Yes, FreshBooks is definitely worth it for certain types of businesses, especially if you’re a freelancer, consultant, or a service-based small business. The software excels in invoicing, time tracking, and expense management. However, whether it’s worth it for your business depends on what you need from your accounting software.
Reasons Why FreshBooks Is Worth It:
1. Best-In-Class Invoicing
FreshBooks shines in invoicing with features like:
- Customizable Invoice Templates: Make your invoices look professional and branded.
- Automated Payment Reminders: Set reminders for late payments without lifting a finger.
- Recurring Billing: Perfect for businesses with subscription models or retainer clients.
- Late Fee Management: Add late fees automatically to overdue invoices, encouraging timely payments.
Who Benefits: If you regularly send out invoices and want to automate or customize the process, FreshBooks is absolutely worth the price.
2. User-Friendly Interface
FreshBooks is known for its easy-to-use interface. It’s built for non-accountants, meaning the software won’t overwhelm you with accounting jargon or complicated menus. You can start sending invoices, tracking expenses, and managing time with little to no learning curve.
Who Benefits: Small business owners, freelancers, and anyone without a lot of accounting experience will appreciate the simplicity of FreshBooks.
3. Time Tracking for Service-Based Businesses
FreshBooks includes built-in time tracking, making it ideal for businesses that bill by the hour. You can easily log hours, link them to specific clients, and convert them directly into invoices.
Who Benefits: Freelancers, consultants, and anyone who needs to bill clients based on time will save a lot of manual work with FreshBooks’ time tracking.
4. Mobile Access
The FreshBooks mobile app is robust, allowing you to:
- Create and send invoices on the go.
- Track expenses by snapping photos of receipts.
- Log billable hours from your phone.
Who Benefits: Business owners on the go will love FreshBooks’ seamless mobile experience, making it easy to manage finances from anywhere.
5. Automation Features
FreshBooks takes the pain out of financial management with features like:
- Recurring invoices for retainer clients.
- Automatic expense tracking by connecting bank accounts.
- Auto-categorization of expenses, which helps with tax prep.
Who Benefits: If you want to automate routine tasks like sending invoices, expense tracking, and managing client billing, FreshBooks makes it easy and worth the investment.
6. Customer Support
FreshBooks offers exceptional customer support, including phone support—something not offered by every accounting software provider. If you ever run into issues, you can get quick help from a human, not just through chat or email.
Who Benefits: For business owners who value strong, personal customer support, FreshBooks is a solid choice.
When FreshBooks May Not Be Worth It:
1. You Have Complex Accounting Needs
FreshBooks focuses more on invoicing and expense management rather than being a comprehensive accounting system. If you need advanced features like:
- Inventory management
- Detailed financial reporting
- Full payroll integration
- Customizable financial statements
Then QuickBooks or other more robust accounting software might be a better fit for your business.
Who Should Look Elsewhere: Product-based businesses or those with complex accounting needs (like payroll, multi-currency transactions, or tax compliance) may find FreshBooks too basic.
2. You Want a Free Option
While FreshBooks offers a 30-day free trial, it’s a paid service after that. If you’re looking for free software, tools like Wave Accounting provide many core accounting functions without a monthly fee.
Who Should Look Elsewhere: Sole proprietors or startups with extremely tight budgets may want to explore free alternatives like Wave.
3. You Need Payroll
FreshBooks doesn’t offer native payroll features. If you have employees or contractors and want integrated payroll capabilities, you’d need to use a third-party app (like Gusto) with FreshBooks, which adds to the cost.
Who Should Look Elsewhere: Small businesses with employees requiring payroll functionality might find QuickBooks or Xero more useful, as they offer payroll services natively.
FreshBooks Pricing Breakdown
FreshBooks’ pricing is reasonable compared to many competitors, especially considering its strong invoicing, expense tracking, and time-tracking features.
| Plan | Cost (Monthly) | Features |
|---|---|---|
| Lite | $17 | Up to 5 clients, invoices, time tracking, expenses |
| Plus | $30 | Up to 50 clients, recurring billing, automated reminders, and more |
| Premium | $55 | Unlimited clients, advanced reports, more workflow automations |
| Select | Custom pricing | Custom solutions for larger businesses, personal account management |
Final Verdict: Is FreshBooks Worth It?
FreshBooks is worth it for freelancers, consultants, and small service-based businesses that need a simple, intuitive, and powerful invoicing system with basic accounting features. The time you save on administrative tasks like invoicing, tracking expenses, and managing client work can more than justify the subscription fee.
However, if you need advanced accounting features like inventory management or payroll, or if you’re looking for a free option, FreshBooks may not be the best fit.
For businesses that prioritize ease of use, professional invoicing, and client management, FreshBooks offers tremendous value.