Deciding which accounting software to use for your business can be a daunting task. There are so many options out there, and it can be hard to know which one is right for you. In this article, we'll be comparing two of the most popular accounting software programs on the market: Xero and FreshBooks.

What is Xero?

Xero is a cloud-based accounting software that is designed to help small businesses and startups manage their finances. It offers a wide range of features, including invoicing, bookkeeping, and expense tracking. Xero is also one of the most user-friendly accounting software programs on the market, and it has received high marks for its customer service.

What is FreshBooks?

FreshBooks is another cloud-based accounting software that is designed for small businesses. It offers many of the same features as Xero, including invoicing, bookkeeping, and expense tracking. FreshBooks also has a user-friendly interface, and it is known for its excellent customer service.

Pricing

One of the main differences between Xero and FreshBooks is their pricing. Xero offers a monthly subscription plan that starts at $9 per month. FreshBooks, on the other hand, offers a tiered pricing structure that starts at $15 per month.

Features

Invoicing

Both Xero and FreshBooks offer robust invoicing features that allow you to create and send invoices quickly and easily. With both programs, you can customize your invoices with your own branding, and you can set up recurring invoices for customers who need to be billed on a regular basis. Both programs also allow you to accept online payments, and they offer a wide range of payment options, including credit cards, PayPal, and Stripe.

Bookkeeping

Xero and FreshBooks both offer powerful bookkeeping features that can help you keep track of your finances. With both programs, you can track your income and expenses, and you can generate reports to see how your business is performing. Both programs also offer bank reconciliation, which allows you to match your transactions with your bank statements.

Expense Tracking

Expense tracking is another important feature offered by both Xero and FreshBooks. With both programs, you can track your business expenses, and you can categorize them for easy reporting. You can also set up expense limits, so you can be sure that you're not spending more than you can afford.

Customer Service

Both Xero and FreshBooks offer excellent customer service. Both companies offer 24/7 phone support, as well as live chat and email support. In addition, both companies have extensive online help resources, including FAQs, tutorials, and user guides. Overall, both companies offer a high level of customer service and support.

Conclusion

Xero and FreshBooks are both excellent accounting software programs. They both offer a wide range of features, and they are both known for their excellent customer service. The main difference between the two programs is their pricing. Xero offers a monthly subscription plan that starts at $9 per month, while FreshBooks offers a tiered pricing structure that starts at $15 per month. Ultimately, the decision of which program to use comes down to your specific needs and budget.