QuickBooks vs Freshbooks

So looking at Freshbooks and QuickBooks. One of the first things we can tell you right out of the gates is the way that these two Services kind of differentiate themselves as:

  •   Freshbooks is more so meant for a self-employed or service-oriented business where QuickBooks is more you could say involved where you might have the company that sells a product or so, on the whole,
  •  Both Freshbooks and QuickBooks are online or web-based Accounting Solutions. Meaning you can use either platform anywhere you have access to the internet. So both Freshbooks and QuickBooks have a mobile accounting app available for IOS and Android devices so you can manage your finances on the go as well. 

 FreshBooks And its Features

So when you’re looking at these two services will first start talking about fresh books and some of the features that you might find interesting. So FreshBooks is designed to serve the needs of small business owners and in particular, it caters towards service businesses that have either self-employed professionals and small business owners who are looking for substantial invoicing capabilities within their accounting solution. So for FreshBooks, if you’re a photographer or maybe a small marketing consultancy, which I’m actually opening up where you just have clients, you need to build those clients. You need to invoice them. You need to keep track of your time. It’s a pretty good solution. 

So as far as some of the features sets that you might be interested in are:

  •  customizable invoice.
  •  connect to your business bank account.
  • expense tracking with taxation categories.
  •  The ability to send customized estimates is what we really like is the ability to allow clients to accept estimates online
  • Time tracking capabilities, which is nice in the fact that there are time tracking apps out there that are free, but it’s nice to be able to have that time tracking and then have it automatically sync with your billing with that client .
  • Project management file sharing the project management tool is not as robust as some of the other tools you may be familiar with if you’re looking at a sauna Monday.com. I mean, there’s a ton of them in base camp. There are so many project management tools out there. So depending on how many projects you’re doing you may want to look at some of those tools as well.
  •  The ability to accept credit cards for payments is huge of course essential accounting reports like ap & l profit and loss chart of accounts and balance sheets.
  •  They also have 200 third-party integration options. So for a simple service, if they do have a robust feature set.

Pricing of FreshBooks

         Now when it comes to the pricing of fresh books, it is cheaper than QuickBooks online, but FreshBooks requires that you pay an additional fee per user account regardless of Which one of the three plans you go with where QuickBooks Online offers a certain number of users based on the plan level. Now if we’re looking at FreshBooks light plan, we can scroll down here and we’re going to see that right now. It’s showing six dollars a month. It’s actually supporting the business community is doing a 60% off right now for shelter in place and everything crazy going on Spring 2020 here. But if we look at the light plan, usually it starts at $15 a month. 

There is a difference between if you’re paying monthly or annually, you can see that toggle switch here. So you can see that goes down to 450 or six. So there are a little bit of savings if you’re going with the yearly option with QuickBooks Online doesn’t matter. It’s the same price monthly no matter what so we’re looking at the light plan. It’s going to give you most of your feature sets you need as far as invoicing and accepting ACH transfers credit card payments online. It’s going to really kind of do the It’s unlimited time tracking unlimited estimates etc. If we’re going up to the next plan what you’ll see is the five billable clients becomes 50 billable clients

 Now, this is important to keep track of because let’s say if you’re on this light plan and you really don’t need anything from the plus plan, but you’re in an industry where you end up building a bunch of different clients, you’re going to end up incurring a cost for every client that you have to add on beyond the first five billable clients. So Is something definitely worth noting what I’ve realized? At these two services and comparing them is that FreshBooks is simple and their pricing is definitely cheaper, but I think that FreshBooks kind of stacks on extra cost when you’re talking about the number of billable clients where if you go to QuickBooks, there’s really no mention of how many billable clients you have because it’s all just included within the platform. So that’s definitely something you want to take into consideration.

 Now if you’re getting into Plus premium and select in my opinion if you’re looking At premium or select unless you have a really simple business that just has a lot of billable clients. So maybe your wedding photographer that does 50 different weddings every year and you want to have each one of those has a separate bill client, then it might make sense for you to do this premium because on the whole of everything you have a pretty simple business model, you know, you take photos or someone’s wedding you edit them and you deliver the final product, but you have a ton of people you work with so Freshbooks might make a lot of sense. 

But if you are in a business where you are going to be growing it into something kind of substantial where maybe it starts out kind of small, but eventually you’re going to have a bunch of employees underneath you you’re going to be selling product lines. You’re going to want to keep track of the accounting of those product lines where the money’s coming and going in those things. I think that’s where when you start looking at the QuickBooks Online pricing models. That’s where it makes more sense. So if you’re thinking about your business, I think it’s important to think about the scalability of your business and where you are trying to take it if You’re just self-employed or you’re just a service-based business and you’re going to stay relatively small. FreshBooks could make sense. But if you have plans on really growing pretty large and you want to be able to integrate with other services QuickBooks might make more sense. Some of the things they do while they’re fresh books are a little bit weaker on or don’t offer services on is the ability for mileage tracking sales tax tracking 1099 contractor management and account access for two accountants where FreshBooks only allows one and then as far as the online pricing.

 Fresh books as we discussed also break down their plans based on a number of global clients with QuickBooks Online. You’ll be able to add an unlimited number of clients to your account regardless of which four plans you have. Additionally. We’re Freshbooks requires you to pay an additional $10 per month per user for multi-user Access QuickBooks Online Bates multi-user access into their plan options. So if you’re planning on having like three to four different people at your company possibly accessing this information, it might make more sense to go to Books where it’s baked into the pricing refresh books is going to have you pay an additional $10 per month per user. Now finally. It’s also important to point out that unlike Freshbooks QuickBooks does not offer discounted pricing for purchasing an annual software plan, which we mentioned earlier. 

So one of the things you should be aware of like as we mentioned if you’re having more of a complex business, you know, you can add products that QuickBooks offer which has been allowed around a long time such as payments or payroll and those are pretty Savvy tools payments is that you can accept all types of payments it’s a pretty slick service from what we hear one of the nice things too is that you can actually pay your bills right from the platform which is not available on Freshbooks. And then as far as running your payroll with ease that’s a great service to be able to use and just kind of plugin and as far as payroll you can plug that right into what you’re already using with QuickBooks online. And again, you can see how with fresh books like you’re still going to have to go with another service repair role and with QuickBooks Online. You can just start plugging and adding different foods. Feature sets that they have available to you right into that service. So really when it comes down to it, you have to assess what your business is looking to do. If you’re looking to stay self-employed like a solo entrepreneur working on your own service-based business FreshBooks is probably more than you need and it will be a great tool for you. If you’re looking to possibly grow and expand and you have especially product lines that you sell you’re going to want to take a look at QuickBooks as your preferred vendor when it comes to your cloud-based accounting.

 

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