Should I use QuickBooks or FreshBooks for a small business?
Key differences
QuickBooks Online offers a full accounting suite with features like inventory tracking, bill management, payroll (add-on), and multi-currency support. It's designed for businesses that need detailed financial reporting and can handle more complex transactions. FreshBooks started as invoicing software and has expanded to include double-entry accounting, but it remains simpler and more focused on service-based businesses.
Pricing varies: FreshBooks plans typically start around $15–$20 per month for a limited number of clients, while QuickBooks starts around $30–$35 per month for the Simple Start plan. Both often have promotional discounts for the first few months.
- QuickBooks: inventory, payroll, advanced reports, multi-currency
- FreshBooks: invoicing, time tracking, client portal, simple accounting
- FreshBooks pricing: from ~$15–$20/month
- QuickBooks pricing: from ~$30–$35/month
- QuickBooks scales to larger teams
- FreshBooks caps billable clients on lower plans
Ease of use and support
FreshBooks is generally praised for its intuitive interface and excellent customer support, making it a good choice if you're new to accounting. QuickBooks has a steeper learning curve but offers more resources and a larger ecosystem of accountants and third-party apps. If you plan to hire a bookkeeper, they're more likely to be familiar with QuickBooks.
Both offer mobile apps, but FreshBooks' app is often considered more user-friendly for on-the-go invoicing. QuickBooks' app is more feature-rich but can feel cluttered.
Which one for your business?
If you're a freelancer or a service-based business with simple needs—like sending invoices, tracking expenses, and managing a few clients—FreshBooks is often sufficient and more affordable. If you sell products, need inventory tracking, or have employees and complex payroll, QuickBooks is the better fit.
Consider your growth plans: QuickBooks can scale with you, while FreshBooks may become limiting if you add inventory or need advanced reporting. Many businesses start with FreshBooks and switch to QuickBooks as they grow, but switching can be time-consuming.
Common mistakes
- Assuming FreshBooks is always cheaper—its lower-tier plans limit billable clients, so costs can rise quickly as you grow.
- Thinking QuickBooks is only for large businesses—its Simple Start plan is designed for sole proprietors and very small businesses.
- Overlooking accountant familiarity—if you work with a bookkeeper, they may prefer QuickBooks, which can save you time and money in the long run.