In the world of accounting, many solutions are racing to be the top accounting software. But what about Freshbooks vs QuickBooks Online? Can any of them win the race?
Today using bookkeeper software may transform the working life of your organization. The appropriate billing tools serve as the easiest approach to monitoring cash flow, billing clients and processing relevant finances. If you own a small business, there are other critical advantages of applying billing software like time and project tracking.
FreshBooks and QuickBooks Online are among the most popular accounting software solutions for small businesses. However, both accounting software are suitable for various types of companies as well.
But the question remains: is FreshBooks better than QuickBooks Online? Let’s find out in this comparison.
FreshBooks vs QuickBooks Online: Overview
Although both FreshBooks vs QuickBooks Online platforms provide rich features, they also demonstrate significant differences and are created for distinct business goals. QuickBooks scales better for large enterprises that need more robust features and inventory management. On the other hand, FreshBooks suits more freelancers, independent contractors, and small businesses (SMBs).
What Is Freshbooks Used for?
- Reliable customer support. This software allows talking to a customer service manager via the phone, unique among accounting platforms.
- Project-based operations. FreshBooks lets you issue invoices to clients, track the time necessary for project completion, and compare estimates to actual expenses.
- Affordable accounting. If you own a small company with 1-2 users, FreshBooks is the most affordable accounting alternative.
What Is QuickBooks Used for?
- Inventory accounting. QuickBooks allows tracking inventory items and quantities, updating prices and items automatically, and calculating COGS after recording a sale. COGS stands for the cost of goods sold.
- Manual bookkeeping. QuickBooks Online is the best option if your accountant uploads relevant bank files and input transactions manually.
- Managing sales taxes in numerous states. This accounting system can calculate taxes in all jurisdictions, promoting easier tax filing.
- Procurement or purchasing operations. QuickBooks offers more advanced accounts payable features. It allows creating purchase orders (POs), which helps streamline your company’s purchasing processes.
QuickBooks Online vs FreshBooks: Сhecking the Pricing
While deciding between FreshBooks vs QuickBooks, you can choose the pricing plan corresponding to different budgets.
To begin with, the FreshBooks lowest plan costs $15. Meanwhile, you need to pay $25 for the relevant QuickBooks Online plan. When it comes to higher plans, FreshBooks Premium requires $50 per month, while QuickBooks Online Plus costs $80 per month. Besides, the large enterprises with more complex needs prefer the QuickBooks Online Advanced plan. The particular plan costs $180 per month.
In terms of pricing, QuickBooks Online is more expensive than FreshBooks. However, QuickBooks involves a set number of users under all plans. As for FreshBooks, the platform lets you purchase an additional user per $10.
Comparing Pricing Tiers: QuickBooks vs FreshBooks
How Much does FreshBooks Cost?
The available FreshBooks plans vary depending on the number of billable clients allowed and the features provided. For instance, the first three plans involve one user. At the same time, the custom option (Select) involves two or more users. So, how much does FreshBooks cost?:
- Lite: $15 per month, includes 1 user and 5 billable customers
- Plus: $25 per month, provides 1 user and 50 billable customers
- Premium: $50 per month, offers 1 user and unlimited customers
- Select: customized prices, has 2 users and unlimited customers
If you need to add more users, it will cost $10/user per month.
FreshBooks Lite
FreshBooks Lite is perfect for service-based organizations that invoice less than five clients per month. The particular plan works for you if you get payments for your relevant services. Also, you rarely have to extend payment terms to clients. Because A/P is not available, you must track the unpaid bills manually. The following plan includes:
- Unlimited expense entries
- Unlimited time tracking
- Unlimited customized invoices
- Accept credit card and ACH payments online
- Unlimited estimates
- Tax time estimates
- Custom workflows and functionalities with over 200 integrations
FreshBooks Plus
FreshBooks Plus is the most appropriate option for service-based companies that invoicing less than 50 clients per month. But like the Lite plan, you track all unpaid bills manually. However, the FreshBooks Plus plan provides your clients with recurring invoices automatically. With the plan, you get:
- Everything from FreshBooks Lite
- Automated recurring invoices
- Schedule late fees
- Double-entry accounting invoices
- Automated late payment reminders
- Client retainers
FreshBooks Premium
FreshBooks Premium is a good option for service-based businesses that work with numerous customers. As previously, you track the relevant unpaid bills manually. The plan includes such features like:
- Everything from the Lite and Plus
- Project profitability
- Account payables
- Automatic bills receipt data capture
- Customized email signatures
FreshBooks Select
Companies that use FreshBooks Select gain the opportunity to bill unlimited clients and access different specialized features. The Select plan is more improved than the lower-tier ones since it provides a personal account manager. Besides, it offers lower rates for credit card transactions.
How Much does QuickBooks Cost?
Like FreshBooks, QuickBooks Online offers pricing tiers different with the number of clients and features. For example, if you want to manage unpaid bills, purchase QuickBooks Online Essentials. Or, when you need tracking inventory, choose QuickBooks Online Plus. What about QuickBooks Online Advanced - it offers 25 users, along with a dedicated support manager and improved reporting with Fathom.
The QuickBooks Online pricing consists of such packages:
- Simple Start: $25 per month, includes a single user
- Essentials: $50 per month, includes 3 users
- Plus: $80 per month, includes 5 users
- Advanced: $180 per month, includes 25 users
- QuickBooks Payroll: begins at $45 per month
QuickBooks Online Simple Start
QuickBooks Online Simple Start is perfect for service-based brands with only one user. The particular tool cannot track unpaid bills. Thus, you need to track bills manually by printing checks or writing them by hand. The following pricing tier includes:
- Maximize tax deductions
- Track income and expenses
- Invoice and accept payments
- Capture and organize receipts
- Send estimates
- Track miles
- Manage 1099 contractors
- Track sales and sales tax
QuickBooks Online Essentials
QuickBooks Online Essentials is a good option for service-based organizations with less than three users. Here customers can enter their bills after receiving them. This way, they can generate reports based on their bills and choose which one to pay. You can get payment via printing or writing checks. With this plan, you also get:
- Everything from Simple Start
- Bill management
- Integration option with TSheets by QuickBooks
- Up to 3 users with customizable access levels
QuickBooks Online Plus
QuickBooks Online Plus is the most appropriate solution for product-based businesses with no more than five users. It allows tracking inventory efficiently and generating POs for sending to suppliers. Ultimately, QuickBooks Online Plus allows tracking income and expenses by location. The pricing tier includes:
- Everything from Essentials
- Inventory tracking
- Project profitability
QuickBooks Online Advanced
QuickBooks Online Advanced is necessary for all organizations that need more than five users. Besides providing more users, this pricing model allows customizing user access. That helps facilitate appropriate segregation of responsibilities at larger companies. At the same time, QuickBooks Online Advanced offers a dedicated support manager. In addition to the features from the previous plans, you get:
- Bill pay
- Accelerated invoicing
- Smart reporting powered by Fathom
- Custom user permissions
- Enhanced custom fields
- Premium customer support and training
QuickBooks vs FreshBooks: Pros & Cons
When it comes to pros and cons, FreshBooks vs QuickBooks Online have some differences. FreshBooks, for instance, is a better option for independent contractors, freelancers, or different service-based industries. Meanwhile, QuickBooks is perfect for large businesses that need inventory management software and more advanced accounting features.
FreshBooks
FreshBooks is perfect for freelancers, micro-, and small-sized businesses that require simple accounting and basic features. They may include invoicing, expense tracking, or project management. FreshBooks stands out due to:
- Simplicity: FreshBooks offers well-designed UI, core bookkeeping and accounting functionality on all pricing plans. Plus, the mobile app lets you monitor your financial operations whenever you need it.
- Pricing: the platform has less expensive pricing than QuickBooks. Besides, the vendor offers a discount for those who purchase an annual subscription.
- Time tracking and invoicing: FreshBooks offers a timer for both desktop and mobile versions to track time wherever you are. You can track time based on specific clients, or your entire team. Bill your customers for tracked houses automatically.
However, the accounting software is not suitable for small companies that need in-depth accounting and more advanced features. Such features involve budgeting, accounts payable, and tax support. The platforms stay behind other growing accounting software due to:
- Limited features: The platform has no bill pay/accounts payable functions. No inventory management tools.
- Fewer users: You need to pay for additional users. All pricing tiers have a limited number of billable clients.
QuickBooks Online
QuickBooks Online offers numerous features and complex accounting opportunities necessary for small business owners. The bookkeeper software also provides multiple integrations and constantly improves customer support. QuickBooks has a reputation as a top accounting system because of:
- Automation and bank feed: Manage your bank feeds and perform reconciliation. This feature is mainly helpful for those with multiple bank accounts and credit cards connected to the platform.
- Advanced features and integrations: Get a hank of efficient reporting, customized invoices, inventory management capabilities, numerous currencies, and more than 650 integrations. Robust overall functions, especially inventory, tax tool, time tracking, and invoicing.
- Plan options: The packages are priced only based on users and features, unlike FreshBooks that requires you to pay for additional uses/ billable clients.
Although QuickBooks Online offers many things, there are also some drawbacks:
- Limited features in lower plans: You need to purchase higher-level plans to get bill pay, advanced reporting and inventory. Plus, you can’t access more than one user account on lower-priced plans.
- Semi-step learning curve: The simple UI doesn’t match the rich feature-set. The tool seems unintuitive, complicated and becomes a total nightmare if you make one mistake in an entry.
Where to Migrate: FreshBooks vs QuickBooks Online?
When comparing FreshBooks versus QuickBooks, remember that both billing tools can be incredibly efficient. However, choosing the best option for your business depends on your budget and relevant business needs.
QuickBooks’ functions and features like double-entry accounting make it ideal for numerous small businesses to gain substantial accounting opportunities. This cloud-based software tool provides more robust features, numerous critical integrations in addition to strong security.
On the contrary, FreshBooks suits companies in need of simple accounting and easy-to-use UI. The software offers outstanding customer support, efficient mobile apps, and templates. Besides, you get unique features, including proposals and chat on estimates, which is necessary for some businesses.
Still, whenever you are ready to migrate to any of these systems, the Accounting and Invoicing Data Migration service will take care of your data.
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