web analytics
Search
Close this search box.

share

What is FreshBooks & How Does It Work?

What is FreshBooks

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. 

Pros Cons 
For businesses that require recurring billing, FreshBooks enables users to create and customize automated invoices, saving time and ensuring consistency. FreshBooks might not be the best fit for large businesses with complex financial needs. 
FreshBooks facilitates the payment tracking process, saving time and helping businesses get paid faster. The pricing structure is based on the number of clients you have, which means that your costs may increase as your business grows. 
FreshBooks offers a variety of invoice templates that can be customized to match a business’s brand identity and communication style. FreshBooks can be expensive, especially for businesses that require multiple users or more advanced features. There are other invoicing and billing tools available that may be more cost-effective. 
FreshBooks provides exceptional customer support. If you have any questions or need assistance while using the software, you can easily get in touch with a FreshBooks customer support team member who will be happy to help you. Alternatively, you can also consider hiring an outsourced accounting services provider to take care of the software for you, so that you don’t have to deal with any issues that may arise when using it.  Not suitable for e-commerce or intricate service industries, as it lacks some of the features required by these industries. 
Integrates seamlessly with various other platforms, such as Gusto and G Suite, making it easier for you to manage your finances across multiple platforms. Regardless of the subscription plan, the accountant cannot access the complete audit trail. 
FreshBooks provides double-entry accounting reports, providing accurate financial statements. It may not provide some advanced or specialized reporting options that larger or more complex businesses may require. 

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.
GET INSTANT RESOLUTION
Get our expert Quickbooks ProAdvisor on call
to resolve your query in no-time.

FreshBooks at a Glance 

Core Features The main feature of FreshBooks is its comprehensive invoicing system, which allows users to create, send, track, and manage invoices efficiently. 
User Friendly FreshBooks has a user-friendly interface that is designed for simplicity and efficiency. Its intuitive design makes it easy to navigate and manage financial tasks, even for users who don’t have extensive accounting knowledge. 
Scalability It primarily caters to freelancers and smaller businesses. The platform is designed to manage the needs of individuals or small teams and make it easy for them to manage clients, invoicing, and expenses as they grow. However, as the team or business size increases significantly, FreshBooks might not offer the comprehensive features and functionalities required for larger organizations. 
Collaboration with Accountants FreshBooks streamlines the sharing of financial information and facilitates effective communication about finances. 
Integrations Allows users to connect and merge various tools they use for their business, streamlining tasks and reducing manual input. It’s like adding enhancements to a system, making operations more efficient. 
Assistance You can reach me by phone or email. For immediate queries, please visit the global help center or chat with Fresh Bot. 
Price FreshBooks offers a variety of pricing options: Lite (USD 4.25), Plus ($7.50), Premium ($13.75), or talk to a specialist for customization and enhancements. 

FreshBooks Price 

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

Plans Features 
Lite ($ 4.25) Send unlimited invoices to up to 5 clients. Track unlimited expenses. Send unlimited estimates. Get paid with credit cards and bank transfers (ACH) Run reports for an easy tax time 
Plus ($ 7.50)  Everything in Lite, and: Send unlimited invoices to up to 50 clients. Set up recurring invoices and client retainers. Send unlimited estimates and proposals. Get paid with credit cards and bank transfers (ACH) Automatically capture receipt data Invite your accountant. Run financial and accounting reports 
Premium ($ 13.75) Everything in Plus, and: Send unlimited invoices to an unlimited number of clients. Automatically capture bills and receipt data Invite your accountant. Track project profitability Customize email templates with dynamic fields 
Select (Let’s talk) Everything in Premium, and: Access to lower credit card transaction fees and capped bank transfer (ACH) fees Automatically capture bills and receipt data Invite your accountant. Remove FreshBooks branding from client emails. 2 team member accounts are included. Help migrating from other software. A dedicated number for exclusive Select support 
TRACK AND ORGANIZE CLIENT INFO Lite Plus Premium Select 
Billable Clients 5 Clients 50 Clients Unlimited Unlimited 
Client Profiles and Account Statements  Yes Yes Yes Yes
Clients Can Store Credit Card Info  Yes Yes Yes Yes
Client Account Portal  Yes Yes Yes Yes
Client Credits  Yes Yes Yes Yes
Customized Email Templates and Signatures    Yes Yes
Automated Client Emails with Dynamic Fields    Yes Yes
Remove FreshBooks Branding from Client Emails     Yes
CLIENT PAYMENT OPTIONS Lite Plus Premium Select 
Online Credit Card Payments  YesYesYes Yes
Online Bank Transfers (ACH)  YesYesYesYes 
Checkout Links Get You Paid Without Invoicing  Yes YesYesYes
Access to Lower Credit Card Transaction Fees and Capped Bank Transfer (ACH) Fees    Yes
Securely Accept Credit Card Payments in Person or Over the Phone    Yes
Secure Card Storage    Yes
Charge Client Credit Cards    Yes
Instantly Capture Every Line Item on the Bills Lite Plus Premium Select 
Unlimited Time-Tracking  YesYes Yes Yes 
Unlimited Expenses  Yes Yes Yes Yes
Automated Bank Import   Yes Yes Yes Yes
Mobile Mileage Tracking  Yes Yes Yes Yes
Tax Time Reports  Yes Yes Yes Yes
Business Health Reports  Yes Yes Yes Yes
At-A-Glance Performance Dashboards  Yes Yes Yes Yes
Double-Entry Accounting Reports   Yes Yes Yes
Bank Reconciliation   Yes Yes Yes
Accountant Access   Yes YesYes
Automatic Expense Receipt Data Capture   Yes Yes Yes
Email Receipts Right to Your Account   Yes YesYes 
Automatic Bill Receipt Data Capture    Yes Yes
Project Profitability    Yes Yes
Accounts Payable    Yes Yes
Instantly Capture Every Line Item on Bills     Yes
2 Team Member Accounts Included     Yes
Dedicated Account Manager     Yes
Customized Onboarding Services     Yes
Data Migration Services     Yes
ADD-ONS Lite Plus Premium Select 
Advanced Payments $20/mo $20/mo $20/mo Included 
Team Members (per person) $11/mo $11/mo $11/mo $11/mo 
Gusto Payroll Talk To a Specialist Talk To a Specialist Talk To a Specialist Talk To a Specialist 

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

Does FreshBooks Integrate with Gusto? 

Yes, FreshBooks can be integrated with Gusto. The integration allows you to sync detailed payroll expenses into your FreshBooks account, eliminating the need to manually transcribe payroll expenses. To integrate Gusto with FreshBooks, you can follow these steps: 

1. Navigate to the Payroll button from your FreshBooks dashboard. 
2. Connect your Gusto account and modify your integration settings. 
3. Now, you can run payroll and review payroll expenses straight from your FreshBooks account 

Does FreshBooks offer a Free Trial? 

Yes, FreshBooks offers a 30-day free trial without requiring a credit card. You can try it on their website to see if it fits your business needs. FreshBooks helps you manage invoices, payments, expenses, time tracking, and more. 

How do I Work with my Accountant on FreshBooks? 

To work with your accountant on FreshBooks, you can use the in-app Accountant role that provides all the necessary tools you need. The accountant role allows your accountant to access all the financial data they need for reporting, so you can collaborate effectively on FreshBooks. Here are the steps to invite your accountant to FreshBooks: 

1. Log in to your FreshBooks account. 
2. Once on the Dashboard, click the Add Team Member button in the top right corner. 
3. Enter your accountant’s Name and Email Address. 
4. Under Roles and Permissions, click the green Invite button. 
5. Select the Accountant option.

Your accountant will receive an email with instructions on how to log in. Once they log in, they will have access to all the necessary financial data they need to help you grow your business, save time with taxes, and see how your business is performing. 

Does FreshBooks Work on all my Devices? 

Yes, FreshBooks works on all your devices including desktop computers, laptops, tablets, and phones. FreshBooks also has a mobile app for both iPhone and Android devices, which includes mileage tracking. 

Does FreshBooks Integrate with a Third-party Inventory Tracking Software? 

Yes, FreshBooks supports integration with third-party inventory tracking solutions like Shopify, Squarespace, 2Ship, and BarCloud. This feature can help you keep an eye on all your inventory in one place. If you are looking for a third-party inventory tracking software, you can consider Inventory Cloud by Wasp. It is a great choice for businesses that want ready-to-use inventory software. It helps maintain an accurate stock count and reduce errors. Warehouse efficiency will increase by removing the need to manually enter pick orders. Real-time reports provide insight into areas like inventory levels organized by SKU. They can also show details about transactions based on warehouse locations. If stock is running low, you can receive a notification, which will avoid any stockouts or loss of sales.

About The Author

Picture of Editorial Team

Editorial Team

At QAsolved, we are a team of skilled professionals dedicated to delivering unparalleled accounting and bookkeeping services. With backgrounds in finance and technology, our collaborative efforts focus on providing practical solutions and guidance. Our services are tailored for a range of businesses, covering advisory, CFO services, bookkeeping, and financial systems consulting. QAsolved is an award-winning consulting firm and Intuit’s #1 QuickBooks Reseller Partner. We offer comprehensive QuickBooks services, including consulting, integration, migration, maintenance, data conversion, training, and support, among other services. Over the years, we have assisted over 30K customers across various industries with their Intuit products.

Report An Issue?

We are here to help

Request A Free Consultation