FreshBooks vs. QuickBooks: Compare Accounting Software

Choosing the right accounting software is critical for managing your business finances and streamlining bookkeeping tasks. This ensures accurate reporting, which can lead to long-term savings.

QuickBooks is a go-to solution for many product-based small businesses—as well as those planning to scale. FreshBooks is more suitable for freelancers, consultants, and other service-based entrepreneurs. But this is just the tip of the iceberg with both.

Below, take a deeper look at how their key features compare so you can choose the right fit for your business.

What is FreshBooks?

FreshBooks is a cloud-based accounting software designed for service-based businesses and independent contractors. It automates core accounting tasks like invoicing and expense tracking, so you can spend more time on other aspects of your business.

FreshBooks emphasizes user friendliness and simplicity, making it a fit for freelancers and small business owners who don’t have a deep accounting background. Key features include:

• Unlimited invoices. Create professional, customizable invoices to billable clients. FreshBooks lets you send unlimited invoices for a variety of billing options.

• Recurring invoices. Set up automated recurring invoices for subscriptions or ongoing projects, saving time on billing.

• Expense tracking. Capture expenses by snapping a photo of your receipt with your mobile phone, and quickly categorize them. This helps with managing employees expenses and preparing for tax season.

• Time tracking. A valuable feature for service-based businesses, FreshBooks’ time tracking lets you log hours worked on projects and convert them directly into invoices.

• Online payments. Accept payments with payment processors including credit cards and bank transfers, and enable clients to make payments directly from the invoice itself via an integrated online payment portal.

• Project management. Though not a dedicated project management tool, FreshBooks offers basic project management features that let you track project profitability and easily collaborate with team members.

• Basic reporting. Generate basic accounting reports like profit and loss (P&L) statements and balance sheets, giving you an understanding of your cash flow and financial health.

• Bank reconciliation. Connect your bank account for automated bank reconciliation and matching transactions.

• Accountant access. Easily invite your accountant to your FreshBooks account to collaborate during tax season.

FreshBooks: Available plans and pricing

FreshBooks offers tiered pricing to accommodate various business sizes and needs. They include:

• Lite plan. $21 per month. Intended for freelancers and solopreneurs, this plan includes features like unlimited invoices to up to five billable clients, expense tracking, basic reports, and time tracking.

• Plus plan. $38 per month. A popular choice for growing businesses, the Plus plan increases the number of billable clients to 50. It adds features like recurring invoices, client retainers, and the ability to grant your accountant access. There are also advanced accounting reports and bank reconciliation.

• Premium plan. $65 per month. For small businesses with a larger client base, the Premium plan removes the client limit, and offers more project profitability tools and customization options for client communication. It also enhances reporting features.

• Select plan. Quote-based pricing. This is a custom plan for large businesses with specific needs and includes dedicated support, lower payment processing fees, and training.

FreshBooks also offers various add-ons, like additional team members (at $11 per user, per month), and enhanced payment features for saved credit card information and subscription billing.

What is QuickBooks?

QuickBooks, developed by Intuit, an accounting software suite available in both cloud-based and desktop versions. It services a wide range of businesses, from small businesses to larger companies. QuickBooks Online offers features for managing all aspects of your business finances.

QuickBooks is known for its extensive features, and it provides more in-depth functionality compared to FreshBooks. Its key features include:

• Invoicing. Create and send invoices and track payments with several customization options, including uploading your company logo and colors, changing the font, and adding or removing fields.

• Expense tracking. Automate expense tracking by connecting bank feeds and credit cards, with features for receipt management and categorization.

• Bank reconciliation. QuickBooks offers advanced bank reconciliation tools to accurately match transactions so your bank account matches your accounting software records.

• Financial reports. A wide array of detailed accounting reports—including P&L, balance sheets, cash flow management statements, and more—offer insights into your financial performance.

• Inventory management. QuickBooks offers inventory management capabilities, including basic inventory tracking, setting reorder points, creating purchase orders, and generating inventory reports.

• QuickBooks Payroll. This built-in service integrates directly with QuickBooks to manage employee salaries, withhold taxes, and handle payroll tax filings.

• Project tracking. Beyond basic time tracking, QuickBooks offers project tracking and project profitability analysis.

• Accounts payable and bill management. Manage accounts payable, including scheduling payments and tracking vendor bills.

• Advanced features. Depending on the QuickBooks Online plan, you can access advanced features like multi-currency support, budgeting, and more granular reporting.

• Global search function. Allows QuickBooks users to quickly find transactions, reports, or clients within the software.

QuickBooks also integrates with hundreds of third-party applications, including CRM tools like Salesforce and Method:CRM, ecommerce platforms like Shopify, and expense management apps like Expensify. Shopify users can find various solutions to connect their sales data and inventory reports using an app like QuickBooks Sync.

QuickBooks: Available plans and pricing

In addition to a slate of desktop offerings, Intuit offers several QuickBooks Online tiers that are comparable to FreshBooks and suit different business sizes and needs. Each plan builds upon the features of the previous:

• QuickBooks Solopreneur. $20 per month. This plan, intended for freelancers, independent contractors, and self-employed individuals, focuses on separating business and personal expenses, tracking mileage, estimating quarterly taxes, and basic invoicing.

• Simple Start. $38 per month. The entry-level QuickBooks Online plan for small businesses, supporting one user, includes core features like income and expense tracking, creating and sending invoices, managing sales and sales tax, connecting to one sales channel, and basic reporting.

• Essentials. $75 per month. The Essentials plan is suitable for growing small businesses, supporting up to three users. Additions include bill management (tracking and paying bills), advanced project time tracking, the ability to handle multiple currencies, and connecting to more sales channels. 

• Plus. $115 per month. A popular choice for small businesses, the Plus plan supports up to five users and introduces advanced features for product-based businesses. It includes all Essentials features plus inventory management (letting you track inventory quantities and costs, and generate inventory reports), detailed project profitability tracking, and budgeting tools.

• Advanced. $275 per month. Designed for larger small businesses and mid-sized companies, the Advanced plan supports up to 25 users. It provides the most robust reporting features, custom user permissions, workflow automation, batch invoicing and expense entry (to send unlimited invoices in batches), and enhanced data analysis capabilities. This plan also includes a dedicated account manager.

Intuit also offers direct integrations—such as QuickBooks Payroll, QuickBooks Payments, and QuickBooks Time.

FreshBooks vs. QuickBooks: What’s the difference?

While both QuickBooks Online and FreshBooks are excellent software solutions for accounting tasks, their core philosophies and target audiences lead to key differences, summarized below: