FreshBooks vs. QuickBooks: Which is best in 2024? (2024)

Choosing the right accounting software impacts how easily you manage your business’s finances and taxes. FreshBooks and QuickBooks are two popular options to compare, but there’s a big difference when it comes to pricing and features.

We analyzed both accounting platforms for this head-to-head comparison of FreshBooks vs. QuickBooks so you can figure out which better suits your small-business accounting software needs.

Pricing and plans

Here’s a side-by-side comparison of FreshBooks vs. QuickBooks when it comes to plan pricing and the basic features included at each level.

FreshBooks

FreshBooks is a more affordable option compared to QuickBooks, although it does limit how many clients you can invoice if you choose anything other than the Premium tier. You can track unlimited expenses at every level though, so you’re prepared for tax deductions. And while all plans allow for payments embedded into your invoices, you must pay a fee for either Stripe or PayPal. Both platforms charge 2.9% plus $0.30 for each transaction paid through your FreshBooks invoice.

You can invite your accountant to view your FreshBooks account at the Plus Plan and above but you must pay $11 per month for additional team member users unless you negotiate a customized enterprise-level plan (which isn’t often the best fit for small businesses).

QuickBooks

QuickBooks plans are more expensive but don’t include any limitations on the number of clients you can manage via invoicing, so you can scale as a solopreneur or small team while still staying on a lower-tier plan. All plans come with expense tracking as well as built-in bookkeeping automation that automatically tags and categorizes your transactions.

Accepting payments via credit card, digital wallet or PayPal comes with a flat QuickBooks fee of 2.99%. Compared to FreshBooks, you pay an extra 0.09% of the transaction amount instead of an additional $0.30 flat fee per transaction. As you move up in plans, you get additional services like tracking inventory, adding team members and accepting transactions in different currencies.

Verdict: FreshBooks wins for getting started at a low cost

When compared to QuickBooks, FreshBooks stands out for its substantially lower monthly fees. For freelancers, solopreneurs and small businesses that are just getting started, FreshBooks offers a cost-effective way to accept payments and track expenses. As your business grows, it’s easy to either upgrade or decide to make the switch to QuickBooks for more complex features.

Accounting features

Utilizing the right accounting features provides clarity around your business’s earnings and expenses so you truly understand its financial health. Plus, you’ll be well-prepared for tax season with organized data on eligible deductions and taxable income.

FreshBooks

FreshBooks offers accounting features designed for freelancers and small-business owners who provide services paid via invoices. It also targets accountants and tax professionals to make those client relationships easier. It’s not designed for other business models, such as product-based sales that require inventory tracking.

• Financial reporting: Balance sheet, general ledger, cost of goods sold, trial balance, accounts payable, chart of accounts and journal entries.
• Reconciliation: Import bank transactions and then approve or change details as necessary.
• Accounts receivable: FreshBooks’ invoicing software lets clients pay directly through the platform via credit cards or ACH. You can also set it up to automatically send reminders, charge late fees and request upfront deposits.
• Accounts payable: Capture expenses by snapping a photo and uploading images of bills and receipts. You can also import expenses straight from your business bank account or forward emailed bills and receipts to your FreshBooks email address.

While you can easily track and categorize your expenses, FreshBooks doesn’t explicitly offer bookkeeping automations. Instead, the platform partners with Bench to provide small businesses with additional bookkeeping help at an additional cost.

QuickBooks

QuickBooks provides more in-depth features to support all types of business models, including invoicing, payments and inventory. You can also access more complex reports with higher-paid tiers.

• Financial reporting: Profit and loss statements, expenses and balance sheets included with Simple Start. The Essentials Plan adds sales, accounts receivable and accounts payable reporting. The Plus Plan adds inventory, sales and profitability reports. The Advanced Plan adds financial dashboards and customized metrics.
• Reconciliation: While QuickBooks has a manual reconciliation process to confirm transaction categories and amounts, all plans also include bookkeeping automations. You can also set up rules for recurring transactions and automate categorizations.
• Accounts receivable: QuickBooks offers advanced invoicing capabilities for goods and services. You can set up recurring invoices, add a discount for early payment and add a tip option. With the Essentials plans or higher, e-commerce businesses can connect additional sales channels, such as eBay, Amazon or Shopify.
• Accounts payable: Track and manage upcoming bills and connect with vendors in the QuickBooks Business Network for fast payments.

Verdict: QuickBooks outperforms with advanced reporting and accounts receivables management

Each QuickBooks plan offers greater depth in the type of financial reporting you can access. On top of that, the accounts receivable features support all business models, whereas FreshBooks focuses on service-based businesses.

Ease of use and customer support

Pricing and features are important in your accounting software, but so is the user experience. When it comes to FreshBooks vs. QuickBooks, here’s how things shake out.

FreshBooks

FreshBooks is easy to set up for new businesses and has two different data migration options for existing companies.

• Setup: Either start from scratch or import existing data from other software. You can manually import the information for free using CSV files or pay to use a third-party migration software called Easy Switch.

• Ease of use: FreshBooks lets you customize the branding on your invoices, estimates and proposals by uploading your own banner and logo as well as selecting colors and fonts. You can manage your account online and through the FreshBooks mobile app, which allows you to photograph and upload your business-related receipts.

• Customer support: Get help with the FreshBooks knowledge base, call 866-303-6061 or email support@freshbooks.com. Customer support hours aren’t publicly listed.

QuickBooks

QuickBooks has a lot of available features, especially as you move up in the pricing tier. Here’s what to expect when getting started or after integrating existing accounts.

• Setup: You can import multiple data sets to QuickBooks by uploading Excel documents, including lists of suppliers, customers, inventory and chart of accounts. QuickBooks details each column and row you’ll need for integration. There’s also a walkthrough guide on connecting your financial accounts, setting up sales tax and payments, and integrating payroll (if applicable).

• Ease of use: QuickBooks provides video tutorials to help you correctly set up and use various features, including sales, expenses and custom fields. There are also free webinars and paid training classes if you need in-depth help.

• Customer support: You can chat online with a support expert or call to speak to someone on the phone. Simple Start, Essentials and Plus plan members can call from 6 a.m. to 6 p.m. PT Mon through Fri, and from 6 a.m. to 3 p.m. PT on Sat. Advanced plan members have 24/7 access to customer support.

Verdict: QuickBooks wins for online resources and human support access

QuickBooks has a library of guides and resources to help you launch and maintain your account. For more complex topics, you can pay for additional support. QuickBooks also stands out for having a direct customer service phone number with human support available during scheduled hours six days a week (and seven for Advanced plan members).

Integrations and scalability

Analyzing accounting software for integration and scalability makes it easier to stay with the same platform as your business grows. Here is how FreshBooks and QuickBooks compare.

FreshBooks

FreshBooks has an AppStore with 146 apps available to integrate into your account. Categories include:

• Booking appointments
• Analyzing data
• Creating proposals
• Mailing and shipping
• Managing customers, finances, products and teams
• Nurturing customers
• Preparing taxes
• Running payroll
• Tracking sale orders and time
• Additional apps for developers and accountants

So while FreshBooks may not have as many out-of-the-box features as QuickBooks does, it’s possible to customize your experience with additional third-party apps. These may, of course, increase the total cost of using FreshBooks.

FreshBooks does offer features to help scale your business. For instance, you can improve decision-making with profitability reports that track time and revenue. There’s also a feature to set up recurring invoices and client retainers. However, certain features — such as FreshBooks Payroll and access to lower transaction fees — require the Select Plan. There’s no advertised pricing; you must speak to a FreshBooks representative when you’re ready to explore these extras.

QuickBooks

QuickBooks offers a lot more flexibility when it comes to third-party app integrations. While FreshBooks is compatible with fewer than 200 apps, QuickBooks integrates with more than 750 apps. Categories include:

• Getting customers, getting paid and getting capital
• Managing workforce
• Accessing advice
• Staying compliant and organized
• Managing business, sales and data

You can also browse apps by industry, such as construction, finance, hospitality or real estate. And if your small business really starts to boom, you can upgrade to QuickBooks Online Advanced, which allows for up to 25 users to manage your account with custom roles to protect your company’s financials.

Verdict: If you want the most third-party integrations and scalability, pick QuickBooks

QuickBooks far outpaces FreshBooks when it comes to third-party integrations. Plus, there is an advanced level of accounting team access you can upgrade to as needed. You can also add as many team members as you’d like, whereas FreshBooks has limitations.

FreshBooks is an affordable starting point for solopreneurs while QuickBooks is better for growing companies

QuickBooks definitely has more features for a growing business, but that extra functionality does come with a higher monthly cost. FreshBooks, on the other hand, covers the basics and has room for growth when your company relies on client invoices for revenue.

When should you choose FreshBooks?

If you’re a freelancer, independent contractor or small services-based firm, FreshBooks is an affordable way to send invoices and manage client payments. But if you need more in-depth reporting or have multiple revenue streams, it may be difficult to get a full picture of your business’s finances.

When should you choose QuickBooks?

QuickBooks is more expensive than FreshBooks, but it offers more features and scalability for growing companies.

Here’s how QuickBooks stacks up against other popular accounting software options:

• Quicken vs. QuickBooks: Which is best in 2024?
• Xero vs. QuickBooks: Which is best in 2024?
• Sage vs. QuickBooks: Which is best in 2024?

Frequently asked questions (FAQs)