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January 29, 2024
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0 Comments Choosing a right small business accounting software, for managing task like handling financial transactions, track expenses, and ensuring compliance with regulations could be very difficult. If we go in to details, small business operations seek to maintain accurate financial records which is an important part for growth and success.
In this article, we will go deep into the comparison of two software– QuickBooks and FreshBooks and make it easy for you to decide which is the best accounting software for you.
Contents
FreshBooks and QuickBooks are two accounting software which offer customized accounting system features to meet the needs of businesses. We are comparing the features of both the accounting software platforms so that you can make an informed decision based on your specific requirements:
QuickBooks is an accounting software which has a comprehensive, but rather advanced, user interface. Though it may require more training, its complexity makes it possible for a more feature-rich collection of functions, which makes it appropriate for companies with a range of budgetary requirements.
However, FreshBooks is proud of its intuitive user interface. Because of its well-known simplicity, the platform is a great option for small business owners who might not have a lot of accounting experience.
Invoicing and Accounting:
QuickBooks online is the best choice for accounting software. It provides a wide range of features that can help small businesses keep track of their finances, from tracking income and expenses to the accounts receivable, creating invoices and paying bills. It also offers more advanced accounting features, such as automated recurring invoices and advanced customization which makes a better choice for businesses with complicated invoicing requirements.
On the other hand, if you are only looking for some invoicing software and accounting software options, FreshBooks is a better option. It has a simple interface and easy-to-use features that make it perfect for freelancers and small businesses. FreshBooks also integrates with a few other software programs, making it an excellent choice for businesses that need to track their finances in multiple ways. It allows users to create and send professional-looking invoices effortlessly.
When it comes to time tracking, QuickBooks online as an accounting solution incorporates time tracking functionality which makes it suitable for businesses that bill clients based on hourly work. It seamlessly integrates time data into the invoicing process.
On the other hand, FreshBooks is good in time tracking which offers intuitive features that simplify monitoring billable hours and project management, particularly beneficial for service-oriented small service based businesses.
For companies that handle a lot of spending, QuickBooks online has better options for tracking costs. It is made to effectively handle scenarios involving advanced spending management.
On the other hand, FreshBooks provides an easy-to-use platform for gathering receipts, which streamlines the process of tracking expenses. It guarantees accurate recording of all expenses for efficient financial management.
QuickBooks as an accounting solution is a better option for businesses when it comes to inventory management. Its extensive feature set caters to companies who need to keep close tabs on and manage their goods. It is especially beneficial for quickbooks inventory management for product-based and retail firms.
FreshBooks has fewer capabilities for basic inventory tracking and management and is primarily geared at freelancers and service-oriented firms. It might not be the best option for companies that require a lot of the inventory tracking.
Businesses may create comprehensive financial reports for strategic decision-making with QuickBooks’ rich reporting and analytics tools.
FreshBooks offers crucial reporting features which includes information on revenue, costs, and customer satisfaction. Although it covers the essentials, its reporting features could be seen as being less comprehensive than those of QuickBooks.
With its extensive selection of third-party apps that interact with the platform effortlessly, QuickBooks comes first at integration. Businesses can personalize their accounting software because to this flexibility.
Users can customize their experience and increase functionality by integrating FreshBooks with other applications. In contrast to QuickBooks, the range of integration possibilities could be more constrained.
QuickBooks offers a 30-day free trial for its online accounting software. If you skip the trial, you can avail a 50% discount for the first three months. Here are the QuickBooks pricing details with four plans:
Simple Start: The monthly cost of this plan is $30 for a single user. It comes with tools for managing cash flow, tracking income and expenses, capturing receipts, managing sales tax, keeping track of travel, and deducting taxes. Additionally, you may manage your 1099 contractors, prepare, and send estimates, and create basic accounting reports.
Essentials: This plan is priced at $55 per month for three users. It includes all the tools in Simple Start, plus bill management, time tracking, connected sales channels, and more in-depth reports.
Plus: This plan is priced at $85 per month for five users. It includes all the tools in Essentials, plus project profitability tools and advanced inventory management features.
Advanced: This plan is priced at $200 per month for 25 users. It includes everything in Plus, but with more in-depth basic accounting functions, accounting tools,, reports and integrations. You’ll also get tools for managing employee expenses, controlling access, batch-creating invoices and expenses, analyzing your business through Excel, automating workflows, and restoring data. Also, you will get a dedicated account team for on-demand training.
Self-Employed: This package comes in three tiers starting at $10 per month. The basic plan helps you separate personal and business expenses, track mileage, calculate quarterly taxes, and maximize deductions. Upgrade to the $15 tier for quarterly tax filing assistance, or pay $20 for dedicated CPA support. All prices double after three months.
FreshBooks offers a 30-day free trial, which is followed by a paid subscription. Here are the pricing details for FreshBooks’ three plans:
Lite: After the first year, the cost of this plan rises to $17 per month from $13.60. You can send an unlimited number of invoices to a maximum of five clients, along with an infinite number of estimate and expenditure tools. In addition basic accounting features, you may run basic tax reports, take and accept payments online, by bank transfer and credit card, and use the FreshBooks mobile app.
Plus: The monthly cost of this plan is $24 for the first year and $30 for each subsequent year. In addition to all the features included in Lite, Plus offers limitless estimates and proposals, automated expense monitoring, and automated data collection and transmission of receipts. You may set up recurrent customer retainers and invoices, use the mobile app to track your mileage, invite your accountant, and generate reports on the financial, accounting, and overall health of your company. You can also send an infinite number of invoices to up to 50 clients.
Premium: The monthly cost is $44 for the first year and $55 for each subsequent year. Tools for monitoring and paying invoices and vendors are included in this pricing bundle. In addition, features like email customization options, late fees, payment reminders, and checkout links are included to increase project profitability. The most significant change is that the maximum number of clients you can have billable clients for is no longer applicable.
Select: Based on your company’s needs, FreshBooks will provide you with a price for this bespoke pricing package. Reduced transaction costs, specialized account management with personalized onboarding, and help transferring your data from other platforms are all included. In addition, you can call a dedicated number for priority service, quickly capture bill line items, and safely accept credit card payments.
| Feature | QuickBooks | FreshBooks |
| Free Trail | 30 days, 50% discount for the first three months if trial skipped. | 30 days, followed by a paid subscription |
| Plan & Pricing | – Simple Start: $30/month (1 user) | – Lite: $13.60/month (5 clients, unlimited invoices) |
| – Essentials: $55/month (3 users) | – Plus: $30/month (50 clients, automated expense tracking) | |
| – Plus: $85/month (5 users) | – Premium: $55/month (Unlimited clients, additional features) | |
| – Advanced: $200/month (25 users) | – Select: Custom pricing based on business needs | |
| – Self-Employed: Starting at $10/month | ||
| What all you get? | – Tools for cash flow, income/expenses, sales tax, and more | – Unlimited invoices, estimates, and expenditure tools |
| – Project profitability and inventory management (Advanced) | – Automated expense tracking and data transmission (Plus) | |
| – In-depth accounting reports and integrations (Advanced) | – Late fees, payment reminders, and email customization (Premium) | |
| – Dedicated account team for on-demand training (Advanced) | – Custom pricing with personalized onboarding (Select) | |
| Self-Employed Package | – Starting at $10/month with basic features | – Three tiers: $10, $15, $20 (Prices double after three months) |
| Mobile Support App | Yes | Yes |
To speed up the online payment processing process and make it more convenient for your customers, businesses can manage their billable clients and accept the online payments by adding a Pay Now button to their invoices.
FreshBooks and both QuickBooks also allow you to take payments through ACH transfers, PayPal, and credit cards. Also, both the software offers smooth interfaces if you take Stripe payments. For a summary of the associated expenses for each of their different payment processing services, see the details that have been described below.
| Payment Acceptance | QuickBooks | Fee | FreshBooks | Fee |
| ACH Bank Transfer | Yes | 1% ($10 maximum) | Yes | 1% |
| Credit card (swiped) | Yes | 2.5% per transaction | Yes | 2.9% + $0.30 per transaction |
| Credit card (invoiced) | Yes | 2.99% per transaction | Yes | 2.9% + $0.30 per transaction |
| Credit card (manually entered) | Yes | 3.5% per transaction | Yes | 2.9% + $0.30 per transaction |
| PayPal (U.S.) | No | N/A | Yes | 3.49% + $0.30 for PayPal accounts; 2.9% + $0.30 for credit and debit cards |
| Stripe (U.S. bank transfer) | No | N/A | Yes | 1% |
| Stripe (U.S. credit card) | No | N/A | Yes | 2.9% + $0.30 |
FreshBooks and QuickBooks both provide mobile apps service for iOS and Android which serves as easy-to-use tool to their online accounting platforms. While the two mobile apps are quite comparable, QuickBooks holds a slight edge in this category due to its inclusion of reporting tools, a feature currently absent in both FreshBooks and‘ app.
The QuickBooks mobile app offers users several quickbooks features and the ability to:
With the FreshBooks mobile app, freshbooks users can can effortlessly:
Both the accounting software, FreshBooks and QuickBooks handle integration with other softwar:.
FreshBooks Integration:
FreshBooks accounting software offers features related to expenses, invoicing, estimates, time tracking, and project monitoring.
FreshBooks integrates seamlessly with over 200 apps, including popular ones like Stripe, Gusto Payroll, and Avalara Tax. This extensive integration allows you to enhance functionality in areas such as tax management, online payments, payment acceptance, inventory management, e-commerce, time tracking, and CRM.
Whether you are a consultant, attorney, or self-employed professional, FreshBooks serves your needs by providing features like retainers’ modules and ACH payment acceptance.
QuickBooks Integration:
QuickBooks Online offers features for managing finances. You can connect with popular apps directly from the application itself. Simply go to the Apps section, where you’ll find a list of recommended apps.
These apps are thoughtfully categorized. For example- Online payment apps like PayPal, Stripe, and Bill Pay are grouped together, allowing you to pay bills through your preferred app within QuickBooks Online.
You can also connect seamlessly to various time-tracking and CRM apps without any hassle. Each platform serves different needs and provides integration options across various categories.
Welcome Page: Upon starting your FreshBooks account, you’ll encounter a clear welcome page. It displays your setup progress and features a vertical menu bar.
Category Selection: When you choose a specific category (such as invoicing or expenses), FreshBooks shows recent activity, available options, and an activity summary related to that category.
Efficient Data Entry: FreshBooks provides helpful features like easy look-up options and help available from all screens. These streamline data entry and enhance efficiency.
Setup Preference: While FreshBooks recommends setting up the system before initial use, it also offers workarounds for those who prefer a different approach.
Easy Setup Process: QuickBooks online allows users to quickly start with basics and add details. The setup is very simple and efficient and designed in a way that all users, whether you are new user or experienced, can use it.
User-Friendly Interface: The interface includes a vertical menu bar that provides easy access to system functions. This streamlined design ensures that users can navigate the software effortlessly and find the features they need.
Look-Up Options and Help: QuickBooks online offers look-up options in all fields on data entry screens, making it convenient to find relevant information. Additionally, help options are accessible from any screen, providing assistance whenever needed.
With Freshbooks vs quickbooks comparison, the decision to choose depends on the requirements and circumstances of small business. Both Quickbooks online and Freshbooks serve as an accounting solution for small business owners which comes with features like expense tracking, manage billable clients and mileage tracking and the best one comes down to whether the small businesses sell products or services.
