Both FreshBooks and QuickBooks are affordable accounting tools for small businesses and solopreneurs, but their pricing depends on your business size and the features you need.
QuickBooks' basic plan, Essentials, starts at $25/month and ticks all of the boxes for small business accounting needs, offering core features for tracking income and expenses, capturing and organizing receipts, invoicing, accepting payments, and checking key reports and metrics. The main limitation of QBO’s Essentials is its access for only one user.
If you want to track time and inventory and access more reporting, including for project profitability, you'll need to opt for the Plus plan, available at $70/month.
The highest QBO plan, Advanced, is offered for $150/month. This gives you access to features such as batch invoices and expenses, automated approvals and reminders, management reports and fields, and custom reporting fields.
You can also add payroll to any plan as an add-on, which costs between $45 + $4/employee/month to $125 + $10/employee/month depending on the functionality you need.
FreshBooks' entry-level plan, Lite, is offered at $15/month, making it more affordable than QuickBooks Essentials. This plan has so many advantages for freelancers and very small teams - especially the unlimited customized invoices, expenses, time tracking and estimates. If you need time tracking on a budget, FreshBooks is the perfect choice.
A disadvantage of FreshBooks is the maximum number of billable clients per plan. With the Lite plan you can only manage and invoice 5 clients, which is very limited for most businesses.
However, this jumps up to 50 clients with the Plus plan, which is offered at an affordable $25/month, the same cost as QuickBooks's basic plan, and includes unlimited proposals and recurring invoices. FreshBooks Premium supports 500 clients.
If managing and invoicing many clients is important for your business, QuickBooks might be your better choice. QBO also offers the better solution for retail businesses that need to track inventory.
Alternatively, if you need to track time, FreshBooks offers this at a much lower price point.