Both FreshBooks and QuickBooks are popular accounting software programs because they meet the needs of a wide range of clients. Let’s dive into the specifics of the two to see where each software shines.
Accounting vs. Invoicing
When it comes to accounting software, QuickBooks is the clear winner. It offers a wide range of features that can help small businesses keep track of their finances. From tracking income and expenses to creating invoices and paying bills, QuickBooks has everything you need to manage your books.
However, FreshBooks is a better option if you’re only looking for invoicing software. It has a simple interface and easy-to-use features that make it perfect for freelancers and small businesses. It also integrates with a number of other software programs, making it an excellent choice for businesses that need to track their finances in multiple ways.
Ease of Use
Where QuickBooks is a software loved by accountants, FreshBooks is loved by small business owners who don’t have accounting as their top skill set. FreshBooks is intuitive and easy to use. The dashboard makes it easy to get to what you need, whether that is the general ledger or invoicing. On the dashboard, you get a quick glimpse of your business’s financial health, allowing you to plan for upcoming expenses.
QuickBooks dashboard is more comprehensive than FreshBooks, which can be overwhelming to new users. It’s the difference in layout that makes FreshBooks easier to use than QuickBooks. Plus, there are fewer features, such as inventory management, which can confuse users new to QuickBooks. That being said, if a small business does need all the bells and whistles that QuickBooks offers, they’ll have to take the time to learn the program and master its features.
Customization
QuickBooks takes the cake for its ability to customize the system based on users’ preferences. Where FreshBooks allows customization of invoices, QuickBooks allows invoice customization along with the ability to customize users’ roles and workflows. QuickBooks offers specialized tutorials to help users make the changes that work for them.
By customizing fields, QuickBooks allows business owners to track what they want in a way that makes sense for their business. For business owners working with an accountant, this keeps both parties synced to data that is meaningful to operations. For example, you can track sales based on sales representatives working on ways to motivate the sales force to generate more revenues. FreshBooks doesn’t allow users to get deep into the weeds with customizations.
Features and Capabilities
A big comparison between FreshBooks vs. QuickBooks is the number of billable clients you can have on the lower-tiered plans. Where FreshBooks limits the number of clients to five on its Lite plan, QuickBooks is unlimited on all its plans. For FreshBooks users who don’t have a large book of business, this could be a non-issue, but for small business owners who must invoice a large number of clients, QuickBooks is the better solution.
The key features found in all FreshBooks plans are:
- Client profiles and account statements
- Stored credit card information
- Client self-service portal
- Automated recurring invoices
- Unlimited estimates
- Customized invoices
- Manage budget and billing for projects
The key features found in all QuickBooks plans are:
- Free guided setup
- Track income and expenses
- Capture and record receipts
- Mileage tracking
- Invoice and accept payments
- Run reports
- Generate estimates
- Manage 1099 contractors
Workflows and Automations
Everything starts from the dashboards of FreshBooks and QuickBooks. FreshBooks keeps the dashboard clean with limited summaries so that you aren’t overwhelmed with the data, whereas QuickBooks gives you the option of seeing everything from the onset.
One of FreshBooks’ useful automations is invoice generation. Rather than manually create an invoice every single time, FreshBooks pulls the necessary data from your contacts and creates a template for quick and easy processing. While it is automated, the user never loses the ability to control the process.
QuickBooks also allows you to automate the creation of invoices in managing your accounts receivable. Regularly occurring invoices can be established on a predictable schedule where the customer has their credit card information saved to be regularly processed. Automated processes assign a stakeholder to the workflow so that someone is overseeing the process to ensure accuracy and accountability.
Third-party Integrations
Integrating with third-party apps is important in today’s marketplace to ensure that your accounting software works with the other tools your company is using. This helps workflows move smoothly and prevents users from having to constantly toggle between two programs when working.
FreshBooks integrates with more than 100 apps. As FreshBooks states, this is to “simplify everything from payment to payroll.” You can integrate popular apps such as Indeed, Acuity Scheduling and NiceJob. For example, integrating with NiceJob can automate FreshBooks to solicit and capture reviews and referrals from your existing client base.
QuickBooks has a massive library of integrations. It will sync with more than 750 popular business applications. Using an integration such as Rewind Backups, users can automatically back up and restore QuickBooks data. Other popular integrations include BILL, Fundbox, Dext and Synder. Some integrations, such as Float, help users make critical decisions about cash flow and prepare for various business scenarios.
