FreshBooks vs Xero
FreshBooks and Xero are both accounting & finance tools. FreshBooks is aimed at freelancers and small businesses, while Xero is aimed at small businesses. FreshBooks costs less, from $23/mo versus $27/mo for Xero.
Invoicing and accounting for service businesses
Cloud accounting popular outside the US
| Pricing | Paid · $23 | Paid · $27 |
| Starting price | $23/mo | $27/mo |
| Free plan | No | No |
| Free trial | 30 days | 30 days |
| Built for | Freelancers, Small businesses | Small businesses |
| Platforms | web, ios, android | web, ios, android |
| Country | CA · 2003 | NZ · 2006 |
| Rating | — | — |
Choose FreshBooks if
Freelancers and service businesses that bill clients for time and projects.
- Easiest invoicing experience
- Time tracking built in
- Clean, friendly interface
Look elsewhere if: Product businesses with inventory or companies needing complex accounting.
Choose Xero if
Small businesses outside the US and teams with many users who need books access.
- Unlimited users on all plans
- Excellent reconciliation experience
- Strong in UK, ANZ and international markets
Look elsewhere if: Very small freelancers (Wave, FreshBooks) or Turkish e-invoice compliance (Paraşüt).
FreshBooks vs Xero pricing
FreshBooks
- Lite$23/mo5 billable clients; intro promo 80% off for 4 months
- Plus$43/mo50 billable clients, receipt scanning, accountant access
- Premium$70/moUnlimited billable clients, project profitability
- SelectCustomUnlimited clients, 2 team members, Advanced Payments included
Xero
- Early$27/mo20 invoices, 5 bills; 90% off first 6 months until Nov 2 2026
- Growing$59/moUnlimited invoices and bills
- Established$97/moMulti-currency, projects, analytics
FreshBooks · Key features
- Invoices, estimates and proposals with branding
- Time tracking linked to projects and invoices
- Expense tracking with receipt capture
- Online payments and recurring billing
- Client portal and project collaboration
- Double-entry accounting and reports
Cons
- Billable client limits per plan
- Weak inventory features
- Pricing rises quickly
Xero · Key features
- Bank reconciliation with smart matching
- Invoices, quotes and online payments
- Bills, expenses and Hubdoc document capture
- Multi-currency accounting (Established)
- Projects, inventory and fixed assets
- Analytics, short-term cash flow and reporting
Cons
- Early plan limits are tight
- US payroll requires integrations
- Multi-currency only on the top plan
FreshBooks vs Xero: FAQ
Which is cheaper, FreshBooks or Xero?
FreshBooks starts at $23/mo and Xero at $27/mo. Both prices are checked on the vendors' own pricing pages.
Do FreshBooks and Xero have a free plan?
FreshBooks has no free plan, a 30-day free trial. Xero has no free plan, a 30-day free trial.