If you just started a business, you might be looking for accounting software to track your income and expenses. Through online research, you’ll notice there are a lot of options, and it can be hard to figure out which platform is best for your business. Freshbooks is a good option for small businesses.
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To learn more about Freshbooks and its small business accounting features, here’s what you should know:
What is Freshbooks?
Freshbooks is accounting software for small businesses. While it started as a simple invoicing platform, the software is now a feature-rich accounting solution that can handle accounts receivable and payable, inventory, payroll through integration with Gusto, time tracking, and mileage tracking.
Check out our roundup of the Best Small Business Accounting Software
Who is it best for?
The bookkeeping software is known for its ease of use and affordability, making it a great choice for those who are self-employed, freelancers, sole proprietors, and small business owners.
- User-friendly with a low learning curve
- Affordable plan options; four different plans are available
- Time tracking is available on all four plans
- Live customer support is available by phone on the weekdays
- An intuitive mobile app makes on-the-go data entry easy
- Lack of reports
- Tiered plans restrict the features that are available
- Budget and forecasting tools do not exist
- Reports needed by an accountant for tax season are sometimes limited
- Accountant access is only allowed in higher–tiered plans
- The number of clients you can bill has a cap in lower-tiered plans
If you’re a small business owner, you need to know what kind of tools Freshbooks offers to make sure it fits your accounting needs. To help, here’s a look at the features offered:
Freshbooks started as invoicing software, so this is one of its strongest features. You can customize your invoices, set up recurring invoices, add discounts, assign a set sales tax to all invoices, and you can create alerts, so you know the second you get paid.
Invoicing is available on the mobile app too, so if your business is out-and-about a lot, like a landscaping, surveying, or cleaning crew, invoices can be made from a smartphone after each job is complete. The app’s functionality works for both Android and iOS users.
Time and mileage tracking
In all of the plans, users have access to time and mileage tracking. If you’re a freelance writer, for example, and want to track time spent on each article, you can do that. You can also assign clients to each project and sort your time by similar filters.
Mileage tracking is available too. By simply opening the app and entering a destination, mileage reports are created and tracked.
Lite Plan users, which is the cheapest plan, have access to these features. Many competitors, including Quickbooks and Xero, only offer time tracking or project management in their premium plans.
Expenses are easy to track and manage in Freshbooks. Users can add expenses from their phones and attach a picture of a receipt to it. You can also add a reminder to add that expense to a particular client’s bill.
You can set up retainers or payment plans in Freshbooks, which is a rare feature among accounting solutions. You can reserve blocks of time to dedicate to client retainers too.
Lawyers and accountants, who typically work on retainer, find this recurring billing option helpful. Users can set up payment reminders too, so billable clients are given a gentle reminder to pay their invoices.
Payment gateway and card payments
With Freshbooks Accounting, you can easily connect your bank accounts. Once connected, the system will track incoming revenue and outgoing expenses to create financial reports.
You’ll set up a payment gateway, which gives you the ability to accept payments by debit and credit card. When payments are made, there are fees for ACH bank transfers, which are usually 2.9% + $0.30 on each transaction. You can accept online payments via Paypal and Stripe too.
As you research various software companies, one of the things you need to explore is cost. How much does Fresbooks charge for each of its plans? Here’s a look at the different options:
- With Freshbooks Lite, you have customizable options when it comes to invoices, and full use of time, expense, and mileage tracking. ACH payments can be accepted too. With this plan, you can only invoice or bill five clients.
- In the Plus plan, users can bill 50 clients, and have access to mobile receipt uploads, double-entry accounting reports, and the ability to charge client retainers.
- Freshbooks Premium offers advanced features like unlimited invoices, unlimited billable clients, customized email signature templates, and the ability to track project profitability.
Select: Custom Pricing
- For larger businesses that are interested in using the cloud-based software in a tailored way, you can speak with a representative for pricing.
Yes. Freshbooks does offer customer support by phone, which is available from 8 a.m. to 8 p.m. Monday-Friday. The extended evening hours are beneficial for business owners who have nontraditional schedules.
The company also offers email support with a response time of about 90 minutes.
There is no support during the weekends.
Some of Freshbooks’ competitors only offer Live Chat support, which can only answer a limited number of questions or point users to DIY articles to fix problems themselves.
Yes. Multiple users are allowed, but if you have more than one team member, it’s considered an add-on. Unless you have the Select Plan, which is the most expensive, you’ll pay $10 per additional user. If you have the Select Plan, additional permissions are free.
Yes. The lowest tier plan only gives you five clients to bill. The next one up gives you 50 clients. If you need more, you’ll need to upgrade your plan. For most small businesses being able to bill 50 clients is more than enough, but it is something to consider as you grow. Other services, like Quickbooks Online or Wave, do not have such caps.
The Lite version of Freshbooks limits you to five billable clients. If you want more, you’ll need to upgrade. Additional cons include limited reporting and accountant access withheld for higher-paid plans.
You can try Freshbooks for free as a 30-day trial, but after that pricing starts at $7 a month.
You can pay for Freshbooks annually. You can save a few dollars by doing so. The most affordable option, the Lite plan, is $122.40 a year. Pricing can fluctuate, so be sure to check on the Freshbooks website.
According to its website, there are 30 million people in 160 countries that rely on Freshbooks for small business accounting software.