Know the Differences Between QuickBooks vs FreshBooks vs Xero (2025)

The QuickBooks vs FreshBooks vs Xero debate is not new in the market. When comparing accounting software, FreshBooks vs. QuickBooks, QuickBooks vs. Xero, or Xero vs. FreshBooks, each has its own unique features and advantages. These accounting software tools are widely used by businesses in the United States and globally. They offer customized accounting, inventory, sales, purchase, and payment management options.

Did you know? QuickBooks has over 7.1 million users, while FreshBooks has over 30 million users spread across more than 160 countries, and Xero has approximately 3.9 million users worldwide. Making all three accounting software a good choice for businesses and individuals. But choosing the right accounting software becomes a cumbersome task.

To eliminate this confusion, this blog will provide a detailed comparison of QuickBooks, FreshBooks, and Xero. Let us get into the topic and learn more. 

What is QuickBooks Software?

Intuit Inc. develops QuickBooks accounting software, which is one of the most preferred accounting software options in the market. QuickBooks is a robust accounting software with a user-friendly interface. Under QuickBooks, there are various versions, including QuickBooks Online, QuickBooks Desktop, and QuickBooks Enterprise. All are accounting software with varied features and advantages. QuickBooks is best suited for small, medium, and large enterprises. You can even cloud-host your QuickBooks application and access it from anywhere, anytime.

What is FreshBooks Software?

When it comes to FreshBooks, it is not a full accounting software. It has limited features and advantages. It is mainly designed for freelancers and small businesses that only need to record credits and debits. FreshBooks does not offer inventory control or amortization options. However, it is a simple cloud-based accounting software for bookkeeping purposes.

What is Xero Software?

Xero is a cloud-based, full-featured accounting software for small and medium-sized enterprises. It offers seamless integrations across the payment process, invoicing, and project management. It easily integrates with Stripe and PayPal, two popular third-party payment gateways. Xero allows you to adapt to your business as it scales. Xero has a modernized accounting interface that is easy to use.

QuickBooks vs FreshBooks vs Xero: A Complete Comparison Table

	QuickBooks	FreshBooks	Xero
Designed For	Small & medium enterprises	Freelancers and small businesses	Small, medium, and large enterprises
Pricing Plans	→ Simple Plan starts at $9.5 per month → Essential Plan starts at $14 per month → Plus Plan starts at $20 per month → Advanced Plan starts at $38 per month.	→ Lite Plan starts at $10.5 per month or $163.8 per year.  → Plus Plan starts at $19 per month or $296.4 per year → Premium Plan starts at $32.5 per month or $507 per year. → Select Plan, you need to contact FreshBooks.	→ Starter plan starts at $29 → Standard Plan starts at $46 → Premium Plan starts at $80
Ease of Use	A little complex due to many features	Simple and clean user interface	Modern and intuitive interface
Invoicing	Offers unlimited invoicing features	Offers basic but unlimited invoicing features	Offers unlimited invoicing features
Reporting Option	Robust reporting option with over 180 reports to choose from	Basic reporting options	Multi-entry consolidation of reports
Dashboards	Drill down customizable and advanced dashboards	Limited dashboard features	Comprehensive and interactive dashboard
Third-party integration	Advanced integration, like payroll and taxation.	Basic integration options	Extensive third-party integration, especially e-commerce like Shopify
Bank Reconciliation	Automated bank reconciliation options	Simple bank reconciliation options	Automated and seamless reconciliation process
Time Tracking	Built-in time tracking	Available but not so useful	Strong time-tracking features
Inventory Management	Built-in strong inventory management functions.	No inventory management option, but a third-party add-on is available.	Good e-commerce inventory management features.
When it comes to QuickBooks vs. FreshBooks vs. Xero, all offer accounting features, but they vary in terms of their level of functionality.

The debate and comparison between QuickBooks vs Xero, or FreshBooks vs Xero, or QuickBooks vs FreshBooks is never-ending. All of the accounting software is good. Some offer basic functions, while others provide robust and advanced functions. If you are a small, medium, or large business seeking reliable accounting software, selecting the right one crafted to your specific needs and requirements is the best approach. By going through this blog, we are confident that your concerns regarding QuickBooks vs. FreshBooks vs. Xero have been addressed.

FAQs

Which is better, Xero or FreshBooks?

Xero offers advanced accounting features designed for small to medium-sized enterprises, while FreshBooks provides basic accounting and bookkeeping features designed for freelancers and small businesses. 

Which is better, QuickBooks or FreshBooks?

QuickBooks offers robust accounting features designed for small to medium-sized enterprises, including features such as inventory management and taxation. In contrast, FreshBooks provides basic accounting and bookkeeping features made for freelancers and small businesses. It lacks foolproof inventory management solutions. 

Do accountants prefer QuickBooks or Xero?

Accountants generally prefer QuickBooks for its extensive features and options as compared to Xero. However, preference depends on the business needs and requirements. For instance, in the United States, accountants prefer to use QuickBooks accounting software over Xero.