FreshBooks vs Xero
- ✦ Expense Tracking
- ✦ Time Tracking
- ✦ Project Management
- ✦ Expense Claims
- ✦ Payroll
- ✦ Inventory
FreshBooks and Xero are both Accounting tools. FreshBooks starts at $23/mo, Xero at $25/mo. Compare features, pricing, and ratings below to find the best fit for your team.
When to Choose FreshBooks vs Xero
The question that matters: “In what situation will I regret choosing A over B after 3 months?”
Estimates & Proposals convert to invoices in one click - preserving line items, rates, and client details - cutting the proposal-to-payment cycle by up to 40%.
Xero's Purchase Orders feature links to Invoicing, auto-matching incoming bills to open POs and flagging quantity or price mismatches before payment clears.
Time Tracking logs hours per project and auto-populates invoice line items at configured rates, with records attached to each bill to reduce client disputes.
Bank Reconciliation syncs connected bank feeds hourly, surfacing uncleared transactions automatically and compressing month-end from a full day to 90 minutes.
Multi-currency Expense Claims auto-convert local receipts at submission date, creating an audit trail for labor compliance and consolidated P&L reporting.
Pricing Comparison & PlansHigh· Verified May 30, 2026
FreshBooks Plans
Paid plans only
Lite
$23/moBest for: This plan is ideal for freelancers or very small businesses needing basic invoicing and expense tracking
- ✓Send invoices to 5 clients
- ✓Track expenses in real time
- ✓Create and send estimates
- ✓Generate tax summaries
- ✓Generate expense reports
Plus
$43/moBest for: Suited for growing businesses with multiple clients, this plan adds double-entry accounting, bank reconciliation, and client retainers
- ✓Send invoices to 50 clients
- ✓Track expenses in real time
- ✓Create and send estimates, proposals
- ✓Project tracking
- ✓Accounting reports
Premium
$70/moBest for: established businesses managing numerous clients and projects, this plan includes advanced reporting and project profitability tracking
- ✓Send invoices to unlimited clients
- ✓Track expenses in real time
- ✓Create estimates, proposals, and client retainers
- ✓Automated late payment reminders
- ✓Multi-user access
Select
Contact SalesBest for: Designed for larger businesses or those with specific needs, this custom plan offers personalized features and dedicated account management
- ✓Customized pricing
- ✓Dedicated account manager
- ✓Lower credit card transaction fees
- ✓Capped bank transfer (ACH) fees
- ✓Assisted data migration
Xero Plans
Paid plans only
Early
$25/moBest for: Ideal for new or small businesses needing basic accounting features
- ✓Maximum 20 invoices/5 bills monthly
- ✓Unlimited users
- ✓Bank reconciliation
- ✓Hubdoc document capture
- ✓30-day cash flow forecasting
Growing
$55/moBest for: expanding businesses requiring unlimited invoicing and bill management
- ✓Unlimited invoices/bills
- ✓Auto-reconciliation (Beta)
- ✓Customizable dashboards
- ✓Unlimited users
- ✓Multi-currency
Established
$90/moBest for: Suited for larger businesses needing advanced features like multi-currency support and project tracking
- ✓Everything in Growing
- ✓Project tracking
- ✓Expense claims
- ✓180-day cash flow forecasting
- ✓KPI analysis
Capability Breakdown
3 differences found across 16 standardized features
- •Invoicing
- •Expense Tracking
- •Time Tracking
- •Project Management
- •Estimates & Proposals
- •Online Payments
- •Bank Reconciliation
- •Double-entry Accounting
- •Financial Reports
- •Receipt Capture
- •Automated Late Reminders
- •Client Portal
- •Mobile App
- •200+ Integrations
- •Multi-currency
- •Customizable Invoice Templates
- •Sales Tax Calculations
- •Automated Billing Schedules
- •Credit Note Management
- •Inventory Tracking System
- •Vendor Management Tools
- •Budgeting and Forecasting
- •Cash Flow Analysis
- •Audit Trail Logs
- •User Permission Controls
- •Recurring Invoice Options
- •Transaction Matching
- •Invoicing
- •Bank Reconciliation
- •Expense Claims
- •Financial Reports
- •Payroll
- •Inventory
- •Purchase Orders
- •Multi-currency
- •Project Tracking
- •Fixed Assets
- •Hubdoc (Receipt capture)
- •1000+ Integrations
- •Mobile App
- •Bank Connections
- •Tax Filing
Strengths & Limitations
Evaluative strengths and weaknesses: not feature lists
- +Excellent time tracking integrated directly into invoices
- +Professional, customizable invoice templates are easy to create
- +Client portal allows customers to view and pay invoices online
- +Strong project profitability tracking features for service businesses
- +Simple, intuitive interface designed for non-accountants
- −Limited inventory management, not suitable for product-based businesses
- −No built-in payroll; requires integration with Gusto (US only)
- −Lower-tier plans have restrictive client limits (5 on Lite plan)
- −Mobile app has fewer features than the desktop version
- −Lacks advanced accounting features like accounts payable aging
- +Unlimited users on all plans, fostering team collaboration
- +Extensive app marketplace with over 1,000 third-party integrations
- +Strong mobile app for on-the-go invoicing and expense tracking
- +Advanced inventory management included in higher-tier plans
- +Clean, intuitive interface praised for its ease of use
- −Entry-level 'Early' plan has strict limits on invoices (20) and bills (5)
- −No built-in payroll in the US; requires Gusto integration at extra cost
- −Customer support is primarily email/ticket-based with no direct phone line
- −Lacks industry-specific features for construction or manufacturing
- −Project tracking and management features are less robust than competitors
At a Glance
Recent Price History
FreshBooks raised "Lite" from $19/mo to $23/mo (+21%)
Price change · May 30, 2026
FreshBooks raised "Premium" from $60/mo to $70/mo (+17%)
Price change · May 30, 2026
FreshBooks raised "Plus" from $33/mo to $43/mo (+30%)
Price change · May 30, 2026
Xero added a new "Established" plan at $90/mo
Plan added · May 28, 2026
Xero removed the "Ultimate" plan
Plan removed · May 28, 2026
Xero added a new "Early" plan at $25/mo
Plan added · May 28, 2026
Xero removed the "Ignite" plan
Plan removed · May 28, 2026
Xero removed the "Grow" plan
Plan removed · May 28, 2026
FreshBooks lowered "Premium" from $76 to $60/mo (21%)
Price change · May 21, 2026
FreshBooks lowered "Plus" from $40 to $33/mo (18%)
Price change · May 21, 2026
Frequently Asked Questions
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Sources & Data Trail · Xero
- 1.Official Pricing Page·Source of verified tiers(Checked: 2026-05-28)
- 2.Official Website·Official vendor website
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