FreshBooks vs QuickBooks: Compare Features & Pricing in 2021

Two of the most popular web-based accounting solutions for small businesses are FreshBooks and QuickBooks Online. They both have robust feature sets, a variety of plans to choose from, and user-friendly platforms. While QuickBooks is the stronger all-around accounting tool for businesses of all sizes, FreshBooks tends to be the better choice for freelancers that bill by the hour or operate service-based businesses. While they both have strengths, the best software for your business depends on your accounting needs.

When to Use FreshBooks

Founded in 2003, FreshBooks has evolved to be the all-in-one small business invoice and accounting solution to help entrepreneurs and small businesses spend less time on their accounting by tracking and billing time to customers easily. It is focused on a narrower audience than QuickBooks and, since it avoids complexity, you’re more likely to require apps or integrations to achieve some custom outcomes.

Since FreshBooks cannot track inventory, it is ideal for freelancers and service-based businesses that are seeking an easy-to-use and affordable subscription plan as well as self-employed individuals and freelancers seeking exceptional time tracking features. This is ideal for accountants, lawn-care businesses and self-employed consultants. Also, it’s not a great fit for businesses that need budgeting and forecasting tools.

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When to Use QuickBooks

With QuickBooks, virtually every aspect of your business is covered. Its strong reporting and inventory capabilities, customizable invoices, and more than 650 integrations, earned it the top spot in our best overall small business accounting software. Quickbooks is a great choice for nearly any business willing to pay the higher price tag. Since FreshBooks cannot track the cost of inventory, QuickBooks is a much better choice for product-based businesses.

QuickBooks also offers integrated payroll and time tracking, which is ideal for businesses that want to process payroll without a third-party integration. Also, if your business works with 1099 contractors, you’ll want to opt for QuickBooks as it gives you the ability to track 1099 payments and process 1099s. Businesses that track activity by class and location, such as property management companies, will also want to opt for QuickBooks.

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Are you not sure FreshBooks or QuickBooks is a good fit for your business? Then read our guide to other great QuickBooks Alternatives.

FreshBooks vs QuickBooks at a Glance

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FreshBooks Pricing vs QuickBooks Pricing

QuickBooks differentiates its monthly subscription plans based on functionality and number of users, whereas FreshBooks breaks down its plans based on the number of billable clients as well as available features.

FreshBooks Pricing

FreshBooks is great for tight budgets, especially if you don’t have many clients to manage. There are four subscription plans that range from $15 to $50+ per month, depending on the number of billable clients and the advanced features that are required, such as the ability to automate recurring invoices. The price is for one user, and additional users can be added for $10 per month.

• Lite: $15 per month for up to five billable clients
• Plus: $25 per month for up to 50 billable clients
• Premium: $50 per month for up to 500 billable clients
• Select: Custom pricing for more than 500 clients

FreshBooks Pricing and Tiered Features

QuickBooks Pricing

QuickBooks offers five monthly subscription plans for different needs. Below are the prices for each:

• Self-Employed: $15 per month for one user
• Simple Start: $25 per month for one user
• Essentials: $40 per month for up to three users
• Plus: $70 per month for up to five users
• Advanced: $150 per month for up to 25 users

QuickBooks Pricing and Tiered Features

Takeaway: Both FreshBooks and QuickBooks offer a variety of plans at different price points, depending on your business requirements. You might find that it’s best to start with a smaller plan and then upgrade as your accounting needs grow but beware that QuickBooks Online Self-Employed cannot be upgraded to any other QuickBooks Online plans.

FreshBooks vs. QuickBooks: Features

QuickBooks offers advanced features that FreshBooks does not. QuickBooks has inventory tracking built into the software, whereas FreshBooks has a few integrations that offer basic inventory management functionality. Also, both offer billable hours features, but QuickBooks takes it one step further with a time tracker that you can set up for each client project.

FreshBooks caters to service-based businesses, self-employed professionals, and small business owners looking for substantial invoicing capabilities. FreshBooks is also great if you’re starting your business or have no plans to hire employees. However, if you need a product that is scalable to your business, QuickBooks is a good option.

Takeaway: Both FreshBooks and QuickBooks offer many useful features, but QuickBooks pulls ahead with their ability to create purchase orders, track activity by class and location, and perform budgeting and forecasting. QuickBooks also offers payroll without a third-party integration and inventory accounting.

FreshBooks vs QuickBooks: Ease of Use

A notable benefit of FreshBooks compared to QuickBooks is the platform’s simplicity. Its easy setup makes it approachable for even the smallest of businesses or the accounting novice. The software is well-organized and intuitive, with an attractive user interface and customer support available, if needed.

However, the complexity of QuickBooks also has its advantages as you can do much more with it, such as tracking inventory. While it may not be the most intuitive system available, it is easy to set up and use.

FreshBooks Ease of Use

The user interface for FreshBooks is consistent throughout, and all of the features are accessed easily from the vertical menu bar, including the settings icon, where you can add another company, enter your products and services, and set up online payments:

Once you complete your setup, your Dashboard will display five important reports: Outstanding Revenue, Total Profit, Revenue Streams, Spending, and Unbilled Time.

1. Left menu bar: Click on Dashboard at the top to view the reports described below. The menu bar provides access to tabs that will take you to various sections, such as Clients, Invoices, Payments, Expenses, Estimates, Time Tracking, Project, and My Team.
2. Outstanding Revenue: This report summarizes invoices that are past due, broken down by days past due.
3. Total Profit: This report reflects the total year-to-date profit generated.
4. Revenue Streams: This report shows the income earned, broken down by each customer.
5. Spending: This report summarizes the business expenses, broken down by category. It allows you to see exactly where your money is going.
6. Unbilled Time: This report shows time tracked for each client but not yet billed and can serve as a reminder to create invoices for those clients.

The quickest way to add a new transaction in FreshBooks is to click on the green button in the top right corner that says, “Create New.” From there, you’ll have the option to perform such activities as creating an invoice, recurring template, expense, estimate, or credit:

QuickBooks Ease of Use

Overall, QuickBooks Online’s basic features are easy to use. However, some features may need to be activated within Settings. There are also more advanced features available, such as automated workflows and inventory tracking, that may require more familiarity before you’re able to use them efficiently.

The QuickBooks Online Dashboard gives you access to your account balances, income and expense totals, and charts. There is also a navigation bar on the left, with tabs that take you to each section: Dashboard, Transactions, Expenses, Sales, Cash Flows, Projects, Payroll, Reports, Taxes, Mileage, Accounting, My Accountant, Capital, Apps, and Live Bookkeeping. Payroll and Live Bookkeeping are add-on services for an extra fee:

1. Left menu bar: Each of the tabs correspond to different aspects of your business, including invoicing customers, generating reports, and tracking projects.
2. Cash Flow: This report can be customized by time period and lets you view your income, cost of goods sold (COGS), and expenses.
3. Income: All items related to your income, such as paid invoices, are reported here. Follow up on invoices that are past due and view your accounts receivable (A/R) report.
4. Expenses: This report shows your expenses, broken down by category.
5. Profit & Loss: Generate your profit and loss (P&L) statement, which can be customized.
6. Sales: View a customizable graph of your sales over a specific time period.
7. Bank Accounts: View your available bank balances here. Once you connect QuickBooks to your online bank and credit card accounts, you can access both the bank and QuickBooks balances.

A useful feature within QuickBooks Online is the quick-add button, which enables you to add most things, like invoices, bills, and journal entries. You’ll find this button at the top of the left navigation bar, labeled “+ New”:

Takeaway: FreshBooks and QuickBooks both have easy-to-use interfaces, but QuickBooks has a steeper learning curve when it comes to navigating the software.

FreshBooks vs QuickBooks: Assisted Bookkeeping

FreshBooks-assisted Bookkeeping

FreshBooks has an integration called Bench, which is an online bookkeeping service that provides you with a team of bookkeeping professionals. These professionals will provide you with unlimited bookkeeping support, visual reports to monitor your spending and income, and monthly tax-ready financial statements. They can also assist with Paycheck Protection Program (PPP) loan and tax season support. If you have fallen behind on your bookkeeping, they can complete months or years of overdue bookkeeping quickly. The Bench Pulse dashboard allows you to track transactions in real-time. However, Bench only supports cash-basis accounting.

QuickBooks-assisted Bookkeeping

QuickBooks Live is an option for QuickBooks Online users that assigns you to your own dedicated bookkeeper. Like Bench for FreshBooks, QuickBooks Live includes monthly reports that will provide a snapshot of your business. After bringing your books up-to-date, your bookkeeper will collaborate with you virtually to tackle your ongoing work. However, this doesn’t include invoicing, paying bills, management of inventory, accounts payable (A/P), and A/R. Also, unlike Bench’s limitation to cash-basis accounting, Quickbooks Live allows for both cash and accrual accounting.

FreshBooks vs QuickBooks: Integrations

In comparison to FreshBooks, QuickBooks has almost 10 times as many apps. However, FreshBooks has many key integrations, such as payroll and inventory tracking, that add more functionality to the program.

FreshBooks Integrations

FreshBooks currently has more than 70 apps and integrations that are designed to make your life easier. Whether you’re an experienced user of accounting software or a novice, these integrations can help you run your business, saving you time and money.

FreshBooks may not offer payroll features, but it does have a third-party integration with Gusto, a payroll app that is designed for small businesses. Also, although inventory tracking is not available within the program, FreshBooks has two inventory integrations, 2Ship and BarCloud. It also partners with other popular third-party apps, such as:

• A/R: Fundbox, Roger, and CollBox
• Customer relationship management (CRM): HubSpot, Capsule, HoneyBook, and Solve CRM
• E-commerce: Squarespace, Shopify, Square, Selz, and Magento
• Expenses: Everlance, Expensify, and MMC Receipt
• Inventory Management: 2Ship and BarCloud
• Payroll: Gusto, PaymentEvolution, and KeyPay
• Time Tracking: Boomr, Asana, Basecamp, and Everhour

QuickBooks Integrations

QuickBooks Online has integrations with more than 650 popular business apps. There are two integrations that can be accessed directly within the QuickBooks Online app, which are the payroll and timesheet functions. Below you’ll find more information:

• QuickBooks Payroll: Managed from within QuickBooks Online, you can pay and manage your team all in one place―with integrated payroll, taxes, human resources (HR), health benefits, workers’ compensation, and more.
• QuickBooks Time: Simplify payroll with the power of automated time tracking directly inside QuickBooks Online. Employees can track time from any location using any device. Time data syncs to your QuickBooks account automatically in real-time.

Here’s an example of the integrations that are currently available:

• A/R: Freedom Merchants, Melio, Veem, and Chaser
• CRM: HubSpot, Insightly CRM, CollBox, and Capsule CRM
• E-commerce: PayTraQer, Stripe by Connex, and Freedom Merchants
• Expenses: BIll.com, Checkflo, Plooto, and Corpay One
• Inventory Management: Shopify by OneSaas, Stitch Labs, Selz, and Inventory Planner
• Payroll: Gusto, Square Payroll, RUN Powered by ADP, and Wagepoint
• Time Tracking: ClockShark Time Tracking, BigTime Software, Homebase, and Deputy

Takeaway: While both apps offer integrations, QuickBooks has more from which to choose. Two of its in-app integrations, Payroll and Time, allow you to manage your payroll tasks seamlessly. FreshBooks doesn’t currently have any in-app integrations.

FreshBooks vs QuickBooks: Mobile App

Both FreshBooks and QuickBooks have their own mobile apps that are available for Android and iOS and are quite robust in their capabilities.

FreshBooks Mobile App

The FreshBooks app allows you to track your mileage, use time tracking tools, create and send invoices, upload receipts, and respond to clients’ questions and feedback directly from the app. While you won’t be able to work with projects and reports, you’ll be able to access the site’s core features.

QuickBooks Mobile App

The QuickBooks app has one distinct advantage over FreshBooks―it allows you access to reporting tools. It also gives you access to customer information, the ability to send invoices, record expenses, receive payments, and reconcile bank transactions.

Takeaway: Both FreshBooks and QuickBooks have mobile accounting apps that allow you to manage your finances on the go, but QuickBooks has a slight edge when it comes to the features that are available.

FreshBooks vs QuickBooks: Customer Support

While many of today’s applications require little in the way of training or support, it is always nice to know that you can pick up the phone and speak with someone. In addition to extensive knowledge bases, both FreshBooks and QuickBooks offer live support options to their customers. However, while FreshBooks encourages you to call and promises a real person, you must submit a request for QuickBooks to call you.

FreshBooks Customer Support

With FreshBooks, support is included in the cost of your subscription. Its toll-free number gives you access to a live support agent during extended business hours. This is one of its most exceptional features as it offers this service even during your free trial. FreshBooks encourages telephone support and promises access to a real person without wait times.

You can also contact FreshBooks via email, use the contact form on the website, or access support from within the application. The website also offers a FreshBooks tour and searchable frequently asked questions (FAQs) page.

QuickBooks Customer Support

QuickBooks Online’s knowledge base is very extensive. Every time you open up a new feature, a step-by-step guide or video shows up, with the option to view more information. The knowledge base also has help pages, webinars, videos, and paid courses. If you don’t find what you’re looking for, you can contact the support team by clicking on the “contact us” button at the bottom of the help window. If none of these options are successful, you can post a question in its community forum or message an agent. However, messaging an agent isn’t available 24/7. It is not possible to call QuickBooks Online directly. You must submit a request for them to call you.

If your issue is a bit more complex, you may decide to hire an independent QuickBooks ProAdvisor, who can assist you. You can also sign up for QuickBooks Live, which will manage and maintain your books with guaranteed accuracy. Both of these options are available at an additional cost.

Takeaway: FreshBooks encourages phone support as the first line of customer support, which is different from QuickBooks Online, which strongly suggests that other resources be accessed first. However, QuickBooks has two paid options that FreshBooks doesn’t, which are access to a network of QuickBooks ProAdvisors and a team of bookkeepers with QuickBooks Live.

Bottom Line

Both FreshBooks and QuickBooks Online offer a host of cloud-based accounting features that are designed with small businesses in mind. FreshBooks is less expensive and does a good job of time tracking for hourly employees and other projects, but QuickBooks Online shines in every category. Regardless of the plan you choose, QuickBooks provides more automated and comprehensive features for business owners to manage inventory, payroll, and multiple locations and product classes.