Xero and FreshBooks are both popular accounting platforms, but they serve slightly different purposes, and most users won’t typically need to use both simultaneously. However, if you’re using Xero and are considering FreshBooks, there are a few reasons why this combination might benefit certain users, depending on your business needs:
1. Simplified Invoicing and Client Management
FreshBooks is known for its user-friendly invoicing and client management features. If your business relies heavily on invoicing clients, and you feel that Xero’s invoicing features are too complex or limited, you might benefit from using FreshBooks to handle client invoicing and payments, and then exporting or syncing those invoices with Xero for your overall accounting and reporting needs.
2. Freelancer or Small Business Focus
While Xero is more geared towards small to medium-sized businesses with robust accounting needs, FreshBooks is designed for freelancers and service-based small businesses. If you find Xero too complex for day-to-day tasks like tracking time, invoicing, and expenses, you might find FreshBooks easier to use for these activities while keeping Xero for your detailed financial reporting and compliance needs.
3. Expense Tracking and Mileage
FreshBooks has features that are especially useful for service-oriented businesses, such as tracking billable expenses and mileage. If your business involves a lot of client-related travel or reimbursable expenses, you could use FreshBooks to streamline this part of your business while managing more complex accounting and payroll with Xero.
4. Integrations
If you prefer FreshBooks’ ease of use for invoicing, client management, and time tracking but still need Xero for other financial purposes, you can use integration tools like Zapier to sync data between the two platforms. This allows you to benefit from FreshBooks’ simplicity without giving up the powerful accounting features of Xero.
Conclusion:
While Xero and FreshBooks are designed for different types of users, some businesses could benefit from using FreshBooks for invoicing, expense tracking, and client management, and then exporting data to Xero for comprehensive accounting and reporting. The decision to use both platforms depends on whether you need the simplicity of FreshBooks for day-to-day client interactions and the robustness of Xero for deeper accounting needs.