliation, multi-currency, purchase orders, project tracking. FreshBooks has better invoicing design, time tracking, and proposals.
Overall: Xero vs FreshBooks
Xero is the stronger overall platform. FreshBooks excels at what it does (invoicing and time tracking) but can't match Xero's accounting depth.
Pricing: Xero vs FreshBooks
Xero's unlimited users make it dramatically cheaper for teams. FreshBooks charges per plan tier with client limits. A 5-person team on Xero Standard ($42/mo total) vs FreshBooks Plus ($33/mo but limited to 50 clients) — Xero wins.
Our Recommendation
Xero if you want real accounting software with unlimited users. FreshBooks if you're a freelancer or service business that lives and dies by invoices. Xero's Standard plan at $42/mo with unlimited users is hard to beat for any team larger than one person.