Xero or FreshBooks?
Pick the platform that fits your property business.
A side-by-side look at pricing, core features and who each platform suits, so you can decide whether Xero or FreshBooks fits your business best.
Small businesses, accountants and bookkeepers
Freelancers, solopreneurs and service businesses
Which one should you choose?
Each platform is strongest in a different situation.
Choose Xero
If you're a growing small business, or work with an accountant or bookkeeper, and need payroll, VAT/Making Tax Digital filing and multi-currency in one place.
Choose FreshBooks
If you're a freelancer, solopreneur or service-based small business that wants simple, automated invoicing with a 30-day free trial before committing.
Consider Zeevou
RECOMMENDEDIf you want your accounting needs to sit inside running a property portfolio, with a free core PMS, 0% direct booking commission and modular add-ons that scale with your business.
Xero vs FreshBooks at a glance
Based on publicly available data as of September 2026.
XeroAll-in-one invoicing, payroll, VAT filing and reporting for small businesses
FreshBooksSimple, automated invoicing for freelancers and solopreneurs
See what Zeevou offers
Free core PMS, 0% commission on direct bookings and everything you need to grow from 5 units to 200+.
Book a free consultation“…Easy to board the property and integrate with the OTA’s. I love the monthly chat where we can be updated on features and improvements…”
Tamar Finkelstein“…A game-changer in helping me systemise my business operations while providing a seamless user journey for my guests…”
Jordan Bunton-Williams“…The perfect Channel Manager for our portfolio. ID verification, agreements and security deposits all in one place!…”
Fabian ProsciucA quick feature breakdown
Bookkeeping
| Feature | Xero | FreshBooks |
|---|---|---|
| Bank feeds | ||
| Automatic bank reconciliation | paid add-on on Simple/Ignite plans | Plus/Premium/Select plans |
| Chart of accounts | – | |
| Multi-currency | Comprehensive/Ultimate plans only | – |
Invoicing and Payments
| Feature | Xero | FreshBooks |
|---|---|---|
| Custom invoices | invoice count limited on entry plans | |
| Recurring invoices | – | |
| Online invoice payments | payment fees apply | |
| Payment reminders |
Expenses
| Feature | Xero | FreshBooks |
|---|---|---|
| Receipt capture | ||
| Bills and payables | Accounts Payable, Premium/Select only | |
| Mileage tracking | per-user fee, higher plans only |
Reporting and Tax
| Feature | Xero | FreshBooks |
|---|---|---|
| Profit and loss report | – | |
| Balance sheet | – | |
| VAT / sales tax returns | not on Simple/Ledger plans | |
| Making Tax Digital support |
Team and Integrations
| Feature | Xero | FreshBooks |
|---|---|---|
| Multiple users | unlimited users on business plans | 2 included, extra £/$8-11/mo each |
| Accountant access | ||
| Payroll | headcount limited by plan, usage fees | paid add-on, $40/mo + $6/user |
| App marketplace / integrations |
Information is based on publicly available data and our independent analysis as of September 2026. Features, pricing and capabilities may change without notice. “–” means the company does not list the feature publicly.
Frequently asked questions
Is Xero or FreshBooks cheaper?
FreshBooks has a lower promotional starting price, from $1 per month in the first year on its Lite plan, while Xero starts at £18 per month in the UK with no promotional first-year discount mentioned. Both add payment processing fees on top of the subscription, and FreshBooks caps billable clients on its lower tiers while Xero caps invoice and bill volumes.
Which is better for freelancers, Xero or FreshBooks?
FreshBooks is positioned specifically for freelancers and solopreneurs, with a 30-day free trial and simple recurring invoicing. Xero is built more broadly for small businesses and the accountants who serve them, making it a stronger fit once you need payroll, VAT filing or multi-currency.
Does Xero or FreshBooks handle VAT and Making Tax Digital?
Both are HMRC-recognised for Making Tax Digital and VAT return submission. On Xero, this is not available on the entry-level Simple or Ledger plans, and on FreshBooks it is not available on the Lite plan.
Can I switch between Xero and FreshBooks easily?
Both are cloud-based subscription platforms, and each publishes its own pricing and plan details online, but migrating financial data between systems still takes planning around bank feeds, historical invoices and payroll records. It's worth mapping your current chart of accounts and client list before making the move.
What are the transaction fees on Xero versus FreshBooks?
Xero charges payment fees on online invoice payments and on bill or payroll payments beyond your plan's included allowance, such as £0.20 per extra bank-transfer bill payment in the UK. FreshBooks charges 2.9% plus $0.30 per transaction for card, PayPal and Stripe payments, plus 1% for ACH bank transfers in the US.
