Small business owners have to keep track of a lot of moving parts; accounting should not add to this as a constant source of frustration.
If you’ve ditched the spreadsheets and you’re already looking for the best accounting software for your business—you’re in luck.
We’re doing a head-to-head comparison of the popular alternatives to FreshBooks.
Why FreshBooks?
Freshbooks is one of the leading names in the market for Small and Medium-sized Business (SMB) owners, and it has a comprehensive suite of accounting and bookkeeping functions.
However, as is the case with most other tools, FreshBooks might not suit every business’s unique needs. So if you’re not completely sold on FreshBooks, we’ve got more options in the toolbox for you to consider.
We will run through the top FreshBooks alternatives that will provide you with better options.
6 best FreshBooks alternatives
- DayZero
- QuickBooks
- Xero
- Zoho Books
- Wave Accounting
- A2X Accounting
From enhanced functionality to ease of use, these accounting tools offer small businesses everything they need to simplify their financial processes and make better decisions.
Before we dive in, let’s take a closer look at FreshBooks and how it compares to popular alternatives.
FreshBooks: What is it and why is it not the best option for SMBs?
FreshBooks is a cloud-based accounting software designed for small businesses, freelancers, and service-based industries.
Known for its user-friendly interface, it simplifies financial management with a strong emphasis on invoicing and time tracking.
FreshBooks allows users to easily manage their finances and provides essential tools to keep operations running smoothly.
Features we like:
- Customizable invoices with options for recurring billing and automatic payment reminders
- Integrated time tracking for accurate client billing and project management
- A space for clients to view and pay invoices and, in turn, improve communication and cash flow management
- Automatic integrations with bank accounts to track expenses efficiently
- Generates essential financial reports to monitor business performance
Pros
- Intuitive user interface: Easy to navigate, making it accessible for users of all levels
- Strong invoicing capabilities: Offers customizable options that cater to various business needs
Cons
- Limited inventory management features: May hinder effective stock tracking for businesses with complex inventory needs
- Lacks extensive ecommerce integrations: Can complicate online sales reporting and data accuracy
- Advanced features locked in higher-tier plans: Businesses may need to pay more to access some of the high-end tools
- Not ideal for complex financial tracking: May fall short for businesses requiring detailed accounting capabilities
- Inability to reconcile petty cash: Users cannot match expenses to payments effectively, complicating financial tracking
- Difficulty in correcting journal entries: Mistakes in transactions can be cumbersome to fix without creating additional entries
- Challenges with double-entry accounting: A Reddit user reported that the system may not fully support double-entry accounting and it lacks critical functionalities in this area
Why should you shop for FreshBooks alternatives?
Alright, there’s no arguing about FreshBooks’ massive popularity.
They have gotten a lot of things right when it comes to managing invoicing and accounting.
That said, there are some major misses.
From a limited number of users or clients that you can add to your account, to inefficiencies in estimations and missing inventory management features, there are a few downsides that are hard to ignore.
Take the case of creating 1099s—FreshBooks lacks detailed tracking for 1099-related payments, making it harder for businesses to prepare their tax documentation.
Let’s be clear on one thing—smooth integrations with shopping platforms, automated inventory management, and robust order tracking are crucial for all ecommerce businesses.
FreshBooks has limitations in these areas, with users reporting difficulties with syncing data from multiple sales channels, managing product variations, and handling high transaction volumes.
Some of the top reasons why businesses are expressing their frustration with FreshBooks are:
- Below-par customer support service: Customer support is not FreshBooks’s strongest feature. In fact, many users state that the biggest issue has been the customer service experience, with one user waiting for days to get a response and ending up reaching out across three channels before getting a solution.
- Payment timing issues: One other drawback of FreshBooks is that recurring invoices charge clients on the invoice date rather than the due date. This can create confusion and disrupt cash flow for businesses.
- Limited third-party integrations: FreshBooks only has native integrations with a few ecommerce and payment platforms, and even those are not the most seamless. Many of the other platforms require third-party connectors or manual data import.
With all of these reasons adding up, businesses are on the lookout for simplified business accounting tools with powerful functionalities and personalized bookkeeping features.
Our pick of the best six alternatives to FreshBooks
We have done the groundwork, and we’re listing down the top six FreshBooks alternatives for you to consider.
- DayZero
DayZero is the latest addition to our list of powerful accounting platforms out there. The tool is known for its advanced AI-powered functionalities that truly set it apart.
What makes DayZero ideal for small businesses?
For starters, it’s business accounting on autopilot. You can get started with ease using the tool’s preformatted charts of accounts and get your financials in just 5 minutes of signing up.
DayZero is designed with simplicity in mind. While it has an advanced suite of functionalities like some of the bigger tools, it comes with no added complexity and is known for its unmatched ease of use and flexibility.
The platform helps manage some of the more complicated aspects of accounting with zero developer efforts. They are doubling down on the intuitive features of the tool that their customers love them for.
This cloud-based software is perfect for teams working remotely and does all of the heavy lifting when it comes to accounting (think invoicing, expense tracking, and everything you need to get ready for the tax season).
Important features to consider are:
- Customizable invoice templates: Users can choose from a range of templates and generate professional invoices in seconds.
- AI + human-assisted bookkeeping: The tool's personalized AI Bookkeeper, Emily, helps businesses close their books daily and delivers insights specific to your business, all for free. You can even loop in human support when needed.
- Hassle-free reporting: Financial reporting has never been this easy. Generate comprehensive financial reports such as balance sheets and cash flow statements for informed decision-making.
- A hub of collaborative tools: Enable greater collaboration by allowing multiple users to access the platform with different permission settings.
- Automate expense tracking: Connects with bank accounts and credit cards to automatically sort and track expenses.
- Features built for niche segments: Access specialized ecommerce integrations for platforms like Shopify and Amazon.
- Freelancer-friendly: Offers unique tools tailored for freelancers, such as the ability to tag expenses by client or project.
Pros
- Intuitive design makes it simple for users to navigate the platform
- Reduces manual data entry and errors with best-in-class automation capabilities
- An exceptional and on-time customer support service that is accessible via chat and email
Cons
- May not meet the needs of businesses requiring comprehensive inventory solutions
- Limited customization options for complex use cases
User review
2. QuickBooks
Designed for businesses of any scale, QuickBooks simplifies financial management by consolidating invoicing, payroll processing, expense tracking, and tax preparation into one user-friendly interface.
Important features to consider are:
- Multi-currency support: Facilitates transactions in multiple currencies, making it suitable for international businesses.
- Flexible platform: Offers both cloud-based and desktop options for varied user preferences.
Pros
- Includes payroll management and payment processing options for complete financial oversight
- Strong community support with extensive online resources and tutorials
Cons
- A complicated setup process that can take significant time to configure
- Subpar ecommerce integrations lead to reconciliation issues
- Manual transaction tagging creates additional hours of data entry
- A steep learning curve makes it challenging for users without accounting backgrounds
- Large data files can slow down the software or cause crashes
3. Xero
Xero is a business platform that includes a core accounting solution, payroll, and workforce management features. Unlike FreshBooks, the tool has more POS products to offer and lets you add as many users as you want.
Important features to consider are:
- Integrated payroll: Simplifies employee management by combining payroll processing with accounting functions.
- App marketplace: Offers a wide range of third-party app integrations to enhance functionality and customize the platform to specific business needs.
Pros
- Access all your invoices, accounts, and financial information in one place
- A strong mobile app allows for on-the-go financial management
- Flexible integrations expand functionality with other business tools
Cons
- May be difficult to use for individuals without accounting experience
- Fewer native ecommerce integrations compared to competitors
- Advanced features may cost you additionally
- Occasional performance issues with larger data sets
4. Zoho Books
The cloud-based accounting platform Zoho Books is built for growing businesses and has a range of mobile-first features that allow users to take control of their financial tasks while on the move. It has an extensive workflow of automation capabilities to simplify expense tracking and invoicing.
Important features to consider are:
- Comprehensive invoicing: Create and send invoices with flexible payment options for clients.
- Collaborative features: Share access with team members to streamline financial tasks and improve transparency.
- Bank reconciliation: Automates the reconciliation process by syncing transactions with bank accounts.
Pros
- Strong integration capabilities with both Zoho and third-party applications
- Effective tools for managing projects and tracking costs
- Reliable customer support through various channels
- Robust project management tools enhance tracking and reporting
Cons
- The interface can be difficult to understand for first-time users
- Limited features for specialized ecommerce needs
- Some key features require higher-tier subscriptions
5. Wave Accounting
Wave is a great accounting tool for freelancers. The tool is free for usage and allows you to manage invoices, sync bank accounts, and process credit cards with ease. Wave’s interface is easy to use and is a great choice for small businesses that have basic accounting needs.
Important features to consider are:
- Simplified invoicing: You can create and customize unlimited invoices for free and stay on top of invoices that are due.
- Multi-currency transactions: Facilitates international transactions by supporting multiple currencies.
- Expense tracking and receipt management: Link your bank account for real-time expense tracking and upload receipts for easy categorization.
- Reliable tax flow: Automates tax calculations and ensures accurate filings by tracking sales tax and generating necessary tax reports.
Pros
- Easy to use for basic bookkeeping needs
- Get month-to-month and year-to-year comparisons of your cash flow
- The pro plan lets you import, merge, and categorize your bank accounts
Cons
- Does not offer ecommerce or advanced inventory tools
- No built-in expense categorization or pre-designed charts of accounts
- Customer support is primarily online with limited availability
- Bank integration for bill payments has a few glitches
6. A2X Accounting
A2X automates the accounting process for ecommerce sellers by syncing transaction data from major platforms, including Amazon and Shopify, with accounting software such as Xero and QuickBooks.
Important features to consider are:
- Multi-channel support: Handles multiple ecommerce platforms like Amazon, Shopify, and eBay, making it ideal for businesses that sell across various channels.
- Tax compliance: Helps with tax compliance by accurately tracking and reporting sales taxes collected across multiple regions.
Pros
- Automates imports and reconciliation
- Easy to track and download sales and COGS numbers from various selling platforms
Cons
- Initial setup can be complex and time-consuming
- Necessitates multiple softwares (i.e., A2X + a different accounting suite)
- Lacks advanced reporting features found in more comprehensive accounting software
- Support is primarily available via email, with limited live options
- Some users may find it difficult to customize certain features
Over to you
There you have it—we have reviewed the best tools on the market to help you make the right choice for your business.
When you are looking for FreshBooks alternatives, opt for a tool that grows with your business. Consider aspects like advanced capabilities for your industry, pricing, and scaleability features before you make a choice.
DayZero was built to give small businesses the transparency they need. Need your numbers in real-time? No problem. Want financial reports delivered to your inbox? We’ve got you covered.
With DayZero, you get to see what’s going on in real time. With numbers that update daily, you can take stock of inventory and capitalize on the latest trends and fast-selling products.
Sign up today and see how DayZero can take hours of monthly financial admin off your plate.
