FreshBooks vs. QuickBooks: Cost, Features & More

With hundreds of small business accounting software solutions on the market, deciding which software to use for your business can be a bit overwhelming. In this article, we compare pricing and features of two accounting software products that are used by millions of small businesses all over the world, FreshBooks vs QuickBooks.

FreshBooks vs QuickBooks: What’s The Best?

QuickBooks is the best accounting software for small businesses because they offer more features than FreshBooks and at a competitive price. Whether you’re self-employed or a large enterprise, QuickBooks can help you at whatever stage you are in the business cycle. Further, QuickBooks has the largest network of professionals who can help you with any of your bookkeeping-related needs.

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When FreshBooks Is Better Than QuickBooks

FreshBooks is better than QuickBooks if you are a solopreneur, freelancer, or small business owner who needs to track hours worked by yourself, employees or contractors. This is because FreshBooks has a better time tracking tool than QuickBooks that can bill clients for time spent on projects. It can also be better than QuickBooks because it allows for multiple businesses under one account.

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FreshBooks vs. QuickBooks: Features & Pricing

	QuickBooks Online(QBO)	FreshBooks
Who It’s Best For	Small Businesses	Solopreneurs & Freelancers
Monthly Pricing Plans	Simple Start $15 Essentials $35 Plus $50	Lite $15 Plus $25 Premium $50
Ease of Setup	Moderate	Easy
Ease of Use	Easy	Easy
Features	QB Simple Start includes: Track income & expenses Invoicing/Estimates Accept online payments Import bank/credit card transactions Track & Report Sales tax QB Essentials includes: All Features in Simple Start Manage A/P Invite Multiple Users Track Time QB Plus includes: All Features in Essentials Track Inventory Manage 1099 contractors Budget/Forecasting	FreshBooks Lite includes: 5 clients Track income & expenses Invoicing/Estimates Time tracking Accept online payments Import bank/credit card transactions FreshBooks Plus includes: All Features in Lite plan 50 clients Auto payment reminders Charge late fees for overdue invoices Recurring invoices FreshBooks Premium includes: All Features in Plus plan Up to 500 clients
Integrations with other Systems	Payroll: Intuit Online Payroll Credit Card processing: Intuit Merchant Services Ecommerce: Shopify, Square Check out the Apps center for the complete list	Payroll: Gusto Credit Card processing: Stripe, Paypal Ecommerce: Shopify, Square Check out the Apps center for the complete list
Mobile App	iOS & Android	iOS & Android
Get Started	Visit QuickBooks	Visit FreshBooks

Quiz: Is Freshbooks or QuickBooks Right For You?

 

Why We Chose QuickBooks as the Best Accounting Software for Small Businesses

We chose QuickBooks over FreshBooks because it has different tiers that can help you at any point in your business’s life cycle for a competitive price. With QuickBooks, for example, you can get 1099 reporting, inventory tracking and budgeting and forecasting, whereas FreshBooks does not offer any of these features at any tier.

The 3 specific reasons we chose QuickBooks as the best includes:

1. More Features than FreshBooks

One of the key challenges that small businesses face is the ability to manage cash flow. This is why it is so important for you to be able to manage the money that you owe to others (known as accounts payable). With QuickBooks, you can easily enter your bills and write a check to pay them a few days before they become due. Unfortunately with FreshBooks, you can only track bill payments that have been downloaded from your bank or manually entered as expenses.

2. Greater Control & Access than FreshBooks

With QuickBooks, you can easily give anyone access to your data at no extra charge, something that FreshBooks doesn’t offer. QuickBooks allows you to set up 3 users plus 2 accountants with their own user id and passwords. You can also control which areas of QuickBooks they can access. On the other hand, FreshBooks only comes with 1 user; adding additional users will cost you $10 per user, per month.

3. More Reporting Templates than FreshBooks

QuickBooks beats FreshBooks in that QuickBooks not only includes the P&L, Balance Sheet and Statement of Cash Flows, but it also has over 20 pre-built reports. In just a few clicks you can run reports to analyze every aspect of your business. You cannot run a Balance Sheet or a Statement of Cash Flows report in FreshBooks.

What QuickBooks Online Is Missing

While QuickBooks is our top pick, there are a couple of disadvantages that you should be aware of. First, you can only manage one business per QuickBooks account. With FreshBooks, you can set up multiple businesses under the same account and toggle between them as needed. Additional fees may apply.

QuickBooks also does not allow you to automatically send payment reminders to customers. As we will discuss later on, you can create up to 3 automatic payment reminders in FreshBooks Premium that will notify a customer before an invoice is coming due and/or when an invoice is past due.

When You Should Consider FreshBooks Over QuickBooks

If you’re a freelancer or have a business with employees or contractors that require you to track time spent on projects, then you should consider using FreshBooks instead of QuickBooks. The time tracking feature in FreshBooks is very robust and allows you to easily transfer billable hours to a customer invoice.

There are a couple other features that FreshBooks has and QuickBooks does not. First, you can manage multiple businesses with one login. If you have more than one business, FreshBooks allows you to toggle between businesses without having to log out of your account.

Second, FreshBooks also allows you to send automatic payment reminders to your customers. This will allow you to get paid faster because you can send reminders to your customers before their invoices become due. We discuss all of this in more detail in the FreshBooks Features section.

In-Depth Comparison: FreshBooks vs. QuickBooks

Lets now deep dive into the pricing, ease of use, features, integrations and mobile app capabilities for QuickBooks and Freshbooks. Keep in mind that both Freshbooks and QuickBooks have three comparable monthly plans. For convenience, we’ll compare the two premium versions: QuickBooks Plus and FreshBooks Premium.

QuickBooks also has a product called QuickBooks Self-Employed. It is ideal for Uber/Lyft drivers and freelancers, but offers very limited capabilities and isn’t suitable for most businesses. It starts at $10 per month with promotions running consistently. Check out our QuickBooks Self Employed Guide to learn more about the features and pricing.

Bookkeeping Features

Both FreshBooks Premium and QuickBooks Plus include the following features:

• Customer invoicing
• Create estimates
• Connect bank/credit card accounts
• Track income & expenses
• Time tracking
• Accept online credit card payments
• Charge late fees for overdue invoices
• Create recurring invoices
• Multi-user access

QuickBooks Plus Features

In addition to the features listed above, QuickBooks Plus also includes the following features:

Manage Accounts Payable (A/P)

QuickBooks Plus allows you to manage all of your bills. This means that you can enter your bills into QuickBooks and pay them with a credit card, debit card or check when they become due. For example, the ability to run an A/P Aging report so that you can see what bills are coming due is critical to managing cash flow. Unfortunately, FreshBooks does not offer A/P capabilities in any of their pricing plans.

1099 Reporting for Contractors

Unlike FreshBooks, QuickBooks Plus allows you to keep track of payments made to 1099 contractors throughout the year. This is key because you will need to have this info when it’s time to issue 1099 forms, which you can also do in QuickBooks and not FreshBooks.

Inventory Tracking

With QuickBooks Plus, you can keep track of the cost, quantities and value of all products that you purchase for resale. This is important because you will always have up to date inventory and cost of goods sold figures to help you make informed business decisions. Unfortunately, FreshBooks does not offer inventory tracking in any of its plans.

Budget/Forecasting

QuickBooks Plus is one of the few accounting software programs that includes a budgeting/forecasting tool. FreshBooks does not. After you’ve been in business for a year or two, it’s beneficial to create a budget and start running reports to see how your actuals compare to what you expected to earn (income) and pay (expenses). This can be a critical tool in recognizing trends so you can make the right business decisions.

FreshBooks Premium Features

In addition to the features listed above, FreshBooks Premium also includes the following features:

Time Tracking

One of my favorite features in FreshBooks is the time tracking feature. This feature is available in all three pricing plans and it is very robust. You can track time manually or use the timer. It also allows you to invite employees, contractors and clients who need to track their time, and it has detailed reports that you can run by project, client or employee/contractor to keep tabs on the progress of each project.

Last but not least, you can easily transfer the time to an invoice so that you can bill your clients for the work done. While QuickBooks does have a time tracking feature, it is not nearly as robust and user-friendly as the time tracker in FreshBooks.

Automatically Send Payment Reminders

FreshBooks will automatically send payment reminders to notify your customers that an invoice is either coming due or past due. Payment reminders can be scheduled to go out before an invoice is due, after it is due or both. Unfortunately, this is a feature that QuickBooks Plus does not offer.

Set Up Multiple Businesses

FreshBooks allows you to set up multiple businesses under the same account. This means that you can access all of your businesses using one sign-in and just toggle between businesses as needed. Each new business will be eligible for a free 30-day trial and subject to the current pricing after the trial ends.

Unfortunately, you can only access one business per QuickBooks account. If you need to set up a new business, it will need to be set up as a new QuickBooks account.

Monthly Pricing Plans

When it comes to pricing, FreshBooks and QuickBooks offer a plan for every budget. The lowest priced plan for both products is $15 per month and the highest is $50 per month. However, the mid-tier plan is priced at $25 per month for FreshBooks Plus and $35 per month for QuickBooks Essentials, which is a 40% price difference.

QuickBooks Pricing

QuickBooks offers 3 pricing plans:

• Simple Start – $15 per month
• Essentials – $35 per month
• Plus – $50 per month

The primary difference between the three plans are the features included in each. Similar to FreshBooks Lite, QuickBooks Simple Start offers the least amount of features, which is why it is priced at $15/mo. The only difference between the Essentials and Plus plans is that Plus includes inventory tracking,1099 tracking and budgeting/forecasting, and Essentials does not.

FreshBooks Pricing

FreshBooks has 3 pricing plans:

• Lite $15 per month
• Plus $25 per month
• Premium $50 per month

The primary difference between the three plans is the features that are included. As you might guess, the Lite plan comes with the least amount of features which is why it is only $15/mo. However, the Plus and Premium plans are identical with the exception of the number of clients that you can have; Plus allows up to 50 clients while the Premium allows up to 500 clients.

Ease of Use

Both FreshBooks and QuickBooks have a very user-friendly interface. They both use simple language throughout the program so anyone without an accounting/bookkeeping background can use the software. Let’s take a look at the dashboard of each to give you a better understanding.

QuickBooks Ease of Use

Below is a snapshot of the Dashboard in QuickBooks along with a brief description of the info you will find here.

1. Left Menu Bar – Similar to FreshBooks, you can access just about any tasks from the left menu bar, including create invoices, bank accounts and reports.
2. Invoice – In this section, you can see the amount your customers owe you (accounts receivable), as well as the total amount of payments collected that you have deposited vs undeposited funds.
3. Expenses – See the total expenses for a selected time period along with the top 3 categories (i.e. Maintenance & Repairs, Job Expenses, Cost of Goods Sold).
4. Profit and Loss – Similar to FreshBooks, keep tabs on your profit/loss without having to run a report!
5. Sales – Keep an eye on your sales throughout the month/year so that you can spot trends and make adjustments as needed.

FreshBooks Ease of Use

Below is a snapshot of the Dashboard in FreshBooks along with a brief description of the info you will find here.

1. Left Menu Bar – You can perform most tasks from the left menu bar; such as create invoices, enter expenses and create new projects.
2. Create New – Click the drop-down button and you can easily create new invoices, expenses or enter time spent on a project.
3. Outstanding Revenue – Stay on top of customer invoices that have not been paid. The color-coded bar indicates overdue invoices (in red) vs. invoices that have not come due (in yellow).
4. Total Profit – Keep tabs on your bottom line without having to run a report! You can change the time frame to see your profit on a monthly, quarterly or annual basis.

Software Integrations

Both FreshBooks and QuickBooks integrate with hundreds of software programs. For example, if you have complicated inventory needs (that neither FreshBooks or QuickBooks can meet), you can visit the app center to locate a service that works with either provider.

QuickBooks Software Integrations

QuickBooks integrates with over 400 software programs. Gusto, Stripe, Paypal, Shopify and Square are just a few of the apps that integrate with QBO.

However, unlike FreshBooks, QuickBooks has built-in payroll and credit card processing features. When you are ready to hire that first employee or accept online payments from customers you simply turn that feature on, no app required but additional fees may apply.Be sure to check out the complete list of apps.

FreshBooks Integrations

FreshBooks integrates with several hundred software programs. Some of which include Gusto for payroll, Stripe and Paypal for credit card processing and Shopify and Square for Ecommerce, just to name a few. Be sure to check out the full line up.

Customer Service & Support

Having the ability to get help when you need it is key. Both FreshBooks and QuickBooks offer a number of support channels that you can easily access.The best part is that unlimited support is already included in your monthly plan.

QuickBooks Customer Service & Support

With QuickBooks, you can speak with a support rep via telephone. Unlike FreshBooks, QuickBooks also has a chat feature. You can access the link to start a chat directly from within your QuickBooks account. Just make sure you are logged in and then click on the Help option (indicated with a question mark “?”).

You can contact a QuickBooks support rep at 1-800-488-7330. They are available Monday through Friday, 6am to 6pm PST and Saturdays 6am-3pm PST.

Finally, QuickBooks does have a learn & support page that includes articles and videos on FAQ’s. If you can’t find the answer to your question, there is a section on the website where you can submit detailed questions to the support team; you can expect to receive a response within 48 hours.

FreshBooks Customer Service & Support

FreshBooks allows you to talk to a human (this is literally on their website), email them, or you can access their extensive FAQ Section with detailed instructions on how to do almost anything in FreshBooks!

Feel free to contact a FreshBooks customer service rep at 1-866-303-6061. They are available Monday to Friday, 8am- 8pm EST. You can also send an email to help@freshbooks.com.

Mobile App

One of the benefits of using cloud accounting software like FreshBooks and QuickBooks is the ability to run your business from any mobile device with an internet connection. Both FreshBooks and QuickBooks operate on the iOS and Android platforms. Read on to learn what you can do with the mobile apps.

QuickBooks Mobile App

The QuickBooks mobile app allows you to perform most of the features that you can do from a desktop computer. Similar to FreshBooks, you can be confident that your data syncs throughout the day, regardless of the device you are using. This feature might not be available for a desktop version.

Below is a list of some of the tasks that you can perform using the QuickBooks mobile app. Check out the extensive list of mobile app features for iOs and Android devices.

• Create/manage customers
• Create/manage vendors
• Create customer invoices
• Create vendor bills
• Reconcile bank/credit card accounts

FreshBooks Mobile App

With the FreshBooks mobile app, you can perform the following tasks from any mobile device. As you switch from your desktop to your cell phone or tablet throughout the day, your data is always synced across all devices:

• Create and send professional invoices
• Snap pictures of receipts to capture expenses on the go
• Manage expenses on the go (Coming soon to Android)
• Stay on top of key software updates
• Chat with clients

FreshBooks vs QuickBooks Reviews

Overall, both FreshBooks and QuickBooks have pretty decent customer reviews. We have provided insight into what customers say each software does well and what they do not do well.

QuickBooks Reviews

On the positive side, QuickBooks customers said that the app works very well on all mobile devices; on the negative side, customers feel like the customer service team is inefficient and unreliable at times. As a QuickBooks ProAdvisor, I must agree that whenever I have called the support line it is hit or miss on whether the rep will be able to answer my question; I’ve had the most success with the chat support team.

Check out our customer review page to learn more about what small businesses are saying about FreshBooks.

FreshBooks Reviews

On the positive side, FreshBooks customers said that the invoicing and payment processing features work well for small businesses. On the negative side, customers feel like the program lacks some features that a small business accounting software should have, such as financial statement generation and bank reconciliation.

Check out our customer review page to learn more about what small businesses are saying about FreshBooks.

Bottom Line – FreshBooks vs QuickBooks

Now that we have compared the pricing and features of FreshBooks vs QuickBooks, it’s time for you to make a decision. If you want an accounting software that gives you the most bang for your buck, go with QuickBooks. You can manage every financial aspect of your business and have up-to-date financial statements anytime you need them.

Take QuickBooks for a test drive so that you can see try out some of the features we have discussed. You can sign up for your free 30-day trial below.

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