What Is FreshBooks?

FreshBooks is a cloud-based invoicing and accounting software specifically designed for the small and micro business owner. Whether you run your business solo or manage a small team, FreshBooks has the software you need to keep track of projects, invoices, clients, contractors, timekeeping, payments and finances.

FreshBooks started in 2006 as an online invoicing software, and it has since expanded into a feature-rich business accounting and management software.

Today, not only can you create professional-looking invoices, but you can also create estimates and proposals, add team members to projects, create client portals, manage business transactions for tax time, and integrate FreshBooks with your favorite apps like Asana or Gusto.

How FreshBooks Works

FreshBooks uses the cloud to save information with every click, so you don’t have to worry about your computer crashing and losing an unsaved invoice.

The program has security protection to keep your data private and offers responsive email support.

It goes beyond invoicing to provide other accounting features such as tracking expenses, custom pricing and paying bills.

When you manage finances from one dashboard, you get a clear picture of your business. This program also simplifies the work you need to do at tax time.


Once you set up your company profile and a list of your service items with pricing, you can start creating invoices.

The system is simple to use. You can create and send a new invoice in just a couple of minutes and get on with the rest of your day. It beats trying to use an Excel sheet and PDF form.

FreshBooks lets you send and manage professional invoices that include line items for the following types of expenses:

  • Project expenses
  • Tips
  • Hourly wages
  • Percentages
  • Taxes
  • Other fees

FreshBooks is also the most flexible invoicing software that I’ve used yet:

  • Invoice a client before the project starts; FreshBooks will automatically keep track of the project and will help you manage the rest of the invoice
  • It allows for partial payments
  • FreshBooks lets you create ongoing/recurring payments
  • The software allows clients to pay a percentage of a total payment

FreshBooks also makes it easy to manage invoices after they’ve been sent out. Here are some options you'll see:

  • Send clients payment reminders
  • Charge late fees
  • Change currencies and language
  • Add taxes
  • Customize payment terms
  • Invoice from a desktop or mobile


FreshBooks makes it easy to accept payments from clients directly from within the invoice. They can pay with a credit card, PayPal, Stripe or Apple Pay, so you can accept payments from anywhere in the world.

Signing up to accept credit card payments through FreshBooks is free and is done through WePay. You’ll need to verify your account and link your bank within 14 days.

Here are the fees for accepting credit card payments through FreshBooks:

  • Visa, MasterCard and Discover credit cards: 2.9% + $0.30
  • American Express credit cards: 3.5% + $0.30

Link PayPal and Stripe to accept payments through those apps to give clients other payment options.

However, if a client wishes to pay you by ACH bank transfer, check or another form of payment, FreshBooks doesn’t support it. You will need to make outside arrangements with your client.

You can, however, manually mark that invoice as paid/complete as soon as you receive payment.

The best part about FreshBooks' payment feature is that it integrates with your expense tracking.