Are you looking to buy an accounting and billing software package for your business? There are numerous options in the market, but it is best to choose a highly efficient one. Why is it essential to pick the best in the market? According to a US Bank survey, 82% of the businesses end up closing because of mismanagement in cash flow. If you wish to be in the other 18%, it is vital to pick a reliable one.
You might be familiar with FreshBooks. It is one of the leading accounting software in the market. It is customizable and reliable. But if you are looking for a FreshBooks alternative, here are the top five options in the market.
5 Alternatives to FreshBooks
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1. Moon Invoice
Moon Invoice is a good choice for all business styles. The software offers unlimited invoices, estimates, purchase orders, and credit notes. It also comes with a dedicated expense tracker. If your business has recurring invoices and expenses, it becomes easier to manage those with Moon Invoice.
Moon Invoice also handles multi-currency and multiple businesses in the same platform. According to a Forbes study, using cloud computing can reduce labor costs by 50% and better utilization of capital by 75%. You can enjoy cloud sync features with Moon Invoice. It offers mobile payment options too. For companies looking for free invoice and billing software for Mac, iOS, Web, Android, and Windows, the Moon Invoice is a great choice.
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If you are a growing business, scalable software is essential. Moon Invoice is suitable for all business sizes, and it is easier to scale up or down based on your needs.
Advantages of Moon Invoice over FreshBooks are:
- Easy setup, induction, and configuration
- Easy-to-use dashboard with an overview
- Multiple platform compatibility
- Cost-efficient
- Database management, small business CRM, and systems management features
2. Xero
Xero is becoming a popular FreshBooks alternative for small and sole businesses. It offers enterprise-level packages, too. Since the software has tie-ups with third-party apps, you can enjoy a wide range of features. If you are looking for advanced features and better functionality in the dashboard, it is best to upgrade to higher packages.
Xero’s professional package offers features to handle volumes of invoices, quotes, and bills with ease. Xero also offers multi-currency functionality, payroll management, and more.
However, Xero does not have the facility to accept credit card payment or track the invoices for better management. The vendor offers a free trial period for thirty days to understand whether it is a good match for your requirements.
Advantages of Xero over FreshBooks:
- Simplified transactions
- Easy financial health overview
- Automated payroll processing
- Tax adjustments
- Better stock and inventory management
3. Zoho Books
Zoho Books is a top alternative for FreshBooks for small businesses. It helps with simple and easy management of finances and allows users to generate professional invoices. It can also manage online payment and give a better overview of the expenses.
This software’s other features are inventory management, project time tracking, templates for invoices, automatic bank feeds, and contract management. It offers multi-platform compatibility with Android, Windows, and iOS devices.
Key Takeaways:
- Calculating overhead costs accurately and reducing the ones that you can do without will help you increase revenue and reduce cash flow problems.
- Not all overhead costs can be removed. Some are necessary to run your business.
Advantages of choosing Zoho Books over FreshBooks are:
- Better tracking of invoices
- Automatic bank feed, payment reminder, and other workflows
- Tracking projects and time
- Better customer collaboration options
4. QuickBooks
QuickBooks is one of the best FreshBooks alternative software that comes with a multitude of features. It provides tracking and management features and comes in a variety of pricing options. Top Features of the software are customized templates for email, tracking bounced checks, calendar view, customer forms, contract management, and others.
However, the software does not meet expectations in handling multiple currencies. It does not sport features for collaboration either. The simple package has limited features, and thus, it becomes essential for small businesses to choose bigger packages.
If you have the QuickBooks Pro package’s budget, you can enjoy numerous features and functionality to manage your business from a single platform.
Advantages of QuickBooks over FreshBooks:
- Better organizational capabilities
- Advanced security features
- Offline availability of features
- Overdue bills tracking
- Better scheduling options
5. Intacct
Intacct is one of the best alternatives to FreshBooks if you want well-planned, feature-rich software with cloud facilities. Intacct’s scalability feature makes it a better option than most other products in the market. The features of this package have AICPA accreditation, and thus, it is very reliable.
Any company which needs active monitoring of finance can rely on Intacct. It is a mobile-based platform for both Apple and Android devices. The flexible pricing package and Intacct’s easy integration facility make it the best choice for small, medium, and large organizations. Beyond basic accounting features, the software also offers automated journal entry, trial balance automation, and bank reconciliation. It gives multi-currency support too.
Although the product offers a flexible pricing package, it is important to know that it may not be affordable for small and new businesses. It has a multi-functional interface but is quite outdated than most other options in the market. Beyond these, the speed is quite a major concern.
Advantages of Intacct over FreshBooks:
- Wide range of features for basic and advanced needs
- Simple and easy integration with legacy systems
- High security with limited user access
- Scalability
Conclusion
It is impossible to tag one software package to be far superior to others in the market. It depends on the features that a company needs. Although the above-mentioned five FreshBooks alternative packages are the leading ones in the market, it does not automatically make the perfect match for your business. Compare all the software packages and make an informed decision.
Recurring Payments Vs Recurring Invoices
| Recurring Payments | Recurring Invoices |
|---|---|
| Recurring payments charge the customer’s credit card account or debit card account on a predetermined schedule for the same amount as preapproved. | Send an invoice to your customer on a regular basis. The client receives the invoice but, money is not paid unless the customer approves. |
| A business that takes prepayment of money and sells a monthly subscription service and product. Subscription services are excellent examples of this. | A company that provides fixed services with billable hours is an excellent choice for recurring billing. For example law firms and consulting agencies. |
Pros and Cons of Recurring Invoices
| Pros | Cons |
|---|---|
 You eliminate the possibility of human error by automating the billing process. If you use a recurring invoice, you will not be concerned about forgetting to charge your customers for the things they ordered. |
 You must exercise caution while recurring billing to prevent issuing inaccurate pricing. This also holds for price changes that could take place right once an invoice is created. |
|
If you provide your customers with the option for recurring billing, they are more likely to buy products regularly. |
It could be difficult to cope with recurring invoices if a transaction fails for any reason. |
| Net 45 | Invoice is due in full within 45 days with no early payment discount offered |
| 2/10 net 45 terms | 2% discount if you pay within 10 days; otherwise full payment of the invoice is due in 45 days |
| 1/15 net 45 terms | 1% discount if you pay within 15 days; otherwise full payment of the invoice is due in 45 days |
| 1/10 net 45 terms | 1% discount if you pay within 10 days; otherwise full payment of the invoice is due in 45 days |
| 1/7 net 45 terms | 1% discount if you pay within 7 days; otherwise full payment of the invoice is due in 45 days |
| Category | Net Method vs. Gross Method | Explanation |
|---|---|---|
| Calculation Approach | - Applies tax credits first; reduces taxable income before computing tax liability. | - Doesn't apply tax credits; computes taxable income without considering tax credits. |
| Tax Credit Eligibility | - Allows for greater likelihood of tax credit eligibility due to reduced taxable income. | - Limits tax credit eligibility because taxable income hasn't been reduced yet. |
| Itemized Deduction Requirement | - Lowers threshold requirement for itemizing deductions due to decreased taxable income. | - Raises threshold requirement for itemizing deductions due to higher taxable income. |
| Advantages | - Leads to lower taxable income and increases chances of meeting qualifications for other tax benefits. | - Results in higher taxable income compared to net method. |
| Disadvantages | - May miss opportunity to reduce tax burden if taxpayer doesn't itemize deductions or take advantage of tax credits. | - Increases taxable income and may result in higher overall tax bill. |
Best Online Accounting Software for Small Businesses
The Accounting Software from Freshbooks empowers business owners like you to spend less time on bookkeeping and more time doing what you love.
