FreshBooks Review
Last updated: 2026-07-11
Overview
FreshBooks is a cloud accounting and invoicing platform founded in 2003 by Mike McDerment in Toronto, Canada, originally built after he accidentally invoiced a client on the wrong template and decided there had to be a better way. Headquartered in Toronto with offices in Amsterdam and San Francisco, FreshBooks serves over 30 million users including small businesses, freelancers, consultants, and agencies. The platform focuses on invoicing, expense tracking, time tracking, and basic accounting — explicitly designed for non-accountants who need to get paid without learning double-entry bookkeeping. FreshBooks handles billing, project profitability tracking, client portal access, and estimates. Rated 4.2/5 — excellent invoicing and expense tracking for service businesses, limited by weak inventory management and no double-entry accounting on lower tiers.
Pros & Cons
Pros
- Easiest accounting software to use — designed for non-accountants
- Excellent time tracking with automatic invoicing
- Professional invoice templates with online payment acceptance
- Good mobile app for tracking time and expenses on the go
- Strong customer support (phone, email, chat)
Cons
- Limited compared to QuickBooks for full accounting
- No inventory management on lower plans
- Pricing: Lite $8.50, Plus $15, Premium $27 — scales with usage
- Double-entry accounting only on Plus plan+
- Bank reconciliation limited compared to QuickBooks/Xero
Features
FreshBooks' core features include unlimited invoicing with customizable templates, recurring billing with automatic charging via stored credit cards, and automatic late payment reminders that escalate based on aging. Expense tracking handles receipt capture via mobile app camera, automatic category matching, mileage tracking with GPS, and sales tax calculation across multiple jurisdictions. Time tracking includes a start/stop timer, manual time entry, and billable rate conversion directly onto invoices — no separate time tracking tool needed. Projects module ties time entries to project budgets with real-time profitability tracking showing actual vs. estimated costs. Client Portal lets clients view invoices, estimates, and statements, approve estimates, and pay invoices online via Stripe, PayPal, or Square. Double-entry accounting (added in 2022) includes journal entries, trial balance, balance sheet, and accounts payable on Plus and Premium tiers. Integrations include Stripe, PayPal, Square, Gusto, Mailchimp, Zapier, Google Workspace, Slack, and Shopify. Limitations: no true inventory management (only basic product/service line items), no multi-currency on Lite tier (Plus required at $13.20/month), bank reconciliation is limited compared to QuickBooks with fewer supported institutions, and the mobile app lacks full desktop feature parity — particularly around reporting and project management. No native payroll — integrates with Gusto separately at additional cost.
| Free plan | ❌ No |
| Starting price | $8.50/mo (Lite), $15/mo (Plus), $27/mo (Premium) |
| Invoicing | Unlimited on all plans |
| Time tracking | ✅ Yes |
| Expense tracking | ✅ Yes |
| Bank reconciliation | Plus plan+ |
| Double-entry accounting | Plus plan+ |
| API access | ✅ Yes |
| Integrations | Stripe, PayPal, Gusto, Zapier |
| Support | Phone + email + chat |
Pricing
FreshBooks offers four tiers. Lite: $7.80/month annually ($9.60 monthly) — 5 billable clients, unlimited invoices, expense tracking, time tracking, and 1 team member. Plus: $13.20/month annually ($16.10 monthly) — 50 billable clients, double-entry accounting, recurring invoices with auto-bill, late payment fees, multi-currency, and 5 team members. Premium: $24/month annually ($29 monthly) — unlimited billable clients, project profitability tracking, proposal views tracking, custom email templates, and 5 team members. Select: custom pricing — adds dedicated account manager, team training sessions, premium support, and higher limits. 30-day free trial available on all plans. No permanent free plan. No credit card required to start trial.
Final Verdict
4.2/5. FreshBooks is the best accounting tool for freelancers and small service businesses that prioritize invoicing and expense tracking over full double-entry bookkeeping. The time tracking to invoice workflow is seamless — start a timer, log time to a project, and it appears on the next invoice automatically. Drawbacks: no inventory management limits product-based businesses, bank reconciliation is weaker than QuickBooks with fewer supported institutions, and the client limit on Lite (5 clients) forces upgrades quickly for growing businesses. Best for freelancers, consultants, and agencies billing time.
Frequently Asked Questions
Is FreshBooks worth it in 2026?
For freelancers and service businesses that bill time, yes. FreshBooks' invoicing, time tracking, and expense capture workflow is the most user-friendly in the accounting category. Lite at $7.80/month handles basic billing for up to 5 clients. Product-based businesses needing inventory management should look at QuickBooks Online or Xero instead.
How much does FreshBooks cost?
FreshBooks Lite is $7.80/month annually (5 billable clients, 1 team member). Plus is $13.20/month (50 clients, double-entry accounting, multi-currency). Premium is $24/month (unlimited clients, project profitability). Select uses custom pricing. 30-day free trial on all plans.
What are the best FreshBooks alternatives?
QuickBooks Online offers full double-entry accounting with inventory management, payroll, and stronger bank reconciliation. Wave is free for invoicing and basic accounting but has limited features. Xero provides stronger bank reconciliation and multi-currency support. Zoho Books includes inventory and project tracking at competitive pricing.
Does FreshBooks offer a free trial or free plan?
FreshBooks offers a 30-day free trial on all paid plans (Lite, Plus, Premium) with full feature access and no credit card required to start. There is no permanent free plan — after the trial, you must select a paid tier to maintain access to your invoices, expenses, and time logs.