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FreshBooks Accounting Software Review

Donna Fuscaldo
Donna Fuscaldo
 

If your business generates a lot of invoices, FreshBooks accounting software may be just what you need. You can create professional invoices in seconds, track and bill expenses, send automatic reminders, and much more. We recommend FreshBooks as the best accounting software for invoicing.

FreshBooks Accounting Software

FreshBooks Accounting Software

The Verdict

FreshBooks is intuitive invoicing software that has all the features you need to manage clients and projects, create and send invoices, and accept online invoice payments. It earns our pick for the best small business invoicing software.

FreshBooks

Payments 9.5/10
Automatic invoicing 9/10
Third-party integrations 9.5/10
Mobile app 8.5/10
24/7 customer support 9/10
Editor's score 9.1/10


FreshBooks removes many of the challenges of accounting with its feature-rich invoicing capabilities. One of the many reasons we selected FreshBooks as the best invoicing software for small businesses is how easy it is to create and send professional invoices. With FreshBooks, you can set up recurring invoices, schedule automatic payment reminders, and accept credit and debit card payments online for your invoices.

FreshBooks monitors the status of invoices after you send them, showing you when customers receive and view them. It tracks billable time and expenses, allowing you to add them to invoices. This makes it a terrific option for freelancers and self-employed professionals, as well as agencies and firms that provide professional services.

Tip Tip: If you pay for FreshBooks annually, rather than month to month, you can save 10%. Currently, FreshBooks is offering a 60% discount for six months.

Pricing

FreshBooks is competitively priced and offers four plans; each plan, or tier, is based on the number of clients you work with. If you pay for FreshBooks annually, versus month to month, you can save 10%. Currently, FreshBooks is offering a 60% discount for six months. You can also take advantage of the 30-day free trial to try out the features before you subscribe.

Here is a breakdown of each plan. The prices reflect the current discounts being offered.

  • The Lite plan costs $4.50 per month for up to five billable clients. You can connect the software to your bank account, track time and accept invoice payments online. There's no limit to the number of estimates and invoices you can send (though, again, you are limited to five clients), and you receive free access to the FreshBooks iOS and Android mobile app.

  • The Plus plan costs $7.50 per month for up to 50 clients. According to FreshBooks, the Plus Plan is the most popular among its customers. With this plan, you can charge late fees and send recurring invoices, automatic payment reminders and proposals. You can run financial reports, including double-entry accounting reports for your general ledger, trial balance and chart of accounts. With the Plus plan, you can invite your accountant to collaborate with this plan without incurring an additional user fee.

  • The Premium plan costs $15 per month and supports up to 500 clients. This plan includes everything in the Plus plan, as well as more reporting and client-tracking capabilities.

  • The Select plan is best suited for businesses that bill at least $150,000 each year or have more than 500 clients. Pricing is customized, so you'll need to speak with a sales agent, who can give you a quote for your specific needs. In addition to all of the features in the Premium plan, FreshBooks gives you a dedicated account manager to work with. 
  • Additional users cost $10 per month each. This applies to business partners, contractors and employees you add to your account.

  • FreshBooks Payments, which allows you to accept payments online, costs 2.9% plus 30 cents per transaction. Alternatively, you can connect your Stripe account to the system.

  • Advanced Payments costs $20 per month plus 3.5% and 30 cents per transaction. This add-on service gives you a virtual terminal that allows you to accept payments over the phone and in person. Your clients can authorize recurring payments when you have this add-on.

Timesaving Features

FreshBooks has several features to make your accounting tasks easier and faster. Here is a rundown of those features:

  • You can quickly customize the look of your invoices to match your branding. You upload your logo, then choose a template, font and accent color. You can also customize your payment terms, add a note to your customer, request a deposit, and create a payment schedule directly on your invoice with just a few clicks.

FreshBooks' invoicing tools make it easy to bill clients and get paid.
  • Converting estimates and proposals to invoices is done in two clicks with FreshBooks. It's easy to duplicate and modify past invoices instead of creating new ones from scratch.

  • Any time you tracked for a project as billable is easy to add to an invoice. You can also easily add billable expenses to invoices.

  • You can email invoices and receive updates when your clients view and pay them. If you set up FreshBooks Payments or connect the software to your Stripe account, your customers can click a button on the invoice to pay it, eliminating the time it normally takes paper invoices to arrive in the mail.

  • The software allows you to schedule recurring invoices to be sent weekly, monthly, annually or as frequently as you choose.

  • You can send automatic payment reminders before or after the due date to encourage customers to be prompt when paying their bills. You can also set up the software to automatically apply late fees to past-due invoices, as either a percentage or a flat fee.

  • Using FreshBooks' mobile app, which is available for iOS and Android, you can create invoices immediately after meeting with a client. You can also use the app to capture receipts, chat with customers and check invoice statuses.

Additional Features

FYIFYI: The Premium and Select plans use double-entry accounting and allow you to create a chart of accounts and run new reports, such as a general ledger, balance sheet, and trial balance.

Like other popular accounting solutions, FreshBooks connects to your business bank and credit card accounts and automatically imports your expenses each day. Bank reconciliation is also available.

With the FreshBooks dashboard, you can handle all your accounting needs in one place.

Here are a few more things you can do with FreshBooks:

  • You can manage projects and base your billing on an hourly or flat rate. A time budget shows how much time you have remaining on a project, how much of your tracked time is unbilled, and a countdown of days until the project's due date. You can monitor how many hours your team members spend on each project, and also share files and discuss the project with them.

  • In addition to the reports mentioned above, you can run profit and loss reports, sales tax summaries, accounts aging and expense reports, invoice details, payment collected, and time-entry details. After running reports, you can email or print them, or export them to Excel.

  • FreshBooks offers more than 80 apps and integrations, allowing you to connect this accounting software to many other business services and systems you may already use.

  • You can invite business partners, employees, contractors and accountants to your FreshBooks account. Their user role determines the information they can access. Your business partners can access everything except integrations. Employees can access their projects, tracked time and expenses. Contractors can view only the projects you've added them to, and they can track time toward those projects. Accountants can see your dashboard, reports, expenses and invoices, but they cannot create invoices.

FreshBooks Pros

Did you know?Did you know? There’s no credit card required to open a trial account; you simply enter your email address and create a password, then click on a link in a confirmation email you are sent.

Ease of use is a big benefit of FreshBooks. Setting up an account is a quick process, requiring minimal steps. The software is easy to navigate; it's well organized, and everything is clearly labeled. We recommend taking advantage of the trial version before purchasing the software. There's no better way to determine if a solution can help your small business than using the software on a trial basis.

FreshBooks' proposals feature allows you to make professional-looking project bids.

Another plus of FreshBooks is that when you invite your customers to projects, they can set up a client account that allows them to comment on documents, such as proposals and estimates. You can reply to their comments and share files and links with them. They can also save their credit cards on file, making it easy for them to pay new invoices.

We also like that you can format invoices in several languages, including English, Spanish, French, German and Swedish. Multicurrency billing is also available; using FreshBooks Payments, you can accept payments in international currencies. These are helpful features if you have international clients.

FreshBooks Cons

FreshBooks is capable accounting software that makes invoicing easy, but there are a few things to consider before you decide if it's the right accounting solution for your business.

  • It lacks inventory tracking and vendor management. However, it does have time-tracking and project management features.
  • There are no batch-invoicing shortcuts, which would be useful if, for example, you're invoicing multiple customers for the same service at the same rate.
  • Although most features are available on the mobile app, you can't view reports. If you need to review a report while you're away from your computer, you'll have to use a browser to access your account, which is less convenient.

Customer Support

QuickBooks customer support is available weekdays from 8 a.m. to 8 p.m. ET by phone, email and live chat. The company's website has a searchable knowledgebase, a blog, free e-books and a webinar that teaches you how to use the software.

Image Credit: utah778 / Getty Images
FreshBooks Accounting Software

FreshBooks Accounting Software

The Verdict

FreshBooks is intuitive invoicing software that has all the features you need to manage clients and projects, create and send invoices, and accept online invoice payments. It earns our pick for the best small business invoicing software.

Donna Fuscaldo
Donna Fuscaldo
business.com Staff
Donna Fuscaldo is a senior finance writer at business.com and has more than two decades of experience writing about business borrowing, funding, and investing for publications including the Wall Street Journal, Dow Jones Newswires, Bankrate, Investopedia, Motley Fool, and Foxbusiness.com. Most recently she was a senior contributor at Forbes covering the intersection of money and technology before joining business.com. Donna has carved out a name for herself in the finance and small business markets, writing hundreds of business articles offering advice, insightful analysis, and groundbreaking coverage. Her areas of focus at business.com include business loans, accounting, and retirement benefits.