Comparison
Xero vs FreshBooks
How Xero and FreshBooks compare on price, pricing model, features and reviews, with every fact checked on October 24, 2026.
Quick verdict
Choose Xero if
- Teams that need unlimited users without per-seat cost.
- Businesses with multi-currency needs.
- Firms working with accountants who use Xero practice tools.
Choose FreshBooks if
- Freelancers and service businesses billing a limited number of clients.
- Teams wanting time tracking and invoicing in one tool.
- Buyers who want simple, guided accounting.
Xero vs FreshBooks side by side
| Xero | FreshBooks | |
|---|---|---|
| What it is | New Zealand-built cloud accounting with three flat-priced plans and no per-user license fees. | Invoicing-first accounting for freelancers and service firms, priced by billable client count. |
| Status | Active | Active |
| Starting price | $27/month (Early) | $23/month (Lite, 5 billable clients) |
| Pricing model | flat per plan, no per-user license fee | per plan by billable client count plus per extra user |
| Free plan or trial | Free trial | Free trial |
| SAML SSO | Not published | Not published |
| SCIM provisioning | Not published | Not published |
| Audit logs | Not published | Not published |
| Data residency | Not published | Third-party review says personal data processed in Canada; not vendor-confirmed. |
| Contract | Monthly, cancel anytime; downgrade allowed one month after upgrading. | Not published |
| Support | Not published | Dedicated phone support on Select. |
| G2 rating | 4.4 (1,558 reviews) | 4.5 (981 reviews) |
| Founded | 2006 | 2003 |
| Headquarters | Wellington, New Zealand | Toronto, Canada |
| Employees | 4,000+ (Inc. Magazine figure) | Not verified |
| Invoicing and billing | Quotes and invoices; Early plan limited to 20 invoices and 5 bills per month. | Recurring invoices and late payment reminders on all tiers. |
| Bank feeds and reconciliation | Auto-reconcile $5/month add-on on Early, included on Growing and Established. | Bank reconciliation from Plus. |
| Financial reporting | Cash flow forecast 30/60/180 days by plan. | Financial and double-entry accounting reports from Plus. |
| Expense and bill management | Expense claims and project tracking only on Established. | Expense tracking all tiers; bill scanning and accounts payable on Premium. |
| Payroll and sales tax support | Xero Payroll powered by Gusto, $36/month + $6 per employee. | FreshBooks Payroll $40/month + $6 per user. |
| Accountant access and integrations | No per-user fees; integrations count not verified. | Accountant access from Plus. |
| Pricing model | Flat per plan; usage charges for payroll, projects and expenses billed monthly in arrears. | Client-count tiers plus $11 per extra user. |
| Target company size | Small businesses; Established for larger teams. | Freelancers to small service firms. |
| Recurring invoices and subscriptions | Not verified. | Automated recurring invoices on all tiers. |
| Online payment acceptance | Not verified. | Cards, ACH, Apple Pay, Google Pay, BNPL; lower fees on Select. |
| Automated payment reminders | Not verified. | Automated late payment reminders on all tiers. |
| Sales tax and multi-currency | Not verified. | Tax-time reports on Lite; multi-currency not verified. |
| Accounting integration | Native accounting product. | Native accounting from Plus. |
| Time and expense billing | Projects tracking on Established. | Unlimited time tracking and expenses on all tiers. |
| Branding and templates | Not verified. | Custom email templates on Premium; branding removal on Select. |
Differences most comparisons miss
Worth knowing about Xero
- No per-user license fees, so seats do not affect price.
- Prices step up on October 1, 2026 to $27/$59/$97 from $25/$55/$90 (insightfulaccountant.com and vendor page)
- Pricing page says Xero may change pricing at any time and subscriptions auto-renew monthly.
- No annual billing option shown on the US pricing page.
Worth knowing about FreshBooks
- Plans are capped by billable clients (5/50/unlimited), not by users, so Lite stops working once you bill a sixth client.
- Every extra team member costs $11/month on all tiers; only Select includes 2.
- Only SOC 2 Type 1 found (Feb 2023), report available under NDA.
- Advanced Payments is a $20/month add-on except on Select.
What reviewers complain about
Xero
- Repeated list price increases.
- US payroll and tax depth thinner than QuickBooks (general reviewer theme, not verified)
- Plan limits on bills and invoices on Early.
FreshBooks
- Cost for solo users and annual price increases.
- Limited invoice flexibility.
- Access to records after cancelling.
Sources
Both columns use the same sources: vendor pricing and product pages, documentation, G2 and company records, checked on October 24, 2026. Full source lists are on the Xero and FreshBooks reviews.