FreshBooks vs. QuickBooks: Key Differences and Which Accounting Solution Is Best?

Depending on how big your business is currently and plans to become, you should choose between FreshBooks and QuickBooks. Independent contractors and freelancers might find FreshBooks offers all the fundamental accounting features they require at a lower cost than QuickBooks.

With hundreds of software integrations, comprehensive inventory monitoring in higher-tier plans, and configurable reporting, QuickBooks goes above and beyond simple accounting. The finest accounting software for small businesses also has features like easy scaling and sharing with your accountant.

While QuickBooks offers a wide range of accounting solutions, QuickBooks Online is the version that most closely resembles FreshBooks.

In this comparison, we only use QuickBooks Online when we talk about QuickBooks.

Key Features Of QuickBooks and FreshBooks:

QuickBooks Accounting: has capable mobile applications that offer limitless client invoicing, strong reporting features, and opportunities for customizing reports. Higher-tier accounts also track inventory.

FreshBooks Accounting: has a robust invoicing tool; users may send invoices while on the road, scan receipts, and keep track of mileage; rudimentary inventory management for things that can be billed; Double-entry accounting reports are absent from the least expensive option.

Ease of use:

FreshBooks Accounting Software: Transactions are automatically categorized for you, but you cannot set up your own bank rules; there is no global search feature; and the least-priced plan is deficient in bank reconciliation features.

QuickBooks Accounting Software: Features a global search capability, a customized dashboard, and tools that assist in automating the reconciliation process; nevertheless, there is a learning curve.

Sharing with accountants is simple:

FreshBooks: The least-priced option lacks a thorough audit trail and doesn’t offer access for accountants.

QuickBooks: It has millions of users, so your accountant is probably familiar with it; it provides audit trails and is simple for accountants to access.

Integrations

FreshBooks Integration Service: More than 100 third-party apps can be integrated, but there are few options for direct payroll and point-of-sale integrations.

With custom QuickBooks Integration Services more than 750 app integrations and a real, internal bookkeeping add-on.

A Better set of features

While both Accounting software programs have features like inventory management, reporting, and mileage monitoring, QuickBooks’ capabilities are often greater than those of FreshBooks.

Reporting

QuickBooks has transaction tracking tags that you may use to further refine your reporting by grouping results according to events or job types, for instance. The Plus and Advanced plans take things a step further by including class and location tags that you can use to monitor the performance of various divisions of your company. Additionally, unlike FreshBooks, all plans include double-entry accounting reports (such as a general ledger and chart of accounts).

Control of inventory

FreshBooks can handle the job if you manage a small amount of goods and require simple tracking features. QuickBooks offers the option to reorder points and buy inventory straight from the platform, going above and beyond simple inventory tracking. Additionally, you may create pricing rules to tailor prices and conduct inventory statistics to see which goods are the most popular and expensive. The inventory functions in QuickBooks are only included in the Plus and Advanced subscriptions. On the other side, FreshBooks includes fundamental inventory monitoring in each of its plans.

Basics of Accounting

In its Lite package, FreshBooks does not offer several essential accounting services, like bank reconciliation. Although upgrading is an option to gain these features, it shouldn’t be necessary. Even though the program will match some transactions for you automatically, you cannot establish bank rules to further automate the classification process. For QuickBooks and the majority of other accounting software platforms, these features are included in the entry-level plan as standard.

Top Alternatives Accounting software to FreshBooks and QuickBooks

Zoho Books

The accounting program offered by the office suite platform Zoho is called Zoho Books. It’s a user-friendly platform that seamlessly connects to other Zoho applications. The Free platform is highly capable for new and small organizations that don’t need to assign many users. The account can have just one user and one accountant assigned to it. Users have the option to personalize invoices, manage 1099 contractors, and schedule reports for automated generation at predetermined intervals.

XERO

Small- to medium-sized businesses are the target market for the accounting program Xero. Due to the fact that there are only five allowed invoices that you can submit, its basic plan is best suited for enterprises with a small clientele. Xero offers seamless integration

NetSuite

One component of NetSuite’s enterprise resource planning (ERP) system is its accounting software. Users have the option to combine accounting with payroll, HR, CRM, and online sales. For companies wishing to scale and grow while also customizing services as necessary, NetSuite is an excellent choice for Integration servcie

Conclusion

In the ever-evolving landscape of accounting software solutions, choosing between FreshBooks and QuickBooks depends on the unique needs and scale of your business. QuickBooks offers a wide array of features, including comprehensive inventory tracking, customizable reporting, and various software integrations, making it an ideal choice for small businesses seeking scalability. On the other hand, FreshBooks excels in providing essential accounting tools, making it a cost-effective option for independent contractors and freelancers.

While both software options have their strengths and weaknesses, it’s essential to explore the specific requirements of your business before making a decision. Additionally, considering the importance of seamless integration with other business tools, it’s worth noting that companies like Satva Solutions provide custom QuickBooks integration service, tailoring the software to your unique needs and ensuring a smooth workflow.

Ultimately, the choice between FreshBooks and QuickBooks depends on your business’s size, objectives, and preferences. Evaluating your specific accounting and financial management needs is crucial in selecting the best solution for your company.