FreshBooks vs Xero: Which is better in 2026?
A side-by-side comparison of pricing, features, and use cases to help you decide between FreshBooks and Xero.
Invoicing and accounting for freelancers and small businesses
Beautiful accounting software for small business
Head-to-head comparison
| Feature | FreshBooks | Xero |
|---|---|---|
| Starting price | $17/mo | $15/mo ✓ Cheaper |
| Free plan | ✗ No | ✗ No |
| Pricing model | paid | paid |
| G2 rating | 4.5/5 ↑ | 4.3/5 |
| Capterra rating | 4.5/5 | 4.4/5 |
| Founded | 2003 | 2006 |
FreshBooks: pros & cons
- ✓Best invoicing experience
- ✓Great for freelancers
- ✓Easy to use
- ✓Strong mobile app
- ✗Client limits on lower plans
- ✗Not ideal for product businesses
- ✗Limited inventory features
Xero: pros & cons
- ✓Clean, modern UI
- ✓Excellent bank feeds
- ✓Strong accountant ecosystem
- ✓Good for non-US businesses
- ✗Starter plan very restrictive
- ✗Can be pricey for full features
- ✗Payroll limited to some countries
Choose FreshBooks if...
- →You're a freelancer or solo consultant who needs to send professional invoices and get paid online without learning double-entry accounting
- →Your agency bills clients by the hour and needs time tracking, project expenses, and invoicing all in one place
- →You want to send estimates and proposals that convert directly into invoices once a client approves
Choose Xero if...
- →You're a UK, Australian, or New Zealand small business that wants cloud accounting with bank feeds that reconcile automatically every day
- →Your accountant uses Xero and you want real-time collaboration on books, payroll, and year-end without emailing spreadsheets
- →You deal in multiple currencies and need automatic exchange rate updates built into invoices and expenses without add-ons
Our verdict
FreshBooks scores higher on G2 (4.5/5 vs 4.3/5), suggesting stronger overall user satisfaction. Xero is the more affordable option. The right pick depends on your team size and workflow.
FreshBooks vs Xero: frequently asked questions
Is FreshBooks better than Xero?
FreshBooks has a higher G2 score (4.5/5 vs 4.3/5). The best tool depends on your specific use case and budget.
Which is cheaper, FreshBooks or Xero?
Xero is cheaper, starting at $15/mo.
What is the main difference between FreshBooks and Xero?
FreshBooks focuses on professional invoicing, expense tracking, time tracking. Xero focuses on invoicing, bank reconciliation, expense claims. Both serve similar use cases but differ in approach and pricing model.
Can I migrate from FreshBooks to Xero?
Most teams migrate between FreshBooks and Xero within a day or two. Export your data from FreshBooks (typically as CSV or via API), then use Xero's import wizard to bring it across. Check each tool's help centre for a step-by-step migration guide before switching.