QuickBooks vs FreshBooks: Which is Better in 2023?

Trying to decide between QuickBooks and FreshBooks to manage your bookkeeping?

There are countless cloud-based accounting software solutions out there, but these two are particularly popular with small business owners. However, it becomes more difficult when it comes to deciding on one of the two options.

To end this topic once and for all, we compared QuickBooks and FreshBooks from a variety of perspectives, including features, integrations, and pricing.

In the end, you can choose the tool that best suits your needs and budget.

So without further ado, let’s get started!

Introducing: QuickBooks vs. FreshBooks 🧮

FreshBooks is accounting software with a focus on time tracking and billing. Founded in 2003, this company offers solutions that appeal more to entrepreneurs or small teams who want to spend less time managing their accounting.

FreshBooks interface is pretty simple and you can get started without any knowledge of software usage.

QuickBooks is a browser-based accounting application with extensive reporting functions and pricing modules, specially designed for small and medium-sized businesses.

It has a more detailed reporting panel and there is a bit of a learning curve.

Key Features of FreshBooks vs. QuickBooks ⚙️

Now that you have an idea of ​​what FreshBooks and QuickBooks are all about, let’s dive deeper and compare the two cloud solutions head-on. We will consider five specific characteristics:

1. accounting
2. billing
3. time tracking
4. expense tracking
5. integrations

1. Accounting

FreshBooks caters to freelancers, and as such, most of its features focus on client billing. On the other hand, the accounting section of QuickBooks is more for product billing.

FreshBooks provides double entry tools for an accurate income statement.

• balance sheet
• ledger
• Accounts Payable
• Access to the accountant
• trial balance
• cost of goods sold
• chart of accounts
• journal entries

QuickBooks provides deeper business insights from an accounting perspective. You can get a detailed cash flow report and simplify tax preparation. With the built-in mobile app, you can maximize deductions and comply with tax laws.

Additionally, there are accounting-specific integrations like inventory management, budgeting, forecasting, supplier billing and crediting, purchase orders, and 1099 reports that are otherwise absent from FreshBooks.

2. Billing

The FreshBooks invoice feature offers an invoice window with two tabs – “from me” or “to me”. This allows you to easily accept or make payments. The first lets you create custom invoices, send payment reminders, and accept credit card payments. The second shows a series of index cards under the overdue accounts so you can quickly look for cleared payments.

In terms of the invoice structure, FreshBooks offers a bare-bones design in trial mode. You can customize fonts and colors or set logos, but you need to unlock the premium version for additional features.

FreshBooks takes data directly from time tracking and creates invoices for hours that you have marked as billable.

With QuickBooks, on the other hand, you can create a more detailed invoice where you can enter the payment method, customer location, and even payment terms (i.e. net 30 – so the user can make the payment in a 30-day window).

It’s worth noting here that unlike FreshBooks, QuickBooks relies on third-party tracking apps like TSheets to track and bill billable hours.

3. Time Tracking

When it comes to tracking time, FreshBooks is definitely better than QuickBooks. FreshBooks offers an integrated system that is both beginner-oriented and accurate. All you have to do is click the “Start Timer” button and FreshBooks will start recording the time. When you’re done, you can use the “Create Invoice” button and the hourly data will be automatically added to your invoice.

QuickBooks, on the other hand, does not have this feature. However, you can use a QuickBooks app to add this feature – TSheets time tracking. It offers additional features such as accurate employee timesheets, paper timesheets (real-time work review) and mobile access.

4. Expense Tracking

Both QuickBooks and FreshBooks offer useful expense tracking features. FreshBooks’ expense feature is great for accurate customer billing. QuickBooks, on the other hand, offers additional tabs for suppliers and contractors to organize expenses.

Here’s everything you can do with FreshBooks expense tracking:

• Connect your bank to your FreshBooks accounts to keep updated records
• Categorize your expenses on FreshBooks for easier tax prep
• Easily charge your customers for additional expenses by adding markups for billable expenses
• Get real-time expense tracking data
• Use expenses in multiple currencies for easier calculation
• Allocate recurring expenses for organized tracking
• Quick capture of invoice images via mobile app
• Store receipts securely in the cloud and access them from mobile and desktop

Here’s everything you can do with QuickBooks expense tracking:

• Link your bank accounts, credit cards, PayPal, Square and other platforms
• Import data from different accounts and automatically categorize your expenses
• Set custom spend categorization rules
• Snap and save photos through the mobile app and run reports to see how you’re spending every dollar
• Use an integrated cash flow statement to track how much money you have
• Get valuable insights from powerful financial reports
• Easily manage and allocate supplier payments to 1099 contractors

5. Integrations

FreshBooks offers more than 70 unique integrations This allows you to use multiple platforms including Shopify, WooCommerce, Google Workspace (G Suite), Stripe, HubSpot, and more.

However, QuickBooks is way ahead of FreshBooks when it comes to integrations. There are over 650 amazing apps that quickly integrate with QuickBooks.

Prices of FreshBooks vs. QuickBooks 💸

Finally, we’ll compare FreshBooks and QuickBooks prices so you know how much you’re paying for each tool. In general, FreshBooks a little bit cheaper although it depends on the plan you need.

FreshBooks Prices

FreshBooks offers affordable pricing plans for freelancers and agencies. Their pricing modules vary based on the number of billable customers and additional tracking and reporting capabilities.

FreshBooks pricing varies widely. This depends on several factors such as season, location and current promotions. On average, the entry-level Lite plan can cost anywhere from $1.50 to $15 per month, which allows billing for up to 5 customers. If you need to bill more customers, the Plus plan, which allows for up to 50 billable customers, is available for $3 to $30 per month depending on current offerings.

Get a 10% discount when you prepay for a full year instead of using monthly billing.

There are also optional add-ons such as additional team members ($10/person/month), Gusto Payroll (based on Gusto Payroll pricing) and upfront payments ($20/month).

You can also test it with a 30 days free trial and FreshBooks also offers a 30-day refund window.

QuickBooks Prices

QuickBooks offers slightly higher prices. The basic plan is for a single user only, while more advanced features like inventory tracking, profit forecasting, and time tracking would require higher tier plans.

• Easy start – $25 per month
• plus – $70 per month
• Progressive – $150 per month

If you want to use QuickBooks as a freelancer, you can choose the freelance plan, which costs $15 per month.

If you are logging in for the first time, you can either a 30 days free trial or you can pay now and get 50% off your first three months (After that you would have to pay the full price).

If you want to add payroll, that’s an additional fee starting at $45 per month for Payroll Core plus $4 per employee per month. You can also pay a one-time fee of $50 for live accounting setup, where a certified accountant will help you set up a QuickBooks experience tailored to your industry.

Should you choose FreshBooks or QuickBooks? 🤔

👉 If you want to see even more accounting options, you can read our detailed ones Compare FreshBooks, QuickBooks, Xero, Sprout invoices and more.

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