FreshBooks vs. Xero: Which accounting software is best? [2025]

FreshBooks and Xero are two accounting tools that cater to different audiences and offer distinct features. FreshBooks is geared towards freelancers and small businesses, providing a user-friendly interface, unlimited invoicing, and time tracking features. On the other hand, Xero is built for established businesses with large accounting teams, offering more comprehensive accounting features, advanced inventory management, and bank reconciliation capabilities. While both platforms have their strengths, FreshBooks excels in usability and design, making it an excellent choice for small business owners without accounting experience. Xero, however, provides a robust suite of accounting features suitable for larger businesses with intricate financial needs. Ultimately, the choice between FreshBooks and Xero depends on the specific needs of your business, with FreshBooks being ideal for simplicity and ease of use, and Xero offering more advanced features for established enterprises.