FreshBooks review

What FreshBooks is

FreshBooks is cloud accounting software built around invoicing. It covers invoices, billing and payments, expenses, time tracking, projects, mileage, estimates, proposals, reporting and payroll FreshBooks ↗. Bill pay and financing are newer additions FreshBooks ↗.

FreshBooks says more than 500,000 small businesses in over 160 countries have used it FreshBooks ↗. It has apps for iPhone and Android, which include mileage tracking FreshBooks ↗.

It appears in our AI bookkeeping guide as an alternative rather than a pick, because its pricing and home pages do not mention AI features FreshBooks pricing ↗ FreshBooks ↗. Hands on testing is in progress, and we will update this review with our results.

What it does well

Invoicing is the strength. FreshBooks promises professional invoices in minutes and automated invoices and billing, with built in reminders to keep cash flow predictable FreshBooks ↗. Clients can pay by card, ACH bank transfer, Apple Pay, Google Pay or buy now, pay later on every plan FreshBooks pricing ↗.

Basic automation is there. FreshBooks offers mobile receipt scanning, bank account imports and automated expense categorization, and it can add tracked time and expenses to invoices automatically FreshBooks ↗.

Plans grow with a service business. Plus adds proposals, client retainers, receipt scanning, accounting reports and accountant access FreshBooks pricing ↗. Premium adds automated client emails, custom email templates, project profitability, bill receipt scanning and accounts payable FreshBooks pricing ↗.

Trying it is low risk. The 30 day trial needs no credit card and no contract, and includes phone and email support FreshBooks pricing ↗. There is also a 30 day money back guarantee after purchase FreshBooks pricing ↗.

It connects to a lot. FreshBooks lists more than 100 integrations, including Zapier, Gusto, HubSpot and Square FreshBooks ↗.

Where it falls short

No AI features are advertised. Neither the pricing page nor the home page mentions AI FreshBooks pricing ↗ FreshBooks ↗. Rivals now put AI at the center: QuickBooks Simple Start includes AI expense categorization and an AI chat about your numbers QuickBooks pricing ↗.

Client caps bite early. Lite allows only 5 billable clients and Plus allows 50 FreshBooks pricing ↗. Unlimited clients start at Premium, which is $70 a month at regular price FreshBooks pricing ↗.

Regular prices are higher than the banner prices. Promotions cut the first months heavily, but Plus returns to $43 a month and Premium to $70 FreshBooks pricing ↗.

Extra people cost more. Each team member is $11 a month, and payroll adds $40 a month plus $6 per user FreshBooks pricing ↗.

Receipt scanning is not on the entry plan. It starts on Plus FreshBooks pricing ↗.

Pricing and plans

Lite is $23 a month at regular price for up to 5 billable clients. When we checked, a promotion offered it for $1 a month for the first year FreshBooks pricing ↗.

Plus is $43 a month at regular price for up to 50 billable clients, shown at 80 percent off for the first 3 months FreshBooks pricing ↗.

Premium is $70 a month at regular price with unlimited billable clients, also shown at 80 percent off for 3 months FreshBooks pricing ↗.

Select has custom pricing through a consultant. It adds lower card fees, capped ACH fees, two team member accounts, Advanced Payments and dedicated phone support FreshBooks pricing ↗.

Add ons: team members $11 a month each, Advanced Payments $20 a month, and payroll $40 a month plus $6 per user FreshBooks pricing ↗. Card payments through FreshBooks cost 2.9% plus $0.30, and ACH costs 1% FreshBooks pricing ↗. Yearly billing shows an extra 10% off FreshBooks pricing ↗. There is no free plan, but there is a 30 day free trial and a 30 day money back guarantee FreshBooks pricing ↗.

Who should (and shouldn't) use it

• Good fit: freelancers and small service firms whose main job in the software is billing clients.
• Good fit: businesses that bill time and want retainers, proposals and project profitability.
• Skip it if: you want AI that categorizes, reconciles and answers questions about your books.
• Skip it if: you have more than 5 clients and want to stay on the cheapest plan.
• Skip it if: you need a free plan. Zoho Books and Wave have one.

Alternatives worth a look

• QuickBooks Online: our safe default, Simple Start at $38 a month with AI expense categorization and an AI chat QuickBooks pricing ↗.
• Zoho Books: free for businesses with revenue up to $50,000 a year, and Standard at $15 a month billed yearly Zoho Books pricing ↗.
• Wave: free Starter plan with unlimited invoices, and Pro at $19 a month adds bank import Wave pricing ↗.
• Xero: Growing at $59 a month with automatic bank reconciliation and Smart Document Capture on every plan Xero pricing ↗.