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Choosing the right accounting software is critical for managing your business’s finances. Here is how FreshBooks and QuickBooks compare.
Check out The Best Accounting and Invoice-Generating Software for 2024 business.com recommends.
Finding the right accounting and invoicing software plays a critical role in tracking your business’s finances. It allows you to complete bookkeeping tasks, track expenses and revenue and send invoices to your customers. Two of the best small business accounting software programs are FreshBooks and QuickBooks.
This article will help you choose between these two big-name accounting brands. We evaluated FreshBooks and QuickBooks on several important criteria, including price, invoicing capabilities, customer service and third-party integrations.
FreshBooks and QuickBooks offer user-friendly software to maintain your business’s books, send invoices and perform other accounting functions. Here is a look at how the two stack up against each other.
Feature | FreshBooks | QuickBooks |
---|---|---|
Monthly price | $17 | $15 |
Invoicing | Five per month; email, payment acceptance, customization, recurring, reminders and time tracking | Unlimited invoices; email, payment acceptance, customization, recurring and reminders |
Customer service | Email, chat, phone and online frequently asked questions (FAQs) | Email, chat, phone and online FAQs |
Mobile app | Invoices, expense capture, mileage and time tracking | Accounting, invoices, payments, receipt capture, reconcile transactions and message customers |
Third-party integrations | More than 100 | More than 750 |
FreshBooks is accounting software that caters to small businesses and independent contractors. Apart from offering traditional double-entry accounting and reporting features, FreshBooks excels at generating invoices. Its unique ability to convert estimates and billable hours into invoices swiftly makes it an excellent choice for service-based businesses, especially those that need to get paid on the go. Learn more in our complete review of FreshBooks.
QuickBooks has been the leading provider of small business accounting software for over two decades. With a market share of more than 80 percent in the United States, most accountants and bookkeepers will already possess extensive knowledge of QuickBooks’ inner workings. Like its competitors, QuickBooks offers comprehensive double-entry accounting and report features, and the software is packed with a variety of additional tools that business owners should find useful. These factors make QuickBooks a solid one-size-fits-all choice for small businesses.
This screenshot from a demo shows QuickBooks’ feature-rich dashboard. Source: Intuit
In this section, we will dive into the differences between FreshBooks and QuickBooks, including how they compare on pricing, invoicing capability, customer service, mobile app features and third-party integrations.
FreshBooks Pricing
FreshBooks currently offers four paid service plans based on a business’s number of clients. It does not offer any free versions of its software:
There is an $11 monthly charge per user for additional users. When utilizing FreshBooks Payments for accepting credit card payments online, each transaction incurs a fee of 2.9 percent plus 30 cents. For those who prefer to accept credit card payments by phone and in person, FreshBooks offers Advanced Payments, which carries a cost of $20 per month, in addition to 3.5 percent and 30 cents per transaction.
Here is a breakdown of each service plan:
Plan | Monthly cost | What’s included |
---|---|---|
Lite | $17 | Five billable clients, time tracking, invoicing, unlimited estimates and invoices and mobile app |
Plus | $30 | 50 billable clients, recurring invoices, payment reminders and late fees, reports and double-entry accounting |
Premium | $55 | Unlimited clients, additional reporting capabilities and client tracking |
Select | custom | Exclusive access to Select Support and Onboarding teams |
QuickBooks Pricing
QuickBooks offers five paid plans geared toward small and medium-sized businesses. Like FreshBooks, it does not offer a free tier:
While most business applications have transitioned entirely to cloud-based software in recent years, QuickBooks is unique in that it still sells an old-fashioned desktop version. Desktop Pro Plus and Desktop Premiere Plus go for $549 and $799 per year, respectively.
Additionally, QuickBooks Online offers various bundle deals with other Intuit software products such as QuickBooks Payroll. [Read more in our full review of QuickBooks Payroll.]
Plan | Monthly cost | What’s included |
---|---|---|
Self-employed | $15 | Income and expense tracking, receipt organizing, tax estimating, basic reports and miles tracking. |
Simple Start | $30 | One billable user; cash flow analytics, unlimited invoices, tax deductions, sales tax calculation and 1099 preparation tools. |
Essentials | $55 | Three users; time tracking and bill pay and management tools. |
Plus | $85 | Five users; project management and inventory tracking tools. |
Advanced | $200 | 25 users; one Smart Reporting license, 20 classes, online training, dedicated account team and workflow automation tools. |
Comparing the pricing for FreshBooks and QuickBooks isn’t straightforward because much depends on what features you prioritize and how much you want to spend. Overall, we give QuickBooks the edge on pricing because its base plan is less expensive. Unlike FreshBooks, QuickBooks doesn’t set limits on the number of customers. We would also note that QuickBooks allows you to invite your accountant on the $15 Self-employed plan while FreshBooks users must upgrade to the $30 Plus plan to access this feature.
QuickBooks also doesn’t charge separately for additional users, and its most advanced plan allows for a total of 25 people from your business to access the software. FreshBooks only provides access to multiple users for an additional monthly fee of $11 per user. This makes QuickBooks a better choice for small businesses with multiple employees that need to access the accounting system.
If your business prioritizes time tracking, FreshBooks is likely the better choice because it includes time tracking on all of its paid plans. Meanwhile, QuickBooks only includes time tracking on the $55 Essentials plan.
FreshBooks Invoicing Capabilities
FreshBooks distinguishes itself from competitors with its strong emphasis on invoicing:
This screenshot shows your invoice from the customer’s perspective. Source: FreshBooks
Another standout feature is the in-house payment software, which significantly simplifies the payment process for invoices. With a click of a button on an email invoice, customers are directed to a web page where they can enter their credit card details. Alongside this, FreshBooks offers various other invoicing tools, such as recurring invoices, payment reminders and the option to apply interest and late fees on overdue invoices.
QuickBooks Invoicing Capabilities
QuickBooks’ invoicing features are more robust than many competitors in the accounting space:
QuickBooks allows you to invoice customers for partial payments, as shown in this screenshot. Source: Intuit
FreshBooks Customer Service
QuickBooks Customer Service
FreshBooks Mobile App Features
QuickBooks Mobile App Features
FreshBooks Integrations
FreshBooks integrates with more than 100 third-party business applications, including a number of well-known brands:
QuickBooks Integrations
QuickBooks integrates with more than 750 third-party business applications, including the following well-known apps and ecommerce platforms:
Yes, but you need to subscribe to the Premium plan. All QuickBooks plans allow you to invite an accountant.
Smart Reporting, powered by Fathom, provides tools to analyze your business metrics.
Yes, both FreshBooks and QuickBooks are cloud-based applications, although QuickBooks also offers a desktop-based solution.
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