Accounting and invoicing are two key components of any business, yet many business owners let it fall behind. They are too busy to handle the manual work required or don’t understand it, so they put it off. But that’s like pushing away money, probably not what you intended.

Fortunately, there are many programs available to help automate your accounting and invoicing process. A program I love that helped me get accounting and invoicing under control is Freshbooks.

In my Freshbooks review, I show you how Freshbooks work, who should use it, and what to consider when deciding if it’s right for you.

What is Freshbooks?

Freshbooks started as invoicing software. It helped millions of freelancers get their billing under control and receive the money they earned much faster. Rather than chasing accounts receivable months after it was due, you can automate most invoicing tasks, including sending automated reminders about past due bills.

Freshbook features

Freshbooks is more than invoicing software, though. It offers many robust features that make running a freelancing business or small company simple.

Invoicing

Just because you run a business yourself doesn't mean you should look unprofessional. Freshbooks provides professional-looking invoices that you can customize to your liking. It takes only a few minutes of your time to have professional invoices to send to your clients.

Track your expenses

How many times have you arrived at tax time only to find yourself elbow deep in a shoebox of receipts? That’s not a smart use of your time, and you may even overlook certain deductions you could have taken.

Freshbooks tracks every dollar you spend and categorizes it for you. At tax time, it’s a lot easier to know where you stand.

Time tracking

If you get so lost in a job that you don’t realize how many hours you put into it, you could be losing money. Freshbooks makes it easy for you and your employees to track time spent on a project. This also makes invoicing easier because you can prove to your clients how much time you spent on the project.

Collaborate on projects

If you work with a team of people, keeping everyone on the same page can be tricky. Emails get lost or overlooked, and information doesn’t get passed along as it should. With Freshbooks, you can set up projects, keep all conversations in the same place and ensure everyone is on the same page.

Payments

Freshbooks not only helps you send invoices, but it collects your payments too. By accepting credit cards, most business owners get paid up to 11 days faster than those waiting for a check in the mail.

Reports

Whether you want weekly reports to prepare your taxes or see how your business is doing, Freshbooks provides a wide selection of reports for you to use. 

Accounting

Freshbooks provides all the accounting reports you need to run a successful business. With the Freshbooks accounting features from balance sheets to general ledgers and everything in between, you’ll find you are much more organized and ready for tax time. 

Who is it best for?

Freshbooks is great for independent contractors, small business owners with contractors, or even small business owners with employees. Honestly, any business owner who is still burning the candle at both ends and trying to be a superhero could benefit from this program.

Freshbooks pricing varies based on the number of clients you have, so if you’re a growing business, the price will increase, but it’s well worth the time and headaches you’ll save. 

How much does Freshbooks cost?

Before I get into pricing, it’s worth mentioning that every new customer receives a free 30-day trial. You can try all the features too. This helps you decide if Freshbooks is right for you and which program suits you best.

After your free trial, here’s what Freshbooks costs.

Lite $6/month

If you’re just starting your business, Freshbooks Lite may be all you need. You can bill up to 5 clients an unlimited number of times as well as:

• Create custom invoices
• Store clients’ credit card information
• Set up a client self-service portal to collect credit card payments
• Set up automatic recurring invoicing
• Send estimates
• See accounting reports
• Track time spent on a project
• Track expenses
• See your business’s health on the dashboard

Plus $10/month

Plus is for businesses with up to 50 clients. In addition to the features above, you’ll also be able to:

• Send unlimited proposals
• Collect client retainers
• Access double-entry accounting reports
• Do bank reconciliation

Premium $20/month

The Premium package is for business owners who see themselves growing larger than 50 clients and managing employees. You get an unlimited number of invoices as well as: 

• Automated client emails
• Project profitability estimates
• Accounts payable records

Freshbooks review pros and cons

Like any software program, Freshbooks has pros and cons. Understanding both sides can help you decide if it’s right for you.

Is there a Freshbooks app?

This is probably one of the highlights of our Freshbooks review. The fact that there is a Freshbooks app is a game-changer. Now you aren’t tied to the office to get the information you need. Whether you need to run a report, check on an invoice, or enter an expense, you can enter it in the Freshbooks app and sync it in real-time on your desktop. 

Freshbooks vs. Quickbooks Online

Wondering how Freshbooks stacks up to big names like QuickBooks? No worries! I put together a side-by-side comparison for you.

Final thoughts

If you run a freelance gig or small business with only a few employees, Freshbooks can be a great way to get your invoicing and accounting on track. If you take away only one thing from my Freshbooks review, it should be that you don’t need to let administrative and accounts receivable tasks stack up. Freshbooks can help you stay on track.