Our Take
4.5
NerdWallet rating
The bottom line:
FreshBooks is well-suited for freelancers and independent contractors. However, it's not ideal for fast-growing businesses because of user and client limits on some of its plans.
FreshBooks
Starting at
$19/month Additional pricing tiers (per month): $33, $60, custom.
Promotion
30-day free trial or monthly discount (terms vary).
Learn more
on FreshBooks' website
Pros & Cons
Pros
- Simple to use for freelancers and very small businesses.
- All plans include time tracking, plus the ability to add billable hours and billable expenses to invoices.
- Mobile app lets you reply to clients’ questions and notifies you when invoices have been viewed or are overdue.
- 8 a.m. to 7 p.m. Eastern time phone support Monday through Friday.
Cons
- Highest-tier Select plan comes with only two users, and lower-tier plans put limits on billable clients.
- Least expensive Lite plan lacks bank reconciliation tools, accountant access and double-entry accounting reports.
- Accountant can’t access full audit trail, regardless of plan.
Full Review
FreshBooks is a small-business accounting software that stands out with its solid phone support, customizable invoicing features and for offering time tracking in all plans. The software started out primarily as a solution for managing invoices and grew to become an accounting product.
How does FreshBooks work?
After testing out a free 30-day trial, you can choose from one of four FreshBooks plans; the best option depends on the size and complexity of your business. A support page can help with account setup, and video webinars explain how to use the software and its bookkeeping features.
On the main dashboard, you can see charts that summarize invoices, profit and loss, revenue streams and spending. FreshBooks also has a mobile app for iOS and Android.
Pricing and features
Plan | Pricing | Features |
|---|---|---|
Lite | $19 per month or $228 annually. | Designed for self-employed professionals.
|
Plus | $33 per month or $396 annually. | Designed for small businesses. It includes all Lite features, plus:
|
Premium | $60 per month or $720 annually. | Designed for growing businesses. It includes all Plus features, plus:
|
Select | Custom pricing. | Designed for businesses that need dedicated support. It includes all Premium features, plus:
|
Where FreshBooks stands out
Phone support availability
As opposed to limiting phone support to normal working hours, FreshBooks offers phone support from 8 a.m. to 7 p.m. Eastern time on weekdays. This is convenient for people who work on their books toward the end of the day or own a business, like a restaurant, that operates on a later schedule.
Robust invoicing services
FreshBooks' suite of invoicing features is one of the product’s strong suits. You can choose from various customizable designs, set up recurring digital invoices, easily include discounts, and get instant updates when invoices have been viewed or paid online. Invoicing features are available on the mobile app, too.
Time and mileage tracking included in all plans
All FreshBooks plans include mileage tracking and time tracking features, which are also built into the mobile app. That way, small businesses with multiple employees don’t have to pay for a third-party time tracking app. In comparison, QuickBooks Online subscribers must pay separately for automatic time tracking. Xero users track mileage and time through project tracking and expense claiming tools that are only found in the highest-tier Established plan.
Where FreshBooks falls short
Limits on users and clients
FreshBooks’ biggest drawbacks are its limits on users and billable clients. It includes one user in all plans but the Select tier (which allows two users); each additional user costs $11 per month. The lower-tier Lite and Plus plans allow up to five and 50 clients, respectively. These limitations may not matter for very small businesses, but they can make it more expensive to scale up.
Other accounting platforms offer more flexibility. QuickBooks Online has a limit of five users in its most popular Plus plan and 25 users in its Advanced plan. Wave doesn't place limits on the number of users with its paid Pro plan. Xero doesn't cap the number of users or clients you can have, but it limits the number of invoices you can send in its lowest-tier Early plan.
Lite plan lacks double-entry accounting basics
The lowest-tier Lite plan doesn’t include basics like bank reconciliation tools or double-entry accounting fundamentals (i.e., a general ledger, chart of accounts and trial balance). It also doesn't allow accountant or bookkeeper access. Most accounting software companies provide these basic services even in their cheapest plans.
In the same vein, FreshBooks might be limiting for growing businesses that have multiple people working in the software. Regardless of which plan you choose, your accountant will not have access to a full audit trail.
FreshBooks alternatives
Bookkeeping and accounting software | Price | Highlights |
|---|---|---|
$30 per month and up. | As the industry standard, QuickBooks Online is ideal if you have a growing business with specific accounting needs — as long as you don't mind taking the time to learn the program's ins and outs. Like Xero, it can easily scale with your business. | |
Free and up. | Wave is a solid choice for small businesses looking for free accounting software. | |
Free and up. | Zoho Books' paid plans all come with free live chat and phone support. The free plan comes with email support only. |
» Learn more: See our full list of the top FreshBooks alternatives
How FreshBooks stacks up
Read more about how FreshBooks compares with the competition.
Learn more
on FreshBooks' website
Methodology
NerdWallet independently reviews accounting software products before determining our top picks. We collect the data for our software ratings from products’ public-facing websites and from company representatives. Information is gathered on a regular basis and reviewed by our editorial team for consistency and accuracy.
NerdWallet’s accounting software ratings favor products that are easy to use, reasonably priced, have a robust feature set and can grow with your business. The best accounting software received top marks when evaluated across 10 categories and more than 30 subcategories. Learn more about how we rate small-business accounting software.
These ratings are meant to provide clarity in the decision-making process, but what’s best for your business will depend on its size, growth trajectory and which features you need most. We encourage you to research and compare multiple accounting software products before choosing one.
NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
Frequently Asked Questions
Unlike QuickBooks Online, all FreshBooks plans let you track time and mark expenses as billable. Whereas FreshBooks is best for freelancers and small businesses that do most of their transactions by invoice, QuickBooks Online is a more robust product that can support quickly growing small businesses. For a detailed breakdown, see NerdWallet’s FreshBooks vs. QuickBooks Online comparison.
FreshBooks starts at $19 per month or $228 per year. The company frequently offers discounts for both types of subscriptions.
Freelancers, independent contractors and small businesses with no more than a handful of employees are the best candidates for FreshBooks.
FreshBooks automates some bookkeeping tasks and helps you keep track of income and expenses.
FreshBooks Payroll is a full-service payroll service that is powered by Gusto, and is an optional paid add-on to a FreshBooks subscription.
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