5 Best FreshBooks Alternatives for 2023 (Free & Paid)
This article is part of a larger series on Accounting Software.
FreshBooks offers easy-to-use accounting software to users that prefer do-it-yourself (DIY) accounting. Because of its uncomplicated interface and processes, the simplicity of the accounting software comes with some trade-offs in functionality and features. If you think it isn’t the perfect fit for your small business, here are the five best FreshBooks alternatives and use cases:
- QuickBooks Online: Best overall FreshBooks alternative for inventory tracking and assisted bookkeeping
- Zoho Books: Best for freelancers and self-employed individuals
- Xero: Best for unlimited users or tracking fixed assets
- Wave: Best free FreshBooks alternative
- ZipBooks: Best for businesses looking for a simple and affordable accounting software
FreshBooks Alternatives Compared
Provider | Monthly Pricing | Number of Users | Inventory & Cost of Goods Sold (COGS) Tracking | Check Printing & Recording | Manual Bank Reconciliation | Fixed Asset Tracking |
---|---|---|---|---|---|---|
$15 to $55 or custom priced | 1 (plus $10 for additional) | ✕ | ✓ | ✕ | ✕ | |
$30 to $200 | 1 to 25 | ✓ | ✓ | ✓ | Limited | |
$0 to $275 | 1 to 15 (plus $3 for additional) | ✓ | ✓ | ✓ | Limited | |
$13 to $70 | Unlimited | ✓ | ✓ | ✓ | ✓ | |
Free | Unlimited | ✕ | ✕ | ✕ | ✕ | |
$0 to $35 | 1 to unlimited | ✕ | ✕ | ✕ | ✕ | |
Read our FreshBooks review to learn more about the software.
QuickBooks Online: Best Overall FreshBooks Alternative for Inventory Tracking & Assisted Bookkeeping
Pros
- Vast network of QuickBooks ProAdvisors in the US
- Flexible enough to be modified for different industries and businesses
- Multiple integrations with third-party tools
- Excellent bank reconciliation module
Cons
- Huge gap in price and user limits between QBO Plus and Advanced
- Expensive compared to accounting software with almost the same features as QBO
- Quite difficult to use for business owners without an accounting background and experience
Features
- Track location and classes
- Reconcile bank accounts with or without bank feed
- Track inventory costs, COGS, inventory units, and reorder points
- Calculate and add sales tax rates in invoices and receipts
- Create, design, and send invoices to customers
Read our QuickBooks vs FreshBooks comparison for more information.
Zoho Books: Best for Freelancers & Self-employed Individuals
Pros
- Scalable software because of its six plans
- Includes a free plan best suited for small-time freelancers and self-employed individuals
- Capable mobile app that can view reports and assign expenses on the go
- Excellent customer support
Cons
- Not very popular in the United States
- Annual revenue limit of $50,000 to stay within the free plan
- Limited invoices (5,000/year) for the Standard plan
Features
- Very scalable with five plan tiers for companies that want gradual upgrades
- Excellent mobile app that outshines all the mobile apps of accounting software in this list
- Excellent inventory features
- Integration with other Zoho products
Read our ZohoBooks vs Xero review to learn more.
Xero: Best for Unlimited Users & Fixed Asset Tracking
Pros
- Unlimited users for all plans
- Excellent inventory functions
- Dedicated fixed asset manager
Cons
- Not very popular in the US
- Not flexible enough to be modified for different industries and businesses
- Limited invoices and bills in the most basic plan
Features
- Easily scalable for businesses with growing accounting teams
- Dedicated fixed asset manager for maintaining records of fixed assets
- Multiple integrations within the Xero app store
- Easy-to-understand user interface
Read Xero vs FreshBooks to learn more.
Wave: Best Free FreshBooks Alternative
Pros
- Free accounting and invoicing
- Easy and straightforward to set up
- Unlimited users
Cons
- Not scalable since Wave has no paid plans
- Not ideal for businesses with complex accounting needs like inventory tracking, project tracking, and tax tracking
Features
- Assign multiple roles for different users
- Optical character recognition when uploading PDF documents
- Clean and easy user interface
- Apply sales tax to invoices
Read Wave vs FreshBooks to compare these two software providers.
ZipBooks: Best for Businesses Looking for Simple & Affordable Accounting Software
Pros
- Easy and simple just like FreshBooks
- Includes a free plan for one user
- Free ZipBooks plan for businesses enrolled in the Simple Bookkeeping or Multi-classifications Bookkeeping service
Cons
- No inventory features
- No built-in invoice templates
- Limited customer support
Features
- Add billable expense to customer invoices
- Built-in time tracker
- Invoice quality score for keeping invoices complete with all necessary information
- Custom tags for tracking income and expenses.60
How We Evaluated FreshBooks Alternatives
We evaluated FreshBooks alternatives using a case study we developed to objectively assess the products we recommend. There are 12 categories in this case study:
- Pricing (5%)
- General features (7%)
- Banking (7%)
- Accounts payable (A/P) (7%)
- Accounts receivable (A/R) (7%)
- Inventory (10%)
- Project accounting (10%)
- Tax (4%)
- Reporting (4%)
- Ease of use (30%)
- Mobile app (5%)
- User reviews (4%)
5% of Overall Score
In evaluating pricing, we considered the billing cycle (monthly or annual) and number of users.
7% of Overall Score
This section focuses more on first-time setup and software settings. The software must be quick and easy to set up for new users. Even after initial setup, the software must also let users modify information like company name, address, entity type, fiscal year-end, and other company information.
7% of Overall Score
The banking section of this case study focuses on cash management, bank reconciliation, and bank feed connections. The software must have bank integrations to automatically feed bank or card transactions. The bank reconciliation module must also let users reconcile accounts with or without bank feeds for optimal ease of use. Lastly, the software must generate useful reports related to cash.
7% of Overall Score
The A/P section focuses on vendor management, bill management, bill payments, and other payable-related transactions. A/P features include creating vendors and bills, recording purchase orders and converting them to bills, creating service items, and recording full or partial bill payments.
7% of Overall Score
This takes into account customer management, revenue recognition, invoice management, and collections. The software must have A/R features that make it easy for users to collect payments from customers, remind customers of upcoming or overdue invoices, and manage customer obligations through analytic dashboards or reports.
10% of Overall Score
Businesses with inventory items should choose accounting software that can track inventory costs, manage COGS, and monitor inventory units.
10% of Overall Score
Service or project-based businesses should choose accounting software that can track project costs, revenues, and profits. The software must have tools to track time, record billable hours or expenses, send invoices for progress billings, or monitor project progress and performance.
4% of Overall Score
In this section, we’re looking at sales tax features. The software must have features that allow users to set sales tax rates, apply them to invoices, and enable users to pay sales tax liability.
4% of Overall Score
Reports are important for managers, owners, and decision makers. The software must have enough reports that can be generated with a few clicks. Moreover, we’d also like to see customization options to enable users to generate reports based on what they want to see.
30% of Overall Score
Ease of use gets the highest weight in this case study because we want to give more credit to easy accounting software. For this section, we considered customer service, support network, and a subjective expert opinion score. Users must have easy access to customer service channels in case of problems, questions, or assistance.
Support network refers to a community of software users that can extend professional help to businesses. Having an independent software expert perform the bookkeeping is good for overall ease of use. And lastly, our expert opinion score is our subjective rating based on our experience in trying the software.
5% of Overall Score
The software must also have a mobile app to enable users to perform accounting tasks even when away from their laptops or desktops.
4% of Overall Score
We went to user review websites to read first-hand reviews from actual software users. This user review score helps us give more credit to software products that deliver a consistent service to their customers.
Frequently Asked Questions (FAQs)
Is there a free version of FreshBooks?
No, but you can try it for 30 days free with no credit card required.
Who is FreshBooks best for?
FreshBooks is best for project or service-based businesses. It is also perfect for solopreneurs and freelancers. But if you need inventory features, we recommend checking out other accounting software like QuickBooks Online.
Bottom Line
FreshBooks offers a simple and easy accounting solution to businesses and freelancers. Its easy-to-use interface makes it non-intimidating for users without an accounting background. However, due to the simplicity of FreshBooks, it comes with certain trade-offs in features and functionality. If you think FreshBooks can’t keep up with your accounting needs, our best recommendation is QuickBooks Online.