Getting a new accounting software can turn out to be a nightmare because of the number of choices in the market. A good application should be able to do multiple things without needing additional software or support. Although many applications fit under the title of accounting software, they don’t share similar features or functionalities.
In this article, we will compare two of the most popular accounting software, Quickbooks and Freshbooks to help you decide which is a better option for you. We will look at the similarities and differences in how they operate to get a better understanding of both the software.
If your business works on billable hours, like lawyers or other service professionals, Freshbooks’ built-in time tracking capabilities will come in handy. It had a dashboard and project views to help you keep the projects and your employees on track. You can export this information to your payroll application when needed.
Quickbooks does not have a facility for time tracking. It is an actual accounting software which can do a lot of other things. If you want to run payroll, you will have to treat employees like a product and payroll as an expense.
Freshbooks comes with highly customisable invoicing features. It can pull the hours from the timekeeping function and once you mark it billable, it will show up in the invoicing section. You can even set up recurring billing, payment reminder emails, etc.
Quickbooks also provides a customisable invoicing feature. It can connect to external applications like TSheets to extract billable hours. It provides a click to pay button in the invoice and also has reminder features for late payments.
This is where Quickbooks shines. Its inventory tracking system ties in with its accounting software so you can enter the payments made to the suppliers and make future orders by looking at your current stock. It can handle small to medium retail and manufacturing businesses.
Freshbooks does not have an inventory tracking system.
In Quickbooks, you can track both expenses and credits, allowing you to keep an eye on the profit margin at every step. But this may involve some manual entries as Quickbooks was designed for line item entries.
On the other hand, Freshbooks is more oriented towards invoicing and collection. So you will need another application for expense tracking. But, it does have some features for sales tax management, receipt tracking and project time tracking.
Coming to the heart of the accounting software, Quickbooks shines in the accounting segment. You can use the double entry system to run a clean and balanced accounting system. Due to the number of features, it may take a while to master Quickbooks though. Once you get a hang of it, Quickbooks can be super easy to use and even share the data with your accountant.
Freshbooks does not provide a fully automated balance sheets and other accounting features. You will have to enter everything manually and this can end up being very time-consuming.