FreshBooks Accounting: Smart Tools for Small Businesses

Company Overview

Founded in 2003 by Mike McDerment, Levi Cooperman, and Joe Sawada, FreshBooks operates under the parent company, 2ndSite Inc. The provider initially focused on electronic invoicing and later expanded to include a comprehensive accounting package, catering to users with varying levels of accounting experience. FreshBooks offers its software via a subscription model and stores all financial data on cloud-based servers. Data synchronization across devices ensures you can invoice, reconcile, or log expenses whether you’re at a desk or visiting a client.

FreshBooks positions itself as a solution for small businesses and self-employed professionals who need invoicing, time tracking, and basic accounting, but not the complexity of enterprise platforms.  The company has secured multiple funding rounds, including a US$80.75 million Series E round in 2021, which helped expand its product offerings and global footprint.  Its services are available in twelve languages and support multiple tax jurisdictions. 

The provider is frequently ranked among the best invoicing software and was selected as Business News Daily’s best small business invoicing software.  Although they are not BBB accredited, they have not responded to complaints on the platform.

FreshBooks Features & Solutions

Invoicing and billing: FreshBooks allows users to create professional invoices with custom logos, fonts, and colors. FreshBooks’ automation capabilities enable invoices to be scheduled to recur automatically, with built-in payment schedules, late payment reminders, and late-fee options. Estimates and proposals can be quickly converted into professional invoices, helping streamline billing as projects progress. The platform also tracks invoice activity, showing when clients view or pay their bills.

Expense and time tracking: FreshBooks allows you to track unlimited expenses and attach receipts through its mobile app.  A built-in timer records billable hours and adds them to invoices.  The time tracker works from both the desktop interface and the mobile app, enabling contractors to invoice immediately after completing a job

Payments and checkout: FreshBooks integrates with Stripe and Square to accept credit cards and ACH bank transfers. Additionally, digital wallets such as Apple Pay, Google Pay, PayPal, and Venmo are supported through connected payment providers. Clients can pay invoices with one click, payments are automatically recorded in the account, and built-in reminders and late-fee settings help encourage on-time payment

Bank reconciliation and double-entry accounting: Additionally, Premium and Select subscribers have access to advanced features like double-entry accounting and bank reconciliation tools. FreshBooks imports transactions from connected bank accounts and credit cards through Plaid, supports automated expense categorization, and allows manual CSV uploads for missing data. Users can generate financial reports, including a chart of accounts, general ledger, balance sheet, and trial balance.

Project management and time budgets: Project management tools are available across all FreshBooks plans, allowing users to track time by project, set budgets for financial management, monitor unbilled hours, and base invoices on recorded time. These tools also help improve business performance by ensuring that projects are delivered on time and within budget. Projects can be shared with team members, who can log hours and collaborate through project notes and activity updates. Managers can assign users to projects and review time spent against budgets, making the software well-suited for freelancers and small agencies that bill by the hour.

Reporting and analytics: FreshBooks generates profit-and-loss statements, sales tax summaries, accounts receivable aging reports, expense reports, expense breakdowns, and other standard reports that help businesses understand their financial health. Reports can be printed, emailed, or exported to Excel for further analysis. While the platform lacks forecasting and budgeting tools, as well as custom report templates, the available reports provide valuable insights into cash flow and profitability for small operations.

User permissions and collaboration: Business owners can invite partners, employees, contractors, and accountants, and assign role-based permissions to control access and manage collaboration for daily operations. Employees and contractors can track time and expenses on assigned projects, while accountants can review financial data without needing to manage invoices. The Select plan supports unlimited team members, while lower-tier plans include a single user with additional fees for extra users.

Mobile application: The FreshBooks mobile app for iOS and Android devices enables users to send invoices, capture receipts, track mileage, and log time from anywhere. Mobile notifications show outstanding invoices and client communications. However, the app cannot generate financial reports or manage team members, so some tasks still require the use of the web interface.

Multi-language and multi-currency support: FreshBooks supports 12 languages and multiple currencies, making it a practical option for service providers working with international clients. However, invoices can only be issued in a single currency per account, which may be a limitation for businesses that need to track business expenses and bill clients in different currencies.

Integrations and APIs: FreshBooks connects with over 100 third-party applications, including DocuSign for electronic signatures and Everlance for mileage tracking. An open API also allows developers to build custom integrations and automate workflows across connected tools

Payroll integration: Through a partnership with Gusto, FreshBooks users can add payroll functionality as a paid add-on to run payroll seamlessly. Payroll data syncs with FreshBooks for reporting purposes, while Gusto handles payroll processing and the calculation and filing of payroll taxes without juggling separate tools. Pricing is structured as a monthly base fee plus a per-employee cost, with exact rates depending on the selected Gusto plan.

FreshBooks Pricing & Plans

FreshBooks offers four subscription tiers that mainly differ by client limits, feature depth, and support. All plans include unlimited invoices and expenses, mobile access, and core reports, along with essential business tools. A 30-day free trial is available without a credit card.

Lite

Best for freelancers or very small service businesses with a limited client base, the lite plan offers exceptional value.

• $21 per month
• Invoice up to five clients
• Unlimited expenses and billable time
• Credit card and ACH payments
• Unlimited invoices and estimates

Plus

Designed for growing businesses that need stronger reporting and recurring billing tools.

• $38 per month
• Invoice up to 50 clients
• Double-entry accounting reports
• Receipt scanning and bank reconciliation
• Accountant access, retainers, and unlimited proposals

Premium

A good fit for established businesses managing many clients or projects.

• $65 per month
• Unlimited clients
• Custom invoice templates
• Automatic receipt capture
• Project profitability tracking

Select

Built for medium-sized businesses that need hands-on support and advanced controls.

• Custom pricing
• Lower payment processing fees
• Assisted data import and priority support
• Two extra users included
• Removed FreshBooks branding

Annual billing typically saves about 10 percent. Additional users cost $11 per month. FreshBooks Payments charges standard card and ACH processing fees; however, Stripe is available as an alternative. An Advanced Payments add-on adds subscription billing and a virtual terminal, while payroll is offered separately through Gusto.

Advantages

• User-friendly invoicing and customization: Creating invoices is straightforward with branded templates and the ability to quickly convert estimates and proposals into invoices, thereby reducing time spent on billing while maintaining consistent branding
• Built-in time tracking and project management: Built-in time tracking enables users to log billable hours and add them directly to invoices. Project tools help track budgets and unbilled hours, with basic collaboration through shared project access, allowing users to share files, making them useful for service teams.
• Continuous bank reconciliation and double‑entry accounting:  Transactions from connected bank accounts import automatically, with tools to assist categorization and reconciliation. Plus and higher plans support double-entry accounting, including a chart of accounts and standard financial reports
• Flexible payment options: FreshBooks supports multiple payment methods, including credit cards and ACH, with digital wallets such as Apple Pay, Google Pay, PayPal, and Venmo available through payment integrations. Automated reminders and late-fee settings help encourage on-time payments
• Robust mobile app:  The mobile app supports invoicing, expense tracking, receipt capture, mileage logging, and invoice status notifications, making it especially useful for freelancers and field-based workers
• Extensive integrations and API: FreshBooks connects with over 100 third-party applications and offers an open API for custom integrations. Available integrations include DocuSign for electronic signatures, Everlance for mileage tracking, and a wide range of CRM, payment, and productivity tools
• Generous free trial and easy onboarding:  A 30-day free trial is available without a credit card, allowing users to explore features before committing. Onboarding includes guided setup resources, tutorials, and webinars to help users get started
• Role-based access and collaboration: FreshBooks allows you to invite multiple users and assign permissions to partners, employees, contractors, and accountants.  The Select plan includes unlimited team members
• Support resources and knowledge base: FreshBooks provides phone, email, and live chat support, as well as an automated chat assistant. Self-service resources include a knowledge base, webinars, blog content, and educational guides

Disadvantages

• Limited inventory and purchase-order features: The software lacks robust inventory tracking and vendor management tools. Businesses that manage stock or require purchase orders may need a separate system or a different accounting software solution platform.
• No batch invoicing shortcuts: FreshBooks is optimized for creating invoices individually and does not offer true batch invoicing, which would allow sending the same invoice to multiple clients at once. Businesses that regularly bill many customers for identical services may find this workflow limiting
• The mobile app can’t run reports or manage users: Although the app is great for invoicing and expense tracking, it lacks the ability to generate financial reports or assign user permissions.  Users must switch to a desktop browser for these tasks
• Lack of advanced accounting and budgeting tools:  FreshBooks does not include forecasting or budgeting tools, custom report templates, or advanced accounts payable and vendor management features. Businesses with complex accounting needs may require a more full-featured accounting platform
• Single-currency invoicing: FreshBooks does not support multi-currency invoices; businesses can invoice clients only in one currency.  This limitation can hinder companies with international customers
• Additional costs for users and add-ons: Each additional user costs $11 per month, and payroll or advanced payments incur monthly fees.  These extras increase the total cost for growing teams

Customer Experience

FreshBooks receives mostly above‑average scores on various review platforms.  On Trustpilot, they have a 3.8 out of 5 rating, and on Capterra, they have a 4.5/5 rating, with the same rating on G2.  While on the BBB, they have a C- rating with 1 out of 5 stars and are on alert for not responding to 3 complaints.

Positive feedback

Many reviewers praise FreshBooks’ intuitive interface and ease of use. Business News Daily highlights that the platform enables users to create and send invoices quickly, and that the cloud-based app is simple enough to meet the needs of freelancers and self-employed professionals. Customers appreciate the ability to track time and expenses seamlessly, convert estimates into invoices, and monitor when clients view or pay invoices. Software Advice users commend the reporting tools for generating detailed financial statements and the mobile app for capturing receipts and tracking mileage. Reviewers also value the proactive customer support and wealth of tutorials that make onboarding straightforward.

Critical feedback

Negative reviews often mention that FreshBooks lacks advanced accounting features and robust inventory management. Some users feel that the software's key features become expensive when adding multiple users or premium add-ons. Others point out that the mobile app cannot generate reports or manage team members, and the absence of multi-currency invoicing limits international operations. A few reviewers note that customization options for reports and dashboards are limited.

FreshBooks maintains an active presence on major review platforms and frequently responds to customer feedback, particularly on sites like Trustpilot and G2, where support interactions are often discussed. Many users report positive experiences with the support team, citing responsiveness, clear explanations, and a helpful onboarding process, which contributes to consistently strong satisfaction scores in third-party surveys. However, it is worth noting that the Better Business Bureau has issued an alert related to periods of non-response to BBB-submitted complaints. This suggests that while FreshBooks support performs well across most public review channels, response consistency may vary depending on the platform through which an issue is raised.

Customer Support

FreshBooks provides several support options to help users troubleshoot issues and become familiar with the platform. Phone support is available Monday through Friday from 8 AM to 7 PM Eastern Time, with Select plan subscribers receiving access to a dedicated support line for more personalized assistance. Users can also reach out through email or live chat when they need help. Live chat provides real-time support for common questions, while email tickets are available for less urgent issues. An automated chatbot is available 24/7 to handle basic questions and direct users to relevant resources.

For self-guided learning, FreshBooks maintains an extensive knowledge base that includes blog articles, video tutorials, webinars, and downloadable e-books. These resources are designed to help users understand features, workflows, and best practices at their own pace. Getting started is straightforward, thanks to a free 30-day trial that doesn't require a credit card. Users on the Select plan can also access data migration assistance and personalized onboarding, which can be helpful for businesses transitioning from another accounting system.

Conclusion

FreshBooks offers an appealing package for freelancers, consultants, and small service‑oriented companies that prioritise invoicing, time tracking, and ease of use, simplifying financial tasks. Its strengths include intuitive invoice creation, integrated time tracking, continuous bank reconciliation, flexible payment options, and a robust mobile app. Extensive integrations and an open API allow FreshBooks to fit into many workflows, and the 30‑day free trial ensures you can test all features before committing. However, the software lacks advanced accounting tools, such as budgeting and forecasting, multi-currency invoicing, and robust inventory or purchase-order management. Additional user fees and paid add‑ons can raise the total cost for growing teams.

Ultimately, FreshBooks is best suited for freelancers, consultants, and small service-based businesses that require professional invoicing and straightforward bookkeeping.  Companies with complex inventory, multi‑currency requirements, or advanced accounting needs may be better served by more comprehensive platforms such as QuickBooks or NetSuite.  To compare FreshBooks with competitors, explore our other accounting software reviews, and use our comparison tool to find the right company for your needs.