Techssocial | Are you having trouble keeping up with your business financial records? If yes, then we might have something interesting for you. Following, we are going to compare the leading accounting software. We are going to compare their features, convenience and then deduce which one is the best among them. So, take your time to read through it.
Table of Contents
Interface
QuickBooks is convenient because it’s been around for 11 years. FreshBooks has also n easy to use interface, but it looks similar to the older version of QuickBooks. Moreover, FreshBooks feels like a 1990s website.
People want a modern look with relevant information and enough white space. QuickBooks categorizes information better and presents it more recognizably compared to FreshBooks.
The QuickBooks only show those expenses which have been given to the general ledger which it filters the expenses and does not let every detail display on the interface. However, on the homepage of FreshBooks, you can see everything downloaded from the bank feeds no matter they are related to expenses or not.
Accounting Functionality
FreshBooks takes the lead with time tracking but if you want bank feed management, then go with QuickBooks. FreshBooks has no chart of accounts, and this concerns us. Therefore, you are unable to see the current cash position. It gets even worse because you won’t be able to track the credit card balance. You also won’t have the ability to manage the line of credit including adding something or minding the sales tax payable.
It means FreshBooks doesn’t let you open a new register to view history or transactions and you can’t reconcile any bank accounts or credit card. How your business is supposed to assure their books match what the bank has been saying?
Moreover, FreshBooks offers recurring invoices, but QuickBooks not only offer you a recurring invoice but also let you set it, so you create invoices automatically on a predetermined interval, especially if there is any time or expense labeled as billable.
QuickBooks offer delayed charges for stuff you want to track without putting them in invoice until you reach a later date.
While both software offers expense tracking, its only QuickBooks that offer a distinction of expense type, it’s important when you search for a specific transaction. Using more than one bank or credit card will make finding the transaction easy.
Categorization
If something has more than one bank account and credit card, you will have a hard time finding a transaction if you don’t have the date or amount. You can’t enter a bill to be paid later in FreshBooks; this means you can keep a record of stuff you need to pay for the layer. There are many cash basis companies which still prefer to enter bills so they can manage their cash flow a bit better. If you want to do this, then you better get QuickBooks.
The quick book also has another advantage; it lets you track two different tax rates and mark them as paid. There is no single tax summary report, unlike FreshBooks. If you are having trouble managing your books, you can hire professional service like Careful Cents.
Timekeeping
There are some built-in tracking capabilities provided by the FreshBooks. Such types of time tracking features are highly effective for those employees who are in need to track the billable hours. The user can keep track of the entire project and also the employees to ensure that everything is done in time. The timekeeping tools of FreshBooks effectively compiles the data regarding the billable hours. Depending on the individual needs, the user can import the compiled data to his accounting system.
QuickBooks, regarding the task of timekeeping, is much better than the FreshBooks since it provides an additional feature of keeping track of payroll of the individuals working full time or part time for any organization. This additional feature of the QuickBooks saves the user from having to manually enter the payrolls of every employee working in the organization in the expense category and then calculating the payroll.
Expense Tracking
The main focus of the FreshBooks is on the collection of the payment. For this, you will have to connect this software with an external accounting system so that it can accelerate the process of payment collection and invoice. Various tracking features are provided by FreshBooks such as tracking of receipt, management of the sales, management of sales tax, etc. Unlike QuickBooks, the FreshBooks does provide recurring invoices.
By using the QuickBooks software, the user can always keep himself updated about the information based on tracking of expenses. The user can also stay updated about the profit margins on every step. This is not very effective for many people since the user is required to make some entries to the database of QuickBooks manually that can be time taking. By using QuickBooks, the user is capable of generating the invoices automatically after regular intervals of time.
Access
The QuickBooks provides very limited access to it. Generally, only 5 to 7 people are allowed to access the QuickBooks according to the payment plan they choose. A high payment plan will definitely allow more people to use QuickBooks simultaneously. In FreshBooks however, there is no limit for how many people can access it at a time.
Conclusion
No doubt, both FreshBooks and QuickBooks are very commonly used bookkeeping software. Honestly, it was a tough competition between the both of them, but QuickBooks emerges the victor. It is a full accounting package with cloud-based software. It has robust features and easy integration with strong security. These features make QuickBooks the best accounting software for small businesses.
Hemant is Digital Marketer and he has 6 + years of experience in SEO, Content marketing, Infographic etc.