FreshBooks vs Xero
FreshBooks
Cloud accounting and invoicing for freelancers and small businesses
From$23/mo
LiteVerified Sep 26, 2026
Xero
Cloud accounting software with unlimited users on every plan
From$25/mo
EarlyVerified Sep 24, 2026
How they differ
| Feature | FreshBooks | Xero |
|---|---|---|
| Entry price | $23/moLite | $25/moEarly |
| Free plan | Not stated | Not stated |
| Free trial | Yes | Not stated |
| Invoicing & payments | — | |
| Accounting & bookkeeping | ||
| Suits | plumbers, HVAC companies, electricians, roofers, landscapers | plumbers, HVAC companies, electricians, roofers, landscapers |
Users on the horizontal axis. Entry plans only, from verified prices; yearly prices divided by 12; vendor minimums applied. Taxes and add-ons excluded.
FreshBooks
Strengths
- 30-day free trial with no credit card required
- Three published monthly tiers, from Lite to Premium
- Promotional discounted pricing available for new subscribers
Drawbacks
- Regular (non-promotional) pricing is noticeably higher than the introductory rate
- Top Select tier is custom/quote-only
Xero
Strengths
- Unlimited users included on every plan, unlike per-user competitors
- Clean, modern interface that bookkeepers frequently prefer
- Strong bank reconciliation and multi-currency support
Drawbacks
- Fewer built-in trades-specific integrations than QuickBooks Online
- Some payroll features are limited by state availability
Frequently asked questions
What do FreshBooks and Xero have in common?
Both cover accounting & bookkeeping.
Is FreshBooks cheaper than Xero?
On entry plans for one user, FreshBooks costs $23 a month and Xero $25, so FreshBooks is cheaper to start. The gap changes with team size and billing terms; see the chart above.