FreshBooks vs Square Payroll
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
FreshBooks
FreshBooks is an accounting and invoicing platform designed specifically for freelancers, self-employed professionals, and small service-based businesses. It is known for its exceptional ease of use and beautiful invoicing tools. FreshBooks focuses on making accounting simple for non-accountants who just need to track income, expenses, and get paid quickly.
Square Payroll
Square Payroll is a simple and affordable payroll solution built for small businesses, especially those already using Square for payments. It handles full-service payroll, tax filings, and tip management automatically.
Pros
- ✓Easiest accounting software to learn and use — ideal for non-accountants
- ✓Beautiful, professional invoice templates
- ✓Built-in time tracking and project management
- ✓Excellent mobile app for tracking expenses on the go
Cons
- ✗Not suitable for product-based businesses needing inventory management
- ✗Limited features for complex accounting needs
- ✗More expensive than competitors for what you get on lower tiers
- ✗Payroll requires third-party integration
Pros
- ✓Very easy to use
- ✓Affordable flat pricing
- ✓Seamless Square POS integration
- ✓Handles tips and hourly workers well
- ✓Full-service tax filing included
Cons
- ✗Limited features for complex payroll needs
- ✗Not suited for larger businesses
- ✗HR features are basic
- ✗Best value only for Square ecosystem users
FreshBooks vs Square Payroll: Side by Side
| Factor | FreshBooks | Square Payroll |
|---|---|---|
| User Rating | N/A | N/A |
| Category | Accounting Software | Payroll Software |
| Pricing Model | Paid | Paid |
| Starting Price | $19/mo | Contact for pricing |
| Best For | Freelancers and small service businesses wanting simple, beautiful invoicing and accounting | Small businesses and restaurants already using Square POS wanting a simple integrated payroll solution |
| Our Pick | — | — |
FreshBooks Features
- ✓Invoicing
- ✓expense tracking
- ✓time tracking
- ✓project management
- ✓payments
- ✓financial reporting
- ✓bank reconciliation
- ✓mobile app
- ✓client portal
Square Payroll Features
- ✓Payroll processing
- ✓tax filing
- ✓benefits administration
- ✓direct deposit
- ✓employee self-service
- ✓reporting
Pricing Comparison
Our Take
Choose FreshBooks if freelancers and small service businesses wanting simple, beautiful invoicing and accounting. Choose Square Payroll if small businesses and restaurants already using square pos wanting a simple integrated payroll solution.
Best For
Freelancers and small service businesses wanting simple, beautiful invoicing and accounting
Best For
Small businesses and restaurants already using Square POS wanting a simple integrated payroll solution
Also Consider
If neither FreshBooks nor Square Payroll is the right fit, Dext is worth evaluating.
Dext
Bookkeepers, accountants, and businesses with high receipt volumes wanting to eliminate manual data entry
From $15/mo
Frequently Asked Questions
What is the difference between FreshBooks and Square Payroll?
FreshBooks is best for freelancers and small service businesses wanting simple, beautiful invoicing and accounting. Square Payroll is best for small businesses and restaurants already using square pos wanting a simple integrated payroll solution.
Which is better, FreshBooks or Square Payroll?
Choose FreshBooks if freelancers and small service businesses wanting simple, beautiful invoicing and accounting. Choose Square Payroll if small businesses and restaurants already using square pos wanting a simple integrated payroll solution.
How much does FreshBooks cost?
FreshBooks starts at $19/mo. Pricing model: Paid.
How much does Square Payroll cost?
Visit Square Payroll website for current pricing.
Who should use FreshBooks?
Freelancers and small service businesses wanting simple, beautiful invoicing and accounting
Who should use Square Payroll?
Small businesses and restaurants already using Square POS wanting a simple integrated payroll solution