Best Bookkeeping Software: QuickBooks vs. FreshBooks vs. Xero vs. Sage?
- If you run a small business or are a freelancer, then keeping a tight grip on finances is critical for success，at this time，a right bookkeeping software is necessary! A online bookkeeping software helps—but choosing the right software can be difficult. How do you know which features and benefits you need? Which price structure best fits your business? FreshBooks, QuickBooks Online, Xero and Sage are 4 of the biggest names in the online accounting business. They each offer unique benefits, so to help you choose, we'll take a look at the features of each and how they stack up against one another.
What is Bookkeeping Software?
Bookkeeping software is a type of software that helps businesses track their financial transactions, such as purchases, sales, receipts, and payments. It automates all the processes related to financial record keeping, including invoicing, creating sales and purchase orders, scheduling reports, sending payment reminders, and generating bills.
Common Features of Bookkeeping Software
| >Invoicing:Create customized invoices with brand logo and payment details. | |
| >Expense tracking:Upload and track receipts to maintain a record of where money is being spent. | |
| >Online payment:Process and receive online payments from vendors and customers. | |
| >Reconciliation:Update and categorize financial transactions in real time, securely fetch transaction details, and reconcile all accounts. | |
| >Reporting:Create dashboards, reports, and charts for all receivables, payables, and inventory. |
Advantage and Disadvantage of Bookkeeping Software
| Pros | Cons |
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How to Choose Bookkeeping Software?
Online payment capability: Clearing payables and collecting receivables on time are equally important. Bookkeeping software that supports online payment helps you make and receive payments anytime, anywhere.
Customer support: Since bookkeeping solutions track finances, they are a crucial part of companies’ core operations. Thus, it’s imperative to discuss the level and quality of support offered.
Integration capabilities: It’s essential to choose bookkeeping software that can integrate well with your existing business applications, such as inventory management and document management.
QuickBooks vs. FreshBooks vs. Xero vs. Sage Review
Quickbooks Online
Known as the industry standard for small-business accounting software, QuickBooks Online is a solid choice for a wide variety of businesses, especially those that plan to work with a bookkeeper or accountant on a regular basis. With four plans and a range of add-on services, QuickBooks Online offers a high level of functionality, flexibility and scalability — you can customize this software to meet your business’s needs.
FreshBooks started its life as a simple invoicing solution. Over the years, it has expanded tremendously in scope, adding new features and enhancing existing ones every year. It's now a full-featured, double-entry, online accounting app for small businesses. FreshBooks manages accounts receivable and payable, inventory, and payroll through an integration with Gusto. New functionality since our last review includes integration with Microsoft Outlook, an Income Importer, project profitability reporting, and accounts payable tracking.
Although QuickBooks Online is user-friendly, there can be a learning curve, particularly if you’re unfamiliar with the basic principles of accounting. Additionally, QuickBooks can be expensive for many businesses, even more so if you add on time tracking or payroll.
QuickBooks Online Key Specs
| Double Entry | Yes |
| All Major A/R, A/P Forms | No |
| Mobile Access | Yes |
| Time Tracking | Yes |
| Payroll | Yes |
| Customer/Vendor Portals | Yes |
| Tracks Inventory | Yes |
| Training Available | Yes |
| Document Management | No |
| CRM Integration | Yes |
| Multi-Currency | Yes |
| Live Support | Yes |
How does QuickBooks Work Online?
Quickbooks is a web-based system, which can be accessed from any web browser. There are no installations or downloads necessary to use the software. Users can take photos of bills and submit them as expense proofs or share with the concerned stakeholders as well as download and reconcile credit card transactions.
Reviews:
| Pros | Cons |
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How Much does Quickbooks Online Cost?
Quickbooks Online offers 4 pricing plans to cater to business needs. The plans are subscription based and billed on a per-month rate that can be canceled at any time. Each plan comes with free expert setup.
| Plan | Pricing | Features |
$25 per month |
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$80 per month |
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$180 per month |
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New Discount:70% off QuickBooks Online for 3 months （ Ends Feb 22）
Does Quickbooks Online Have an App?
Quickbooks Online comes with free intuit mobile apps for Android and IOS devices.
Who Uses Quickbooks Online?
Quickbooks Online can be used by freelancers, small businesses, and mid-sized businesses in any industry including restaurant, retail, construction, legal, nonprofit, and more.
FreshBooks
FreshBooks takes billing out of your hands and puts it on autopilot. Set up automated invoicing, online payment options (ACH and Credit Card), and late payment reminders to get paid 2x faster. Next, boost team productivity with precise time tracking and collaborative project tools, so every minute, file, and conversation is tracked and logged. FreshBooks is a web-based accounting solution that caters to small businesses. FreshBooks serves various industries, such as marketing, legal services and business consulting, trades and home services and information technology (IT).
Key features of FreshBooks include invoicing, expense tracking, time tracking, reporting and payments management. Users can brand their invoices, accept online payments and set auto payment reminders. Expenses can be tracked by attaching receipts to invoices, creating recurring expenses and taking snapshots of receipts. Financial statuses can be viewed through profit and loss statements, tax summaries and expense reports. FreshBooks categorizes credit card transactions fees and provides a summary of all deposits on its dashboard. The system's time tracking module can extract unbilled project hours into invoices, record billable time and provide an analysis of time spent on projects.
FreshBooks Key Specs
| Double Entry | Yes |
| All Major A/R, A/P Forms | No |
| Mobile Access | Yes |
| Time Tracking | Yes |
| Payroll | Yes |
| Customer/Vendor Portals | Yes |
| Tracks Inventory | Yes |
| Training Available | Yes |
| Document Management | No |
| CRM Integration | Yes |
| Multi-Currency | Yes |
| Live Support | Yes |
How does FreshBooks Work?
FreshBooks offers a 30-day free trial for new users, designed to make it easy for business owners to get a feel for the platform so they can see if it’s right for them.
After a free trial, you can choose from one of four FreshBooks plans; the best option depends on the size and complexity of your business. The product has a support page for setup, with video webinars that explain the basics of using the software and its bookkeeping features.
On your main dashboard, you can see charts that summarize your invoices, profit and loss, revenue streams and spending. FreshBooks also has a mobile app for iOS and Android with access to the software’s basic features and the ability to track mileage and time.
Reviews:
| Pros | Cons |
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How Much does FreshBooks Cost?
Lite: $6/month - 5 clients Plus: $10/month - 50 clients Premium: $20/month - unlimited clients Custom pricing is available for unlimited clients and specialized features.
| Plan | Pricing | Features |
$6 per month or $108 annually | Designed for self-employed professionals, and it covers five billable clients.
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$10per month or $180 annually | Aimed at small businesses, and it covers 50 billable clients.
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$20 per month or $360 annually | Designed for growing businesses, and it covers unlimited billable clients.
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Custom pricing | Designed for businesses that need dedicated support. It supports unlimited billable clients.
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Does FreshBooks Online Have an App?
FreshBooks supports multiple deployment options, including: Cloud, SaaS, Web-based, iPhone, iPad, Android, Windows, Mac.
Who Uses FreshBooks Online?
FreshBooks is one of the best small business accounting applications, and we recommend it for the smallest of businesses: freelancers and sole proprietors. For that category, it's an Editors' Choice winner.
Xero
Xero is an accounting system designed for small and growing businesses. Xero connects small businesses with their trusted advisors and provides business owners with instant visibility of their financial position. As a web-based solution, Xero can be accessed from any device with an active internet connection. With Xero's robust accounting features, small businesses can view their cash flows, transactions and account details from any location. Bank transactions are all automatically imported and coded. Online bill pay helps keep track of spending and stay on top of bills due, improving relationships with the vendors that provide critical business materials. With Xero, personal expenses can also be managed with mobile review and approval of each receipt. Xero offers unlimited user support and integration with a variety of systems, including ADP, Bill.com and Vend. The solution comes with a 30-day free trial period for product testing and feature evaluation.
Xero Key Specs
| Double Entry | Yes |
| All Major A/R, A/P Forms | Yes |
| Mobile Access | Yes |
| Time Tracking | Yes |
| Payroll | Yes |
| Customer/Vendor Portals | Yes |
| Tracks Inventory | Yes |
| Training Available | Yes |
| Document Management | Yes |
| CRM Integration | Yes |
| Multi-Currency | Yes |
| Live Support | No |
How does Xero work?
Xero’s main hub is accessible online and used to manage staff and client data. Its Practice Manager tool is used to manage jobs, assign tasks, and track time. Xero can be integrated with external systems and connected to bank accounts to provide automated transaction feeds.
Reviews:
| Pros | Cons |
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How Much does Xero Cost?
Xero comes in three pricing levels that kick in after a 30-day free trial. Xero offers three pricing plans. "Early" is for new businesses, sole traders, and the self-employed. "Growing" is for small/growing businesses. "Established" is for established businesses. Prices and plans given here are for US-based customers.
| Plan | Pricing | Features |
$12 per month |
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$34 per month |
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$65 per month |
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Does Xero Have an App?
Yes, the Xero Accounting mobile app (for iOS and Android) provides on-the-go access to invoices, contacts, bank account balances, spending, cashflow, and more.
Who Uses Xero?
Xero is primarily used by small business owners, accountants, and bookkeepers.
Sage 50cloud
Sage 50cloud (formerly Peachtree Software) is a comprehensive accounting solution for small business. It provides core functionality, such as A/R and A/P, customer management and financial reporting. Premium features, such as detailed profitability tracking, cash flow forecasting and custom reporting, come standard.
Sage 50cloud enhances user productivity with convenient, cloud connected features, such as digital invoicing, online payments, automated bank reconciliation, Microsoft Excel-based reporting, and more. Remote access allows users to work on-the-go via laptop.
The software has built-in accounting and compliance controls that maintain accuracy and prevent common errors. Security functions include suspicious transaction flagging, audit trails and user access settings. Data can be backed up locally or to the cloud.All Sage 50cloud plans include core vendor, inventory and job management functionality. Advanced features tailor to certain industry segments, such as construction, distribution and manufacturing businesses.
Sage 50cloud Accounting Key Specs
| Double Entry | Yes |
| All Major A/R, A/P Forms | Yes |
| Mobile Access | Yes |
| Time Tracking | Yes |
| Payroll | Yes |
| Customer/Vendor Portals | No |
| Tracks Inventory | Yes |
| Training Available | Yes |
| Document Management | No |
| CRM Integration | Yes |
| Multi-Currency | Yes |
| Live Support | Yes |
Reviews:
| Pros | Cons |
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How Much Does Sage 50cloud Accounting Cost?
The Sage 50cloud Accounting line consists of three plans. Each plan offers full accounts payable and receivable functionality, as well as inventory management, integrated payroll, and reports.
| Plan | Pricing | Features |
$33 /month or $340/year | Includes :
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$52 /month or $528/year | Includes everything in Pro, plus:
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$87 /month or $876/year | Includes everything in Premium plus:
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Discount:New customers save 40% for the 1st year (discount code: D-1929-0067)
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Does Sage 50cloud Have an App?
Yes.Sage 50cloud supports multiple deployment options, including: Cloud, SaaS, Web-based, iPhone, iPad, Android, Windows, Linux.
Who Uses Sage 50cloud ?
Sage 50cloud Accounting itself is more sophisticated in some ways than even the best of the low-end accounting websites. That said, its strength—and the cost of subscribing—may make it less appealing to small, simple businesses. It's best suited to companies who need more advanced capabilities and customizability, aren't averse to desktop software, and whose remote employees have their own installations of the software so they can share company data through Sage's Remote Data Access.
QuickBooks vs. FreshBooks vs. Xero vs. Sage: Comparison Side by Side
Price
Quickbooks Online
Starting price:$7.5 per month
Free trial:Available(30 day free trial)
Free version:Not Available
FreshBooks
Starting price:$6 per month
Free trial:Available(30 day free trial)
Free version:Not Available
Xero
Starting price:$12 per month
Free trial:Available
Free version:Not Available
Sage 50cloud
Starting price:$33 per month
Free trial:Available
Free version:Not Available
Features
Quickbooks Online
Four, scalable plan options with advanced features for invoicing, reporting, inventory and taxes.
Wide variety of integration options, as well as QuickBooks/Intuit tools.
Integrated, in-house payment processing with options for in-person payments.
FreshBooks
Unlimited invoices, expenses, estimates and time tracking.
User-friendly interface and excellent mobile app.
Integrated, in-house payment processing with option for FreshBooks Advanced payments solution.
Xero
Unlimited users with all plans.
Customizable and robust advanced features for inventory, reporting, invoicing, etc.
Largest app store for third-party integrations.
24/7 online customer support.
Sage 50cloud
Sage 50cloud Accounting General Features Video
Sage 50cloud Accounting Accounts Payable Video
Sage 50cloud Accounting Cash Management and Banking Video
Assisted Bookkeeping Options
Mobile app
Quickbooks Online
Mobile accounting app available for iOS and Android
FreshBooks
Mobile accounting app available for iOS and Android
Xero
Mobile accounting app available for iOS and Android
Sage 50cloud
Mobile accounting app available for iOS and Android
Users
Quickbooks Online
One to 25 included users based on plan level
FreshBooks
$10 per team member; up to 10 accountants included with Plus and Premium
Xero
Free unlimited users with all plans
Sage 50cloud
The full Sage 50cloud experience that includes industry-specific functionality. 1-40 users.
Ease of use
Quickbooks Online
Excellent with an 8.3 usability rating from TrustRadius.
FreshBooks
Excellent .Getting everything set up in FreshBooks is easy, thanks to the straightforward walkthroughs.
Xero
Excellent with an 8.9 usability rating from TrustRadius, a review site for business technology.
Sage 50cloud
Excellent with a 9.0 usability rating from TrustRadius.
QuickBooks vs. FreshBooks vs. Xero vs. Sage Comparison Chart
| Bookkeeping Software | QuickBooks | FreshBooks | Xero | Sage |
Plans | Simple Start, Essentials, Plus and Advanced plans | Lite, Plus and Premium plans; Select custom-priced plan | Early, Growing and Established plans | Pro, Premium and Quantum Accounting |
Pricing | $7.5 to $54 per month | $6 to $18 per month | $12 to $65 per month | $33 to $87 per month |
Customer support | Phone and email-based support, Monday through Friday from 8 a.m. to 8 p.m. ET | Phone and live chat support, Monday through Friday from 6 a.m. to 6 p.m. PT; Saturday from 6 a.m. to 3 p.m.; Advanced plan support is 24/7 | 24/7 online support from Xero accounting team | 24/7 online support and call 1-877-495-9904 |
Best for | Freelancers, contractors and service-based businesses | Product- and sales-based businesses with more complex accounting needs; businesses looking for a highly scalable solution | Product- and sales-based businesses with more complex accounting needs, especially those looking for a lower-priced QuickBooks Online alternative | Product- and sales-based businesses with more complex accounting needs and small business |
| Double Entry | √ | √ | √ | √ |
| All Major A/R, A/P Forms | √ | / | √ | √ |
| Mobile Access | √ | √ | √ | √ |
| Time Tracking | √ | √ | √ | √ |
| Payroll | √ | √ | √ | √ |
| Customer/Vendor Portals | / | √ | √ | / |
| Tracks Inventory | √ | √ | √ | √ |
| Training Available | √ | √ | √ | √ |
| Document Management | √ | / | √ | / |
| CRM Integration | √ | √ | √ | √ |
| Multi-Currency | √ | √ | √ | √ |
| Live Support | √ | √ | / | √ |
| Where to Buy | QuickBooks |
Conclusion
1.Should I Use QuickBooks,FreshBooks,Xero or Sage 50cloud?
FreshBooks, QuickBooks Online, and Xero meet different needs—it's all about who you are and what you're looking for.
QuickBooks will appeal to businesses with brick-and mortar locations. Two types of card readers and an Intuit payment service make it easy to take payments on the go. (And direct integration with TurboTax is a plus.)
FreshBooks is great for very small businesses and freelancers. It's easy to use and feature-light, so you won't be paying for features you don't need.
Xero is the ultimate all-in-one accounting software for growing businesses. It has everything: project management, payroll, inventory, and an approval workflow. A simple pricing model means it grows with your company—and without hassle.
Sage 50cloud is the 1 rated accounting software for small business.It help you spend less time on admin tasks to gain greater clarity on your business performance.
2.Bookkeeping Software vs Accounting Software, What’s the Difference?
Bookkeeping software concentrates on the basic components of financial management. You’ll use a bookkeeping system like QuickBooks to document your finances and pay bills. But that’s mostly it. Bookkeeping software focuses on data entry and storage. This is what you use to log your revenue and pay expenses.
Accounting software performs all the functions of bookkeeping in addition to more analytical and actionable accounting functions like cash flow analysis and forecasting. Besides logging and processing debits and credits, accounting systems consolidate key data needed for more proactive financial strategies. What gives accounting software an edge is its proactive use of data.
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