FreshBooks Guide 2025: Powerful Tools for Freelancers & Businesses

For small business owners and freelancers looking to streamline their finances and increase their revenue, FreshBooks has emerged as the preferred option. To help you determine whether it’s the best option for your company, we’ll go over its features, pricing options, advantages and disadvantages, and how it stacks up against other well-known accounting software in this blog post.

What Is FreshBooks?

FreshBooks is a cloud-based accounting and invoicing program made especially for independent contractors, small business owners, and professionals in the service industry. With tools for invoicing, expense tracking, time tracking, project management, and financial reporting all in one location, it makes it easier for users to manage their money.

FreshBook prioritizes ease of use and simplicity over the sometimes complex nature of traditional accounting software. Accounting knowledge is not required to use it. You can stay organized and focused on your business with its clear dashboard, which displays your income, expenses, unpaid invoices, and overall cash flow at a glance.

Additionally, FreshBook has an integrated client portal that allows your clients to view invoices, pay online, and get in touch with you. Additionally, because it is entirely cloud-based, you can access your account from any device, including desktops, tablets, and mobile apps, which makes it perfect for business owners who are constantly on the go.

Key Features of FreshBooks

FreshBook offers a range of powerful yet easy-to-use features that help small businesses and freelancers manage their finances without hassle. Below are the core features that make FreshBooks stand out:

1. Professional Invoicing

With just a few clicks, you can create and send personalized, expert invoices using FreshBook. You can include payment terms, change colors, add your logo, and email invoices to clients directly. Automated reminders and late fee charges are also supported.

2. Expense Tracking

With FreshBook, you can easily track all your business expenses. Just upload your receipts or connect your bank account, and FreshBooks will automatically categorize expenses to keep your books organized.

3. Time Tracking & Project Management

For agencies or independent contractors that charge by the hour, this feature is ideal. You can assign hours to projects or clients, keep track of how much time is spent on each task, and quickly turn those hours into invoices. Members of the team can also work together on common projects.

4. Online Payments & Client Portal

Customers can use PayPal, credit cards, or other payment gateways that FreshBook has integrated to pay invoices directly. Customers can communicate with you and view their estimates and invoices in one location thanks to the integrated client portal.

5. Financial Reports and Analytics

FreshBook generates detailed financial reports like profit and loss statements, tax summaries, sales reports, and more. These reports help you understand your business performance and stay prepared for tax season.

6. Mobile App for On-the-Go Access

FreshBook offers a fully functional mobile app for iOS and Android. You can send invoices, capture receipts, track time, and manage clients from anywhere.

How FreshBooks Works (Step-by-Step Guide)

Using FreshBook is simple, even if you don’t have an accounting background. Here’s a step-by-step guide to help you understand how it works from setup to sending your first invoice.

1. Sign Up and Set Up Your Account

Visit the FreshBooks website and select a plan or sign up for a free trial to get started. Enter your company’s information, including your name, logo, and contact details. This makes your reports and invoices more unique.

2. Add Clients and Business Details

Once your account is created, start by adding your clients’ names, email addresses, and billing details. You can also set default payment terms for each client.

3. Create and Send Your First Invoice

Go to the “Invoices” section and click “Create Invoice.” Choose a client, add services/products, set the price, and send it directly via email. You can even allow online payments for faster results.

4. Track Expenses and Upload Receipts

To record your business expenses, select the “Expenses” tab. You have the option to manually add them or to automatically import transactions by connecting your bank account. Additionally, you can use the mobile app to upload pictures of your receipts.

5. Track Time and Bill Projects

Use FreshBooks’ time-tracking tool if you oversee a team or work on an hourly basis. While working on tasks, set a timer or manually enter the hours. Immediately turn them into invoices after assigning them to particular customers or projects.

6. Generate Financial Reports

FreshBooks automatically organizes your data into reports like Profit & Loss, Tax Summary, Invoice Details, and more. You can download or share these reports with your accountant during tax season.

FreshBooks Pricing Plans

FreshBook provides adjustable pricing to meet the demands of expanding teams, small businesses, and independent contractors. Core accounting functions are included in all plans; however, tier-specific differences exist in the number of clients and sophisticated tools.

1. Lite Plan

• Best for freelancers and individuals just getting started
• Manage up to 5 billable clients
• Create unlimited invoices and estimates
• Track expenses and accept online payments

2. Plus Plan (Most Popular)

• Ideal for freelancers and small businesses
• Manage up to 50 billable clients
• Includes automated recurring invoices and payment reminders
• Offers advanced reports and proposal features

3. Premium Plan

• Suitable for growing businesses and agencies
• Manage unlimited billable clients
• Includes project profitability tracking and advanced reporting
• More automation options and team collaboration tools

4. Select Plan (Custom/Enterprise Solution)

• Designed for larger businesses with custom needs
• Includes dedicated account manager and personalized setup
• Offers lower transaction fees and advanced support
• Custom pricing based on requirements

FreshBooks also offers a 30-day free trial, allowing you to test any plan without needing a credit card. You can upgrade or downgrade anytime as your business grows.

FreshBooks Pros and Cons

FreshBooks has benefits and drawbacks like any other software. You can determine whether it’s the best accounting tool for your company by being aware of both.

✅ Pros:

1. Easy to Use, Even for Beginners
FreshBooks has an intuitive interface with simple navigation, making it ideal for freelancers and small business owners who don’t have accounting knowledge.

2. Professional Invoicing and Faster Payments
You can create branded invoices, set automatic payment reminders, and accept online payments from clients using credit cards or PayPal.

3. Mobile-Friendly and Cloud-Based
Access your account from anywhere using the FreshBooks mobile app or web browser. You can send invoices, track time, and upload receipts on the go.

4. Excellent Customer Support
FreshBooks is known for its fast and friendly customer service, available via phone, email, and live chat.

5. Time Tracking and Project Management
Ideal for service-based businesses and freelancers who bill by the hour. You can track time, manage projects, and convert hours into invoices with one click.

❌ Cons:

1. Limited Advanced Accounting Features
While FreshBooks is perfect for small businesses, it may lack complex accounting tools needed by larger companies (such as inventory management or payroll in some regions).

2. Client Limits on Lower Plans
The Lite and Plus plans limit the number of clients you can bill, which can be restrictive for growing businesses.

3. Additional Fees for Online Payments
FreshBooks charges standard payment processing fees for online transactions, which can add up over time.

4. Not Ideal for Product-Based Businesses
Businesses that need advanced inventory tracking or purchase ordering may find FreshBooks less suitable compared to tools like QuickBooks or Xero.

Who Should Use FreshBooks?

FreshBook is made for people and companies who don’t want to deal with complicated accounting software and want a quick and easy way to track time, expenses, and invoices. The following people gain the most from using it:

1. Freelancers & Self-Employed Professionals

If you work independently and need to send invoices, track expenses, or bill clients by the hour, FreshBooks is a perfect match. It simplifies financial tasks so you can focus on your work rather than accounting.

Examples: Graphic designers, writers, consultants, photographers, virtual assistants.

2. Small Business Owners

Small businesses with service-based operations can use FreshBooks to manage clients, send quotes, track payments, and monitor cash flow—all in one place.

Examples: Marketing agencies, IT services, cleaning companies, web developers.

3. Agencies and Teams

FreshBooks allows teams to collaborate on projects, log billable hours, track expenses, and convert tasks into invoices. Team members can have different roles and permissions for streamlined workflow.

4. Coaches, Trainers & Consultants

If your business involves offering advice or one-on-one services, FreshBooks makes scheduling, billing, and tracking payment status easy and organized.

5. Service-Based Businesses

Any business that earns through services rather than selling physical products can benefit. FreshBooks handles time tracking, client communication, and recurring invoices efficiently.

Who May Not Find FreshBooks Ideal?

• Product-based businesses with inventory management needs
• Large enterprises requiring complex accounting or payroll systems
• Businesses looking for free, unlimited accounting tools

Is FreshBooks Worth It?

Yes, for independent contractors, small business owners, and service-based professionals seeking a dependable, simple method of handling their finances without the need for accounting knowledge, FreshBooks is well worth the investment. It offers a clear, easy-to-use interface that saves time and lowers stress while streamlining time management, expense tracking, and invoicing.

FreshBook helps you stay organized and get paid more quickly with features like mobile app functionality, client portal access, automated payment reminders, and comprehensive financial reports. Since the software is cloud-based, you can use it while working at home, in the office, or on the go.

Large product-based businesses or those that need sophisticated accounting features like inventory management or comprehensive payroll systems might not be the best candidates for FreshBooks.

✅ When FreshBooks Is Worth It:

• You’re a freelancer, consultant, or small business owner
• You want easy invoicing and faster payment options
• You need time tracking and project billing features
• You prefer simple accounting instead of complex systems

⚠️ When It Might Not Be Enough:

• You run a large business with detailed inventory operations
• You require built-in advanced payroll or multi-currency features
• You prefer free software with unlimited use

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Conclusion

For independent contractors, small business owners, and service-based professionals who require an easy-to-use method for managing invoices, expenses, and time tracking, FreshBooks is a great accounting solution. To help you save time and get paid more quickly, it provides a clear interface, online payments, automation tools, and thorough reports.

FreshBook is still among the greatest choices for individuals and small teams seeking simple, dependable financial management, even though it might not be the best fit for big businesses or organizations that need sophisticated accounting features like inventory or full payroll.

If you’re looking for accounting software that’s user-friendly, cloud-based, and built to support growing businesses, FreshBooks is definitely worth trying. Most importantly, you can start risk-free with their 30-day free trial to see if it fits your business needs.

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