What is FreshBooks & How Does It Work?

If you are a small business owner or freelancer, FreshBooks is the perfect cloud-based accounting software for you. This platform makes it easy to manage your invoicing, expenses, time-tracking, and project management, all in one place. This article covers the features, target audience, pros & cons, pricing plans, and you can learn everything about FreshBooks to be on top of your finances. 

Co-Founder– Mike McDerment
Company Founded– 2003
Company Based– Toronto, Canada, Ontario

FreshBooks: An Overview 

With FreshBooks, you can quickly and easily set up your account, add your clients and business details, and start creating and sending professional invoices in no time. You can also track your expenses and manage your projects with ease, making it simpler.  

FreshBooks is an accounting and invoicing software designed to serve the needs of a wide range of professionals and businesses. It offers solutions to simplify invoicing, expense tracking, and financial management. Here’s a snapshot of its target audience: 

1. Self-employed Individuals: This includes freelancers, independent contractors, and sole proprietors who manage their business finances. FreshBooks provides tools to make invoicing, expense tracking, and reporting easier for those who work independently. 

2. Solopreneurs: These are individuals who run their businesses single-handedly, from managing clients to handling finances. FreshBooks aids solopreneurs in streamlining their accounting processes, so they can concentrate on their core business activities. 

3. Agencies: Whether it’s a digital marketing agency, design firm, or any other type of agency, FreshBooks provides tools for efficient client management. Its collaborative features allow team communication and project coordination. 

4. Consultancies: Consultants often manage multiple clients, projects, and tasks simultaneously. FreshBooks offers functionalities that help consultants manage client engagements, track billable hours, generate detailed reports, and handle invoicing efficiently. 

5. Small to Medium-Sized Firms: SMBs require user-friendly accounting solutions to manage their finances effectively. FreshBooks caters to these firms by offering scalable features that can adapt as the business grows. From managing vendors and expenses to generating financial statements and facilitating online payments, FreshBooks provides a holistic solution for SMBs.

Also Read:- FreshBooks vs QuickBooks: Which is Best for Your Business?

Benefits of FreshBooks 

In this, we will explore the benefits of FreshBooks that make it an essential tool for businesses of all sizes. 

1. User-friendly platform: FreshBooks is designed to be easy to use, with a simple and intuitive interface that makes accounting tasks simpler and more efficient. 

2. Streamlined invoicing: You can quickly and easily create and send invoices to your clients, helping you to get paid faster. 

3. Time-tracking: It includes a time-tracking feature that allows you to track billable hours, making it easier to ensure accurate billing and manage projects. 

4. Expense tracking: This enables you to track your expenses and keep all your financial data in one place, simplifying your accounting tasks and making it easier to stay on top of your finances. 

5. Project management: Offers project management tools that enable you to manage your projects from start to finish, including task lists, project timelines, and team collaboration features. 

6. Online payments: You can accept online payments from your clients, making it easier to get paid quickly and efficiently. 

Pros & Cons of FreshBooks 

This table provides a clear differentiation between the pros and cons of using FreshBooks. 

How to Get Started with FreshBooks?

We’ll walk you through the process of using FreshBooks to streamline your accounting tasks and simplify your financial management. 

1. Create Your Account 

• To create a FreshBooks account, go to the FreshBooks homepage. 
• Click the “Try it Free” button. 
• In the pop-up window, enter your name and email address. 
• Click the “Create My Account” button. 
• FreshBooks will send you an email with instructions on how to complete your account setup. 
• Follow the instructions in the email to complete the account setup process. 
• Enjoy a free 30-day trial without entering credit card details. 

2. Choosing a Plan 

• Once the trial ends, choose a paid plan. 
• FreshBooks offers three pricing plans: Lite, Plus, and Premium. 
• The Lite plan starts at $4.25 /month (or with the current 60% off promotion). 
• The Plus plan prices start at $7.50/month. 
• The Premium plan is priced at $13.75/month. 
• To choose a plan, click on the “Upgrade” button in your FreshBooks account. 
• Select the plan you want to subscribe to. 
• Enter your payment details. 
• Click the “Subscribe” button. 

3. Add Client 

• After setting up your account and subscribing to a plan, you can add your first client. 
• To add a client, click on the “Clients” tab in your FreshBooks account. 
• Click the “New Client” button. 
• Enter the client’s details, including company name, and email address. 
• Click the “Save” button to save the client’s information. 

4. Create Invoice 

• Upon saving the client details, click on the “Create New” button. 
• From the dropdown, select the “Invoice” option. 
• A pre-filled invoice number and date will appear, which you can adjust as needed or keep as is. 
• Enter the client’s name and select the appropriate payment terms. 
• Add the products or services you provided to the client, along with their prices and quantities. 
• Click the “Save” button to save the invoice. 
• You can preview the invoice before sending it to the client. 
• To send the invoice, click the “Send” button and enter the client’s email address. 

5. Invoice Details:

• Create an invoice by adding items or services you’re billing for, specify the amount, and add your company’s logo. Ensure the item names are to the point (usually only 50 characters). 
• When billing hourly, please include the rate and number of hours. If you charge a flat fee for a project, please enter the entire amount. 

6. Time Tracking: 

• You can generate an invoice directly from the recorded billable hours. 
• Please proceed to the ‘Time Tracking’ section. 
• Select the billable hours and generate an invoice. 

7. Terms and Notes Addition: 

• To avoid any confusion or problems related to payments, it is important to clearly define the payment terms. This includes specifying the date by which the payment is due, the types of payment methods that are accepted, and any additional charges that may apply in case the payment is made late. 
• Use the ‘Notes’ section to include extra information or write a thank-you message. 

8. Invoice Dispatch: 

• Once the invoice is ready, review it to make sure all the information is correct. 
• FreshBooks has different ways to send the invoice to your client. You can either email it to them or share a link with them so they can view it online. 

9. Payment Monitoring: 

• When clients view or pay invoices, FreshBooks provides notification which makes it easy to track your invoice’s status. 
• If a payment is delayed, use the platform’s reminder feature to automatically send follow-up messages to the clients. 

10. Payment Integration: 

• To make the payment easier, you can integrate various online payment options. With FreshBooks, clients can pay their invoices through credit card or bank transfer using different payment gateways. 
• Configure your preferred payment gateway settings to make the payment process smooth and secure.

FreshBooks at a Glance 

FreshBooks Price 

FreshBooks offers several pricing plans that cater to the needs of different businesses. Here are some of the plans available: 

Conclusion 

FreshBooks is a cloud-based accounting software that allows small businesses and freelancers to manage their finances, invoicing, expenses, and project management in one place. The platform is designed with a simple and intuitive interface to ensure that users can easily navigate and utilize its features. Some of the essential features it offers include tracking time, monitoring expenses, managing projects, and accepting online payments. FreshBooks is suitable for a wide range of professionals and businesses, including self-employed individuals, solopreneurs, agencies, consultancies, and small to medium-sized firms.  FreshBooks offers several pricing plans that cater to the needs of different businesses. It is a versatile and effective accounting software that can help businesses manage their finances. 

If you need any personalized assistance with FreshBooks, please don’t hesitate to contact our experts at +1-855-875-1223. We’re always available to help you! 

Frequently Asked Questions