FreshBooks Invoicing Review 2024 (2024)
Our Research
If you run a small company or a freelance business, you are likely familiar with juggling multiple clients, payment deadlines, invoices and more—there’s always something else to remember. FreshBooks is an accounting software designed for solo business owners, freelancers and sole proprietors. The software makes it easy to stay organized, keep track of payments owed and expenses made, send invoices and accept payments.
While there are many accounting software options out there, FreshBooks is particularly well-suited for smaller businesses and companies with one main owner and operator.
FreshBooks Pros & Cons
Pros
- Intuitive and easy to use
- Affordable prices at a lower tier
- Double-entry accounting reports feature
- Provides easy-to-use accounting software for freelancers, solopreneurs and small business owners
Cons
- Not tailored for larger businesses
- Extra cost per month to add an additional team member
- Fewer customization options than other software
FreshBooks at a Glance 9.8 Editor Score
Integrations
9.5
Products
9.9
Promotions
9.5
Features
9.9
Customer Service
9.5
9.8 Editor Score
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What Is Freshbooks?
- FreshBooks makes the Best Accounting Software list for the category, Ease of Use.
- The software is designed for small businesses, such as sole proprietors who need basic accounting features.
- FreshBooks offers an introductory price that is 50% off the annual price—it’s $4.25 per month for three months.
- It is an easy-to-use software that doesn’t have a high learning curve.
How Freshbooks Works
The FreshBooks dashboard is the starting point for the platform. It gives you an overview of the outstanding revenue and total profit of your company. The left sidebar will help you navigate through payments, expenses and any other functions you need. The simple layout is easy to understand, leaving little space for confusion.
FreshBooks includes many capabilities that make it a great accounting and invoicing software for freelancers, solopreneurs and small business owners. It allows you to easily put an invoice together and accept payment through credit and debit cards, ACH transfers, Stripe and PayPal. The credit card processing fee is 2.9% plus 30 cents per transaction for Visa, Mastercard and Discover, which is standard in the industry. The American Express fee is 3.5% plus 30 cents per transaction.
What Sets FreshBooks Apart
When it comes to features and capabilities, FreshBooks offers the commonly required features that all accounting software does. What sets it apart from the competition isn’t any one unique feature, but its simplicity. Accounting can be confusing and overwhelming for business owners who aren’t trained accountants. FreshBooks streamlines the dashboard, which makes it easy to toggle between certain functions and reports.
Freshbooks Features
Ease of Use
FreshBooks is known for its easy-to-use platform. Whether you are navigating from entering expenses to collecting payments, the sidebar is intuitive to use and doesn’t get lost in confusing jargon. Additionally, FreshBooks has a user-friendly mobile app that allows you to enter data as you need to while out of the office. This helps you from falling behind on entries when working away from your desk.
Tax Filing
FreshBooks makes tax filing a breeze. Get a snapshot of your overall revenues so that you can properly report your business income. It categorizes expenses so you can run reports and get totals for your deductions. All this data is at your fingertips so that you can share it with your accountant. The higher-tiered plans do offer accountant access, making it even easier for a business owner to share necessary data with their tax preparer and reduce the chance of errors.
Time Tracking
One of the key expenses a business owner must keep track of is employee hours worked on a project. FreshBooks has specialized Time Tracking Software that integrates into FreshBooks so that your invoicing is quick and easy. It also helps business owners manage projects and clients so that they know how many hours are worked for any given task.
Analytics and Reporting
Have the reports that you need at your fingertips all the time with FreshBooks. In the Reports tab, you can access popular business accounting reports such as profit and loss, sales tax summary, aging accounts, invoice details and expense reports. Looking at these reports helps a business owner better understand their company’s financial health and is critical in the daily management of the organization.
Accessibility
FreshBooks is cloud-based. This means that you can access the platform from anywhere as long as you have an internet connection. Whether you use the desktop software or the mobile app, you can detail expenses, send invoices and run reports. The app makes it easy to track mileage and expenses on the go.
Freshbooks Pricing & Plans
FreshBooks is reasonably priced in the accounting software realm. It is only $17 per month for the Lite program. Users get 75% off the annual price for the first three months. This means that the Lite plan is only $4.25 per month initially. The Plus and Premium plans are $7.50 and $13.75 per month, respectively, during the same time frame. Additionally, the platform has a free 30-day trial. This is ample time to see if the platform meets your business needs and will perform the functions you desire.
| Lite | Plus | Premium | |
|---|---|---|---|
| Starting Price | $4.25 per month | $7.50 per month | $13.75 per month |
| Accountant Access | No | Yes | Yes |
| Bank Reconciliation | No | Yes | Yes |
| Double-Entry Accounting Reports | No | Yes | Yes |
| Tax Time Reports | Yes | Yes | Yes |
| Performance Dashboards | Yes | Yes | Yes |
| Dedicated Account Manager | No | No | No |
| Accounts Payable | No | No | Yes |
| Third-Party Integrations | 100-plus | 100-plus | 100-plus |
| Money-Back Guarantee | 30 days | 30 days | 30 days |
| Customer Support | Phone or chatbot | Phone or chatbot | Phone or chatbot |
Lite Plan
With the Lite plan, you’re able to send unlimited invoices to up to five billable clients. That number jumps to 50 billable clients with the Plus plan and then an unlimited number for the Premium plan.
The Lite plan offers the essentials and is best for people who only have a couple of clients and do not have a business model that focuses on attaining more. Still, you’re able to send payments with credit cards and bank transfers and track unlimited expenses, some of the key tools freelancers need. This plan also allows you to easily keep track of payroll through a Gusto Payments integration.
Plus Plan
For an extra cost, the Plus plan offers a more robust selection of features and is better suited for solo business owners who have more than five clients. In addition to 50 billable clients, the Plus plan offers double-entry accounting reports and the ability to invite your accountant and the ability to set up recurring billing and client retainers.
It offers everything that the Lite plan offers, as well as the ability to accept e-signatures on proposals and contracts. The Plus plan will allow you to send an unlimited number of proposals and take client retainers for regular work. You’ll be able to utilize the automatic expense receipt capture to simplify the accounting of regular expenses such as meals and travel.
Premium Plan
The Premium tier allows you to customize email templates and signatures, plus automated client emails with dynamic fields. This tier allows you to track bills, bill payments and vendors with Accounts Payable and project profitability. Both the Plus and the Premium plans offer the capability to bill clients on a subscription-based model. The Premium plan allows you to run project profitability reports to better manage your business and the projects you take on.
Freshbooks Customer Service and Support
FreshBooks offers several ways to get support. There is a phone support number, email form and chatbot that can provide service. The phone support number is 866-303-6061. In addition to these forms of support, users can utilize the vast knowledge base that the company offers. By entering your question in the chat, you’ll be directed to articles that often answer the question without the need for further assistance.
Additional Features Worth Noting
FreshBooks is known for its intuitive interface that’s easy to navigate. If you’re looking for a simple solution to organize your business accounting in one system, it won’t take long to get started with the basics and send your first invoice.
FreshBooks Alternatives and How They Compare
| FreshBooks | Intuit QuickBooks | Wave Accounting | Xero | |
|---|---|---|---|---|
| Starting Price | $4.25 per month | $15 per month | Free | $7.50 per month |
| Free Trial | 30 days | 30 days | None | 30 days |
| Integrations | 100-plus | 750-plus | 38 | Eight |
| Double-Entry Accounting | Yes | Yes | Yes | Yes |
| Bank Import | Yes | Yes | Yes | Yes |
| Tax Time Reports | Yes | Yes | Yes | Yes |
| Online Credit Card Payments | Yes | Yes | Yes | Yes |
| Checkout Links | Yes | Yes | Yes | Yes |
| Money- Back Guarantee | No | No | No | No |
| Customer Support | Phone and email support, live chat, knowledge base and help center | Live chat, video tutorials, phone and email support | Phone and email support for a fee, knowledge base and chatbot | 24/7 online support |
FreshBooks vs. QuickBooks
FreshBooks and Intuit QuickBooks both have a 30-day free trial. However, they are best used for different purposes. QuickBooks is better suited for larger companies as it enables more customization options, but it comes at an additional cost. FreshBooks, on the other hand, is a better fit for small businesses and situations where no more than one person is managing the account.
QuickBooks’ customization options are more elaborate than FreshBooks, but are also designed for larger companies and businesses that need more flexibility in their accounting systems. QuickBooks has the added advantage of being the platform most used by professional accountants, which means if you already hire or plan to hire an accountant in the future, there’s a better chance they will understand the ins and outs of QuickBooks over another accounting software.
FreshBooks vs. Xero
Both FreshBooks and Xero have a free 30-day trial so that you can check out the features before committing to a contract. Xero even allows you to cancel within a month, not locking you into a long-term contract if you decide it isn’t for you after a few months.
While both software programs offer all the bells and whistles you need to manage your business’s finances, Xero limits the number of quotes and invoices you can send each month. The maximum is 20, which can be quite limiting to a busy professional. Overall, FreshBooks is easier to use but limits the number of billable clients to five. So it will be up to the business owners to determine which limit will be more detrimental to business needs.
Is Freshbooks Right for Me?
FreshBooks is a great option for freelancers, small business owners and anyone who needs to send invoices and accept payment as part of a business. On the other hand, if you’re a larger team or want more customization options or more than one person on the account, it may be worth considering another option such as QuickBooks.
FreshBooks Is Best For:
- Small companies that need the ability to send invoices and collect payments in one convenient portal
FreshBooks Is Not Recommended For:
- Large companies seeking to customize the platform and reports
Bottom Line
FreshBooks is a good option for those who don’t have a lot of experience in accounting and want an easy-to-use way to manage their business finances. The software allows you to do everything from tracking expenses to sending invoices and collecting payments. It will make tax time easier by providing the required reports that your tax preparer needs to accurately file your taxes.
