Puzzle IO vs FreshBooks: Best Accounting Software in 2025?

Winner

4.8

• Financial Insights
• Tax Compliance
• Bookkeeping Services
• Partner Ecosystem
• Accrual Automation
• Free Plan Available
• Paid plans from $42.50/month

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Runner Up

3.0

• Invoicing
• Time Tracking
• Accounting
• Reports
• Bookkeeping
• Free trial available
• Paid Plans from $2.10/month

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Are you trying to figure out which accounting software is best for your business?

It can be tough with so many choices out there! 

Puzzle IO and FreshBooks are two popular options.

But which one should you pick?

In this article, we’ll examine Puzzle IO vs FreshBooks in detail to help you decide which one is the best fit for you. 

Overview

We’ve spent considerable time exploring and testing both Puzzle IO and FreshBooks.

Our hands-on experience, navigating their features and functionalities.

Forming the basis of this detailed comparison, ensuring you get a practical understanding of what each platform offers.

4.8out of 5

Ready to simplify your finances? See how Puzzle IO can save you up to 20 hours a month. Experience the difference.

Pricing: Free Plan available. Paid plan starts at $42.50/month.

Key Features:

• Financial Planning
• Forecasting
• Real-time Analytics

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3out of 5

Ready to simplify your invoicing and get paid faster? Over 30 million people have used FreshBooks. Explore it for more!

Pricing: It has a free trial. Paid plan starts at $2.10/month.

Key Features:

• Time Tracking
• Invoicing
• Bookkeeping

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What is Puzzle IO?

So, Puzzle IO, huh? It’s accounting software.

It seems pretty focused on projects.

Lots of tools to manage them.

Also, explore our favorite Puzzle IO alternatives…

Our Take

Ready to simplify your finances? See how Puzzle io can save you up to 20 hours a month. Experience the difference today!

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Key Benefits

Puzzle IO really shines when it comes to helping you understand where your business is headed.

• 92% of users report better financial forecasting accuracy.
• Get real-time insights into your cash flow.
• Easily create different financial scenarios to plan.
• Collaborate seamlessly with your team on financial goals.
• Track key performance indicators (KPIs) in one place.

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Pricing

• Accounting basics: $0/month.
• Accounting Plus Insights: $42.50/month.
• Accounting Plus Advanced Automation: $85/month.
• Accounting Plus scale: $255/month.

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Pros

• Love the strong focus on planning.
• Forecasting tools are impressive.
• Real-time data is super helpful.
• Collaboration features work quite well.
• Interface feels pretty intuitive.

Cons

• It might be overkill for very small setups.
• Integration options could be broader.
• Customer support response time varies.

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What is FreshBooks?

Okay, let’s talk about FreshBooks.

It’s accounting software, too. But it feels more geared toward service-based businesses.

Think freelancers and consultants.

Also, explore our favorite FreshBooks alternatives…

Our Take

Tired of complex accounting? 30 million+ businesses trust FreshBooks to create professional invoices. Simplify your accounting software today!

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Key Benefits

• Professional invoice creation
• Automated payment reminders
• Time tracking
• Project management tools
• Expense tracking

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Pricing

• Lite: $2.10/month.
• Plus: $3.80/month.
• Premium: $6.50/month.
• Select: Custom Pricing.

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Pros

• Excellent for invoicing and payments.
• Very user-friendly interface.
• Good for freelancers and project-based work.
• Offers helpful time-tracking features.

Cons

• Accounting features are less comprehensive than some others.
• AI capabilities are primarily focused on invoicing and organization.
• Reporting features can be somewhat basic.

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Feature Comparison

Choosing the right accounting software solutions can be a game-changer for small business owners.

It’s all about finding which platform is truly up to date with what your company needs.

Let’s compare the key tools that help you save time and manage your money.

1. AI-Powered Automation and Error Reduction

• Puzzle IO: It is an AI-powered solution built to tackle tedious tasks like transaction categorization.1 The system performs continuous accuracy checks to catch potential errors before they impact your balance sheet. This automation is a game-changer for startup founders and non-accountants.
• FreshBooks: FreshBooks also offers smart automation for recurring invoices and expense tracking. Its focus is more on simplifying workflows, particularly in invoicing, making it easier for users to save time on manual work.

2. Financial Insights and Key Metrics

• Puzzle IO: Provides real time insights into key metrics crucial for early stage startups, like burn rate and cash runway. This gives founders a more accurate picture of their current state and helps them make fast financial decisions.
• FreshBooks: Offers solid accounting reports like Profit & Loss and Sales Tax Summary. While useful, it focuses less on the startup key metrics and more on the overall health from a standard accounting perspective.

3. Revenue Recognition

• Puzzle IO: Built specifically for startups, it offers automated revenue recognition (accrual and cash) from sources like Stripe subscriptions. This is a complex feature that provides clear insights into true revenue, saving hours of work in spreadsheets.
• FreshBooks: While it uses double-entry accounting in its higher tiers, it generally caters to simpler cash or modified accrual needs. It does not offer the same automated, subscription-focused revenue recognition as Puzzle IO.

4. Project Profitability Tracking

• Puzzle IO: Excels in project bookkeeping, offering detailed project tracking to determine true project profitability tracking against budgets and expenses. This is ideal if you bill for time and materials on a project basis.
• FreshBooks: Offers project profitability tracking on its Premium plan and higher. It is a capable feature, but the core design favors client management and invoicing over deep project financial analysis.

5. Mobile Accessibility

• Puzzle IO: Offers mobile access to up-to-date financials, allowing founders and co-founders to check key metrics on the go.
• FreshBooks: The FreshBooks mobile app is strong and widely available for iOS and Android devices. This makes sending invoices, tracking time, and managing expenses easy from any mobile device with an internet connection.

6. Managing Fixed Assets and Prepaid Expenses

• Puzzle IO: Includes built-in automation for complex items like fixed assets and prepaid expenses. This makes it simpler for non-accountants to maintain compliance and get an accurate picture.
• FreshBooks: Focuses less on this specific, complex area of accounting, usually handled by your accountant or through manual journal entries.

7. Bank Reconciliation and Transactions

• Puzzle IO: Features automated bank reconciliation and sophisticated transaction categorization to ensure your bank accounts are always up to date, helping you avoid tedious tasks.
• FreshBooks: Offers bank reconciliation from the Plus plan and up, making sure your records match your bank accounts. It also offers automated expense categorization.

8. Support for Accounts Payable

• Puzzle IO: Supports core accounts payable functionality to track and pay bills, giving a complete view of money going out, which is key for forecasting cash runway.
• FreshBooks: Includes accounts payable tracking starting with the Premium plan, allowing small business owners to manage bills and vendors.

9. Investor and Fundraising Reporting

• Puzzle IO: Is perfect for startup founders and investors as it generates instant reports on metrics like burn rate and cash runway, so you never have to wait to have a discussion about the future.
• FreshBooks: While it offers good financial reports, it is less focused on the specific reporting and key metrics often requested by investors in the early stages of a company.

10. Pricing Plans and Scalability

• Puzzle IO: Its pricing plans are often geared towards startups looking for specialized accounting, which might be more costly but offers advanced features from the start.
• FreshBooks: Offers several pricing plans like the Lite plan and Plus plan, making it scalable for freelancers up to growing businesses, though you need the Premium plan for features like project profitability tracking.

What to Look for When Choosing Accounting Software?

• Check out FreshBooks reviews to see what small business owners actually think about the FreshBooks platform.
• Look at the different pricing plans (Lite, Plus, Premium, and Select plan) and see how many billable clients you get per month.
• Evaluate the invoicing features, such as custom invoicing, the ability to send recurring billing, and if you can convert estimates into invoices easily.
• Make sure the platform allows you to accept payments easily, including online payments, advanced payments, and different types of FreshBooks payments like credit cards, ACH payments, or bank transfers.
• If you sell in person, check if the software supports a virtual terminal or integration with pos systems.
• See how well you can manage projects and track billable time with the built-in time tracking.
• Examine the freshbooks dashboard to see if it gives you the real time insights you need at a glance.
• Check if they charge late fees automatically to clients with overdue payments.
• Understand the limitations on team members or additional user accounts on the plan you choose.
• Look through the FreshBooks FAQs for specific questions before you finalize your decision.
• Ask about their customer support and what is included, especially on the lower tiers.
• Consider if the Lite plan’s limit on billable clients is enough, or if you will quickly need the Plus plan or higher for an unlimited number of clients.
• The Select plan often gives exclusive access and may be best for businesses with multiple business partners.
• Check the integration ecosystem with other accounting software, like QuickBooks Online, or other tools you currently use.
• Look for features like client retainers and the ability to handle unreconciled transactions and export data via csv file.
• A free version or trial can help you test the core functionality before you commit to the monthly flat fee.
• Make sure the platform helps with tax time readiness by providing the necessary reports.
• Recommend FreshBooks to others only after confirming it meets your needs as a self-employed professional.

Final Verdict

After looking closely at both, our final thoughts are clear.

If you are an individual or small service-based business, FreshBooks accounting software is the winner.

It has an intuitive design and makes it easy to create professional invoices and unlimited estimates.

It’s set up to help you with financial management and simplify tax compliance.

FreshBooks offers four plans, and even its lower-tier three plans are great for getting your financial health in order with less time spent on bookkeeping.

While Puzzle IO is strong for tracking only the projects and deep financial analysis for startups.

FreshBooks is generally better for small business owners who are not a finance expert.

It’s simpler to use than most other software right out of the box with an easy setup.

We chose puzzle for a deeper look at startup financials, but FreshBooks is the reliable choice for most companies that need a solid project management and invoicing tool.

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More of Puzzle IO

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Frequently Asked Questions