In the modern business landscape, business owners have to keep track of a lot of moving parts. Even small businesses cannot keep track of all their accounts payable, accounts receivable, payments, etc. without the help of proper bookkeeping software.
Today, there is a huge and diverse menu of accounting software that you can use for your business. Each of these applications has its own set of pros and cons – making them ideal for one business and difficult to implement for the other.
One such suite is FreshBooks or FB – a Canadian bookkeeping program that has been active since 2004. It is quite popular and is a very successful enterprise.
But what if youre not completely sold on FreshBooks?
What if youre looking for a different solution?
Dont worry, weve got you covered! Here are our top 7 alternatives to FreshBooks accounting software.
Whether youre looking for something with more features, a better user experience, or a lower price point, these are the best accounting software solutions for small businesses.
You can quickly jump on the sections using the links below.
FreshBooks or FB was developed in 2004 by three Canadian software engineers – Mike McDerment, Levi Cooperman, and Joe Sawada. At the very beginning, FB was not an accounting software at all.
It was an invoicing program designed for IT professionals who wanted a reliable platform to send clients their invoices. It was a simple yet elegantly designed software and became a huge hit in their niche segment.
The three pioneers of FB decided to develop a dedicated all-in-one bookkeeping suite and rolled out FreshBooks in 2016. Today, more than 30 million clients in more than 160 countries use FB for their accounts.
FreshBooks is a SaaS accounting platform that stores all the ledgers of a business on one secure server in the cloud. It has all of the standard features that one can expect such as payroll, accounts receivable and payable, invoicing, expense tracking, time tracking, etc. It also has more advanced functionalities such as tax reports, business health reports, client retainers, and so on.
First and foremost, FB is a great choice for self-employed professionals who run small or micro enterprises. The Lite plan of FB is a reasonable option and offers a lot of functionalities at a very nominal cost.
FB is also recommended for small businesses and medium-sized enterprises. If your business is located in one area (such as a diner, restaurant, or a grocery store), then you will benefit from FreshBooks.
The biggest plus-point is its strong invoicing feature – which is notably absent from a lot of other bookkeeping softwares. Another classic feature is the country-specific tax calculation which saves a lot of money and manpower for small businesses. FB also has a versatile and well-designed mobile app that business owners can use to track their business accounts and performance on the go.
Problems with FreshBooks
Despite being a solid product, FreshBooks comes with its own set of cons. Especially for medium-sized or large businesses which move a lot of products, FBs self-contained system breaks down. Here is a list of the main reasons why FB is not the ideal choice if you have a business that is taking off –
1. Lack of Scalability
One of the biggest drawbacks of FB is its lack of scalability. In 2022, businesses are characterized by their flexibility. FB, despite its many pros, is not a flexible or scalable platform. It will not be able to handle the pressure if your business suddenly becomes very busy – and the unified cloud ledger will start to glitch. Scalability is a major concern for modern businesses.
2. User Limits
FreshBooks has a very strict user limit policy, which can be a big inconvenience for growing businesses. For example, all of their pricing plans except the Select plan provides access to only a single user.
This is irksome for any business that has an accounting department with multiple team members. Adding extra users or clients to the platform involves an additional charge of $10, making overall scalability difficult.
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3. Bank Reconciliation Unavailable
The basic plans for small businesses do not have any bank reconciliation features available. This is highly inconvenient as business owners will have to reconcile their books with the companys bank account separately. This involves an additional cost of time, manpower, and money which can be a big hit for small businesses.
4. No Quarterly Tax Estimates
Unlike other bookkeeping software such as ProfitBooks, FreshBooks will not be able to provide you with quarterly tax estimates. You will have to subscribe to and integrate other third-party service providers if you want to get a reliable tax estimate for each quarter. You might have to contact a tax accountant to provide you with better insights about your tax situation.
Top 7 Alternatives to FreshBooks
FreshBooks is a popular choice, but its not the only one.
But, if you’re not satisfied with your current FreshBooks accounting software, then what are your options?
We’ve compiled a list of seven of the best alternatives to FreshBooks accounting software to help you make an informed decision. From cloud-based solutions to time-saving features, there’s an accounting software out there for everyone.
So, let’s dive in and explore the top 7 alternatives to FreshBooks accounting software.
1. ProfitBooks Accounting Software
ProfitBooks is a fantastic bookkeeping product with a wide range of functionalities. It has a cloud-based interface that can be accessed directly from your web browser. ProfitBooks was established in 2012 and it has managed to make quite a name for itself in a very short time. Bank services, taxation, etc. can all be managed using one software.
They also have a free startup plan that is very attractive to small businesses, self-employed individuals, etc. with tight budgets.
Another plus point is the remote bookkeeping services offered by ProfitBooks to small businesses. It’s affordable and completely takes the pain of accounting back from the business owner.
Users have left glowing reviews for ProfitBooks on Capterra.
Wave is an US-based online bookkeeping software that you can use if you want to cut some corners and improve your bottom line. This is the best option for you if you dont have a lot of accounting experience.
This is a very intuitive and easy-to-use platform which will allow you to track your expenses, payments, invoices, etc. However, it does not have a dedicated customer support wing – this can make using Wave a frustrating experience for many.
If youre looking for a barebones platform with powerful integrations and features, Xero is a great choice. It has competitive pricing and multiple users – making it a significant improvement over QuickBooks and FreshBooks. The platform also includes an inventory management system that is freely available.
There are 3 plan tiers for proprietors, businesses, etc. and it is a scalable platform. However, they do not provide dedicated phone support and there are limits on some of the features for basic accounts.
Zoho Books is an Indian company that specializes in bookkeeping and Customer Relationship Management (CRM) software. It has a clean, intuitive, and attractive GUI that is very easy to pick up and learn – even for business owners with minimal experience in accounting.
It also comes with a free pricing plan that makes it ideal for small business owners. However, you will require software experience to fully take advantage of the powerful automation features it possesses.
If tax compliance is very important to your business niche, then Sage One is a great choice. It is a powerful cloud-based system that can be used directly from your web browser. You can also integrate it with payroll, CRM, invoicing, etc. and collaborate directly with your accountant on projects.
You can also integrate Sage One with a lot of third-party software providers. However, Sage One has a very steep learning curve which makes it difficult to use. The print feature does not work properly.
If you want a fast and malleable platform to control and monitor your cash flow while maintaining tax compliances, MYOB is a great choice. It is a relatively new platform that has begun to make quite a name for itself in Australia.
If you have a small business with active cash flow, then MYOB is perfect for you. However, it does not have live phone support right now and troubleshooting errors can be a difficult and time-consuming process.
If you have a large business with a variety of needs, then QuickBooks is a great choice. It has a clean and well-designed interface that is easy to use. It also has an add-on payroll feature that allows you to run your payroll using one platform.
Unless youre using the premium plan, you will also not be able to access proper support in case of any technical errors. However, it does not provide technical support for basic subscriptions.
However Quickbooks are shutting down the india’s business. Click the link to know more.
Which Accounting Software is the Best?
Ultimately the decision of which accounting software is best for your business should be made according to the individual needs of your company.
Each of the seven alternatives to FreshBooks offers a unique set of features and benefits that you can take advantage of in order to make your accounting processes more efficient and cost-effective. No matter which solution you decide is best for your business, rest assured that you are taking a step in the right direction by conducting the research and investing in the financial software that will ensure your company’s sustainability.
Although subjective opinions will vary, it is widely accepted that ProfitBooks strikes the best balance between functions and price. They have a free plan for startups and a very useful bookkeeping service.