FreshBooks vs Xero: Which One Fits Your Solo Dev Stack?
Free tier limits, real costs for 1-10 users, and honest "not for" warnings. The Solo Dev decision guide for FreshBooks vs Xero.
⚡ Quick Verdict
FreshBooks edges ahead with a 4.5/5 rating. However, the best choice depends on your team size, budget, and workflow needs. Read on for the full breakdown.
💰 Cost by Team Size
| Team Size | FreshBooks | Xero |
|---|---|---|
| Solo (1 user) | $7.6/mo | $15/mo |
| Small (5 users) | $13.2/mo | $42/mo |
| Growing (10 users) | $24/mo | $78/mo |
| Free Tier | ❌ No | ❌ No |
Pricing Plans
| Plan | FreshBooks | Xero |
|---|---|---|
| Free Plan | ❌ No | ❌ No |
| Lite | $7.6/mo | $15/mo |
| Plus | $13.2/mo | $42/mo |
| Premium | $24/mo | $78/mo |
| Select | Custom | — |
Feature Comparison
| Feature | FreshBooks | Xero |
|---|---|---|
| Invoicing | ★★★★★ | ★★★★☆ |
| Reporting | ★★★☆☆ | ★★★★☆ |
Pros & Cons
FreshBooks
✅ Pros
- Best-in-class invoice creation — professional and customizable
- Built-in time tracking and project management
- Automatic payment reminders reduce late payments by 30%
- Double-entry accounting without the complexity
- Excellent mobile app for on-the-go invoicing
❌ Cons
- No free plan — only 30-day trial
- Lite plan limited to 5 clients
- Reporting is basic compared to QuickBooks or Xero
- Limited inventory management
- Payroll is a paid add-on ($40+/mo)
Xero
✅ Pros
- Best multi-currency accounting — ideal for international businesses
- Unlimited users on all plans (QuickBooks charges per user)
- 1000+ third-party app integrations
- Beautiful, modern UI that non-accountants can use
- Strong in UK, Australia, NZ with local payroll/tax
❌ Cons
- Starter plan limited to 20 invoices/month
- US payroll requires third-party add-on (Gusto)
- Less widely used by US accountants than QuickBooks
- Some advanced features require Premium plan
- No built-in time tracking
Who Should Use What?
✅ Choose FreshBooks if...
- You are a freelancers and consultants who invoice clients
- You are a service businesses needing time + expense tracking
- You are a non-accountants who want simple bookkeeping
🚫 Skip if...
- Product businesses with inventory
- Companies needing advanced reporting
- Budget-conscious solos (Wave is free)
✅ Choose Xero if...
- You are a international businesses with multi-currency needs
- You are a uk/au/nz-based small businesses
- You are a teams wanting unlimited users without per-seat pricing
🚫 Skip if...
- US businesses with a QuickBooks-trained accountant
- Freelancers with few invoices (Wave is free)
- Very small businesses (Starter's 20 invoice limit is tight)
🏆 Our Verdict
Both FreshBooks (4.5/5) and Xero (4.4/5) are excellent tools in their category. FreshBooks takes a slight edge overall, but the best choice ultimately depends on your team's specific needs, budget, and existing tool ecosystem.
Frequently Asked Questions
Is FreshBooks better than Xero?
It depends on your needs. FreshBooks excels in some areas while Xero has its own strengths. Read our full comparison above to see which tool fits your specific requirements.
How does FreshBooks pricing compare to Xero?
FreshBooks starts at $7.6/mo, while Xero starts at $15/mo. Both offer different value propositions — check our pricing comparison section for a detailed breakdown.
Can I migrate from FreshBooks to Xero?
Yes, most B2B tools offer data import/export features. Xero typically provides migration guides and sometimes even dedicated support for switching from FreshBooks.
Which is easier to use, FreshBooks or Xero?
Ease of use depends on your team's experience and workflow preferences. We evaluated both tools on usability — see our feature comparison scores above for details.
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