Switch Guide: Moving from Xero to FreshBooks
Xero is a solid accounting tool from New Zealand, but for Canadian freelancers, contractors, and small businesses there's a homegrown option that's been built from the ground up with Canadian needs in mind. FreshBooks launched in Toronto in 2003 and has served millions of small business owners ever since. If you're tired of Xero's pricing tiers, its NZD-headquarters data policies, or you simply want to support Canadian tech, this guide walks you through every step of making the switch.
Why Canadian Businesses Are Making the Switch
Xero stores data in AWS regions that may include US servers, and as a New Zealand company it operates under different privacy frameworks than Canada's PIPEDA. FreshBooks, by contrast, is a Canadian company that hosts data in Canadian data centres, giving you clearer alignment with Canadian privacy law. Beyond data sovereignty, FreshBooks invoices in CAD, its support team is in Toronto, and its interface is often cited as simpler and faster than Xero's for the day-to-day needs of freelancers and small service businesses.
Quick Comparison
| Xero | FreshBooks | |
|---|---|---|
| HQ | Wellington, New Zealand | Toronto, Canada 🍁 |
| Data hosting | AWS (multi-region) | Canadian data centres |
| Currency | USD billing | CAD billing |
| Time tracking | Add-on required | Built-in, all plans |
| Invoicing UX | Functional | Best-in-class for freelancers |
| Payroll | Third-party only (Canada) | Integrates with Wagepoint/Humi |
| Inventory | Basic inventory | Not included |
| Entry price (CAD) | ~$20/mo | ~$19/mo |
Step-by-Step Migration Guide
- Export your Xero data — In Xero, go to Accounting → Reports and export your Trial Balance, Profit & Loss, and Balance Sheet as CSV. Export your contacts (customers and suppliers) from Contacts → All Contacts → Export. Also export your invoice history from Accounts → Sales → Export.
- Choose your switch date — Pick the first day of a month or the start of your fiscal year. This makes opening balance entry much cleaner.
- Set up your FreshBooks account — Start a free trial. Configure your business name, logo, address, and HST/GST tax settings under Settings → Taxes.
- Import your clients — FreshBooks accepts CSV client imports. Map your Xero contact fields (name, email, address, phone) to FreshBooks client fields via Clients → Import Clients.
- Set up expense categories — FreshBooks uses a simplified chart of accounts. Map your Xero account codes to FreshBooks categories. Work with your accountant to align them.
- Enter opening balances — Record your bank account balances, accounts receivable, and accounts payable as of your switch date. This is your starting point in FreshBooks.
- Migrate open invoices — Re-create any unpaid invoices in FreshBooks so you can track collections going forward. Mark them with the original invoice date.
- Connect your bank feed — FreshBooks connects to most Canadian banks. Set up your bank feed to pull transactions automatically from your switch date.
- Run parallel for 30 days — Keep Xero active for one month. Compare your FreshBooks reports against Xero to catch discrepancies before fully cutting over.
- Archive Xero data — Export a final full report package from Xero before cancelling. Store it for at least 7 years per CRA requirements.
Data Migration Checklist
- ☐ Trial Balance exported (CSV)
- ☐ Profit & Loss report exported (all periods)
- ☐ Balance Sheet exported (as of switch date)
- ☐ Customer/client list exported (CSV)
- ☐ Supplier/vendor list exported (CSV)
- ☐ Open invoices documented
- ☐ Recurring invoices noted (to recreate in FreshBooks)
- ☐ Bank account opening balances confirmed
- ☐ HST/GST rates configured in FreshBooks
- ☐ Payment gateway connected (Stripe, PayPal, Helcim)
- ☐ Accountant briefed and given FreshBooks access
- ☐ FreshBooks bank feed connected and tested
Watch Out For
- Inventory tracking: If you track physical inventory in Xero, FreshBooks doesn't support this. You'll need a separate tool like Cin7 or Shopify for inventory management.
- Multi-currency: FreshBooks supports multi-currency on higher plans. Confirm your plan level if you invoice international clients.
- Project profitability: Xero has project tracking features at higher tiers. FreshBooks' project module is solid but works differently — test it before cutting over.
- Accountant onboarding: If your accountant is a Xero specialist, plan time for them to get comfortable with FreshBooks. FreshBooks has an accountant portal to help.
- Historical data: FreshBooks doesn't import Xero transaction history natively. Your historical records stay in Xero — keep your Xero export as your archive.