Xero vs FreshBooks: invoice and chase payments
FreshBooks is the better fit if you bill clients for your time and are not an accountant: you track hours and expenses, turn them into invoices, let clients pay by card online and have reminders chase late payers. Xero is the stronger choice for a UK business with an accountant, because it runs the full books with bank feeds and reconciliation, and UK accountants widely know it. Both send automatic reminders and connect to Stripe, so pick by who else works in your numbers.
Which one to pick
You are a UK company or sole trader whose accountant or bookkeeper wants to work in the same live books, or you want Chaser to take over payment follow-ups.
You are a freelancer, consultant or small agency billing hours, you want time tracking feeding straight into invoices, and nobody else needs to touch your books.
Side by side
Questions
Which one chases late payments better?
Both send automatic invoice reminders, so you stop writing awkward follow-up emails. Xero also connects natively to Chaser, a dedicated tool for credit control when reminders are not enough. FreshBooks lets clients pay by card online straight from the invoice, which removes one reason to pay late.
How much do Xero and FreshBooks cost?
You will not find a free plan for either one in our data. We do not show prices for either because we could not confirm them at our last check. Both vendors list their plans on their own websites, so compare the tier that includes the reminders and users you need.
Can I track time and bill for it?
FreshBooks tracks time and expenses and turns them into invoices, which suits people who sell hours. Xero focuses on invoicing, bank feeds and reconciliation. If timesheets drive your billing, FreshBooks saves you a second app.
Will my accountant prefer Xero?
In the UK, very likely: accountants and bookkeepers there use Xero widely, so yours probably knows it already. Sharing live books saves you sending spreadsheets at year end. Ask before you sign up, since some firms include software in their fee.
Do they work outside the UK?
Our data lists Xero for the UK and US. FreshBooks is listed in more markets, including Spain, Germany, France and Italy. Our compliance checks for Spain's Verifactu and Italy's SDI do not list either tool, so confirm local e-invoicing rules before you rely on them there.