Xero vs FreshBooks
Last updated July 6, 2026
Deciding between Xero and FreshBooks? Here's how they stack up on price, fit and migration effort — so you can pick the right accounting software tool without second-guessing.
Pricing disclaimer: All prices are list prices in USD, shown for general information only as of July 6, 2026, and may have changed since. Plans, tiers and features vary by region and are frequently updated by each vendor. Nothing here is financial, legal or purchasing advice — always confirm current pricing and terms on the provider's official website before you buy.
| Xero | FreshBooks | |
|---|---|---|
| Starting price | $25/mo (Early) | $23/mo |
| Free tier | — | No |
| Best for | Established users on its plans | Freelancers and agencies whose core need is invoicing and time tracking. |
| Migration effort | — | Easy |
| Rating | — | 4.3 ★ |
Why teams switch from Xero
- ✕The entry Early plan is tightly capped — limited invoices and bills per month push active businesses onto the $55/mo Growing plan fast.
- ✕No native US payroll — you have to bolt on Gusto, adding cost and a second system.
- ✕Prices have risen steadily; the Established plan is now $90/mo.
- ✕Support is largely email/online with no easy phone line, which frustrates users who want to talk to someone.
Where FreshBooks wins
- ✓Delightful invoicing and time tracking
- ✓Very approachable for non-accountants
- ✓Great for billing clients by hour/project
…and where it doesn't
- ✕Plans capped by number of billable clients
- ✕Lighter double-entry accounting than Xero
- ✕Extra fee per team member
The verdict on FreshBooks
For service businesses that found Xero's accounting-first approach heavier than they needed, FreshBooks flips the emphasis to invoicing and getting paid. Time tracking, project profitability and the client portal are excellent, and it's friendlier to non-accountants than Xero. The catch is that plans are capped by the number of billable clients — the Lite tier is quite limited — and each extra team member costs more. If your books are inventory-heavy you'll miss Xero's depth, but for consultants and agencies billing by the hour, FreshBooks is a smoother daily experience. Moving invoicing data over is straightforward.
Try FreshBooksWhat real users say: Xero vs FreshBooks
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Frequently asked questions
Is FreshBooks cheaper than Xero?
FreshBooks starts at $23/mo, compared with Xero from $25/mo (Early). Lite $23/mo, Plus $43/mo, Premium $70/mo (US standard price; heavy intro promos common). Verified Jul 6, 2026. Billable-client caps per tier.
Is it hard to migrate from Xero to FreshBooks?
Migration difficulty is rated Easy. Moving invoicing data over is straightforward.
Who should choose FreshBooks over Xero?
FreshBooks is best for: Freelancers and agencies whose core need is invoicing and time tracking. If that describes your situation, it's a strong Xero alternative.
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