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FreshBooks is easy-to-use accounting software with a clean interface that means even computer novices will feel comfortable navigating FreshBooks. It also offers a ton of features usually found in more robust (and more expensive) products, from quick invoicing to time and mileage tracking. Get the full story, including screenshots, in our in-depth FreshBooks review.
Pricing:
Lite: $19/mo
Plus: $33/mo
Premium: $60/mo
Select: Contact FreshBooks for rates
FreshBooks was created with self-employed freelancers in mind, giving them an easy way to track income and expenses. Today's FreshBooks is still great for freelancers, but it's also a comprehensive accounting solution for small business owners of all types.
Users can select from four plans based on their needs and business type. Options range from the Lite plan, which is perfect for sole proprietors and startups, to the Select plan, which is better suited for larger businesses with multiple employees.
Everything in FreshBooks is designed to help you do things faster, whether that's invoicing a client, recording a payment, tracking your time spent on a project, or snapping a photo of your lunch receipt for easy expense logging.
FreshBooks offers four plan tiers, each with an increasing array of features. You don't need the top tiers to save a ton of time, though. All four plans include the ability to:
Upgrading to the higher tiers gives you more access, plus extra features. For example, jumping up to Plus gives you the option to set up recurring invoices, capture receipt data, and invite your accountant. A Premium upgrade will also let you capture bill data and customize templates.
FreshBooks does invoices right. They're fast to make, easy to send, and simple to manage.
Indeed, creating a new invoice in FreshBooks takes less than a minute (depending on how fast you type -- or tap). To start, you can open a new invoice right from your Dashboard's dropdown menu, or with a tap in the mobile app.
From there, you can quickly add your client (if they're not in the system yet, no worries, you can add them right from the invoice!), add services or products, tack on sales tax, and set reminders. Once it's ready to go, email it directly to the client (or print it, if they're old-school).
Your invoices may take a few minutes longer if you decide to add a logo, fiddle with the font, or change the colors. (The FreshBooks branding will remain unless you upgrade to a Select plan.)
One thing I recommend taking time to tack on to every invoice is an automatic reminder, which will send email reminders to clients. Reminders can be set to go out before and after a bill is due, and the timing/frequency can be customized for each invoice.
FreshBooks will also notify you if the payment is late, and can even add a late fee if a payment is really late.
You can choose to accept online payments by connecting either Stripe (ACH and credit cards) or PayPal (PayPal accounts and credit cards). This will include paying the respective processors' fees, which start at 2.9%+$0.30 per transaction for credit cards in the U.S.
Once you're set up to accept online payments, you can include this payment option with each invoice. The easier and more convenient you make it to pay, the more likely you are to get paid quickly (or at all).
Made a mistake? You can also process full or partial refunds right from the invoice.
High plan tiers will get some extra features here, but let's start with the basics. All plans can connect bank and credit card accounts to automatically import expenses. This can save you a ton of time over manually entering your transactions.
Once uploaded, you can see a list of your expenses under the Expenses tab. Expenses can be categorized by type, supplier, and more. This lets you easily filter and organize your expenses for tracking throughout the year -- and, arguably just as important, for totaling at tax time.
If you upgrade to Plus tier, adding expenses gets even easier because you can access the receipt scanner. This lets you upload a photo of your receipt, and FreshBooks will automatically pull the important information from the photo to record the transaction. With a Premium plan, you can do this with other types of bills, too.
We all want to be paid for our time, but how often do you forget to write down how much time you've spent on a job? Using the time-tracking option, you can easily log your time for any job -- even when you're still out in the field.
The Time Tracking feature on the mobile app not only lets you log your hours, but it includes a built-in timer that can track your time for you. You can start, pause, and stop tracking time at the tap of a button.
Time logs can be assigned to specific clients and projects, then marked as "Billable" so you can quickly invoice clients for your time later. Add notes so you know what you got done during the time for easier records-keeping. (We always say we'll remember, but few of us really do.)
Your time isn't the only thing you can track. The app includes a mileage tracking feature that uses your device's GPS to automatically track your mileage.
Not a fan of the big brother approach? You can choose to manually enter your mileage, through the app. You can do this by inputting your miles driven, or by adding your start and end locations to the app and letting it calculate the miles for you.
It's important to note that the mileage functionality is limited, as it's intended primarily for tax deduction calculations. You can't turn saved trips into invoices, or really even use the data for anything. You can't even add mileage from the website, only the app. And the only way you can get your mileage data on the website is by downloading a report on your data.
If you work with a lot of different people and/or businesses, the Clients tab can be your best friend. Just having a database of clients, including their contact information, at your fingertips -- because yes, you can access it in the app -- can be a lifesaver if you're away from your desk.
But the features go far beyond a simple phone book. Each client entry includes valuable insight into current projects, including the status of each and every invoice. You can also edit reminders, create invoices and projects, and even run individual client reports.
Oh, and don't forget to check out the Relationship page at the top of each client entry. This is where you can write notes about the client that could be handy later, such as communication preferences or persistent issues. (Don't worry, clients can't see these notes, so you're free to be frank.)
If you have clients with multiple jobs -- or just like the extra level of organization -- you can head to the Projects tab. Here, you can organize each job into its own project, paid hourly or at a flat rate, and assign it to a client. You can even send estimates
By creating a Project entry for your job, you have now made your billing process about 1,000 times easier. You can easily log hours for each project, especially using the in-app time tracker mentioned above. Plus, a single click when uploading expenses and bills can also assign them directly to the relevant project.
With everything in one place, you get to the real gem of it all: You can easily generate accurate invoices for any project, using the hours, bills, and expenses already assigned to it. A few clicks and you're done.
Your reporting options in FreshBooks are modest but effective. For instance, you can find all of the standard accounting reports, from profit & loss statements to expense reports. There's also a mileage tracking report for deductions and a sales tax summary to help when filing.
There are myriad business reports, too. Want to see a summary of invoices over a set period of time? Generate an Invoice Details report. Wondering which items are selling the best? An Item Sales report can show you any trends. See Time Entry Details by project, client, or team member.
Your reports all live under the aptly named Reports tab. They're organized by type, though you can select up to six "favorites" that will appear at the top of the page.
If you're a data hound, you might find FreshBooks reports somewhat limiting, as there aren't a lot of customization options. However, reports can be exported to Microsoft Excel if you want to play with the data yourself. You can also email a report or save it as a PDF.
Many small businesses rely on contractors and other professionals to get things done. The My Team feature is a useful way to keep track of helpers, from tracking time to receiving invoices.
When you invite a team member, you can assign them one of five roles. The permissions they receive will depend on the role you assign:
Invitations require only the person's email address. Then, they'll need to make their own FreshBooks account (they don't need a FreshBooks subscription, however).
As with most online service providers, FreshBooks has doubled down on its digital support options. It has a decent help center that can answer many common questions. FreshBooks also offers a 24/7 chatbot -- dubbed FreshBot -- that can help you find specific answers if your own search isn't fruitful.
Even if you want a human, you'll need to go through FreshBot first. FreshBooks recommends being logged into your account before opening the chat for best results.
FreshBot may offer you a regional-specific phone number (only available during "business hours"), offer to submit an email ticket to a support specialist, or pass you on to a live chat agent.
FreshBooks offers four plan options, each with increasing functionality and features. You can choose to pay monthly or annually (annual subscriptions save 10%):
FreshBooks regularly offers promotional pricing for the first few months of a new contract, so be sure to check its website for the latest deal. You can also get a 30-day free trial if you want to check things out without risking your business's hard-earned money.
Some features outside the regular plans may require an extra monthly fee. For example, if you want to add on the Payroll feature, it'll cost $40 per month plus $6 per month for each team member.
FreshBooks can run on just about any modern web browser, including:
The FreshBooks mobile app is available for both iOS and Android devices.
The nice part of multiple interfaces is that the product remains in sync, so you can use your browser in the morning and your phone while you're out in the afternoon. The information will remain consistent in both.
Beyond the technical aspects, actually using FreshBooks is pretty easy. Most everything you might need at your fingertips is available on the Dashboard. You can get an overview of your business, from outstanding invoices to current revenue and expense numbers. A handy drop-down menu lets you start a new invoice, create a project, add new clients, and more.
The rest of the browser interface is equally intuitive, making it easy to find what you're looking for without having to click through multiple menus. The downside is that there aren't a lot of customization options if you don't like the way things are laid out.
FreshBooks' mobile app isn't quite as clean and smooth. I found it to be a bit buggy -- it froze in the middle of signing-in for the first time -- and sometimes slow to load. People seem generally happy with it, though, as it has 4.4 and 4.7 stars in the Google Play and Apple App stores, respectively.
Your FreshBooks experience will depend a lot on your business and which plan you choose. Overall, however, I consider FreshBooks to be a good balance of features and cost. If you're mostly working for clients by yourself -- or with the odd contractor -- then you'll likely get your needs met at a reasonable price.
On the other hand, if your business has a number of full-time employees and/or works with lots of vendors and contractors, this probably isn't the product for you. You may also find the features limiting if you like lots of data, customized reports, and/or have large product inventory to manage.
Here's a deeper look at some of the software's big pros.
FreshBooks' big allure is its clean and easy-to-use interface. Navigating the browser platform is pretty intuitive, and it doesn't take long to find what I need. In contrast, some competitors are so stuffed with features that it can actually be hard to find the ones you want.
Once you're set up, many folks could likely get by with rarely leaving the Dashboard. The status charts give you an overview of your finances, so you can spot trends or issues. And the drop-down menu has shortcuts to generate everything from invoices to projects to bills.
FreshBooks offers a lot of ways to save you time. One such feature is the ability to connect your business bank account and credit cards to your FreshBooks account. This lets the software automatically import your transactions so they can be sorted and categorized.
Folks with at least the Plus plan can do something similar with receipts. FreshBooks can use a photo of your receipts and automatically pull the pertinent information so you can record the expense. You'll need at least a Premium account to do the same thing with bills.
While normal employees have time clocks to track their hours worked, self-employed folks generally have to improvise. Or, better yet, you can just use FreshBooks' Time Tracking feature.
You can input time manually or use the built-in timer to track it automatically. Even better, use the FreshBooks mobile app to track your time spent on business while you're out in the world getting things done. Time tracked can be added to specific projects and clients, then easily tacked onto invoices for accurate payments.
While you're in the app, don't forget about the mileage tracking. While this feature is limited to basic mileage reports, it may still be useful for folks who drive a lot for their business. Mileage deductions can save you a ton of money at tax time.
The software has a few drawbacks to consider.
One thing that makes FreshBooks different -- in a bad way -- is its lackluster reports. Sure, you get all the basics you may need. You can print your profit & loss statement for whoever needs it, and see which items or services are selling best.
What you can't do is generate fully customized reports. If you want to do something with the data that FreshBooks hasn't included, you'll need to export the data into Excel and fiddle with it yourself.
One feature I like about other software I've explored is the extra tax features. For instance, QuickBooks Online can help you estimate your annual income and self-employment taxes. It can also generate and send 1099s to contractors on your behalf.
FreshBooks doesn't do, well, most of that. The only real tax-related tools you receive is the mileage report -- for mileage deductions -- and a basic sales tax report. Oh, and make sure you remember to manually add the sales tax to each invoice you send out (when required).
Perhaps the biggest drawback to FreshBooks is that it reserves some of its key (and most advertised) features for the higher-paying tiers.
For example, the company seems really proud of its receipt auto-capture feature. But you won't get to use it with a Lite account; it requires at least a Plus plan. You'll also need at least a Plus plan if you want to accept e-Signatures, invite your accountant, set up client retainers, or use double-entry accounting tools.
And be careful if you have a lot of clients. There are hard limits on how many clients you can invoice -- five clients if you have a Lite plan, 50 if you have a Plus plan -- until you upgrade to Premium.
It is remarkably easy to get started with FreshBooks. You can jump right into the free 30-day trial -- you don't even need a credit card! You can simply make an account and start exploring.
One of the first things you'll likely want to do is set up your client database. If you already have a client list (in .csv format), you can choose to import it. Otherwise, you'll need to add them individually.
After that, set up your current projects. Assign them to the appropriate clients. Then, head into the Items and Services page to add (or import) your offerings. Apply prices/rates for easy billing.
Now, connect your bank and credit card accounts so FreshBooks can import your transactions. As they import, you can categorize each expense and bill, as well as assign it to the project and/or client to which it's tied.
With everything set up and ready to go, you can start sending out invoices, tracking hours, and generating reports. Congrats!
FreshBooks' strength is its ease of use, thanks to a well-designed interface and streamlined features. Folks who have smaller businesses with no employees, who don't need excessive accounting tools or reports, will likely have the best experience.
The best part is that you don't have to guess if it's right for you -- you can simply give it a try. FreshBooks has a completely free 30-day trial that requires nothing more than an email address. You don't even need a credit card.
FreshBooks is solid accounting software without a ton of bloat. Its clutter-free interface has all the standard features -- and not much else. Small business owners who work primarily with clients and who don't have employees will probably find everything they need to get the job done. Folks with larger businesses, complicated inventories, or lots of employees may want to look for more robust software.
FreshBooks works best for sole proprietors and freelancers who want to be paid quickly.
Yes. FreshBooks added double-entry accounting in 2018, making it a true accounting program.
At this time, FreshBooks does not offer budgeting capability.
The yearly cost of a FreshBooks subscription will vary based on the plan and how you pay. If you choose an annual subscription (a lump sum once per year), you can save 10% over the monthly subscription cost.
FreshBooks works best for smaller businesses that primarily deal with clients through invoicing and that do not have employees.
Yes, you can enjoy a 30-day free trial of FreshBooks by simply signing up with an email address. You don't need a credit card.
Yes, accountants can and do use FreshBooks. With a Plus plan or better, you give access to your accountant to your FreshBooks account for easy data sharing.
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