FreshBooks vs Xero: which is better for a new business? (2026)
7.9/10
FreshBooks
From $23/mo
Choose FreshBooks if: Solo service providers who bill clients by invoice
Skip it if: You bill more than 5 clients yet need a plan under $43/month.
Visit FreshBooks6.6/10
Xero
From $27/mo
Choose Xero if: Small teams that want unlimited users at one price
Skip it if: You want a free plan, Spanish, or over 20 invoices for $27.
Visit XeroQuick verdict
| Higher OwnerUnlocked score | FreshBooks (7.9 vs 6.6) |
|---|---|
| Lower starting price | FreshBooks (From $23/mo vs From $27/mo) |
| Better public ratings | Xero (4.2 vs 4.4 / 5) |
| More Spanish help | Xero (Not confirmed vs English only) |
Side by side
| Best for | Solo service providers who bill clients by invoice | Small teams that want unlimited users at one price |
|---|---|---|
| Skip if | You bill more than 5 clients yet need a plan under $43/month. | You want a free plan, Spanish, or over 20 invoices for $27. |
| Free plan or trial | 30 days | 1 month |
| Spanish | Not confirmed | English only |
| Support | Phone, email in office hours; 24/7 AI chatbot | 24/7 online support; callback on request |
| Mobile app | Yes | Yes |
| Public rating | 4.7/5 (App Store, 10,979) | 4.4/5 (Google Play, 21,049) |
| Price | $23/mo (Lite); $1/mo first-year promo | $27/mo (Early); $5.40/mo first 3 months |
| Free plan | No free plan | No free plan |
| Users | Owner only; +$11/mo per team member | Unlimited (no per-user fees) |
| Invoicing | Unlimited invoices; client limits by plan | Early: 20 invoices; unlimited on Growing and up |
| Bank connection | Yes, all plans; reconciliation on Plus and up | Yes, all plans; auto-reconcile on Growing and up |
| Receipt capture | Plus and up | Yes, Smart Document Capture, all plans |
| Mileage tracking | Yes, mobile app, all plans | Established only |
| Payroll add-on | $40/mo + $6/mo per person | $36/mo + $6 per employee/contractor (Gusto) |
| Sales tax | Taxes on invoices + sales tax summary report | Auto sales tax, all plans |
| Time tracking | Yes, all plans | Established only (projects) |
| Inventory | Basic stock counts on items | Up to 4,000 items; Inventory Plus add-on |
| Accountant access | Plus and up | Yes, invite your advisor at no extra cost |
| 1099 contractors | Expense reports only; 1099-NEC via payroll add-on | W-9 collection and 1099 reports, all plans |
| Online payment fees | Cards 2.9% + 30¢; ACH 1% | Stripe: cards 2.9% + 30¢; ACH debit 1% (max $9) |
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FreshBooks
- Lite promo: $1/month for the first year (regular $23).
- Unlimited time tracking and mobile mileage tracking on every plan.
- Invoices and estimates can be sent in Spanish to chosen clients.
- 30-day free trial with no credit card; 30-day money-back guarantee.
- Lite caps billable clients at 5; Plus caps them at 50.
- No team members included; each added user costs $11/month.
- Receipt scanning and accountant access start at Plus ($43/month).
Xero
- No per-user fees: your whole team can log in on any plan.
- Sales tax, 1099 reports and receipt capture included even on Early.
- Tracks inventory for up to 4,000 items on every plan.
- Standard ACH payments to vendors are free on all plans.
- Early plan allows only 20 invoices and 5 bills.
- No published phone line; support is online with callbacks on request.
- English-only app; no Spanish interface found.
Also worth a look
Questions
Is FreshBooks or Xero cheaper?
FreshBooks starts lower: From $23/mo for FreshBooks vs From $27/mo for Xero. Compare the plan you'd actually use, including add-ons.
Which has better reviews?
Xero, with 4.4/5 on average across the public ratings we checked.
Which one helps in Spanish?
FreshBooks: Not confirmed. Xero: English only.
Can I switch from one to the other later?
Yes, though switching mid-year takes some setup. Export your records before you cancel, and check for annual contracts or cancellation notice periods.
Facts from each company's own pages and public rating sites, checked Oct 4, 2026. How we rate.