FreshBooks vs QuickBooks: Key Differences & What’s Best 2023
Tim is a Certified QuickBooks Time (formerly TSheets) Pro, QuickBooks ProAdvisor, and CPA with 25 years of experience. He brings his expertise to Fit Small Business’s accounting content.
Danielle is a writer for the Finance division of Fit Small Business. She has owned a bookkeeping and payroll service that specializes in small business, for over twenty years.
This article is part of a larger series on Accounting Software.
While both FreshBooks and QuickBooks Online offer rich accounting features, they have significant differences and are built for unique business purposes. FreshBooks is best for small service-based businesses and freelancers needing strong project accounting features. Meanwhile, QuickBooks Online is a great fit for businesses heavily engaged in inventory management.
FreshBooks vs QuickBooks At a Glance
 |  | |
|---|---|---|
Our Overall Rubric Score | ||
Best For | Small service-based businesses and freelancers seeking project accounting features | Small businesses that need strong inventory management features |
Monthly Pricing | $17 to $55-plus | $30 to $200 |
Users Included | 1 or 2 (can pay for extra seats) | 1 to 25 |
Clients Included | 5 to unlimited | Unlimited |
Accessibility | Cloud | Cloud |
Time Tracking | ✓ | ✓ |
Invoicing | ✓ | ✓ |
Banking & Cash Management | ✓ | ✓ |
Project Accounting | ✓ | ✓ |
Bill Pay & Management | ✓ | ✓ |
Sales Tax Management | ✓ | ✓ |
Inventory Management | ✕ | ✓ |
Mobile App Accessibility | iOS and Android | iOS and Android |
1099 Tracking & Reporting | ✓ | ✓ |
Unlimited Customer Support | ✓ | ✓ |
Compare Actual Project Costs to Estimates | ✓ | ✕ |
Print Checks | ✕ | ✓ |
Assisted Bookkeeping | Integrates with Bench | ✓ |
Payroll | Integrates with Gusto | $45 per month plus $4 per employee |
Credit Card Processing | Stripe and PayPal | QuickBooks Payments |
When To Use
Fit Small Business Case Study
Our case study compares FreshBooks and QuickBooks Online across 11 categories. The results show QuickBooks Online’s excellence in terms of general features, banking and cash management, inventory accounting, and reporting. Conversely, FreshBooks’ mobile app and project accounting features are slightly better than QuickBooks, not to mention that it has outstanding customer service.
You can check out the detailed results of our case study in our FreshBooks review and QuickBooks Online review. See the graph below for the summary.
FreshBooks vs QuickBooks FSB Case Study
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Freshbooks Starting at $17 per month, $55 as tested
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QuickBooks Online Starting at $30 per month, $85 as tested
The biggest difference between FreshBooks and QuickBooks is inventory accounting where QuickBooks is very strong but FreshBooks has virtually no functionality. Also, QuickBooks is much better with banking features, such as reconciliation and printing checks. FreshBooks is well-liked for its customer service while QuickBooks doesn’t even allow users to call customer service directly.
FreshBooks vs QuickBooks Online: Pricing
FreshBooks | QuickBooks Online | |
|---|---|---|
Monthly Pricing |
|
|
Number of Users |
|
|
Number of Billable Clients |
| Unlimited in all plans |
Free Trial | ✓ | ✓ |
If you’re a very small business and work with fewer than five customers, then FreshBooks’s entry-level plan, Lite, might be enough. However, as your business and customer base grow, you might prefer to sign up for QuickBooks Online to save some money on additional users.
If you need help deciding which QuickBooks Online version fits your needs, check out our QuickBooks Online version comparison
FreshBooks vs QuickBooks Online: Features
Invoicing
FreshBooks | QuickBooks Online | |
|---|---|---|
Create & Send Invoices | ✓ | ✓ |
Customize Invoices | ✓ | ✓ |
Email & Print Invoices | ✓ | ✓ |
Send Invoices From the Mobile App | ✓ | ✓ |
View Outstanding Invoices | ✓ | ✓ |
Create Recurring Invoices | ✓ | ✓ |
Calculate Sales Tax Rate Based on Customer Address | ✕ | ✓ |
QuickBooks Online and FreshBooks both have excellent invoicing features, but QuickBooks Online stands out with its ability to calculate sales tax rates automatically and apply them to invoices based on the customer’s address. With FreshBooks, you have to set up the sales tax for each jurisdiction manually. If you collect taxable payments from different jurisdictions, you’ll prefer QuickBooks Online.
Banking & Cash Management
FreshBooks | QuickBooks Online | |
|---|---|---|
Connect to Bank Account | ✓ | ✓ |
View Outstanding Transactions | ✓ | ✓ |
Reconcile Bank Account With Bank Feeds | ✓ | ✓ |
Upload Bank Statements | ✕ | ✓ |
Reconcile Bank Accounts Without Bank Feeds | ✕ | ✓ |
Print Checks | ✕ | ✓ |
If you’re comfortable connecting your bank account to your accounting software, then you might consider FreshBooks. However, if you want the option not to connect your account―probably due to security reasons―then you should consider QuickBooks. You’ll also likely prefer QuickBooks if your business relies heavily on paying vendors and employees by check as it can record and print checks.
Accounts Payable
FreshBooks | QuickBooks Online | |
|---|---|---|
Manage & Track Unpaid Bills | ✓ | ✓ |
Capture Expense Receipts | ✓ | ✓ |
Create Recurring Expenses | ✓ | ✓ |
Record Purchase Order | ✕ | ✓ |
Enter a Vendor Credit | ✕ | ✓ |
Pay an Independent Contractor | ✕ | ✓ |
Both offer an easy way to record bills and track outstanding bills, but QuickBooks Online lets you create POs and convert them into bills, enter a vendor credit and apply it when you pay the bill, and pay an independent contractor using the service item you created. If you want a more solid solution to manage your unpaid bills, then choose QuickBooks Online.
Inventory Management
FreshBooks | QuickBooks Online | |
|---|---|---|
Add an Inventory to an Invoice | ✓ | ✓ |
Create an Inventory Item | ✕ | ✓ |
View Inventory Available | ✕ | ✓ |
Track Total Units & Costs | ✕ | ✓ |
Decrease Inventory for Units Returned to Vendor | ✕ | ✓ |
Record Inventory Returned Into Inventory | ✕ | ✓ |
Inventory accounting is QuickBooks Online’s biggest trump card against FreshBooks. FreshBooks lets you add inventory items to bills—but there’s no way to know how much inventory you have available or the cost of your inventory sold.
QuickBooks Online’s inventory management system lets you track available inventory, calculate quantities, costs, and prices automatically, and track which of your items are most profitable. If your business is focused on selling products, you should choose QuickBooks Online to support your inventory accounting needs.
Project Accounting
FreshBooks | QuickBooks Online | |
|---|---|---|
Create an Estimate | ✓ | ✓ |
Add Labor to Estimates | ✓ | ✓ |
Add Inventory to Estimates | ✓ | ✓ |
Add Sales Taxes to Estimates | ✓ | ✓ |
Assign Actual Labor to Project | ✓ | ✓ |
Compare Estimated vs Actual Project Costs | ✓ | ✕ |
Both FreshBooks and QuickBooks Online offer useful project accounting features, but FreshBooks takes it one step further by allowing you to compare estimated to actual project costs. This helps you make better decisions in terms of budgeting and financial management.
FreshBooks vs QuickBooks Online: Ease of Use
FreshBooks | QuickBooks Online | |
|---|---|---|
Accessibility | Cloud | Cloud |
Requires Installation | ✕ | ✕ |
Set Up in a Few Minutes | ✓ | ✕ |
Shortcut Buttons | ✓ | ✓ |
Unlimited Customer Support | ✓ | ✓ |
FreshBooks and QuickBooks are easy to use, especially if you have accounting experience. Both also include shortcut buttons to help you navigate the programs easily. However, it’s faster to get started with FreshBooks as it only requires minimal information to set up your company—you have to go through a series of steps to set up a company in QuickBooks Online. The good news is that both, depending on your subscription, include unlimited customer support to help you learn everything there is to know about the software.
FreshBooks vs QuickBooks Online: Integrations
The library of integrated apps of both programs should be enough to cover other business processes, like payment processing and payroll. If integration is important to you, both are great choices.
FreshBooks integrates with hundreds of third-party programs. A few include Gusto for payroll, Stripe and PayPal for credit card processing, Bench and Mazuma for bookkeeping, and Shopify and Square for ecommerce.
Meanwhile, in addition to QuickBooks Online’s integration with native products, such as QuickBooks Payments, QuickBooks Payroll, and QuickBooks Time, the platform connects with more than 750 third-party applications, including Gusto, Stripe, PayPal, Shopify, and Square.
FreshBooks vs QuickBooks Online: Mobile App Functionality
FreshBooks | QuickBooks Online | |
|---|---|---|
Accessibility | iOS and Android | iOS and Android |
Send Invoices | ✓ | ✓ |
Accept Payments | ✓ | ✓ |
Capture Receipt | ✓ | ✓ |
Categorize Expenses From Bank Feeds | ✕ | ✓ |
View Reports | ✕ | ✓ |
Enter Unpaid Bills | ✓ | ✕ |
Record Billable Time | ✓ | ✕ |
Assign Time Worked to a Customer or Project | ✓ | ✕ |
FreshBooks’ mobile app is a little more functional than the one from QuickBooks, but it all comes down to your needs. If you’re doing business with many suppliers and managing project contractors, you’d appreciate the option to record a new bill and enter time worked using FreshBooks. Meanwhile, if you need to process and track incoming transactions from a bank feed, QuickBooks Online’s app comes in handy.
FreshBooks vs QuickBooks Online: Assisted Bookkeeping
FreshBooks | QuickBooks Online | |
|---|---|---|
Assisted Bookkeeping Service | Bench | QuickBooks Live |
Monthly Pricing | Starting at $299 | ✓ |
Access to Experts | ✓ | Starting at $200 |
Communication | Phone & in-app messaging | Phone or one-way video chat |
Account Reconciliation | ✓ | ✓ |
Bookkeeping Advice | ✓ | ✓ |
User-friendly Dashboard | ✓ | ✓ |
QuickBooks Online wins for assisted bookkeeping. It’s used by the vast majority of small business owners in the US, which means that you can find a competent local bookkeeper easily and quickly. Users needing a professional bookkeeping service can add QuickBooks Live to their subscription by turning the feature on in their left menu bar. Through it, you’ll be paired with a dedicated bookkeeper to help you accomplish tedious bookkeeping tasks, like bank account reconciliations and reporting.
In addition to QuickBooks Live, users can work with independent QuickBooks ProAdvisors. QuickBooks Online is a very popular accounting tool that many local bookkeepers will be very familiar with. You’ll be almost certain to find a local QuickBooks ProAdvisor near you.
On the other hand, FreshBooks partners with a third-party online bookkeeping service, Bench, to provide assisted bookkeeping services to users. Depending on your Bench Accounting subscription, you’ll get access to a dedicated bookkeeping team, year-end reports, unlimited tax advisory, and one-on-one tax strategy planning.
FreshBooks vs QuickBooks: Customer Support
FreshBooks | QuickBooks Online | |
|---|---|---|
Phone Support (Callback) | ✓ | ✓ |
Phone Support (You Make the Call) | ✓ | ✕ |
Live Chat Support | ✕ | ✓ |
Chatbot | ✓ | ✓ |
Email Support | ✓ | ✕ |
Self-help Resources | ✓ | ✓ |
While both offer several support channels that you can access easily, FreshBooks comes out ahead, primarily because of its live phone support. The ability to make a phone call when encountering serious issues is a huge factor that sets FreshBooks’ customer support apart from QuickBooks.
FreshBooks vs QuickBooks: User Reviews
Both FreshBooks and QuickBooks Online scored high with users. FreshBooks users appreciate that it’s one-stop accounting software that’s easy to set up and use. Reviewers also praised its project tracking features and how easy it’s to invoice clients if you use the project feature. The software’s biggest drawback is its inability to manage inventory, and users wished that FreshBooks had a live chat feature.
FreshBooks earned the following average scores on popular review sites:
- G2: 4.5 out of 5 based on about 660 reviews
- GetApp: 4.5 out of 5 based on around 3,990 reviews
- TrustRadius: 8.2 out of 10 based on about 190 reviews
Meanwhile, QuickBooks Online users appreciate that the platform makes invoice management seamless with an easy-to-navigate user interface (UI) and analytics dashboard. Reviewers also praised the ability to customize reports and integrate with multiple software. The solution’s biggest drawback is the inability to contact customer support directly by phone, and some users experienced issues with integrating payments from Square.
QuickBooks Online has the following average scores on popular review sites:
- G2: 4 out of 5 based on about 2,970 reviews
- Software Advice: 4.32 out of 5 based on around 5,820 reviews
- TrustRadius: 7.9 out of 10 based on about 1,465 reviews
Frequently Asked Questions (FAQs)
How much does FreshBooks cost?
FreshBooks ranges in price from $17 to $55 per month. The Lite plan is $17 per month and includes up to five billable clients, Plus is $30 per month and includes up to 50 billable clients, and Premium is $55 per month and includes unlimited billable clients. Businesses with more complex needs can opt for customized pricing with the Select plan, which includes unlimited billable clients and specialized features.
Does QuickBooks Online offer a mobile app?
Yes, QuickBooks Online offers a mobile app for both iOS and Android users.
Can you use FreshBooks to track inventory?
No, you can’t create inventory items and track total units and costs with FreshBooks, though it allows you to add inventory to an invoice.
How We Evaluated Accounting Software
We evaluated the small business accounting software based on ease of use, pricing, and how well it performed against the ideal features we’re seeking, including project accounting, inventory management, and mobile accounting. Our evaluation was based on a rubric scoring methodology in six categories, each with a designated appropriate percentage.
5%
Pricing
40%
General Features
10%
Inventory
10%
Project Accounting
30%
Ease of Use
5%
Mobile App
5% of Overall Score
We evaluated pricing based on how each plan compares with the other similar software packages as well as how many users are included in each plan and the extra costs incurred per additional user.
40% of Overall Score
The biggest percentage comes from general features because the main reason small businesses need accounting software is to automate business processes like banking, A/P and A/R, sales taxes, and reporting.
10% of Overall Score
Many businesses are involved in the sales of products, so it’s essential that the best accounting software has a dedicated inventory management system.
10% of Overall Score
At the very least, a good accounting system should include features for tracking project-related costs for labor, materials, services, and inventory items.
30% of Overall Score
In addition to user interface (UI) and navigation, we also consider the available customer support options, including live chat and email and phone support.
5% of Overall Score
Mobile apps are evaluated based on their ability to perform certain tasks like invoicing, online payment processing, and expense receipt capture.
*Percentages of overall score
Bottom Line
If you’re a small business or a solopreneur whose primary focus is to track project profitability and you’re comfortable connecting your bank account, then FreshBooks is for you. However, if you’re looking for more than project management, QuickBooks Online is the best choice. It beats FreshBooks in many aspects of accounting, including inventory tracking, banking and cash management, bill management, invoicing, and income and expense tracking by class.
