In a battle of accounting software, the stakes are high. Small business owners are more particular than ever, and have grown tired of dealing with bugs and complexities. Business owners may find themselves wondering about QuickBooks vs FreshBooks.
Until the last few years, there has been one dominating force in the accounting software world: Intuit.
However, like any business, the competition is bound to catch up. No giant is unchallenged in a world where competition reigns supreme; hence, we have FreshBooks vs QuickBooks.
QuickBooks’ leading competitor is the new kid in town, FreshBooks. Designed to do things that QuickBooks could never do, FreshBooks is sweeping the business world off its feet. Before you get too excited and switch over all your accounting, you do need to understand the differences between the two programs. Each program addresses specific needs and offers distinct features.
Key Purposes
One way to understand the differences between FreshBooks vs QuickBooks is to understand the purpose of each program.
• QuickBooks is designed to be a complete accounting solution, and has been from the beginning.
• FreshBooks was designed to simplify tracking expenses, billing, and time tracking.
Key Strengths
Another way to understand QuickBooks vs FreshBooks is to look at the key strengths of programs. In many ways, they have much in common. Let us first clarify that both programs operate in the cloud.
• QuickBooks -comprehensive program that offers everything needed to manage and account for every aspect of your business. Accountants are familiar with the program, so it is less time-consuming and more efficient for them to prepare your taxes from QuickBooks data. Also, it functions as a full-service payroll system.
• FreshBooks – sleek, cloud-based system designed to make accounting simple and painless for small business owners. The program includes intuitive features like creating invoices from time tracked by the program, and an intuitive invoicing function. Time tracking in particular is one of the key strengths of FreshBooks. In addition, users give favorable reviews to the customer service.
Disadvantages
Now let us look at the dark side of FreshBooks vs QuickBooks. Both companies tell you their product is the best thing since the invention the wheel, but there are always disadvantages to consider in choosing your accounting software.
• QuickBooks – Users regularly complain about QuickBooks being less than user-friendly. Even people who have advanced computing skill find themselves yelling at their monitors. In addition, if you run a desktop version there are updates to manage and occasional bugs to overcome. Customer service is not a strength for QuickBooks. In some ways it is the biggest disadvantage of the program.
• FreshBooks – FreshBooks was not designed originally to be a complete accounting program, so it had to play catch-up with reporting such as balance sheets and cash flow analysis. FreshBooks' mobile app is only available for Apple devices, though most android devices can use a web browser to access services.
Plan Comparison: QuickBooks vs FreshBooks
In this following table, QuickBooks Essentials with Payroll is compared to FreshBooks MightyOak.
QuickBooks does offer more advanced plans than QuickBooks essentials, but if you need the advanced features included in the higher tiers, than FreshBooks is not the solution for you.
| QuickBooks Essentials with Payroll | FreshBooks Mighty Oak |
| Price per month | $65.95 | $39.95 |
| Number of Users | 3 | 2 |
| Number of Clients Allowed | No limit | 25 |
| Mobile Access | Yes | Yes |
| Billing/Invoices on the go | Yes | Yes |
| Time Tracking | No | Yes |
| Payroll Processing | Yes | No |
| Integrated Payment Processing | No | Yes |
| Recurring Billing | Yes | Yes |
| Sales Tax Calculations | Yes | Yes |
| Client Portal | No | Yes |
| Compatible with popular apps like Basecamp, Zendesk, Gmail, PayPal, etc. | No | Yes, with add-ons |
Wrap-up: FreshBooks vs QuickBooks
Companies that need to process payroll, track inventories, or conduct highly complex accounting will probably be happier with QuickBooks. Companies that specialize in offering services billed by the hour and run teams of contractors will probably find FreshBooks to be a better fit. Both programs offer small businesses advanced accounting features, and both programs work in the cloud as well as on mobile devices. Intuit also offers desktop-based QuickBooks while FreshBooks is 100% cloud.
Whichever one you choose, you will find that your accounting is much easier with software than trying to do it by hand or on spreadsheets. If you have not already chosen an accounting program, both programs offer a free trial so that you can judge for yourself which one is best for your business.
----------------------------
Image credit: jobmarket.nytimes.com