Feeling swamped by business finances? You’re not alone.
Many small business owners and freelancers struggle with keeping their books in order.
Messy accounting can lead to stress, missed opportunities, and even tax headaches.
We’ll break down QuickBooks vs FreshBooks features, ease of use, and help you pick the perfect tool to manage your money.
Overview
We’ve spent considerable time testing both QuickBooks and FreshBooks.
Diving deep into their features, user interfaces, and overall performance.
Our hands-on experience has allowed us to form a clear picture of each platform’s offerings, leading us to this detailed comparison.
Used by over 7 million businesses, QuickBooks can save you an average of 42 hours per month on bookkeeping.
Pricing:Â It has a free trial. Plan starts at $1.90/month.
Key Features:
- Invoice Management
- Expense Tracking
- Reporting
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
What is QuickBooks?
So, you’re looking at QuickBooks. It’s a big name in accounting.
Many businesses use it. It helps you track money.
You can easily send invoices. It’s a powerful tool that handles many tasks, which makes it good for growing businesses.
Also, explore our favorite QuickBooks alternatives…
Key Benefits
- Automated transaction categorization
- Invoice creation and tracking
- Expense management
- Payroll services
- Reporting and dashboards
Pricing
- Simple Start: $1.90/month.
- Essential: $2.80/month.
- Plus: $4/month.
- Advanced: $7.60/month.
Pros
Cons
What is FreshBooks?
Let’s talk about FreshBooks. It’s really popular with freelancers.
Many service-based businesses love it. It makes invoicing super easy.
You can track your hours. It’s very user-friendly and focuses on simplicity, which makes it great for non-accountants.
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!
Key Benefits
- Professional invoice creation
- Automated payment reminders
- Time tracking
- Project management tools
- Expense tracking
Pricing
- Lite: $2.10/month.
- Plus: $3.80/month.
- Premium: $6.50/month.
- Select: Custom Pricing.
Pros
Cons
Feature Comparison
When evaluating accounting software solutions for your small business, it’s crucial to look beyond the basics.
This in-depth comparison highlights the advanced capabilities of both platforms to help you save time and stay organized.
1. Accounts Payable and Bill Pay
Handling what your company owes is a core function. Both allow you to enter bills.
- QuickBooks: Intuit QuickBooks offers full accounts payable features. You can pay bills directly through the system. This allows for accurate tracking of vendors and payment date.
- FreshBooks: FreshBooks lets you record and track bills. It is less focused on direct bill payment. The system helps you maintain an accurate record of what you owe.
2. Double-Entry Accounting and Reconciliation
A key difference is the underlying accounting structure. This impacts accuracy.
- QuickBooks: It is a full double-entry accounting system. This is the industry standard. It provides a complete chart of accounts. It is built for complex reconciliation.
- FreshBooks: FreshBooks has become a full double-entry accounting tool. This is a recent upgrade. It helps small business owners maintain a more comprehensive financial record. Bank reconciliation is a feature in the plus plan and above.
3. Inventory Management
If you sell products and services, managing stock is vital.
- QuickBooks: QuickBooks has strong inventory tracking. You can track quantities and costs. It helps medium-sized businesses manage their business data well.
- FreshBooks: FreshBooks does not have native inventory features. It relies on integrations with other accounting software to track inventory, suitable for minimal product sales.
4. Sales Tax Tracking
Correctly handling sales tax is essential for compliance.
- QuickBooks: QuickBooks automates sales tax tracking and filings. It keeps up with local sales tax rates. QuickBooks helps ensure your tax preparation is straightforward and compliant.
- FreshBooks: FreshBooks tracks sales tax on invoices. It provides reports. However, it requires more manual effort for filing compared to QuickBooks.
5. Mobile App Functionality
Managing your business on the go is a must.
- QuickBooks: The online version has a robust mobile app. It gives you online access to a lot of your business data. You can run reports and manage customers.
- FreshBooks: The FreshBooks mobile app is highly rated. It is great for tracking employee time and capturing receipts. It is available on iOS and Android devices.
6. Scalability and Multi-User Access
How much can the software grow with your company?
- QuickBooks: Highly scalable, especially the online access to higher-tier plans. The intuit system is built to handle multiple team members and complex financial structures.
- FreshBooks: FreshBooks‘ scalability is more limited. Its pricing plans charge for each additional user. It is best for the self employed or very small teams.
7. Payroll and Contractor Payments
Handling staff and contractor payments is a key feature.
- QuickBooks: QuickBooks offers integrated QuickBooks Payroll. It handles contractor payments and tax filings easily. This makes managing employee time and wages simple.
- FreshBooks: FreshBooks payroll is managed through third-party partners. This means an extra cost and integration step. It handles basic contractor payments through the system.
8. Desktop vs Online Access
The delivery of the software matters for some users.
- QuickBooks: QuickBooks offers both the QuickBooks desktop and the online version. This provides flexibility. Users with legacy desktop data may prefer the desktop products.
- FreshBooks: FreshBooks is purely a cloud-based service. You get online access via a web browser and the freshbooks mobile app. There is no desktop version to install on your computer.
9. Client Management and Invoicing
How you bill your customers is central to both.
- QuickBooks: QuickBooks handles standard invoicing well. It includes features like recurring invoices and payment processing. QuickBooks reviews often praise its integration with other QuickBooks products.
- FreshBooks: FreshBooks is famous for its custom invoicing. It makes sending recurring invoices very easy. Freshbooks reviews often mention the simplicity and design of its invoicing features.
What to Look for When Choosing Accounting Software?
Selecting the right FreshBooks accounting software or QuickBooks Online solution is critical for your financial health.
Consider these key factors before you subscribe to any of the pricing plans:
- Pricing Structure:Â Look beyond the per-month cost of the Lite plan or Premium plan. Consider all fees, including those for advanced payments and the flat fee for extra features. Always check if a free version or a trial is available.
- Payment Capabilities: Ensure the software can accept payments easily. This includes processing credit cards, ACH transfers, and integrating with online payments via a virtual terminal or FreshBooks payments.
- Client & Project Management: If you manage projects, verify the software has project profitability tracking and tools for billable time. FreshBooks and QuickBooks offer this.
- Invoicing Features: You should be able to create professional invoices and recurring billing. The platform should allow for unlimited estimates and let you convert estimates easily. Look for automatic late fees and payment reminders.
- Scalability & Access: Does the software support an unlimited number of billable clients or require a specific select plan? Check for mobile device access and a stable internet connection.
- Data and Reporting: You need detailed accounting reports and clean balance sheets. Look for features like the FreshBooks dashboard and seamless bank account and bank transfers reconciliation to spot unreconciled transactions.
- Time & Payroll: Check if tracking time for only the projects is easy. For employees, confirm availability of full-service bookkeeping, direct deposit, and tax time support. QuickBooks Time is an an essential add-on.
- Self-Employed Needs: Self-employed professionals should ensure the software handles personal finance separation and provides a way to upload data via csv file.
- Support & Community: Review the FreshBooks FAQs and check the quality of customer support. See if they recommend FreshBooks or QuickBooks Online for your specific needs, or suggest other software.
- Advanced Tools: Consider if you need project management, client retainers, cash flow forecasting, or POS systems integrations for your business partners.
Final Verdict
So, which is the best accounting software?
We recommend FreshBooks if you are a freelancer or a service-based business looking for a simple, client-focused experience.
The FreshBooks platform is easy to set up and use.
Its time tracking and invoicing benefits often outweigh the cost of its three plans or four plans.
However, if your business is growing and needs more muscle, QuickBooks is our pick.
Its advanced features, like inventory and dedicated payroll, make it more scalable.
Plus, features like QuickBooks checking and exclusive access to specialized support are excellent benefits.
Before you cancel any subscription, make sure you understand the license agreement and if ACH payments are included in your plan.
Our detailed comparison should help you choose with confidence.
More of QuickBooks
- QuickBooks vs Puzzle IO: This software focuses on AI-powered financial planning for startups. Its counterpart is for personal finance.
- QuickBooks vs Dext: This is a business tool for capturing receipts and invoices. The other tool tracks personal expenses.
- QuickBooks vs Xero: This is popular online accounting software for small businesses. Its competitor is for personal use.
- QuickBooks vs Synder: This tool syncs e-commerce data with accounting software. Its alternative focuses on personal finance.
- QuickBooks vs Easy Month End: This is a business tool to streamline month-end tasks. Its competitor is for managing personal finances.
- QuickBooks vs Docyt: This uses AI for business bookkeeping and automation. The other uses AI as a personal finance assistant.
- QuickBooks vs Sage: This is a comprehensive business accounting suite. Its competitor is an easier-to-use tool for personal finance.
- QuickBooks vs Zoho Books: This is an online accounting tool for small businesses. Its competitor is for personal use.
- QuickBooks vs Wave: This provides free accounting software for small businesses. Its counterpart is designed for individuals.
- QuickBooks vs Quicken: Both are personal finance tools, but this one offers more in-depth investment tracking. The other is simpler.
- QuickBooks vs Hubdoc: This specializes in document capture for bookkeeping. Its competitor is a personal finance tool.
- QuickBooks vs Expensify: This is a business expense management tool. The other is for personal expense tracking and budgeting.
- QuickBooks vs AutoEntry: This is designed to automate data entry for business accounting. Its alternative is a personal finance tool.
- QuickBooks vs FreshBooks: This is accounting software for freelancers and small businesses. Its alternative is for personal finance.
- QuickBooks vs NetSuite: This is a powerful business management suite for large companies. Its competitor is a simple personal finance app.
More of FreshBooks
- FreshBooks vs Puzzle IO: This software focuses on AI-powered financial planning for startups. Its counterpart is for personal finance.
- FreshBooks vs Dext: This is a business tool for capturing receipts and invoices. The other tool tracks personal expenses.
- FreshBooks vs Xero: This is popular online accounting software for small businesses. Its competitor is for personal use.
- FreshBooks vs Synder: This tool syncs e-commerce data with accounting software. Its alternative focuses on personal finance.
- FreshBooks vs Easy Month End: This is a business tool to streamline month-end tasks. Its competitor is for managing personal finances.
- FreshBooks vs Docyt: This uses AI for business bookkeeping and automation. The other uses AI as a personal finance assistant.
- FreshBooks vs Sage: This is a comprehensive business accounting suite. Its competitor is an easier-to-use tool for personal finance.
- FreshBooks vs Zoho Books: This is an online accounting tool for small businesses. Its competitor is for personal use.
- FreshBooks vs Wave: This provides free accounting software for small businesses. Its counterpart is designed for individuals.
- FreshBooks vs Quicken: Both are personal finance tools, but this one offers more in-depth investment tracking. The other is simpler.
- FreshBooks vs Hubdoc: This specializes in document capture for bookkeeping. Its competitor is a personal finance tool.
- FreshBooks vs Expensify: This is a business expense management tool. The other is for personal expense tracking and budgeting.
- FreshBooks vs QuickBooks: This is well-known accounting software for businesses. Its alternative is built for personal finance.
- FreshBooks vs AutoEntry: This is designed to automate data entry for business accounting. Its alternative is a personal finance tool.
- FreshBooks vs NetSuite: This is a powerful business management suite for large companies. Its competitor is a simple personal finance app.
Frequently Asked Questions
Is FreshBooks better than QuickBooks for freelancers?
Yes, FreshBooks is often preferred by many freelancers and solo entrepreneurs. Its invoicing, time tracking, and expense management are very user-friendly for service-based businesses.
Does QuickBooks have better reporting than FreshBooks?
Generally, yes. QuickBooks offers more in-depth and customizable financial reports. It’s built for comprehensive economic analysis, making it better for businesses needing detailed insights.
Can I switch from FreshBooks to QuickBooks later?
Yes, it’s possible to switch. Both platforms allow you to export your data. However, importing everything correctly into the new system might require some effort.
Which software is better for managing inventory?
QuickBooks is significantly better for inventory management. It provides robust tools for tracking stock, managing the cost of goods, and handling purchase orders, which FreshBooks lacks.
Do both FreshBooks and QuickBooks offer payroll?
QuickBooks has integrated payroll services. FreshBooks offers payroll through a third-party integration, typically Gusto, meaning it’s an add-on service rather than built-in.
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