Few products have done more to make life easier for small business owners in recent decades than accounting software. Recording transactions such as debits, credits, revenues and expenses is crucial to the success of any organisation and for longer than they care to remember, people were forced to rely on paper ledgers and filing systems to do just that. At least that was until the introduction of computers in the 20th century and, in more recent times, the birth of the internet and cloud computing, which has led to an explosion in small business accounting software.
It cannot be overstated how significantly such products have transformed the business world. The ability for owners and managers to easily monitor cashflow, invoice customers and reconcile finances at the end of the year has been a game-changer, not to mention the joy for accountants who no longer need to be physically present to ‘check the books’. With cloud computing allowing the storage of large amounts of data online, it has never been easier for vested parties to work with accounts wherever they are and on whatever device they have access to.
Having taken so many worries out of the number-crunching game, one significant headache remains for small businesses – which accounting software to use? Befitting such a valuable tool, there are seemingly endless options to choose from but two of the most popular (and for good reason) are FreshBooks and QuickBooks. While many people think they are built for the same purpose, the reality is each boasts unique features that make them attractive to different audiences.
To help you navigate the difficult decision of which is the best choice for your business, we have compiled this QuickBooks vs FreshBooks ultimate comparison guide.
Overview
FreshBooks | QuickBooks |
Founded in 2003, this product offers a highly user-friendly feature set for invoicing, expenses, time tracking, projects and estimates. Having evolved to be an “all-in-one small business invoice and accounting solution”, it works best for service-based businesses, freelancers and solopreneurs that need to track expenses and revenues for simple reports. | Part of the Intuit product family founded in 1983, QuickBooks is one of the most well-known accounting platforms on the market and works best for companies that sell products and require scalable, fully-fledged accounting software. Please note that for the purposes of this blog, our focus is on QuickBooks Online, Intuit’s cloud-based accounting tool. |
Target markets
FreshBooks | QuickBooks |
When FreshBooks hit the market, it was all about the sole proprietor and that continues to be a key focus. It is an excellent product for service professionals such as plumbers, architects and solicitors and anyone who works on their own. While it is a top choice for people taking their first steps in the business world, it has evolved to offer four plans that mean it can also be used by those whose businesses are growing. | QuickBooks has cornered the small business market. For almost four decades, different variations of the tool have won favour with people looking to grow their small businesses into bigger businesses and QuickBooks’ flexibility and ability to be accessed from anywhere has reinforced its reputation. While there may come a point when a business outgrows QuickBooks, it will take a while given the application can support 25 users. |
Key features
Comparing features of the two accounting software options is a key step to deciding which option will best suit your needs. At a glance, QuickBooks offers more features than FreshBooks but you will need to pay to access them. One thing both applications have in common is they are continually rolling out new features and enhancements.
FreshBooks | QuickBooks |
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Pricing
While both products are considered affordable accounting tools for small businesses and sole operators, their pricing depends on the size of one’s business and the specific features they require. Both offer similar features in their respective applications but the key motivation behind FreshBooks’ pricing levels is number of billable clients, while QuickBooks Online is driven by number of system users.
FreshBooks | QuickBooks |
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Scalability
Every business will have its own reasons for choosing FreshBooks or QuickBooks as its accounting software platform but make no mistake – scalability should be a consideration. If you are looking to grow your small business into a bigger business, there is a lot to like about QuickBooks.
FreshBooks | QuickBooks |
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Support
The accounting software game has come a long way in 20 years, with today’s application users no longer needing the amount of training or support they once did. That said, QuickBooks and FreshBooks both offer the likes of knowledge bases and in-product help to cover most queries and it is reassuring to know they are still investing in live support options.
FreshBooks | QuickBooks |
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Ease of use
Running a business is difficult enough without adopting software that creates more headaches than it solves. Ease of use should be a key priority when deciding which accounting product to roll out as the last thing anyone wants is to spend extensive time training or seeking support. It all starts with a quality user interface that allows even rookies to self-guide through features and functions without constantly referring to a how-to manual.
FreshBooks | QuickBooks |
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The big decision
As you have no doubt gathered, there is no definitive answer when someone asks: “should I choose FreshBooks or QuickBooks?” Instead, it is better to look at one’s own circumstances and decide which accounting software best suits their needs. To help them do that, here are a few final factors that may help sway your mind when it comes to choosing one over the other.
FreshBooks is best when... | QuickBooks is best when... |
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To learn more about the power and potential of these two accounting software tools, head to their respective websites at QuickBooks and FreshBooks.
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