5 Best FreshBooks Alternatives for 2023 (Free & Paid)

As our best small business accounting software, QuickBooks Online is better than FreshBooks if you need inventory features and flexible cash management features. In FreshBooks, you can’t manage inventory and perform bank reconciliation without a bank feed connection. On the other hand, QBO lets you manage inventory costs, units, and purchase orders under the inventory menu. Moreover, you can reconcile bank accounts manually even if you don’t connect your bank account to QuickBooks.

Another advantage of QuickBooks is the vast network of CPAs and bookkeepers who are knowledgeable and certified as a QuickBooks ProAdvisor. In QBO, you can either sign up to QuickBooks Live or find an independent ProAdvisor. Signing up with QuickBooks Live is easier since QB will find the best bookkeeper for you based on your business’ industry. Whereas if you hire an independent ProAdvisor, you’ll have to find ProAdvisors that have experience in your industry.

Read our article about how to find a QuickBooks ProAdvisor in four easy steps.

All of FreshBooks’ plans are good for one user only because it caters more to freelancers and solopreneurs who want to DIY the books. If your freelancing career is not yet high paying, FreshBooks’ plan might be quite heavy. We recommend choosing Zoho Books instead because it has a free plan that’s optimal for users with annual revenues below $50,000.

Moreover, there is a lot of room for growth within Zoho Books. It has five paid plans that offer robust features and integrations. It also has a powerful mobile accounting app that can assign expenses, track time, send invoices, receive payments, and more.

FreshBooks offers decent features at its highest plan and is perfect for project-based businesses. However, it becomes expensive if you need more users. The $10 add-on per seat can be heavy if you need more people with access to FreshBooks. Our best recommendation for large teams is Xero.

All Xero plans are good for unlimited users. It’s even more affordable than QuickBooks Online if you get Xero Established for project accounting. Also, QuickBooks Online Plus is good for five users only, and QuickBooks Online Advanced is priced at $200 for 25 users. Xero’s unlimited seats give more flexibility in case you need more than five users.

Xero also has a dedicated fixed asset manager that lets you keep track of the company’s fixed assets. This feature is absent in all software providers listed in this guide. We recommend choosing Xero if your business needs to track multiple fixed assets.

FreshBooks’ most basic plan is affordable at $15. However, you’re probably one of the users that don’t need a lot of extra features. Choosing Wave over FreshBooks is a wise choice if your goal is limited tracking and sending of invoices, managing expenses, and receiving payments. With Wave, you don’t have to worry about a monthly subscription fee.

FreshBooks and ZipBooks have easy-to-use interfaces that nonaccountants will understand easily. However, ZipBooks is the best choice if you want a cheaper alternative. With ZipBooks Sophisticated, you pay only $35 per month for unlimited users while FreshBooks Premium is $55 for only one user.

Besides that, ZipBooks’ bookkeeping services at $125 or $145 per month already includes a ZipBooks plan. FreshBooks doesn’t offer bookkeeping services unless you subscribe to Bench, a third-party bookkeeping service. If we compare ZipBooks bookkeeping services with Bench or QuickBooks Live, ZipBooks’ offer is still more affordable.