QuickBooks vs FreshBooks: Which Accounting Software Is Better

Introduction: Why the Right Accounting Software Changes Everything

Every small business owner in the USA reaches a point where tracking income and expenses in a spreadsheet stops working. Invoices pile up, tax season becomes a nightmare, and you realize you have no clear picture of whether your business is actually profitable. That's the moment accounting software stops being optional and starts being essential.

QuickBooks and FreshBooks are the two names that come up most often when small business owners go looking for a solution. Both handle invoicing, expense tracking, and financial reporting. Both are designed for non-accountants. But they approach the job from very different angles — and choosing the wrong one wastes time, money, and a lot of frustration.

This comparison breaks down everything you need to know — pricing, features, ease of use, payroll integration, reporting, and real-world use cases — so you can make the right call for your business without testing both yourself.

Head-to-Head Comparison Table

QuickBooks Online Overview

QuickBooks is the most widely used small business accounting software in the USA, and it has earned that position by building a platform that handles the full financial picture of a business — not just invoicing, but payroll integration, tax preparation, inventory management, project tracking, and some of the most detailed financial reporting available at this price point.

It's the accountant's choice. If you work with a bookkeeper or CPA, there's a very good chance they already know QuickBooks and can jump straight into your account without a learning curve on their end. That alone is worth a lot when tax season arrives.

The Simple Start plan at $30/month covers income and expense tracking, invoicing, mileage tracking, and basic reporting for one user. The Essentials plan at $60/month adds bill management and up to three users. The Plus plan at $90/month includes inventory tracking and project profitability. For larger small businesses, the Advanced plan runs $200/month with more automation, custom reporting, and up to 25 users.

None of the plans include payroll — that's a separate QuickBooks Payroll subscription starting at $45/month plus $6 per employee. It integrates tightly with QuickBooks Online, but it's an additional line item in your budget.

Pricing Summary:

• Simple Start: $30/month (1 user)

• Essentials: $60/month (3 users)

• Plus: $90/month (5 users)

• Advanced: $200/month (25 users)

Pros:

• The most comprehensive accounting software for small business in the USA

• Deep financial reporting — profit and loss, balance sheet, cash flow statements

• Direct integration with QuickBooks Payroll

• Most accountants and bookkeepers already know the platform

• Strong inventory management on Plus and above

• Extensive third-party integrations

Cons:

• Steeper learning curve than FreshBooks — takes time to get comfortable

• Pricing adds up quickly when combining multiple plans and users

• Payroll is a separate, additional subscription

• Customer support quality has been inconsistent based on user reviews

• Interface can feel overwhelming for very small or simple businesses

FreshBooks Overview

FreshBooks was built with one type of user firmly in mind — the self-employed professional or small service business owner who needs to send clean invoices, track expenses, and get paid without spending hours learning accounting software. If QuickBooks is built for depth, FreshBooks is built for speed and simplicity.

Where FreshBooks genuinely stands out is invoicing. Its invoice builder is the cleanest and most professional in its price range — you can create, customize, and send a polished invoice in under two minutes. Clients can pay directly from the invoice via credit card, ACH transfer, or PayPal. Automatic payment reminders chase late invoices so you don't have to. For service businesses that live and die by their invoices, this alone justifies the monthly fee.

FreshBooks also includes time tracking on all plans — a standout feature that QuickBooks only offers on higher tiers. Freelancers and consultants who bill by the hour can log time directly inside the platform and convert it to an invoice with one click.

The Lite plan starts at $19/month and supports up to 5 active clients. The Plus plan at $33/month covers unlimited clients, proposal creation, and automated late payment reminders. The Premium plan at $60/month adds unlimited team members. For growing businesses, there's also a custom Select plan.

FreshBooks does not have native payroll — you'll need to integrate a third-party tool like Gusto, which works well but is an additional cost and another platform to manage.

Pricing Summary:

• Lite: $19/month (5 active clients)

• Plus: $33/month (unlimited clients)

• Premium: $60/month (unlimited clients + team members)

• Select: Custom pricing

Pros:

• Best invoicing experience of any small business accounting software

• Very easy to learn — most users are fully operational within an hour

• Built-in time tracking on all plans — no add-on required

• Clean, modern interface that feels genuinely pleasant to use

• Strong mobile app for invoicing and expense tracking on the go

• More affordable entry price than QuickBooks

Cons:

• No native payroll — requires a third-party integration

• Financial reporting is more basic than QuickBooks

• Lite plan limits you to 5 active clients — too restrictive for many businesses

• Not ideal for product-based businesses that need inventory management

• Less useful if your accountant prefers QuickBooks

Side-by-Side Feature Breakdown

Invoicing

FreshBooks wins this category clearly. Its invoice builder is faster, more visually polished, and packed with automation — recurring invoices, automatic payment reminders, late fees, and online payment links built right in. QuickBooks invoicing is solid and professional, but it takes a few more clicks to get to the same result. For service businesses that invoice regularly, FreshBooks saves real time every week.

Payroll Integration

QuickBooks takes this one with no contest. Its native integration with QuickBooks Payroll means your payroll data flows directly into your books with no manual entry or syncing. FreshBooks has no built-in payroll at all — you'll connect Gusto or another third-party tool, which works fine but adds cost and complexity. If you have employees and want payroll and accounting under one roof, QuickBooks is the clear answer.

Financial Reporting

QuickBooks is significantly stronger here. It generates detailed profit and loss statements, balance sheets, cash flow reports, accounts receivable and payable summaries, sales tax reports, and more. You can customize reports, filter by date range, and export everything your accountant needs at tax time. FreshBooks covers the basics — profit and loss, expense summaries, and tax summaries — but it doesn't go as deep. For a freelancer, FreshBooks reporting is enough. For a business with employees, multiple revenue streams, or investors, QuickBooks reporting is worth the extra cost.

Time Tracking

FreshBooks wins here too. Time tracking is built into every FreshBooks plan and integrates directly with projects and invoicing — log hours, assign to a client, and invoice with one click. QuickBooks only includes time tracking on the Essentials plan and above, and the experience is less intuitive. If you bill by the hour, FreshBooks handles this workflow better than QuickBooks at every price point.

Best Use Cases: Who Should Choose Which?

Choose QuickBooks Online if you are:

• A small business with employees that needs payroll integrated with accounting

• Running a product-based business that needs inventory tracking

• Working with a bookkeeper or CPA who uses QuickBooks

• A business owner who needs detailed, professional-grade financial reporting

• Planning to scale your business and need a platform that handles growing complexity

• Operating in an industry with complex tax requirements

Choose FreshBooks if you are:

• A freelancer, consultant, or self-employed professional

• Running a service-based business that invoices clients regularly

• A solo operator or very small team without employees

• Someone who wants to get set up fast without an accounting learning curve

• Billing clients by the hour and need time tracking built in

• Looking for the most affordable starting point for small business accounting

Frequently Asked Questions

Is QuickBooks or FreshBooks easier to use? FreshBooks is significantly easier to learn. Most users are comfortable with the platform within an hour of signing up. QuickBooks has more features but takes longer to navigate — it's more like learning proper accounting software, which some users appreciate and others find overwhelming.

Does FreshBooks have payroll? No — FreshBooks does not have built-in payroll. You'll need to connect a third-party payroll tool like Gusto, which integrates with FreshBooks and works well. If you need payroll and accounting in one place without extra setup, QuickBooks is the more streamlined choice.

Which accounting software is better for a freelancer in the USA? FreshBooks is the better choice for most freelancers in the USA. Its invoicing tools, time tracking, and straightforward expense tracking are built exactly for how freelancers work. The price is also more accessible, and the lack of payroll features isn't a drawback if you're self-employed with no employees.

Conclusion: Which Accounting Software Wins for Small Business?

This comparison doesn't have a single universal winner — it has two very clear winners for two very different types of businesses.

QuickBooks Online is the better accounting software for small businesses that have employees, complex finances, inventory, or a growing team. Its depth of reporting, native payroll integration, and the fact that most accountants live in QuickBooks already makes it the smarter long-term investment for businesses with real financial complexity.

FreshBooks is the better accounting software for freelancers, consultants, and service-based businesses that live and die by their invoices. It's faster, friendlier, more affordable to start, and handles time tracking better than anything else at its price point. If your business is essentially you — or a small team billing clients for services — FreshBooks does the job beautifully.

A simple way to decide: if you have employees or sell physical products, go with QuickBooks. If you're service-based and self-employed or running a small team without payroll, FreshBooks is the smarter, simpler choice.

Both offer a 30-day free trial — there's no reason not to test the one you're leaning toward before committing.