Tracking billable hours is a challenge that often haunts freelancers and small business owners. One moment, you are focused on a task or project. Next, you’ve lost your flow, and so have your notes on what to bill. The longer you take to get back on track, the less accurate your time tracking will be and the more money you’ll lose. FreshBooks and QuickBooks both offer features to help you track billable hours, but they do so in different ways. This guide provides a detailed comparison of FreshBooks vs. QuickBooks, helping you choose the best solution to track billable hours and get back to business accurately.
Tackle’s automatic time tracking software can seamlessly integrate with FreshBooks and QuickBooks to help you track billable hours with ease so that you can achieve your goals without the hassle.
Freshbooks vs Quickbooks at a Glance
FreshBooks and QuickBooks offer similar accounting tools. Both let you send invoices, track expenses, accept customer payments, and generate financial reports, such as balance sheets and income statements. They also connect to your business bank account to make expense tracking more seamless and offer the option to work with a bookkeeper if managing your accounting becomes too time-consuming.
FreshBooks
Freelancers and service-based businesses often prefer FreshBooks because of its clean, easy-to-use interface. It’s built with simplicity in mind, making it easy to get started without a steep learning curve.
QuickBooks
QuickBooks, on the other hand, provides a more comprehensive set of features. It’s suitable for a broader range of businesses, particularly those that require functions such as inventory tracking, detailed payroll, or custom reporting.
Collaborative Accounting and Platform Suitability
Both platforms support collaboration with accountants or bookkeeping professionals. QuickBooks offers access to an extensive network of certified ProAdvisors, while FreshBooks supports working with external accountants through its tools and integrations.
In choosing between them, FreshBooks tends to be a better fit for smaller or service-focused businesses, while QuickBooks is often preferred by those with more complex accounting needs or plans to scale.
What is FreshBooks?
FreshBooks is a leader in small business accounting software. Countless small business owners use FreshBooks to save time on billing and invoicing their customers.
The software is designed to be easy to use, featuring a streamlined interface that enables quick and simple creation of invoices, tracking of expenses, and management of your finances. FreshBooks offers numerous features that make it an attractive option for business owners, including its simplicity, flexibility, and seamless integrations.
Features
One of the best aspects of FreshBooks is its incredible user-friendliness. Everything is laid out intuitively, so you do not need to be an accountant or have any prior experience with accounting software to be able to use it effectively.
Flexibility
When it comes to small business accounting services, FreshBooks is very flexible. You can customize it to fit your business needs, and there are a variety of plans to choose from, so you can find the one that fits your budget.
Integrations
It also integrates with various business tools, such as:
- Freshdesk
- Slack
- Trello
You can also ensure effective management of your business finances by hiring outsourced accounting services. In this way, a team of experts is responsible for providing you with the best accounting and bookkeeping services through the latest tools and technologies.
Time Tracking
With FreshBooks, you can track the time spent on projects and tasks and easily turn that time into an invoice for your clients. The time tracking feature in FreshBooks allows you to keep track of your billable hours, track time on specific tasks, and generate reports to see where your time is being spent.
Robust Reports
FreshBooks also offers various reports that can be used to get an overview of the financial health of your business. You can track expenses, income, payments, sales taxes, and more.
Secure Payments
Lastly, FreshBooks makes it easy and secure to receive payments online. It integrates with major payment processors like Stripe, PayPal and Square, so you can easily accept payments from your clients.
Pros and Cons of FreshBooks
Pros
FreshBooks offers customized, branded invoices that can be sent at specified intervals. It’s easy to track time and send invoices via the FreshBooks mobile app. FreshBooks has robust project management features that are ideal for service-based businesses.
Cons
The FreshBooks mobile app can’t generate reports on the go. FreshBooks offers few inventory management features. There are no batch-invoicing shortcuts.
Related Reading
- What Are Billable Hours
- Invoice for Hours Worked
- Billable Hours vs Actual Hours
- How to Bill a Client
- Bill Rate vs Pay Rate
What is Quickbooks?
QuickBooks is accounting software designed to track income and expenses. Many small to medium-sized business owners use QuickBooks. As of 2019, there were already 3.3 million QuickBooks Online subscribers, 40% of whom were small businesses.
QuickBooks Online has several subscription levels you can choose from. Most of the QuickBooks Online subscription levels also offer multi-currency features. This is particularly useful for businesses that work with international customers and suppliers. It is available as a desktop software for Windows, with several editions. You can also choose the Mac or Online version.
Automated Financial Management with QuickBooks
Businesses can utilize QuickBooks to automate various processes, including invoicing, payments, accounting, and more. These features make it easier to manage and track business finances.
QuickBooks Online works with either the monthly or annual plan. Once you sign up, you’ll be able to use features that accommodate the type of business you own. Desktop versions are also available.
QuickBooks Online Features and Integrations
Features are geared towards freelancers, small, and medium-sized business owners. QuickBooks Online integrates with other Intuit software.
These include TurboTax (for preparation of personal income tax returns) and ProConnect (tax software for accounting professionals). It also integrates with many other software packages and apps.
Broad Business Process Automation and Trial Offer
These include:
- Managing charitable donations
- Scheduling
- Time tracking
- Document management
- Payment processing
- Inventory management
- Among others
These integrations and compatible tools allow users to manage and automate a wide variety of business processes.
There’s a free 30-day trial option you can take advantage of before you have to part with your cash. This is a great opportunity to explore what QuickBooks Online is and whether it can benefit your business.
The Top Features of QuickBooks
QuickBooks offers a wide range of features that are specifically designed to meet the needs of small businesses. Some of the key features include:
- Invoicing: QuickBooks allows you to create professional invoices quickly and easily, helping you get paid faster. You can also set up recurring invoices and track the status of payments in real-time.
- Expense Tracking: QuickBooks automatically imports and categorizes expenses from your linked accounts, allowing you to track your spending accurately.
- Payroll: With QuickBooks, managing payroll is simple. You can pay employees, calculate tax withholdings, and ensure compliance with payroll regulations.
- Tax Preparation: QuickBooks simplifies tax preparation by automatically organizing your financial data and generating reports that are ready for tax season.
QuickBooks: The Good and the Bad
QuickBooks Pros:
- Scalable Features for businesses of all sizes
- Inventory management capabilities
- Extensive reporting
QuickBooks Cons:
- Lower price tiers lack important features
- Less intuitive than FreshBooks
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Freshbooks vs Quickbooks: Key Feature Comparison
FreshBooks shines in invoicing. The platform offers intuitive and highly customizable invoicing, ideal for freelancers and small service-based businesses. Users can easily set up recurring invoices, automate payment reminders, and apply late fees. Time tracking integrates seamlessly, so billable hours are automatically included in client invoices.
QuickBooks also supports customization and automation, but is more suited for businesses that require bulk invoicing. Its time-tracking integration is only available on the Essentials plan and higher. For new users or those without accounting experience, FreshBooks is a more user-friendly option.
Expense Tracking: Keeping Tabs on Business Costs
Both platforms offer robust expense tracking features. They connect to bank accounts and credit cards to automatically sync transactions and categorize them for tax purposes. Receipts can be uploaded via photo, and both allow expenses to be marked as billable and added to client invoices. QuickBooks has an edge if you need PayPal integration, which FreshBooks doesn’t currently offer.
Customer Payments: Collecting Money from Clients
Both FreshBooks and QuickBooks allow you to accept payments via:
- Credit card
- Bank transfer
- PayPal
They charge similar transaction fees. QuickBooks is better suited for in-person payments, offering options like a mobile credit card reader. FreshBooks takes the lead for online payments thanks to its Checkout Links, which let you collect payments without sending an invoice ideal for social media or website integration.
Inventory Management: Tracking Products and Supplies
FreshBooks recently introduced basic inventory tracking, but its capabilities are still limited. QuickBooks, on the other hand, offers comprehensive inventory management with reporting features, low-stock alerts, and sales analysis.
Time Tracking: Monitoring Billable Hours
FreshBooks includes unlimited time tracking on all plans. It’s easy to assign billable hours to clients and convert them into invoices. The feature is built with freelancers in mind. QuickBooks only includes time tracking in higher-tier plans and is more appropriate for sales teams.
Reporting: Assessing Business Performance
FreshBooks keeps reporting simple, offering just seven core reports, like:
- Profit & Loss
- Tax Summary
- Payments Collected
This minimal approach works well for small businesses but can feel limiting. QuickBooks provides dozens of reports, even on its most basic plan. Users can run detailed financial statements, sales reports, and cash flow statements.
Integrations: Connecting to Other Tools
Both platforms integrate with a wide range of third-party apps. FreshBooks works well with:
- Zoom
- Shopify
- Gmail
While QuickBooks integrates with tools like:
- Amazon Business
- Shopify
- Fathom
The better option depends on the tools you already use in your workflow.
Mobile Access: Managing Your Books on the Go
Each platform offers strong mobile apps for iOS and Android. You can create invoices, track expenses and mileage, and view dashboards. FreshBooks includes an extra feature that allows you to communicate directly with clients from within the app.
Ease of Use: Finding Your Way Around the Software
FreshBooks stands out for its clean interface and beginner-friendly navigation. On G2 and Capterra, FreshBooks scores higher in ease of use compared to QuickBooks, which is feature-rich but has a steeper learning curve.
Scalability: Supporting Business Growth
FreshBooks is excellent for small businesses that intend to stay small. However, it lacks the depth needed by larger companies or those with complex operations. QuickBooks scales more effectively, supporting multiple users, detailed reporting, payroll, and more advanced inventory needs.
Customer Support: Getting Help When You Need It
FreshBooks offers support by phone and email and consistently ranks higher in customer satisfaction. QuickBooks offers more contact options, including live chat and in-app support, but receives lower ratings on review platforms.
Other Features: Comparing What’s Included
- Multi-Currency: FreshBooks supports it on all plans, while QuickBooks offers it starting with the Essentials plan.
- Payroll: QuickBooks provides a native payroll add-on, while FreshBooks requires third-party payroll integrations.
- Bill Payments: Available on mid-tier plans in both platforms.
Choosing the Best Software for Invoicing
No one wants to waste time figuring out how to use software when they could be issuing invoices and getting paid. An intuitive and easy-to-use software can save you time and reduce errors.
Look for a platform that offers a clear and accessible interface, allowing you to issue invoices, delivery notes, and estimates quickly and without complications. Simplicity in design can facilitate the integration of new users and improve operational efficiency.
A Cloud-Based System Provides Flexibility and Accessibility
The ability to access your billing system from anywhere is a significant advantage. Opting for cloud-based software will allow you to view your documents and carry out transactions from any device with an Internet connection. The centralization of information also ensures that all data is organized and available in one place, avoiding problems of document loss or disorganization.
Customize Invoices to Enhance Your Professional Image
The ability to customize your documents is critical to maintaining a professional image. Look for software that allows you to include your logo and adapt the documents to the identity of your company. Customizing invoices and other documents contributes to a consistent and professional presentation to your customers and suppliers.
Choose Software That Makes Sending Invoices Simple
An efficient billing system should enable you to send documents to your customers with a single click. Integration with your customer database is crucial for ensuring that documents are sent to the correct addresses without errors. Centralized document management enables more effective monitoring and organization.
Additional Features Can Improve Your Business Operations
In addition to billing, consider if the software offers additional functionality that can improve the overall management of your business. Features such as:
- Time tracking
- The management of tasks
- The inventory
- The location of visitors
- The online reservations
It can be beneficial for comprehensive administration. Software that combines these functionalities on a single platform can greatly simplify business management.
Look For Compliance Features To Help You Stay On Track
Select invoicing platforms that offer built-in compliance features. For instance, solutions aligning with the International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) facilitate adherence to financial reporting regulations.
Start Using Our Automatic Time Tracking Software for Free with One-click Today
When it comes to automating time tracking, Tackle takes the cake. Our software revolutionizes time tracking for teams with calendar integration that automatically captures and categorizes your time.
Instead of manually logging time like with QuickBooks, Tackle lets you focus on your work with automatic time tracking software for teams. Simply connect your Google or Outlook calendar, and Tackle gets to work. Our platform creates intuitive dashboards and reports, enabling you to understand and optimize your time allocation.
