Billing & Invoicing Software · Accounting Software

FreshBooks vs Xero

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

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FreshBooks logo FreshBooksXero logo Xero
Best forFreelancers and service businesses billing clients for timeSmall businesses and accountants in the UK, Australia and New Zealand
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
  • Very easy invoicing
  • Time tracking built in
  • Good client experience
  • Clean, fast reconciliation
  • Unlimited users on plans
  • Big integration marketplace
Watch out for
  • Pricing tiers limit billable clients
  • Less suited to inventory businesses
  • Payroll availability depends on country
  • Lower plans cap some transactions
Visit FreshBooksVisit Xero

Which should you choose?

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

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

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.