FreshBooks vs TaxBandits (2026): which should you pick?

Pick FreshBooks if

• Fits if you're a freelancer billing up to 5 clients for your time
• Works for service businesses that send proposals and take retainers, which start on Plus at $43 a month

Look elsewhere if

• Pricey if you need accounting reports or bank reconciliation, as they start on Plus at $43 a month
• Tight if you bill more than 5 clients on Lite or 50 on Plus, and archived clients count toward both
• Watch out: the advertised prices are 80% off for 4 months only, then $23, $43 or $70 a month
• Pricey if you add people or payments: $11 a month per extra team member, $20 a month for Advanced Payments
• Skip it if you need payroll outside the US: it files US taxes only, costs $40 a month plus $6 an employee, and isn't in the trial

Pick TaxBandits if

• Fits if you file a few dozen 1099s or W-2s a year and want to pay per form
• Works for small businesses that already keep their books in QuickBooks or Xero

Look elsewhere if

• Not for you if you file outside the US, as it covers US federal and state forms only
• Tight if you file more than 2,000 1099s and W-2s or 1,000 94x forms, as above that you contact sales
• Pricey if you need recipient mailing from $1.85 a form or online access at $0.50 a form, since both are extra
• Watch out: corrections are free only when the original 94x return was filed with TaxBandits
• Watch out: the pricing page text would not load here, so the per-form prices are from the listing

FreshBooks

• The advertised prices are 80% off for 4 months; plans then renew at $23, $43 or $70 a month.
• Lite bills only 5 clients and Plus 50, counting archived clients; each extra team member costs $11 a month.
• Payroll costs $40 a month plus $6 per employee, files US federal and state taxes, and is not available during the free trial.
• Advanced Payments is a $20 a month add-on on every plan except Select.

TaxBandits

• Covers US federal and state forms only; it is not general bookkeeping software.
• Volume pricing stops at 2,000 forms for 1099 and W-2, and at 1,000 for 94x, above which you contact sales.
• Add-ons are charged separately: recipient mailing from $1.85 a form and online access at $0.50 a form.
• Corrections are free only when the original 94x return was filed with TaxBandits.

FreshBooks

Invoices, estimates and proposals

Recurring invoices, late fees and automatic reminders on every plan. Proposals and client retainers start on Plus.

Online payments

Clients pay by card, ACH bank transfer, Apple Pay, Google Pay, or Affirm and Afterpay. Card payments through FreshBooks Payments cost 2.9% plus $0.30.

Time tracking and projects

Unlimited time tracking on every plan, with project budgets and billing. Project profitability reports need Premium.

Expenses and receipts

Bank import, mileage tracking on mobile and unlimited expenses. Receipt scanning starts on Plus, and bill line-item capture on Premium.

Double-entry accounting

Accounting reports, bank reconciliation and accountant access start on Plus. Lite has tax-time reports only.

FreshBooks Payroll

Payroll run with Gusto inside FreshBooks: unlimited pay runs, free direct deposit, and federal and state payroll tax filing.

TaxBandits

Federal and state e-filing

Files 1099, W-2, 94x, ACA, 1042 and 5500 series forms with the IRS. State filing is free when it goes with the federal return in the combined filing program.

Data import and validation

Accepts CSV upload and API integration, with validation checks and USPS address validation (free). Smart Extraction pulls form data from documents at $0.35 a page.

Recipient copies

Online access to recipient copies is $0.50 a form; domestic postal mailing is $1.85 a form and international mailing $4.99.

TIN matching

Checks names and taxpayer ID numbers before filing, at $0.35 per TIN, or $99 for a bulk file.

W-9 and W-8 collection

A W-9 Manager requests and stores W-9 and W-8 forms from payees. The first 10 requests are free, and the page names it a free W-9 manager.

Corrections and retransmission

The Bandit Commitment promises no-cost corrections, free retransmission when a return is rejected, and a money-back guarantee, with terms.

FreshBooks

• Lite$23

  per month for 5 billable clients, billed monthly

  Advertised at $4.60 a month for the first 4 months. Invoices, estimates, expenses, online payments and tax-time reports.

• Plus$43

  per month for 50 billable clients, billed monthly

  Advertised at $8.60 a month for the first 4 months. Adds proposals, retainers, accounting reports, receipt scanning and accountant access.

• Premium$70

  per month for unlimited clients, billed monthly

  Advertised at $14 a month for the first 4 months. Adds project profitability, accounts payable, bill line-item capture and custom email templates.

• SelectCustom

  Unlimited clients, lower card fees, Advanced Payments included, 2 team members, unbranded emails and dedicated phone support.

TaxBandits

• 1099 / W-2 federal e-file$2.75

  per form for the first 10 forms

  Falls to $1.75 per form for 11-100, $1.15 for 101-250, $1.00 for 251-500 and $0.80 for 501-2,000. Also covers 1098, 5498 and 480.

• 94x payroll forms$5.95

  per form for the first form

  Forms 940, 941, 943, 944 and 945: $5.25 for 2-4 forms, $4.75 for 5-25, down to $3.00 for 501-1,000. Amendments are free.

• 941 bundle$21.42

  for 4 quarters of Form 941

  Four quarters of Form 941 after a 10% bundle saving from $23.80. A Complete 94x bundle with Form 940 is $26.77.

• W-9/W-8 requests$0.35

  per request after the first 10, which are free

  Requests sent by text cost $0.50 each. TIN matching is $0.35 per TIN.

FreshBooks

• Other savings

  80% off the first 4 months

  New customers pay 20% of the Lite, Plus or Premium price for 4 months, then the full monthly price. The page calls it a limited-time offer.

• Annual discount

  10% off with yearly billing

  Yearly plans cost $248.40 for Lite, $464.40 for Plus and $756 for Premium, 10% less than paying monthly.

TaxBandits

No public discounts listed.