FreshBooks
Service-based small businesses needing best-in-class invoicing and expense tracking
How it works
FreshBooks is cloud-based accounting software purpose-built for service-based small businesses, freelancers, and independent contractors. It excels at the invoice-to-payment workflow with customizable templates, recurring billing, automatic payment reminders, and online payment acceptance via card and ACH. The platform also includes time tracking, expense management with receipt capture, project profitability tracking, estimates and proposals, and double-entry accounting (Plus plan and above). FreshBooks integrates with Gusto for payroll and connects to bank accounts for automated transaction import. It is consistently rated among the easiest accounting platforms to learn and use.
Is it right for you?
Consider if you
- Freelancers, consultants, and agencies billing clients by the hour
- Service businesses (marketing, design, legal, trades, coaching) wanting fast payment cycles
- Small business owners who prioritize ease of use over advanced accounting depth
Skip if you
- Ecommerce or product-based businesses (no inventory management or COGS tracking)
- Businesses with more than 50 billable clients on a budget (client caps drive upgrades)
- Those needing built-in quarterly tax estimates or direct TurboTax export
Your money and data
FreshBooks uses 256-bit SSL encryption for all data in transit and hosts servers in SOC-compliant data centers. It is SOC 2 Type II certified, meaning independent auditors have verified its security, availability, and confidentiality controls. Payment processing is handled through PCI-DSS compliant processors. Data is backed up regularly with role-based access controls. FreshBooks does not sell customer data.
Pros & Cons
Pros
- Best-in-class invoicing with professional templates, recurring billing, and auto-reminders that speed up payments by 2-3 days on average
- Excellent time tracking with seamless billable-hours-to-invoice conversion
- Clean, intuitive interface with a minimal learning curve and 30-day free trial (no credit card)
Cons
- Client-based pricing: Lite plan caps at 5 billable clients; growing businesses face steep upgrade costs
- No inventory management, COGS tracking, or built-in quarterly tax estimate calculator
- Mobile apps are abbreviated versions of the desktop experience; missing audit log and advanced reports
Pricing details
Lite ($23/mo, $19/mo annual): 5 billable clients, unlimited invoices, expenses, time tracking, estimates. Plus ($43/mo, $33/mo annual): 50 billable clients, adds recurring invoices, auto payment reminders, double-entry accounting, bank reconciliation, accountant access. Premium ($70/mo, $60/mo annual): unlimited clients, adds project profitability, custom email templates, accounts payable. Select: custom pricing with dedicated account manager. Additional team members: $11/user/mo. Payment processing: 2.9% + $0.30 for cards, ~1% for ACH. Frequent 50-70% promo discounts for first 3-6 months.
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