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QuickBooks Desktop vs FreshBooks: Full Accounting or Simple Invoicing?

Two very different tools for two very different businesses.

QuickBooks Desktop and FreshBooks often end up on the same shortlist, but they're built for different people. FreshBooks started as invoicing software for freelancers and service businesses and grew into accounting. QuickBooks Desktop is full double-entry accounting software built for businesses of every type, from a one-person shop to a 40-user distributor.

If you know which camp you're in, the choice is usually easy.

What's in This Guide:

▶ At a Glance

▶ Where FreshBooks Shines

▶ Where QuickBooks Desktop Shines

▶ Who Should Choose Which?

▶ Growing Out of FreshBooks

▶ Three Real-World Scenarios

▶ Questions to Ask Before You Decide

▶ FAQs

Freelancer and bookkeeper comparing QuickBooks Desktop and FreshBooks

At a Glance

QuickBooks DesktopFreshBooks
Built forSmall and mid-sized businesses of all kindsFreelancers and service businesses
Where it runsInstalled on WindowsBrowser and mobile app
How you payOne-time license or yearly subscriptionMonthly subscription, tiered by plan
Works offlineYesNo
Invoicing and time trackingYesExcellent, very easy
InventoryYes, advanced in EnterpriseVery limited
Job costingStrong in Premier ContractorProjects for service work
Purchase orders and billsYesBasic bills
Industry editionsYesNo
ReportsVery extensiveCore reports

Where FreshBooks Shines

  • Easy invoicing. Beautiful invoices, online payments and automatic reminders with almost no learning curve.
  • Time tracking. Track hours against clients and projects and turn them into invoices in a couple of clicks.
  • Anywhere access. Works in any browser and on your phone.
  • Client-friendly. Clients can view, comment on and pay invoices online.

Where QuickBooks Desktop Shines

  • Real accounting depth. Full chart of accounts, journal entries, class tracking, budgets and a huge report library.
  • Inventory and purchasing. Purchase orders, receiving, reorder points and, in Enterprise, multiple locations and barcodes.
  • Industry editions. Contractor, manufacturing, nonprofit, retail and professional services versions in Premier and Enterprise.
  • Pay once. One-time licenses with no monthly bill. See our pricing guide.
  • Accountant-friendly. Most US accountants work with QuickBooks Desktop files every day.

Who Should Choose Which?

FreshBooks is a great fit if:

  • You're a freelancer, consultant or small service business
  • Invoicing and getting paid is 90% of your bookkeeping
  • You don't hold inventory
  • You want to work from anywhere

QuickBooks Desktop is a better fit if:

  • You sell products and track inventory
  • You have employees, subcontractors or jobs to cost
  • You need detailed reports for lenders, investors or your accountant
  • You want to own your software instead of renting it

Growing Out of FreshBooks

A common story: a business starts on FreshBooks, grows, hires, starts holding stock, and the accountant begins asking for reports FreshBooks can't easily produce. That's usually the moment to move to QuickBooks. Export your clients and items from FreshBooks, import them into QuickBooks Desktop, and start with opening balances at a clean cut-off date like the start of a quarter.

Three Real-World Scenarios

A solo web designer

Invoices go out to a dozen clients a month, there's no inventory and no staff. FreshBooks is quick, pleasant and does everything needed. QuickBooks Desktop would be more than this business needs today.

A plumbing company with five vans

Jobs, parts, subcontractors, payroll and a bookkeeper who needs real reports. QuickBooks Desktop Premier Contractor is the better tool, with job costing and purchase orders that FreshBooks doesn't really cover. Our contractor guide shows the setup.

A boutique that sells online and in store

Stock levels, reorder points and cost of goods sold matter every week. QuickBooks Desktop handles inventory properly; FreshBooks doesn't. See our retail guide.

Questions to Ask Before You Decide

  • Do we sell products, or only our time?
  • Will we hire employees or subcontractors in the next two years?
  • Does our accountant need detailed reports at year-end?
  • Would we rather pay once or pay monthly forever?

Frequently Asked Questions

Is FreshBooks easier than QuickBooks Desktop?

For invoicing, yes. FreshBooks is simpler to learn. QuickBooks Desktop takes a little longer to learn but does far more, especially for inventory, purchasing and reporting.

Can FreshBooks track inventory?

Only in a very limited way. Businesses that sell physical products generally need QuickBooks Desktop or another full accounting system.

Which is cheaper, FreshBooks or QuickBooks Desktop?

FreshBooks is billed monthly, forever. A one-time QuickBooks Desktop license costs more up front but usually works out cheaper within two years.

Can my accountant work with FreshBooks?

Yes, accountants can be invited to FreshBooks. However, many US accountants are more familiar with QuickBooks Desktop and prefer working with QuickBooks files.

Outgrowing Your Invoicing App? Let's Talk.

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Phone: (870) 232-6314

Email: info@accountingscart.com

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