For small businesses, accounting software can greatly improve your daily operations. It simplifies the tracking of income and expenses, enables efficient billing of customers, and streamlines financial processes at the end of each year.
For freelancers or agencies, there are additional advantages to utilizing accounting software. It enables you to accurately track the time spent on each client and project and simplifies the invoicing process during billing periods.
FreshBooks and QuickBooks Online are two popular accounting tools for small businesses that have different strengths and are suited for different types of businesses.
Continue reading to find a summary of FreshBooks and QuickBooks and determine which accounting tool is most suitable for your needs.
FreshBooks, founded in 2003, provides a comprehensive small business invoice and accounting solution to help entrepreneurs and small teams streamline their accounting processes and focus on their core work.
FreshBooks provides a comprehensive set of features for invoicing, expenses, time tracking, projects, estimates, and more, designed to be user-friendly.
QuickBooks is a popular accounting platform that is part of the Intuit product family, which was founded in 1983.
In this post, we will be discussing QuickBooks Online (QBO), the cloud-based accounting tool from Intuit, rather than their traditional desktop version.
Pricing Comparison Between FreshBooks and QuickBooks
FreshBooks and QuickBooks stand as accounting tools designed for small businesses and solopreneurs. Their pricing structures vary based on business size and required features, offering distinct plans to cater to different needs.
QuickBooks Pricing Plans:
Essentials Plan: Starting at $25/month, this plan includes fundamental small business accounting features like income and expense tracking, receipt organization, invoicing, payment acceptance, and essential report generation. However, it only allows access for one user.
Plus Plan: Priced at $70/month, it offers extended functionalities such as additional reporting, time tracking, inventory management, and project profitability tracking.
Advanced QBO Plan: Available for $150/month, this plan offers advanced features like batch invoicing, automated approvals and reminders, and customizable reporting fields.
Payroll Add-On: Available for additional costs ranging from $45 + $4/employee/month to $125 + $10/employee/month, depending on the required functionalities.
FreshBooks Pricing Plans:
Lite Plan: At $15 per month, this plan is more economical than QuickBooks Essentials. It allows users to create unlimited customized invoices, track expenses and time, and provide estimates. However, it limits the management and invoicing of only 5 clients.
Plus Plan: Priced at $25/month, this plan matches QuickBooks' basic plan cost and allows management of up to 50 clients, along with unlimited proposals and recurring invoices.
FreshBooks Premium: Designed for larger operations, this plan supports 500 clients.
Comparison and Recommendations:
Client Management: QuickBooks may be preferred for businesses prioritizing client management and invoicing for multiple clients.
Inventory Tracking: QuickBooks also serves as a suitable solution for retail businesses needing robust inventory tracking capabilities.
Time Tracking: FreshBooks provides more affordable options for businesses seeking cost-effective time-tracking solutions.
If your business engages in the sale of products.
QuickBooks is a recommended accounting option for those who sell products or retail goods, while FreshBooks is a top choice for freelancers managing clients and billing.
QuickBooks allows users to record daily sales from various channels and sync sales systems such as PayPal, Square, and Shopify. Additionally, QuickBooks provides inventory management to efficiently track stock and orders from vendors.
The POS system simplifies in-person transactions and seamlessly integrates with QuickBooks Online, allowing you to view your POS purchases alongside your other accounting data.
If you require an accounting solution that can be easily adjusted to accommodate growth.
QuickBooks provides comprehensive accounting software that is designed to accommodate a wide range of business types and sizes. It offers a comprehensive set of features.
According to a review from a long-term QuickBooks user on Capterra, the software is still highly effective.
If you are looking for a single financial tool to add to your collection.
QuickBooks is a comprehensive solution that can meet all your accounting and invoicing needs. It offers a wide range of features and, if there are any gaps, you can rely on other QuickBooks products such as QuickBooks Point of Sale to fill them. This allows you to streamline your app stack and reduce the number of applications needed.
In contrast, FreshBooks caters to a specific group of users, including freelancers, small businesses, and solopreneurs who prefer straightforward and user-friendly software. However, due to its simplicity, you may need to integrate FreshBooks with other tools to achieve specific customized results, but this process is straightforward.
If your accountant has a preference for QuickBooks.
Although your accountant's preferences may not be the most important factor, having alignment on the tools being used can help simplify both of your lives.
QuickBooks is widely used by accountants in the US and has gained popularity worldwide in recent years. It now provides various country-specific bank feeds, integrations, and tax compliance features.
FreshBooks has a strong focus on North America, so if you are located outside of this region, your tax return may be processed quicker with QuickBooks than with FreshBooks.
If you have a business that is mid-sized or experiencing fast growth.
For businesses that are currently mid-sized or experiencing rapid growth, QuickBooks Online is likely to be a more suitable option. FreshBooks offers a great range of features for small businesses, but as your business expands, you may need to consider switching tools.
If you have a positive experience with QuickBooks now, it is likely that you will continue to have a positive experience even if your business grows significantly.
If you work as a freelancer
FreshBooks is a software that caters to the needs of small business owners, specifically freelancers. It is a well-known brand that has been advertised on entrepreneurship podcasts.
FreshBooks offers a feature that allows users to track time spent per client or project, providing a way to monitor productivity. Additionally, users can easily convert tracked hours into an invoice or mark hours as already billed without creating an invoice from scratch.
Some other advantages of FreshBooks include project management features, integration with Stripe for online payments, and reminders for unpaid invoices, both automated and manual.
If you are beginning your business,
If you are involved in a side hustle or starting a small business, it might not be necessary to invest in expensive accounting software at this time.
FreshBooks is a more straightforward option compared to QuickBooks Online, although the complexity of QBO has its own benefits as you can accomplish more with the system.
If you are looking for software that is easy to use and can be set up quickly.
One of the main benefits of FreshBooks is its ease of use.
G2 rates it at 9.2/10 for ease of use, while QuickBook's rating is 8.1/10.
FreshBooks is known for its positive feedback regarding ease of setup and admin, making it a great choice for those looking to simplify their accounting processes.
If you value prompt responses from support.
The support team at FreshBooks is highly regarded.
A long-term user reports that FreshBooks support is highly responsive, providing various contact options such as a website contact form, email address, and toll-free phone numbers.
By using your personal support key, you can provide the FreshBooks team with secure access to your account for any necessary fixes or assistance with setup. FreshBooks is also recognized for its excellent refund policy, making upgrades and downgrades easier to manage.
If you desire native integrations with your other tools.
FreshBooks offers a user-friendly integrations library that includes popular tools for small business owners. Their CRM integrations are easily accessible with pre-tested connections to HubSpot, Capsule, and AgileCRM.
When comparing QuickBooks and FreshBooks, it is generally considered that QuickBooks is a stronger accounting tool for businesses of all sizes, while FreshBooks is often preferred for small and one-person businesses.
When QuickBooks is best
Your business sells products
You require a solution that can be scaled and are not afraid of complexity.
It is recommended to have only one financial tool in your collection.
Your accountant prefers QuickBooks
Your business is of medium size or experiencing rapid growth.
When FreshBooks is best
You are self-employed.
You are in the early stages of your business.
You need software that is user-friendly and can be set up quickly.
You value prompt responses from customer support.
You may prefer native integrations with your other tools.