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Small-business accounting software•United States•Reviewed September 20, 2026

FreshBooks vs Xero for small business: pricing, invoicing, and accounting compared

FreshBooks and Xero both cover invoicing and accounting, but they emphasize different workflows. This comparison focuses on regular US pricing, client and invoicing limits, bank reconciliation, bills, reporting, projects, and multi-currency features.

Quick comparison

At a glance

FreshBooks

FreshBooks

Xero

Xero

Best suited to
Service-based small businesses and solo operators that put invoicing, client work, estimates, expenses, and getting paid at the center of the workflow.
Small businesses that want bank reconciliation, bill management, reporting, and accounting workflows to sit at the center, with more advanced tools available as the business grows.
What stands out
Regular US monthly pricing is $23 for Lite, $43 for Plus, and $70 for Premium. Lite supports invoicing up to 5 clients, Plus up to 50 clients, and Premium unlimited clients. FreshBooks also includes expense tracking, estimates, online payments, and tax-time reports, with broader accounting reports and accountant access from Plus.
Regular US monthly pricing through September 30, 2026 is $25 for Early, $55 for Growing, and $90 for Established. From October 1, 2026, Xero says those prices will increase to $27, $59, and $97. Early includes up to 20 invoices and 5 bills, plus bank reconciliation, reporting, sales tax tools, and document capture. Higher plans remove core invoice and bill limits, while Established adds features including multi-currency, projects, and employee expense claims.
Check before choosing
FreshBooks is currently advertising temporary introductory offers, but this comparison uses regular plan prices. Team members, Advanced Payments, payroll, and some other services can cost extra. Confirm current pricing and feature availability before subscribing.
Xero is currently advertising a temporary new-customer discount through September 30, 2026; this comparison uses regular prices. Optional payroll and other add-ons can cost extra. The announced October 1, 2026 US price increase applies to new and existing subscribers.

Provider details

A closer look at each option

01 · FreshBooks

FreshBooks

Good fit for: Service-based small businesses and solo operators that put invoicing, client work, estimates, expenses, and getting paid at the center of the workflow.

Regular US monthly pricing is $23 for Lite, $43 for Plus, and $70 for Premium. Lite supports invoicing up to 5 clients, Plus up to 50 clients, and Premium unlimited clients. FreshBooks also includes expense tracking, estimates, online payments, and tax-time reports, with broader accounting reports and accountant access from Plus.

What to check

FreshBooks is currently advertising temporary introductory offers, but this comparison uses regular plan prices. Team members, Advanced Payments, payroll, and some other services can cost extra. Confirm current pricing and feature availability before subscribing.

02 · Xero

Xero

Good fit for: Small businesses that want bank reconciliation, bill management, reporting, and accounting workflows to sit at the center, with more advanced tools available as the business grows.

Regular US monthly pricing through September 30, 2026 is $25 for Early, $55 for Growing, and $90 for Established. From October 1, 2026, Xero says those prices will increase to $27, $59, and $97. Early includes up to 20 invoices and 5 bills, plus bank reconciliation, reporting, sales tax tools, and document capture. Higher plans remove core invoice and bill limits, while Established adds features including multi-currency, projects, and employee expense claims.

What to check

Xero is currently advertising a temporary new-customer discount through September 30, 2026; this comparison uses regular prices. Optional payroll and other add-ons can cost extra. The announced October 1, 2026 US price increase applies to new and existing subscribers.

Our process

How we compared

We compare the providers using their official US pricing and product pages reviewed September 20, 2026. We use regular subscription prices rather than temporary introductory discounts. We compare invoicing limits, expense and bill workflows, bank reconciliation, reporting, project-oriented features, multi-currency support, and the type of small business each product is designed to serve. We do not assign a universal winner because the better fit depends on the business workflow, number of clients, transaction volume, and accounting needs. Xero has announced US price increases effective October 1, 2026, so both its current and announced regular prices are noted.

Before you decide

Check the provider’s current pricing, eligibility, fees, included features, add-ons, and availability for your business before signing up. Product terms can change after our review date.