Home » Fitli » FreshBooks vs QuickBooks: Which is better for small businesses?

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Small business owners have a lot of things they worry about, as opposed to large business owners. It’s a lot of different things like the amount of money coming into the business, earning enough to keep the business afloat, reinvesting into the business, having to pay your employees enough to keep them satisfied, and the list goes on. But when it comes to accounting, FreshBooks vs QuickBooks is a big conundrum.

Accounting is a huge headache that most small fitness business owners despise. What if they can’t afford an accountant but also don’t have a head for numbers? Well, that’s where accounting software like FreshBooks or QuickBooks comes in. They handle all the accounting help the business requires like tracking the money going in and out of the business and keeping books in order.

FreshBooks and QuickBooks are two of the most popular accounting software for small businesses. They’re both considered excellent accounting software and since different types of businesses have different accounting needs, both serve their own purpose.

But one still might wonder, which is better QuickBooks or FreshBooks? Check out our comparison of FreshBooks vs QuickBooks to see which accounting software is suitable for you depending on your business needs and budget. We shall cover:

Features

Pricing

Pros and Cons

Why Choose FreshBooks?

Why Choose QuickBooks?

What is the Difference Between QuickBooks and FreshBooks

FreshBooks has more general bookkeeping functions than QuickBooks but is more difficult to set up. FreshBooks is often praised for its intuitive and straightforward setup process. It provides step-by-step guidance for new users and a clean, easy-to-navigate interface. This can make it easier to get started, especially for freelancers or small business owners who may not have a lot of experience with accounting software.

QuickBooks, while also user-friendly, has more comprehensive features and settings, which can make the initial setup feel more complex. It might take a little longer to configure everything to your liking and to understand all the features available to you.

That’s just one of the differences between them. Perhaps delving a little deeper into the world of accounting software will assist you as a small fitness business owner with selecting the most appropriate one for your business.

QuickBooks vs FreshBooks — Features

  • Accounting Tools

Both QuickBooks and FreshBooks offer cloud-based accounting features specifically designed for SMBs. FreshBooks definitely has better time tracking features – that work best for hourly employees- but QuickBooks is a clear winner in this comparison as it comes with inventory management, forecasting, 1099 reporting, and payroll processing on top of the features that both tools include.

FreshBooks does not have the functionality to support contractor payments, which gets challenging during tax season, especially when it comes to preparing and sending out 1099 forms.

  • Invoicing

Both tools come with the invoicing feature — customizable invoice templates allowing you to send invoices via email, and track whether they have been viewed or paid. You can also set up recurring invoices and automatic payment reminders. However, FreshBooks takes the lead with its additional functionalities such as deposits, retainer, and late fees.

QuickBooks comes with advanced features, such as accelerated invoicing, as well. But overall FreshBooks invoicing is more user-friendly and intuitive. You can create professional-looking invoices and customize them with your logo and colors before emailing them.

  • Payment Acceptance

Both FreshBooks and QuickBooks have a variety of payment options available. They both allow you to accept payments online via credit cards, debit cards, ACH bank transfers, and PayPal. But FreshBooks has slightly higher transaction charges. While QuickBooks charges 2.4% + $0.25 per every credit card transaction, FreshBooks charges 2.9% + 0.3$ per transaction.

FreshBooks, however, also has Stripe payment solutions integrated, which is not the case with QuickBooks.

Here is an overview of both FreshBooks and QuickBooks payment processing service fees:

Payment processing fee for QuickBooks:

  • Payment Type
  • ACH Bank Transfers
  • Credit Card (Swiped)
  • Credit Card (Invoiced)
  • Credit Card (Keyed)
  • Fee
  • 1% ($10 Maximum)
  • 2.4% + $0.25 Per Transaction
  • 2.9% + $0.25 Per Transaction
  • 3.4% + $0.25 Per Transaction

Payment processing fee for FreshBooks:

  • Payment Type
  • ACH Bank Transfers
  • Credit Card (Visa, Discover, Mastercard)
  • Credit Card (American Express)
  • PayPal (U.S.)
  • Stripe (U.S. Bank Transfer)
  • Stripe (U.S. Credit Card)
  • Fee
  • 1%
  • 2.9% + $0.30 Per Transaction
  • 3.5% + $0.30 Per Transaction
  • 3.49% + $0.30 for PayPal accounts
    2.9% + $0.30 for credit and debit cards
  • 1%
  • 2.9% + $0.30

  • Mobile Apps

QuickBooks and FreshBooks both have their iOS and Android mobile applications available with more or less the same features. One stark difference, however, is that QuickBooks mobile app comes with user access to reporting tools. This option is not available in FreshBooks.

Apart from that, both mobile applications allow seamless communication, invoice access, expense recording, time-tracking, and online accounting.

  • Scalability

While both tools claim to be scalable, FreshBooks is better suited for solopreneurs and freelancers who are consistently working on a smaller scale. While it does offer different plans with varying features, it may not be as suitable for larger businesses with more complex accounting needs. 

If your business is looking at e-commerce scalability, QuickBooks is the way to go because it is specifically designed for businesses that sell products and are looking for a scalable, complete accounting suite.

  • Customer Service

Both QuickBooks and FreshBooks offer strong customer service, but the quality of service can sometimes vary based on the user’s location, the time of day, and the nature of the inquiry.

FreshBooks is often commended for its responsive and helpful customer service. Users can reach out via phone or email, and there is also a comprehensive knowledge base available on their website. Many users appreciate the personal touch and responsiveness of the FreshBooks support team.

QuickBooks also offers various support options, including phone support, live chat, and a comprehensive online help center. However, the feedback on QuickBooks customer service is mixed. Some users have reported long wait times and difficulty getting issues resolved, while others have had positive experiences.

It is also worth noting that QuickBooks offers premium support options with priority service for an additional fee, while FreshBooks does not have a separate premium support tier.

QuickBooks vs FreshBooks — Pricing

Let’s look at QuickBooks versus FreshBooks pricing plans in detail. 

FreshBooks Pricing

FreshBooks’ plans differ in the number of billable customers allowed and the features included. The first three plans only permit one user, but the custom plan has two users from the start. Let’s look at FreshBooks pricing in detail.

FreshBooks pricing is broken down as follows:

Lite: FreshBooks Lite is only $15 a month. That sounds pretty reasonable, right? Tempting as well. However, it only allows five customers per plan and does not provide a balance sheet. Not a suitable option even for a small fitness business that’s just starting out.

Plus: For $25 per month, you get one user and 50 billable clients. Not a bad deal for a newly launched business.

Premium: $50 per month for one user and an unlimited number of clients. Sounds like an excellent deal for someone thinking of long-term plans.

Select: Choose from various pricing options, including two users and an unlimited number of clients. Custom plans are always the way to go if you know what you’re looking for and plan on investing in long-term success.

QuickBooks Pricing

The number of users and features included in each of the four QuickBooks plans varies. All three plans offer a variety of services and features.

The following are the QuickBooks pricing plans:

Simple Start: $25 for a single user each month. So it starts off pricier than FreshBooks. Pricier isn’t always bad unless you’re a struggling business and every penny counts.

Essentials: You pay $50 per month for three users in this plan. 

Plus: For $80 per month, you get five users. If you increase the number of employees, you can advance to a better plan.

Advanced: $180 per month for a total of 25 users.

QuickBooks Payroll: $45 per month is the minimum amount for this package.

QuickBooks vs FreshBooks — Pros and Cons

Now that we’ve looked at each of their features and pricing, let’s look at the pros and cons when it comes to FreshBooks vs QuickBooks for small business.

FreshBooks:

  • Pros
  • It’s simple to use for small businesses and self-employed people.
  • The customer support is very good.
  • It provides excellent invoicing services.
  • Time and mileage tracking is part of all plans.
  • It offers an option to calculate tax specifically for a certain country. This makes tax calculations easier.
  • Cons
  • The number of users and clients is very limited.
  • There’s no option for bank reconciliation in the lower-tier plans.
  • There’s no provision for quarterly tax estimates.
  • It has no support for multiple currencies.
  • It’s too focused on small businesses which can make it difficult when you want to scale up operations.

QuickBooks:

  • Pros
  • It has excellent accounting reports.
  • Bank reconciliation and accountant integration is part of all plans.
  • Multicurrency support is baked in as an advanced feature.
  • It provides automatic quarterly tax estimates.
  • It has excellent search features which make it very easy to find and fix mistakes in your accounts.
  • Cons
  • It lacks some features like barcode scanning and eCommerce features.
  • It lacks invoice design tools.
  • On some platforms, it has stability and backup issues.
  • The customer support is lackluster.
  • An excellent search feature also makes it easy for someone to manipulate data.

Why Should You Choose FreshBooks Accounting Software?

So which one works? QuickBooks or FreshBooks? Is FreshBooks better than QuickBooks? It really depends on the business needs and what you’re looking for.

FreshBooks is an appropriate choice for you if:

  1. You Are a Freelancer or Small Business: FreshBooks is designed with freelancers and small businesses in mind. The interface is very user-friendly, and it provides features that are particularly useful for smaller operations, such as time tracking, project management, and client-specific features.
  2. You Want a User-Friendly Interface: Users often praise FreshBooks for its intuitive and easy-to-use interface. If you are not particularly tech-savvy or just prefer a straightforward and visually appealing design, FreshBooks might be a better choice for you.
  3. You Need Strong Invoicing Features: FreshBooks started as an invoicing app and has strong capabilities in this area. It allows you to create professional-looking invoices, automate invoice reminders, and accept payments directly through the invoice.
  4. You Want Strong Customer Service: FreshBooks generally receives positive reviews for its customer service. If having responsive and helpful customer support is important to you, this might be a deciding factor.

Why Should You Choose QuickBooks Accounting Software?

QuickBooks is an appropriate choice for you if:

  • You’re Looking for a Scalable Solution: QuickBooks plans serve a wider range of business sizes and needs. It offers more advanced features, more user allowances, and a broader range of third-party integrations, making it more scalable as your business grows and your needs evolve.
  • You Are a Medium to Large Sized Business: QuickBooks offers plans that cater to larger businesses with more complex accounting needs. The Advanced plan, for example, allows up to 25 users and provides features like custom user permissions and priority support.
  • You Need Integrated Payroll: QuickBooks offers integrated payroll services (at an additional cost), which can be a significant advantage if you have employees and want to manage your accounting and payroll in one place.
  • You Want More Third-Party Integrations: QuickBooks integrates with a larger number of third-party apps and services compared to FreshBooks. This can be an important consideration if you are already using other software and want to integrate your accounting software with them.

In Summary

FreshBooks vs QuickBooks is a long debate but to summarize, FreshBooks is the more appropriate choice for you if you’re a small firm or a solo entrepreneur.

In contrast, QuickBooks is a better general accounting application for enterprises of all kinds, larger businesses included.

FreshBooks offers a strong focus on invoicing and requires your permission to access your bank account, which is always an excellent security feature. On the other hand, QuickBooks doesn’t let you down if you need more than invoicing. It can handle practically every business area, including inventory management, project accounting, and tracking income and expenses by class. Which seems like a pretty good deal.

At the end of the day, when you ask yourself QuickBooks or FreshBooks? Both FreshBooks and QuickBooks are strong accounting software options, and the best choice depends on your specific needs and preferences. It is always recommended to take advantage of the free trials offered by both platforms to test them out and see which one works best for you.

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