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The two most popular accounting software packages for small businesses are freshbooks and quickbooks. But the question is which one should you use? Here’s a breakdown of what sets them apart so that you can decide on your own!
The “freshbooks vs quickbooks vs wave” is a question that has been asked many times. The “freshbooks vs quickbooks vs wave” will help you decide which accounting software to use in 2022.
For good reason, FreshBooks and QuickBooks Online are well-known accounting systems. While both software packages have a lot of capabilities, they also have considerable variances and are designed for different types of businesses. FreshBooks, for example, is great for service-based companies and freelancers that require invoicing and time-tracking tools, while QuickBooks Online is an all-in-one accounting software that can handle practically all elements of a company, including inventory management.
Our FreshBooks vs. QuickBooks Online comparison will show you which accounting software is better for your requirements and budget. In an internally generated case study, we break down the most significant elements of both systems to provide you all the information you need to make an informed choice.
When Should You Use FreshBooks?
FreshBooks is a great option for freelancers and small enterprises with one or two employees. Except for the most expensive plan, all FreshBooks plans contain just one user, and you must pay an extra $10 per month for each additional user. FreshBooks and QuickBooks both include excellent invoicing and time-tracking features, but FreshBooks is the more cheap option if you don’t require many people to work on your accounting system. Because of its professional-looking invoices and feature choices, it was included in our list of the Best Small Business Accounting Software. Many small companies like it because of its outstanding customer service. The disadvantage of utilizing it is that you must have a live connection to your bank, which is not a choice, and FreshBooks cannot account for inventories.
FreshBooks is superior in the following areas:
- FreshBooks enables you to chat to a customer care professional over the phone, which is uncommon among accounting software companies. You can also contact QuickBooks for help, but you can’t make the call yourself. You must fill out a ticket and wait for a call from an agent.
- FreshBooks allows project-based companies to send invoices to customers, monitor project time, and compare expected to actual expenditures for improved financial management.
- Small companies seeking for a low-cost alternative to QuickBooks can consider: FreshBooks is a more cheap alternative to QuickBooks if you’re a lone entrepreneur or a very small firm with one or two users.
Go to FreshBooks.com.
When Should QuickBooks Online Be Used?
QuickBooks Online is a robust, all-in-one accounting program designed for small to medium businesses. QuickBooks is our overall best small company accounting software because it has more capabilities than FreshBooks, such as inventory management, spending tracking by class and location, and the option to produce reports on either the accrual or cash basis of accounting. In addition, QuickBooks provides a wide network of QuickBooks ProAdvisors that may access your online books with your permission to assist you solve difficulties and keep your books straight.
QuickBooks Online is superior in the following areas:
- Inventory accounting: QuickBooks Online Plus is an add-on to QuickBooks Online. and Advanced allow you to keep track of inventory products and quantities, automatically update pricing and quantities, and calculate cost of goods sold (COGS) when a transaction is made.
- Manual bookkeeping: Choose QuickBooks if you want to manually import your bank data or enter transactions by hand. If you don’t give FreshBooks access to your bank account, it won’t be able to reconcile your accounts. QuickBooks allows you to link your bank, but it is not required.
- Managing sales taxes in many states: QuickBooks Online automatically calculates sales taxes in any jurisdiction, making tax filing a breeze. You must set up the sales tax for each district where you manually collect taxes in FreshBooks.
- Departments of procurement or purchasing: While both QuickBooks and FreshBooks can handle bills, QuickBooks offers more advanced accounts payable (A/P) functions. To help you optimize your buying procedures, QuickBooks enables you to generate purchase orders (POs). The inability to generate POs is one of FreshBooks’ drawbacks.
Go to the QuickBooks Online website.
When to Use a Substitute
FreshBooks and QuickBooks are two of the most popular accounting software products on the market. However, this does not negate the fact that they have limits. They are still unsuitable for various aspects of accountancy and business.
In some cases, you’ll need an alternative, such as:
- Project accounting with inventory: Xero may be used alternatively by project-based enterprises that need inventory accounting. Xero has strong inventory management tools and enables you to compare real and projected project expenditures.
- Fixed asset accounting: There is no fixed asset manager in FreshBooks or QuickBooks Online. If your company has a lot of fixed assets, you should look at Xero. It can monitor and manage fixed assets like as buildings, cars, machinery, and equipment, as well as determine depreciation costs.
- Free accounting software for service-based businesses: Sunrise is a free service that enables you to submit bids, estimates, and invoices, as well as manage spending.
Read our Best QuickBooks Alternatives for more great QuickBooks alternatives.
Case Study of a Fit Small Business
FreshBooks and QuickBooks Online are compared in 11 areas in our case study. In terms of general functions, banking and cash management, inventory accounting, and reporting, the findings demonstrate QuickBooks Online’s superiority. FreshBooks, on the other hand, has a somewhat better mobile app and project accounting tools than QuickBooks, not to mention excellent customer service. Our FreshBooks review and QuickBooks Online review provide extensive findings from our case study.
The summary of our case study may be seen in the graph below.
FreshBooks vs. QuickBooks Case Study Results
A Quick Comparison between FreshBooks vs QuickBooks
We’ll offer you a tailored product match once you answer a few questions about your company.
the first question
Are you a sole proprietor or a freelancer?
2nd question
Do you need to keep track of your inventory and manage it?
Question three
Do you want to keep track of your earnings and spending by class or by location?
4th question
What is the total amount of money you make in a year?
$100,000 or less
between $100,000 and $250,000
ranging from $250,001 to $500,000
ranging from $500,001 to $1,000,000
More than a million dollars
FreshBooks vs. QuickBooks Online: What’s the Difference?
FreshBooks and QuickBooks Online both provide a plan to fit any budget. FreshBooks’ and QuickBooks Online’s cheapest plans cost $15 and $25, respectively. Premium version of FreshBooks costs $50 a month, whereas QuickBooks Online Plus is an add-on to QuickBooks Online. costs $80. Advanced QuickBooks Online costs $180 per month and is aimed for bigger organizations with more complicated demands. While FreshBooks’ monthly pricing for similar plans is cheaper than QuickBooks’, FreshBooks costs $10 for each extra team member, while QuickBooks offers a predetermined number of users with each plan.
Pricing for FreshBooks
FreshBooks’ three plans differ in terms of the amount of billable clients permitted and the features offered. The first three plans only have one user, but the custom plan (Select) has two users from the start. FreshBooks Lite is a free accounting software program. is just $15 a month, however it only allows for five clients and does not provide a balance sheet. For $25 per month, the Plus plan allows for 50 clients, while the Premium plan allows for limitless consumers for $50 per month.
FreshBooks’ price is broken out as follows:
- Lite: $15 per month for up to five billable customers and one user.
- In addition, for $25 per month, you get one user and 50 billable customers.
- Premium: $50 per month for one user and an unlimited number of customers.
- Choose from a variety of price options, including two users and an unlimited number of customers.
It will cost you $10 per month for each extra user.
FreshBooks Lite is a free accounting software program.
The FreshBooks Lite is a free accounting software program. plan is ideal for a service-based business that invoices less than five customers a month. This plan will work if you typically get paid at the same time you provide services and rarely extend payment terms to customers. Since A/P isn’t available, you’ll need to track your unpaid bills by hand.
FreshBooks Plus is an add-on to FreshBooks.
The FreshBooks Plus is an add-on to FreshBooks. plan is ideal for a service-based business that needs to invoice no more than 50 customers a month. Similar to the Lite plan, you’ll need to track your unpaid bills by hand. FreshBooks Plus is an add-on to FreshBooks. will generate recurring invoices for your customers automatically.
Premium version of FreshBooks
The Premium version of FreshBooks plan is ideal for a service-based business with many clients. Similar to the Lite and Premium plans, you’ll need to keep track of your unpaid bills outside of FreshBooks. Additional features include project profitability tracking and customized email signatures.
Choose FreshBooks
Businesses using Choose FreshBooks can bill unlimited customers and access specialized features. The Select plan improves upon the lower-tier plans by providing a personal account manager and lower credit card transaction rates.
Pricing for QuickBooks Online
The number of users and features included in each of the four QuickBooks Online plans varies. If you want to handle outstanding payments, you’ll need Essentials of QuickBooks Online, and if you need to monitor inventory, you’ll need QuickBooks Online Plus is an add-on to QuickBooks Online.. Advanced QuickBooks Online comes includes a dedicated support manager, 25 users, and Fathom reports.
The Pricing for QuickBooks Online plans are:
- Start Simple: $25 per month for a single user
- $50 per month for the essentials, which covers three users.
- Plus, for $80 per month, you get five users.
- Advanced: $180 per month for a total of 25 users.
- Payroll with QuickBooks starts at $45 per month (Payroll Core)
Simple Start with QuickBooks Online
Simple Start with QuickBooks Online is ideal for a service-based business with only one user. Since Simple Start with QuickBooks Online doesn’t track unpaid bills, you’ll have to track your bills manually until you’re ready to pay them by printing or writing a check by hand.
Essentials of QuickBooks Online
Essentials of QuickBooks Online is ideal for a service-based business with no more than three users. With Essentials of QuickBooks Online, you can enter your bills as soon as you receive them. You can then generate a report of all your outstanding bills and choose the ones you want to pay by printing or writing a check.
QuickBooks Online Plus is an add-on to QuickBooks Online.
QuickBooks Online Plus is an add-on to QuickBooks Online. is ideal for a product-based business with five or fewer users that needs to track inventory. Also useful for product-based businesses, QuickBooks Online Plus is an add-on to QuickBooks Online. can generate POs to send to suppliers. QuickBooks Online Plus is an add-on to QuickBooks Online. can also track income and expense by location.
Advanced QuickBooks Online
Advanced QuickBooks Online is required for any business needing more than five users. In addition to allowing more users, Advanced QuickBooks Online can customize user access to help facilitate proper segregation of duties at larger businesses. While all QuickBooks Online plans come with unlimited customer support, Advanced QuickBooks Online has a dedicated support manager.
Check out our QuickBooks Online plan comparison to see which one is best for you.
Takeaway: FreshBooks is definitely the more cheap solution if money is your top goal and you don’t need to monitor overdue invoices.
Features of FreshBooks vs. QuickBooks Online
FreshBooks and QuickBooks Online both include a slew of time-saving features, but there are a few key distinctions. In terms of functionality, the table below demonstrates how FreshBooks compares to QuickBooks Online.
Table of Freshbooks’ Tiered Features
Table of Tiered Features in QuickBooks Online
We’ll go through four essential aspects of FreshBooks and QuickBooks that are considerably different, based on our case study.
General Features of FreshBooks vs. QuickBooks Online
QuickBooks Online provides more advanced general accounting tools than FreshBooks, but it is more difficult to set up, according to our case study. While FreshBooks makes it easy to input general data, it lacks several capabilities that are available in QuickBooks Online. You can’t pick the entity type or lock previous period transactions, for example.
Another significant distinction is that FreshBooks need the employment of an accountant to do a number of critical activities, such as:
- Keeping track of and making changes to journal entries
- Keeping track of the accounts payable and receivable
- Getting started with your balances
This implies you’ll need to enlist the help of an accountant to complete these crucial responsibilities. Another option is to register as an accountant using a different email address, however this is difficult and time-consuming.
Banking and Cash Management: FreshBooks vs. QuickBooks Online
In terms of cash management and bank reconciliation, QuickBooks Online outperforms FreshBooks. QuickBooks Online is very versatile since it allows you to send bank transactions through a live connection, upload a file from your bank, or manually enter bank transactions. You can reconcile your bank accounts regardless of how you input your bank transactions.
FreshBooks has a possible flaw in that you can’t record transactions to a particular bank account unless your bank account and FreshBooks have an active connection. When manually inputted, all payments are posted to cash on hand. When a transaction appears in a bank feed, they may be moved to a specified bank account. Choose QuickBooks if you don’t want to give your accounting software access to your bank account.
Another important benefit of QuickBooks Online over FreshBooks is the ability to record and print checks in the register, as well as deposit several checks in one transaction. QuickBooks Online is the right choice if your company depends extensively on paying invoices and workers through checks.
A/P vs. FreshBooks vs. QuickBooks Online
In terms of handling overdue invoices, QuickBooks Online outperforms FreshBooks. Both systems keep track of delinquent payments, however FreshBooks customers must be on the Premium subscription to enjoy this function. Both systems make it simple to record invoices and monitor them, but there are a few major distinctions to be aware of. You may use QuickBooks to produce POs and invoices, add a vendor credit and use it when paying the bill, establish a default cost for a service item, and pay an independent contractor using the service item you created.
Inventory Management with FreshBooks vs. QuickBooks Online
QuickBooks’ strongest trump card versus FreshBooks is inventory accounting. FreshBooks allows you to add inventory items to invoices, but you have no means of knowing how much inventory you have on hand or how much your inventory sold for. The inventory management system in QuickBooks Online allows you to keep track of available inventory, automatically compute quantities, costs, and pricing, and monitor which of your goods are the most lucrative. If your firm is primarily focused on product sales, QuickBooks Online is the best option for your inventory accounting requirements.
Takeaway: QuickBooks Online wins in practically every category we looked at in our case study. With the significant differences shown above, it’s reasonable to argue that QuickBooks Online outperforms FreshBooks. If invoicing is your first priority, FreshBooks should suffice, as long as you’re prepared to give it access to your bank account. Choose QuickBooks Online if you require excellent software for monitoring and tracking bank transactions, invoices and costs, and inventory.
Ease of Use: FreshBooks vs. QuickBooks Online
FreshBooks and QuickBooks both feature intuitive user interfaces. They both employ basic terminology throughout the application so that anybody with no prior experience in accounting or bookkeeping may use it.
FreshBooks’ User-Friendliness
FreshBooks makes it easy to start a business in just a few minutes. After entering some basic information about your firm, such as its name, email address, and phone number, you may begin exploring your new FreshBooks account. The FreshBooks dashboard provides you with key information, such as your A/R balance, total profit, and a left menu bar for easy navigation within the program.
The Add option on the dashboard enables you to invite individuals who are classified as admin, manager, employee, contractor, or accountant:
To invite a team member, use the Invite Button.
The Create New button is another useful function, as it enables you to rapidly create a customer, invoice, bill, estimate, and other items:
For new items, use the Create New Button.
The Ease of Using QuickBooks Online
QuickBooks Online isn’t as simple to set up as FreshBooks, but once you do, the default interface is configured to provide you shortcuts to important operations as well as a general overview of your company. All of QuickBooks Online’s major services, including Banking, Sales, Cashflow, Expenses, Projects, and Payroll, are accessible from the dashboard’s left menu bar. The +New button is a highly useful tool that enables you to quickly record a transaction. You may examine your paid and outstanding bills, total costs, profit and loss, and total sales for any period instead of running a report:
Dashboard for QuickBooks Online
Takeaway: Because QuickBooks Online is more advanced than FreshBooks, it might be difficult to understand for newcomers, particularly if you have no prior accounting knowledge. FreshBooks features a more user-friendly design than QuickBooks, making it easier to use and manage. The good news is that, depending on your membership level, both systems feature limitless customer assistance to assist you in learning all there is to know about the software.
Integrations between FreshBooks and QuickBooks Online
FreshBooks and QuickBooks Online both integrate with third-party applications to expand their capabilities. To accept credit card payments in FreshBooks, for example, you’ll need to connect it to Stripe or PayPal. You may link QuickBooks to customer relationship management (CRM) tools like HubSpot and Mailchimp to monitor leads.
Integrations with FreshBooks
FreshBooks works with a large number of third-party applications, including Gusto for payroll, Stripe and PayPal for credit card processing, Bench and Mazuma for accounting, and Shopify and Square for ecommerce, to mention a few.
Integrations with QuickBooks Online
QuickBooks Online interacts with third-party programs like Gusto, Stripe, PayPal, Shopify, and Square in addition to its built-in interface with other QuickBooks products. QuickBooks, unlike FreshBooks, offers payroll and credit card processing built-in. You just switch on the function when you’re ready to recruit your first employee or take online payments from customers—no app is necessary, although extra costs may apply.
Takeaway: Both FreshBooks and QuickBooks Online offer an extensive list of connectors. Other business activities, such as payment processing and payroll, should be covered by the library of integrated applications from both programs.
App for QuickBooks Online vs. FreshBooks
FreshBooks and QuickBooks Online both feature mobile applications that can be downloaded from Google Play and the App Store. The applications may be used on your smartphone or tablet. Both applications are competent mobile accounting software, however FreshBooks is somewhat superior since it has more features than QuickBooks.
App for FreshBooks on Mobile
FreshBooks’ mobile app isn’t only for invoicing on the move. You may also take payments online, create new invoices, scan expenditure receipts, track project time, and allocate it to a project or customer. The ability to examine financial reports is a crucial feature that is currently lacking.
Below is a screenshot of the App for FreshBooks on Mobile’s dashboard:
App for FreshBooks on Mobile Dashboard
App for QuickBooks Online
QuickBooks Online’s mobile app, like FreshBooks’, lets you to send invoices and collect payments while on the move. The distinction is that the QuickBooks Online software does not allow you to input invoices or track time spent on a customer or project. The good news is that, unlike the FreshBooks app, you can classify spending from the bank stream and examine reports.
Below is a screenshot of the App for QuickBooks Online dashboard:
App for QuickBooks Online Dashboard
Takeaway:
FreshBooks’ mobile app is a bit more feature-rich than QuickBooks’, but it all depends on your requirements. You’d appreciate the ability to record a new bill and enter the time spent using FreshBooks if you’re conducting business with a lot of suppliers and managing project contractors. Meanwhile, QuickBooks Online’s app comes in useful if you need to process and manage incoming transactions through a bank feed.
FreshBooks vs. QuickBooks Online: Bookkeeping Assistance
Because not all company owners have accounting knowledge, it’s a good idea to hire a professional bookkeeper. FreshBooks and QuickBooks Online both include assisted bookkeeping options for those who need professional assistance with accounting, tax preparation, and advice services.
FreshBooks Bookkeeping Help
FreshBooks collaborates with Bench, a third-party online accounting service, to provide customers assisted bookkeeping services. You’ll get access to a specialized accounting staff, year-end reports, limitless tax advising, and one-on-one tax strategy planning depending on your Bench membership. Bench’s price is broken out as follows:
- $299 a month includes a dedicated bookkeeping team, monthly bookkeeping, tax-ready financial documents at year’s end, and direct, limitless connection with Bench’s in-house research team.
- Premium: $399 a month, covers everything in Essential plus unlimited tax counseling; one-on-one tax coaching; annual tax filing for partnerships, S corporations (S-corps), and C corporations (C-corps); and annual tax filing for sole proprietors and independent contractors.
Assisted Bookkeeping using QuickBooks Online
QuickBooks Online customers who want professional accounting services may activate QuickBooks Live on their left menu bar and add it to their subscription. You’ll be partnered with a specialized bookkeeper via QuickBooks Live to assist you with time-consuming accounting activities like bank account reconciliations and reporting. For up to $25,000 in monthly spending, QuickBooks Live Bookkeeping costs $200 per month.
Users may work with independent QuickBooks ProAdvisors in addition to QuickBooks Live. Many local bookkeepers may be acquainted with QuickBooks Online, which is a popular accounting application. There’s a good chance you’ll be able to discover a local QuickBooks ProAdvisor near you.
Takeaway: When it comes to aided bookkeeping, QuickBooks Online comes out on top. Because QuickBooks is utilized by the great majority of small company owners in the United States, you can simply and quickly discover a professional local bookkeeper to assist you with your books.
Customer Support in FreshBooks vs. QuickBooks
It’s crucial to be able to obtain aid when you need it. FreshBooks and QuickBooks both provide a variety of help channels that are easy to use, but FreshBooks wins out due to its live phone service.
Customer Service at FreshBooks
FreshBooks is known for its impeccable customer support. The best thing about FreshBooks is that you can make a phone call to talk to a live agent, which is a rare feature among accounting software providers. In addition to phone support, you can also send an email to FreshBooks, chat with a representative through a chatbot, and access its extensive frequently asked questions (FAQs) section, which has detailed instructions on how to do almost anything in FreshBooks. Choose FreshBooks has a personal account manager to help you with your bookkeeping duties.
Customer Service for QuickBooks Online
QuickBooks allows you to speak with a support rep via telephone, but you aren’t able to initiate the call. Instead, you have to submit a ticket and then wait for a rep to call you. You can access the link to start a live chat directly from within your QuickBooks account. You also can search for your question on the QuickBooks learn and support page, which includes articles, how-to videos, and FAQs. Just like Choose FreshBooks, Advanced QuickBooks Online has a dedicated account manager that makes getting answers much easier.
Takeaway: One of the most important features that distinguishes FreshBooks’ customer service from that of QuickBooks is the option to contact them when you have a significant problem.
Conclusion
FreshBooks is for you if you’re a small firm or a single entrepreneur with a strong emphasis on invoicing and are prepared to provide FreshBooks access to your bank account. QuickBooks Online, on the other hand, does not disappoint if you want more than invoicing. It can handle practically every area of your company, including inventory management, project accounting, and class-based revenue and spending monitoring.
The “freshbooks vs quickbooks pricing” is a question that has been asked many times. The answer to the question depends on what type of accounting you have and what your needs are.
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