FreshBooks vs QuickBooks
Accounting software can revolutionise your working life as a small business owner. The simplest way to keep track of money coming in and going out, charge clients, and simply process your accounts at the end of the year is to use this method.
Other advantages of using accounting software for freelancers and agencies include knowing exactly how much time you’ve spent on each customer and project and having an easy experience processing invoices when it’s time to get paid.
FreshBooks and QuickBooks Online are two of the most used accounting programs for small businesses. Although they are both effective tools and well-liked for good reasons, they are most effective for various use cases and business models.
FreshBooks vs QuickBooks at a Glance
It has been around for a while, but Intuit QuickBooks is a well-known accounting program. Many small business owners adore it for its extensive features and versatility in integrating with just about everything. For decades, it has assisted companies of all kinds in keeping their accounting organised and precise.
FreshBooks, on the other hand, is less well-known because it caters to a far more niche segment of the business market. The software is well-liked for its straightforward user interface and functionalities. It’s ideal for independent contractors and small enterprises that don’t require all of QuickBooks’ bells and whistles. If you only need invoicing skills, it’s also better.
Which is better, then? What you require as a small business owner will determine this. Let’s examine how each compares.
FreshBooks vs QuickBooks: Comparing Features
These two accounting software alternatives really come into their own when comparing features. Compared to FreshBooks, QuickBooks has more features, but those features are more expensive. QuickBooks is a superior choice if you need double-entry bookkeeping, time tracking, or inventory management. FreshBooks might be a better option if you don’t require all of those capabilities and only need a tool to assist you keep track of your earnings and outgoing costs.
Both choices are subscription-based in terms of cost. FreshBooks’ entry-level package is $15 per month, compared to $30 for QuickBooks. QuickBooks’ plans can cost up to $200 per month if you require more capabilities, while FreshBooks’ most expensive plan is only $55 per month.
Having said that, FreshBooks is exceedingly simple to use and will be adequate for the requirements of the majority of small businesses or freelancers. If you only want a single user, it is even more inexpensive than QuickBooks at the lower plan level. When you start to require obscure integrations, more challenging accounting functions like inventory management, or if you require a large number of users, QuickBooks starts to emerge as a superior choice.
FreshBooks vs QuickBooks: Accounting
The majority of FreshBooks’ features are aimed around client billing because it is designed for independent contractors. The QuickBooks accounting component, on the other hand, is more for product billing. Double-entry accounting solutions are available through FreshBooks for a precise profit and loss report.
- Balance sheet
- General ledger
- Accounts payable
- Accountant access
- Trial balance
- Cost of goods sold
- Chart of accounts
- Journal entries
From an accounting standpoint, QuickBooks provides more thorough business information. You can simplify tax preparation by getting a thorough cash flow report. You can maximise deductions and adhere to tax regulations thanks to the integrated mobile app.
In addition, there are accounting-specific interfaces like 1099 reporting, budgeting, forecasting, vendor billing and crediting, purchase orders, and inventory management that are not present in FreshBooks.
FreshBooks vs QuickBooks: Invoicing
The invoice feature in FreshBooks provides a billing panel with two tabs: “from me” and “to me.” This makes it simpler for you to receive or make payments. With the first, you can make personalised invoices, remind customers to make payments, and take credit card payments. The second one allows you to quickly check for payments that have cleared by displaying a number of flashcards below the past-due accounts.
In terms of the invoice structure, the trial version of FreshBooks provides a basic layout. Fonts, colours, and logos can all be changed, but in order to access more features, you must unlock the premium version.
For hours that you designated as billable, FreshBooks generates invoices using data directly from timekeeping.
On the other hand, you may construct a more thorough invoice in QuickBooks by entering the payment method, customer location, and even payment terms (i.e., net 30 – allowing the user to make payment in a 30-day window).
It’s important to note that, in contrast to FreshBooks, QuickBooks uses third-party tracking applications like TSheets to track billable hours and include them on invoices.
FreshBooks vs QuickBooks: Time Tracking
FreshBooks outperforms QuickBooks when it comes to time monitoring. It has a built-in solution that is accurate and user-friendly for beginners. Simply click the “start timer” button, and FreshBooks will begin keeping track of the time. When you are finished, click the generate invoice button, and the hourly information will be added to your invoice immediately.
On the other hand, QuickBooks does not have that feature. However, you can use the TSheets time tracking QuickBooks software to add this feature. Additional capabilities include accurate timekeeping for employees, paper timekeeping (with real-time work checking), and mobile access.
FreshBooks vs QuickBooks: Expense Tracking
Both QuickBooks and FreshBooks have helpful capabilities for tracking expenses. The expenditure tool in FreshBooks is great for accurate client billing. Contrarily, QuickBooks provides additional tabs for suppliers and contractors to help arrange spending.
What you can accomplish with FreshBooks expenditure tracking includes:
- To maintain current records, link your bank account to your FreshBooks accounts.
- Sort your costs into categories on FreshBooks to make tax preparation simpler.
- By including markups for chargeable charges, you may easily charge your clients for extra expenses.
- Obtain real-time statistics on spending tracking.
- Use multi-currency costs to make calculations simpler.
- Assign ongoing costs for systematic tracking
- Utilising the mobile app, quickly take invoice images
- Receipts may be safely kept in the cloud and accessed from desktop and mobile devices.
With QuickBooks expense tracking, you can perform the following:
- Connect your PayPal, Square, credit cards, and other platforms to your bank accounts.
- Data from many accounts can be imported, and your expenses can be automatically categorised.
- Create your own rules for categorising expenses.
- Utilise the mobile app to take and save pictures and to run reports to track your spending.
- Track your financial situation using the integrated cash flow statement and gain insightful information from robust financial reports.
- Managing and allocating vendor payments to 1099 contractors is simple.
Which one should you pick?
They both outperform most of the opposition and are truly amazing.
Here is a final opinion on FreshBooks vs. QuickBooks, though, if you’re still unsure which one to choose.
For small enterprises and freelancers who need client-specific capabilities or have a service-based company model, FreshBooks is an excellent option.
For small and large businesses looking for a robust accounting system for managing inventories, filing taxes, and more, QuickBooks is a fantastic option. In addition, if tax preparation is not your strong suit, you can choose the QuickBooks Self-Employed plan.