Xero vs FreshBooks
Verified ratings, real UK pricing and the compliance detail, weighed side by side — with a written verdict at the end.
Xero
Accounting Software
- United Kingdom
- Ireland
- New Zealand
- Australia
- United States
- Canada
- South Africa
- Live Chat
- Knowledge Base
- Forum
FreshBooks
Accounting Software
- United Kingdom
- United States
- Canada
- Phone
- Knowledge Base
Evenly matched on verified reviews — 4.1 against 4.1. Price and fit will decide this one, not the score.
The short version
What each one costs and how each one rates, side by side. Only the rows where leading means something are marked; vendor and availability are in the overview above.
| Detail | Xero | FreshBooks |
|---|---|---|
| What it costs | ||
| Starting priceLowest paid tier, excluding VAT | £16/mo | £16/mo |
| Free version | NoNo | NoNo |
| Free trial | YesYes | YesYes |
| How it rates | ||
| Overall ratingMean of verified Assaylist reviews | 4.1 | 4.1 |
| Verified reviewsVolume is evidence, not a score — this row is not a contest | 297 reviews | 261 reviews |
How reviewers score them
Across the four dimensions we ask every reviewer about — and, below, the star split each average is built from.
- Xero
- FreshBooks
| Dimension | Xero | FreshBooks | Gap |
|---|---|---|---|
| Ease of use | 4.0 | 4.0 | Level |
| Value for money | 4.0 | 4.0 | Level |
| Customer support | 3.9 | 4.0 | 0.1 to FreshBooks |
| Functionality | 4.0 | 4.0 | Level |
What each average is made of
Two products can share an average and not share a reputation. These bars show the star split behind each score.
| Product | 5 star | 4 star | 3 star | 2 star | 1 star |
|---|---|---|---|---|---|
| Xero | 42% (125 reviews) | 34% (100 reviews) | 15% (45 reviews) | 6% (18 reviews) | 3% (9 reviews) |
| FreshBooks | 42% (109 reviews) | 36% (95 reviews) | 14% (36 reviews) | 7% (18 reviews) | 1% (3 reviews) |
Feature by feature
Everything either vendor publishes, split into what separates them and what they share.
- Both products
- 15%
- Only Xero
- 1152%
- Only FreshBooks
- 943%
21 features listed across both products.
What only one of them does
Xero
11- Best in class bank reconciliation
- Cash flow forecasting
- CIS calculations and subcontractor reports
- Industry benchmarking
+ 7 more in the table below
FreshBooks
9- Automated payment reminders
- Client portal
- Expense and mileage tracking
- Mobile app
+ 5 more in the table below
Showing 21 of 21 features
| Detail | Xero | FreshBooks |
|---|---|---|
| Where they differ · 20 | ||
| Best in class bank reconciliation | YesYes | NoNo |
| Cash flow forecasting | YesYes | NoNo |
| CIS calculations and subcontractor reports | YesYes | NoNo |
| Industry benchmarking | YesYes | NoNo |
| MTD for Income Tax ready | YesYes | NoNo |
| Multiple currencies | YesYes | NoNo |
| Payroll with RTI and auto enrolment | YesYes | NoNo |
| Performance dashboards | YesYes | NoNo |
| Smart document capture | YesYes | NoNo |
| Unlimited users on every tier | YesYes | NoNo |
| Very large app marketplace | YesYes | NoNo |
| Automated payment reminders | NoNo | YesYes |
| Client portal | NoNo | YesYes |
| Expense and mileage tracking | NoNo | YesYes |
| Mobile app | NoNo | YesYes |
| Online payments | NoNo | YesYes |
| Professional invoicing | NoNo | YesYes |
| Project profitability | NoNo | YesYes |
| Recurring invoices | NoNo | YesYes |
| Time tracking | NoNo | YesYes |
| Where they match · 1 | ||
| Making Tax Digital for VAT | YesYes | YesYes |
A dash means the vendor has not published a feature list — which is not the same as the feature being unavailable.
How they handle UK obligations
Checked against the vendor's own documentation or HMRC's published list. A dash means we have not verified it — never that it is missing.
| Detail | Xero | FreshBooks |
|---|---|---|
| Verified against vendor documentation | ||
| HMRC-recognised for MTD for VAT | YesYes | YesYes |
| HMRC-recognised for MTD for ITSA | YesYes | Not listedNot listed |
| Making Tax Digital ready | YesYes | YesYes |
| RTI-compliant payroll | YesYes | Not listedNot listed |
| Pension auto-enrolment | YesYes | Not listedNot listed |
| CIS support | YesYes | Not listedNot listed |
| Open Banking bank feeds | YesYes | Not listedNot listed |
| UK-based support | UK support team | Not stated |
What each tier costs
Both line-ups on one ladder, so the middle tier on one side sits next to the middle tier on the other.
Xero
FreshBooks
Ignite
£16/mo
- Send quotes and 20 invoices
- Enter 10 bills
- Submit VAT returns to HMRC
Lite
£16/mo
- Unlimited invoices
- Up to 5 billable clients
- Expense tracking
Grow
£37/mo
- Unlimited invoices and quotes
- Automate bill entry
- Payroll for 1 person
Plus
£30/moLower
- Up to 50 billable clients
- Recurring invoices
- Project profitability
Comprehensive
£50/mo
- Payroll for 5 people
- 90 day cash flow forecast
- Expenses for 5 users
Premium
£42/moLower
- Unlimited billable clients
- Advanced reporting
- Everything in Plus
Rungs are matched by position in each vendor’s own line-up, not by what the tiers include — an entry plan on one side may cover more than the other. Prices exclude VAT unless stated, and per-seat plans are quoted per seat. Always confirm on the vendor’s own site.
Which should you choose?
Two answers, because there are two right ones depending on what you need.
Choose Xero if
- It lists 11 features FreshBooks does not, including best in class bank reconciliation.
- It covers more of the UK obligations we check — 7 of them against 1.
Choose FreshBooks if
- It lists 9 features Xero does not, including automated payment reminders.
On verified Assaylist reviews, Xero currently rates 4.1 against 4.1 for FreshBooks. That gap is not the whole story: Xero starts at £16/mo and FreshBooks at £16/mo, so the right answer depends on the tier you actually need and on which one handles your UK obligations. Read both profiles before you commit, and confirm current pricing on the vendor's own site.
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