Paylocity vs FreshBooks
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
Paylocity
Paylocity is a modern HR and payroll platform designed for mid-market businesses. It combines payroll processing with employee engagement tools, learning management, and workforce analytics. Paylocity stands out for its strong mobile experience and focus on building connected, engaged workplaces.
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.
Pros
- ✓Strong employee engagement and communication tools
- ✓Excellent mobile app for both managers and employees
- ✓Modern UI with good user adoption rates
- ✓Robust payroll with strong compliance features
Cons
- ✗Pricing requires a sales call and is not published online
- ✗Implementation can be complex for larger organizations
- ✗Some advanced features require additional modules at extra cost
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
Paylocity vs FreshBooks: Side by Side
| Factor | Paylocity | FreshBooks |
|---|---|---|
| User Rating | N/A | N/A |
| Category | HR Software | Accounting Software |
| Pricing Model | Paid | Paid |
| Starting Price | Custom pricing | $19/mo |
| Best For | Mid-market businesses with 20-1000 employees | Freelancers and small service businesses wanting simple, beautiful invoicing and accounting |
| Our Pick | — | — |
Paylocity Features
- ✓Payroll
- ✓benefits
- ✓talent management
- ✓workforce management
- ✓analytics
- ✓employee self-service
FreshBooks Features
- ✓Invoicing
- ✓expense tracking
- ✓time tracking
- ✓project management
- ✓payments
- ✓financial reporting
- ✓bank reconciliation
- ✓mobile app
- ✓client portal
Pricing Comparison
Our Take
Choose Paylocity if mid-market businesses with 20-1000 employees. Choose FreshBooks if freelancers and small service businesses wanting simple, beautiful invoicing and accounting.
Best For
Mid-market businesses with 20-1000 employees
Best For
Freelancers and small service businesses wanting simple, beautiful invoicing and accounting
Also Consider
If neither Paylocity nor FreshBooks is the right fit, Justworks is worth evaluating.
Justworks
Small businesses wanting Fortune 500 benefits
From $59/employee/mo
Frequently Asked Questions
What is the difference between Paylocity and FreshBooks?
Paylocity is best for mid-market businesses with 20-1000 employees. FreshBooks is best for freelancers and small service businesses wanting simple, beautiful invoicing and accounting.
Which is better, Paylocity or FreshBooks?
Choose Paylocity if mid-market businesses with 20-1000 employees. Choose FreshBooks if freelancers and small service businesses wanting simple, beautiful invoicing and accounting.
How much does Paylocity cost?
Paylocity starts at Custom pricing. Pricing model: Paid.
How much does FreshBooks cost?
FreshBooks starts at $19/mo. Pricing model: Paid.
Who should use Paylocity?
Mid-market businesses with 20-1000 employees
Who should use FreshBooks?
Freelancers and small service businesses wanting simple, beautiful invoicing and accounting