Here’s my in-depth FreshBooks vs. QuickBooks comparison guide.
If you’re searching for the perfect accounting software that will help you balance your books, track expenses, customize invoices, make more money, and generate rich reports, then FreshBooks and QuickBooks both offer easy-to-use features for you and your clients.
Note: I’ve used QuickBooks and currently use FreshBooks to send invoices and automate my accounting processes.
So, I’ll be sharing my firsthand experience to help you discover the key features, pros and cons, pricing, and FAQs.
If you’re ready to choose between FreshBooks and QuickBooks, let’s get started.
1. FreshBooks vs. QuickBooks At A Glance
How do FreshBooks and QuickBooks compare? Which software will help you track your expenses, simplify complex accounting processes, and build relationships with your clients?
Let’s take a quick look.
|Best Overall. Tools for expense tracking, book balancing, and relationship building with clients. Starts at $15/month.||Best for convenience. Simplifies accounting tasks from expense tracking, editing invoices, and reports. Starts at $16/month.|
|Try FreshBooks||Try Quickbooks|
Note: FreshBooks and QuickBooks both offer 30-day free trials to help you get started and test all of the features at no cost.
2. Who Is FreshBooks Best For?
FreshBooks is suitable for business owners, especially service-based professionals. This includes authors, online advertisers, podcast hosts, consultants, and other subject matter experts who want to efficiently manage their accounting processes.
Other business owners who wish to track expenses and ensure their books are balanced at all times can also benefit from FreshBooks’ robust accounting platform.
3. Who Is QuickBooks Best For?
QuickBooks has a well-defined audience. It’s for small businesses that want to free up time, manage complex accounting processes from one place, etc.
These small businesses are mostly those that sell products (both physical and digital products).
4. A Close Look At The Features Of FreshBooks And QuickBooks
This is where we take a closer look at how FreshBooks compares with QuickBooks. In this table, we’ll examine the key features briefly:
|Track Income & Expenses|
|Send Custom Invoices & Quotes|
|General Ledger Report|
|Fast Bank Deposits|
|Accept Credit Cards Online|
|Get Started||Try FreshBooks||Try Quickbooks|
5. Key Features Of FreshBooks
The Global Accounting Software market has grown in recent years. It’s projected to be valued at $20,408 Million by 2026.
FreshBooks helps you to track your expenses and cash flow in record time and generate reports for decision-making processes.
Here are the 5 key features of FreshBooks:
#1 FreshBooks Easy Invoicing
FreshBooks simplifies small business invoicing and billing. You can spend your precious time doing what you love the most. You’ll always get paid faster. The invoice generator software is efficient and easy to use.
Simply pick a template and customize the invoice with your logo. You can also personalize your Thank You email. Your clients will be amazed.
The FreshBooks invoice generator also syncs perfectly with payment gateways. This enables you to accept credit cards and ACH from your clients all over the world.
This ensures your funds are deposited into your bank account on time. You can be paid up to 11 days faster.
After sending an invoice to a client, you can also send reminders to clients.
You can easily automate major and minor aspects of your business with FreshBooks. Focus your time on what matters most and let FreshBooks follow up with clients.
Whether you’re a blogger or using the best webinar software to make helpful presentations, this accounting software keeps you focused on what’s important in your business — revenue.
#2 Organize Expenses Efficiently
Expenses are commonplace in business. It doesn’t matter the size of your business; being able to record and organize expenses is critical to your success as a business owner.
With FreshBooks, there’s no need to keep a shoebox of receipts. You can easily log and organize expenses and track every dollar spent. This is very important during tax time.
The FreshBooks accounting software allows you to track your business expenses all in one place, without lifting a finger. Have you recently paid for a web hosting service or enrolled in an online learning program?
You can track everything. Simply connect your bank account or credit card to FreshBooks and never have to worry about the manual entry.
Every day, your FreshBooks account will be automatically updated with your recent expenses. This could be for spending or investments. Either way, your business books will always be up-to-date with FreshBooks.
Interestingly, you can snap a picture of a receipt, log it, and let FreshBooks do its magic of keeping things organized in the cloud. It will remind you of every last detail, so you never have to lose another receipt.
#3 Time Tracking & Projects
Time is important in any accounting practice. That’s why FreshBooks uses a time tracking tool to gauge how much time you’re spending on clients and projects. Whenever you’re done with your task, an invoice can be generated with just a click.
You’ll always generate and send an invoice for exactly what you put in when you efficiently track time with FreshBooks. If you have a team, it’s easy for everyone to log your hours and then automatically add them to an invoice.
With the FreshBooks’ time tracking feature, you never have to remember how long you and your team spent working on a client project.
All you have to do is start a timer and get on with the work – when the work is done, there will be an accurate time log ready to be transferred onto an invoice.
So no matter the project, you can stay organized with a time tracker and keep all your conversations, files, and feedback in one secure place.
You’ll keep your team excited about each project — after all, they know they will be rewarded accordingly.
#4 FreshBooks: Get Paid Faster
FreshBooks is more than an invoicing and accounting software. As a business owner, you can use the software to accept payments online and get paid 2X faster.
This is a great way to ensure consistent cash flow.
When you send an invoice, clients can pay directly through the invoice, and the system automatically records each payment in your account. It’s convenient, simple, secure, and perfectly integrated.
Most people trust Stripe and PayPal payment options. They’re both popular in the business world due to their low costs and no hidden fees.
FreshBooks Payments is also as transparent as PayPal because well over 20 million business owners already use the accounting software.
You can quickly set up online payments with one click and accept all types of credit card payments right on invoices. Then, you can add your bank account and have FreshBooks deposit your funds on the same day.
#5 Double-Entry Accounting
Double-Entry Accounting is one of the key features of FreshBooks. This type of accounting is robust, as it uses automatic checks and balances to improve accuracy and compliance.
You may be interested in working with an accountant to manage this double-entry system, but there are helpful resources to guide you along the way — if you choose to do it yourself.
Accurate reporting is the hallmark of every business. The FreshBooks Double-Entry Accounting plays an important role in identifying revenue items and their related expenses, thus giving you a comprehensive report on profits and losses.
Get your accountants involved. Give them exclusive access to the financial information and reporting they need to support your business’ growth.
Whether you’re looking to make financial decisions or attend to tax experts, it’s always fun to work with an accountant.
Note: Another powerful feature is the FreshBooks Mobile. With this mobile app, it’s easy to stay connected with your clients anywhere, using any device — so you can take care of your accounting.
6. Key Features Of QuickBooks
QuickBooks offers some of the best accounting software tools and features to help grow your small business.
Here are the key features that make QuickBooks amazing:
#1 QuickBooks Cloud Accounting
QuickBooks Online takes your business to the next level in the cloud. Cloud Accounting has gained a lot of attention in recent years. It allows you to access what you need, when, and where you need it.
QuickBooks uses a secure system to store your data and ensures they’re up-to-date no matter the device you’re using. You can track sales, send invoices, and gauge how your business is doing anytime and anywhere.
With QuickBooks Cloud Accounting, you can share and collaborate with your team.
This means you can invite your accountant, bookkeeper, or other team members to work on your books. It’s easy to add, delete, or change user access whenever you want.
Track expenses, send invoices, and do all sorts of complex accounting practices with airtight security. QuickBooks uses built-in advanced safeguards and encryption to ensure your data is private and well-protected.
When it comes to tracking expenses and cash flow, it’s important to be flexible and in control. QuickBooks Online cloud accounting is powerful and lets you access your transactions anytime, regardless of your device or location.
#2 Send Custom Invoices & Quotes
QuickBooks has a powerful invoice generator and professional templates. This allows you to create custom and stunning invoices. It takes just a few steps to get paid in days.
Choose a template from the library, then create and send professional invoices in a few minutes. You can also automate your invoices, maximize time, and get paid within the next day.
Besides, you can also create quotes that include payment terms, discounts, etc. Even your estimate can be turned into an invoice in one click.
From your dashboard, you can track payments in real-time and see which clients have paid or those that need a reminder.
No matter the device, you can easily track the status of any invoice from your computer, smartphone, or tablet. You can see due or overdue invoices from your dashboard and then send automatic reminders.
If you have clients whom you bill regularly, you can set up recurring invoices. You can also customize invoices, shipping costs, and taxes.
All of these will be calculated for you. QuickBooks does the heavy lifting for you and keeps track of how much you earn and owe.
#3 Track Income & Expenses
While QuickBooks is great invoicing software, it also tracks income and expenses. You can accurately report your income and expenses using the system. It reveals every deduction you need and calculates everything for you.
When you connect your bank accounts and credit cards, you can easily import transactions from your credit cards, banks, PayPal, and Square automatically.
It’s also easy to sort transactions with QuickBooks. Your expenses will be auto-sorted into tax categories.
It’s your responsibility to accept or edit them, and QuickBooks uses artificial intelligence (AI) to learn and adjust these settings accordingly.
When tracking expenses and incomes, remember that you can create custom rules. Your expenses can be categorized based on these rules. What a great way to stay organized and be ready for tax time.
#4 Generate Accounting Reports
You need smarter insights and accurate reporting to make better decisions. QuickBooks lets you access your financial information and reports instantly. You get a clearer picture of your business in real-time.
This helps you develop your strategy.
How are you doing in terms of sales? You can get a 360° view of your sales, sorted by customer, product, project, or location.
You can create custom reports and get updated reports on important aspects of your business books, including balance sheets, cash flow, profit, and loss accounts.
#5 QuickBooks Inventory Management
QuickBooks also helps you to manage your inventory in real-time. It shows you what products are coming in and what’s going out.
What products do you have in stock? What have you ordered? Keeping an updated inventory is important to every business owner. Otherwise, there’s no way to successfully measure and calculate turnover.
QuickBooks allows you to check inventory shortages and track every order placed. As these new stocks come in, the stock inventory management software auto-updates the inventory. That means you can see your best-selling products and reorder them again.
It’s also easy to auto-calculate the cost of your product that has been sold. You can use the First-In, First-Out (FIFO) approach. Then, carefully organize the products with categories, images, and prices.
7. FreshBooks vs. QuickBooks – Pros And Cons
FreshBooks is an award-winning invoicing and accounting software with handy and advanced features for tracking expenses and cash flows, accepting payments online, and building relationships with clients.
So, is FreshBooks a better accounting software? Let’s separate the good from the bad using the pros and cons:
|It’s cloud-based software. No need to download anything.||You can’t set fixed amount discounts. It only allows percentage discounts.|
|You can easily create and customize invoices.||You might experience frequent crashes while sending invoices.|
|You’ll be able to easily import expenses from multiple credit cards.||It’s a bit expensive, especially if you don’t want to use all of the features.|
|It has a clean, intuitive, and easy-to-use interface.||Some of the essential features don’t work well with the mobile app.|
|You can easily integrate with third-party services like Gusto, this helps to track payroll properly.|
|It has a rich reporting system that helps users make informed decisions.|
|The customer support is responsive.|
Do you need more user-friendly Invoicing and accounting software? QuickBooks might be a great option.
Take a look at the pros and cons:
|It’s relatively easy to learn and use.||The invoicing feature is a bit hard to use.|
|You can easily organize and retrieve customer and vendor files/records.||When you duplicate an existing bill, the preset term sometimes doesn’t copy over.|
|QuickBooks helps you to manage payroll and taxes efficiently.||There’s no automatic backup so there’s a risk of losing your data.|
|It’s easy to set up your budget and track your revenue/expenses.|
|It’s super easy to integrate with your business bank accounts.|
|It offers excellent customer support.|
8. Where Do I Get The Most For My Money?
Are you ready to simplify your accounting and stay productive?
You might be wondering how much FreshBooks or QuickBooks costs.
After all, the cost is always an important factor to consider when choosing accounting software.
Let’s break down the plans and pricing for FreshBooks and QuickBooks.
FreshBooks Pricing Plans
FreshBooks has flexible plans that will serve you and your clients.
- Lite ($6/month): If you have basic accounting needs, the Lite plan is ideal. It allows 5 billable clients, tracks expenses, send estimates, tracks sales tax and sees reports, etc.
- Plus ($10/month): With this plan, professionals and owners who want more automation and insights can do much more. You can send unlimited invoices to 50 clients, automatically track expenses, run business health reports, get paid with credit cards and bank transfers, invite your accountant, and more.
- Premium ($20/month): Use this plan when you’re a growing business, also when you want to empower employees. It allows 500 billable clients, get paid with checkout links, track projects profitably, and enjoy all of the features in Plus.
- Select (custom pricing): Do you have complex accounting needs? The Select plan is most suitable. Get custom pricing from the company. Send billable invoices to 500+ clients, start with 2 team member accounts, remove FreshBooks branding from client emails, and all the features inside Premium.
QuickBooks Pricing Plans
Are you ready to choose a QuickBooks plan? Here’s a breakdown:
- Simple Start ($4.80/month): Start your business with this basic plan. It allows you to track income and expenses, connect your bank, track VAT, send custom invoices & quotes, 1 user, and your accountant.
- Essentials ($7.50/month): To scale your new business, get all of the features in the Simple Start plan, plus manage employees, multi-currency, insights and reports, 3 users, and your accountant.
- Plus ($10.20/month): Growing businesses can do a lot more with the Plus plan. It comes with all of the features in Essentials, including 5 users, an accountant, recurring transactions, tracking inventory, managing budgets, etc.
9. Conclusion – Which Is Better: FreshBooks Or QuickBooks?
FreshBooks is a complete accounting software built for business owners and their clients. It has essential features for balancing your books, building client relationships, and automating your accounting process.
It gives you the right insights to focus on what matters most in your business — team and clients.
It offers both monthly and yearly pricing.
QuickBooks is simple online accounting software for small businesses. If you’re looking for a more flexible software to customize invoices, run reports, and do more from a single place, QuickBooks is most suitable.
FreshBooks provides more advanced features, which might be confusing for small business owners just getting started.
If you want to get ahead quickly and keep your accounting processes in check, you should go with QuickBooks.
On the other hand, FreshBooks is highly recommended if you want to be able to track unlimited expenses, track sales tax, and generate rich reports, and you can access it anywhere on iOS and Android.
10. FreshBooks vs. QuickBooks – FAQ
Is FreshBooks or QuickBooks better accounting software for your business? With a ton of questions already, let’s answer 4 FAQs:
Is FreshBooks Compatible With QuickBooks?
You can connect QuickBooks online with FreshBooks using OneSaas. That way, you’ll never manually input data again. This will save you hours of work time every day.
Do I Have To Upgrade QuickBooks Each Year?
There’s no need to upgrade to the latest version of QuickBooks each year. Some users are still using the 2007 version, and it works very well. However, if you upgrade your computer OS, your old QuickBooks version may not run properly any longer. So, you’ll be required to upgrade it.
Is FreshBooks Better Than QuickBooks?
FreshBooks is a great alternative to QuickBooks. It’s great for automating your accounting processes. Aside from the features, FreshBooks is a lot easier to use for business owners who want to serve their clients effectively.
Does QuickBooks Do Payroll?
Yes, QuickBooks has various plans for payroll. The QuickBooks Basic Payroll lets you process your payroll and effectively pay employees by check or direct deposit.