FreshBooks Review: My 6 Pros & Cons of utilizing FreshBooks for Accounting

FreshBooks Review

I’ve been operating a business in excess of five years now. The final 4+ years, I’ve used FreshBooks for invoicing and bookkeeping. It is also one the businesses on my small Sources page that readers ask me most about. I figured I’d convert individuals emails right into a full FreshBooks review for reference &#8211 because here’s the factor.

I’ve had 3 bosses at 3 different companies let me know variations of the identical idiom. &#8220If it feels tiresome, you’re doing the work wrong.&#8221 Or, &#8220if you’re spending so much time, you use the incorrect tool.&#8221 Or, &#8220if you’re spending so much time, you’re most likely ignoring what’s important.&#8221

Boring things like invoicing and bookkeeping aren’t technically a part of marketing or enhancing your or perhaps your client’s website. However it does compete for the attention and time. It is also a simple-time suck.

By 2012, I used to be managing a freelance marketing &amp website design business for quite some time. I had been spending a significant amount of time attempting to keep costs lower whilst searching professional and legit. I had been using PayPal’s free invoice feature and Google Sheets. It had been a significant mess. And So I began searching an origin for bookkeeping, invoicing, and a little bit of accounting.

I began using FreshBooks. I’ve not used at all QuickBooks or compared QuickBooks versus. FreshBooks. It appeared feature overkill (and $$$) at that time. However I haven’t left FreshBooks even while business is continuing to grow and my career has altered.

BTW &#8211 I evaluated it by registering for a totally free plan and clicking around. Take a look at FreshBooks’ free trial offer &amp plans here.

I do not use FreshBooks for anything super-complicated. I personally use it to:

  • Create and send invoices to clients and advertising partners and track their accounts.
  • Track and manage expenses.
  • Fundamental accounting (also known as searching at P&ampL sheets &amp Schedule C documentation).
  • Simplify communication with my accountant.

So here’s my FreshBooks review with pros &amp cons. It isn’t for everybody, but it is also not intended to be either.

Disclosure &#8211 I receive referral charges from companies pointed out on this web site as well as in this publish. All data and opinions aresite according to my experience like a having to pay customer.

Pros of utilizing FreshBooks

Before I recieve into somethings I love about FreshBooks, here’s the primary pro better than other things:

FreshBooks reduced time creating, delivering, filing, and tracking invoices &amp expenses from ~half an hour per client to ~a few minutes per client/partner. If you’d prefer that point in your hourly rate&#8230that quite a bit of money.

So whatever bookkeeping platform you utilize &#8211 I’d use that rule because the defacto standard. Here’s my 3 primary pros of FreshBooks.

User-Friendly

Like lots of trendy, web-only software &#8211 FreshBooks includes a simple, straightforward user-focused design. It’s colorful. It’s personality.

It’s giant eco-friendly buttons along with a well-considered interface. It isn’t overloaded with features just like a of desktop-based software.

Here’s exactly what the primary dashboard appears like &#8211

FreshBooks Dashboard

80% of time is spent clicking right through to Invoices. 10% is allocated to Expenses, and 10% on Reports.

Here’s exactly what a standard invoice screen appears like.

FreshBooks Invoice

There’s lots of options. There’s pre-filled fields. I love the power pre-set rates for various projects and billing products. For instance, single Hour Consultation is definitely $200. To bill a customer, I simply select them in the drop lower. Click Consulation and click on send.

If you want to line-item you are able to. Things are pre-filled without having to be locked lower and defined.

Here’s exactly what the Client screen appears like &#8211

FreshBooks Client

Whenever you generate a new client, you simply enter their information plus they end up part of the machine.

One quick note is the fact that FreshBooks&#8217 plans element in your quantity of clients. If you have lots of small one-time clients (and wish to remain on the two cheaper plans for some time longer), it’s worth &#8220hacking&#8221 FreshBooks with an editable general client. I’ll reach that within the cons.

In either case, FreshBooks’ concentrate on simplicity and user-ambiance includes a very short learning curve. Its not necessary to consider a training course to obtain began and becoming value.

It’s an enormous pro for me personally.

Integrations

Each and every business has a variety of random needs and requires. And FreshBooks’ doesn’t play the role of something to everyone. However, they’ve been attempting to quickly grow outdoors their original wheelhouse of freelancers billing hourly time.

FreshBooks has contacted these needs through the opportunity to integrate simply with a variety of other platforms, payment systems as well as third party users.

FreshBooks includes a flexible API &#8211 meaning it may “talk” to numerous other software. That list includes time tracking software, ecommerce software (like Woocommerce), payroll software (like ZenPayroll) and help-desk software.

They likewise have plenty of internal add-ons like project time-tracking that you could add or leave off for the way simple you would like to help keep you have FreshBooks’ setup.

I’m also keen on how good they integrate with PayPal. Most everybody is familiar and feels secure with PayPal, so collecting invoices is straightforward. FreshBooks also offers their very own payments gateway to be able to collect credit/debit directly via FreshBooks (minus transaction charges).

The final integration which i like is third party user integration &#8211 also known as the invite an accountant functionality. Although FreshBooks does lots of fundamental accounting, it clearly can’t construct your business tax strategy or other proper accounting plans.

Typically, discussing tax strategy together with your accountant means gathering a lot of documents and providing an accountant a untidy look at the company (also known as wasting everyone’s time).

With FreshBooks’ invite an accountant functionality, my accountant not just got quick remote access, but additionally had use of all of the right documents out of all right format. Time-saving for everybody.

FreshBooks Accountant

In a nutshell, FreshBooks’ integrations provides me with versatility and keep the general software easy and uncluttered.

Customizations

On the related pro &#8211 I’m fan of methods well FreshBooks enables for personalization.

Like I pointed out within the intro, I had been visiting FreshBooks from the weird combination of PayPal’s free invoicing software and Google Spreadsheets.

It wasn’t only a mess, however it didn’t look particularly professional. In hindsight, it labored it keep me within the type of &#8220freelancer&#8221 rather &#8220consultant.&#8221 PayPal enables you to definitely incorperate your emblem, however it still appears like PayPal.

FreshBooks invoices could be edited and customised a lot more fully to resemble a professional invoice.

FreshBooks Invoice Example

However the personalization goes past that &#8211 like I pointed out in the last section, you are able to personalize all of the pre-filled sections within the invoicing. You are able to personalize expense rule &amp groups. Using the integrations, you may also personalize the procedure to produce invoices.

Cons of utilizing FreshBooks

Apart from carrying out a couple of free trials of competitors (see below in Next Steps), I do not come with an overall knowledge about various bookkeeping platforms. Although I’ve stuck around with FreshBooks &#8211 I believe there’s a couple of stuff that eliminate FreshBooks from as being a fit for everybody.

Prices

I believe the greatest disadvantage for FreshBooks is the prices. Yes, it’s reasonable. And I’m sure it’s worthwhile. However, the every month charges can also add up rapidly during the period of annually for functionality that you could technically have for free or cheaper.

Side note &#8211 FreshBooks really includes a free invoice creator for just one-off projects.

FreshBooks’ prices is fairly simple &#8211 however it relies upon one factor &#8211 your quantity of clients. If you’re a freelancer or business getting projects from many different clients, then you’ll rapidly get put into the Evergreen tier of ~$30 USD monthly.

If you’re still somewhere where you stand getting established &#8211 that $30/mo is definitely an attractive cost to chop. After I scaled my company lower while employed by a company, Used to do exactly that. I did not leave, however i did delete my client contacts and created a single, generic, editable “Advertising Partner” to trace revenue in my (not client) website projects. Used to do exactly the same in my couple of one-off clients. That put me within the $10/mo tier.

That stated, if you’re carrying out work with a lot of clients which are having to pay well, the $30/mo is okay. It’s greatly justifiable according to time saved. However if you simply are becoming established or carrying out work with a lot of clients with small individual invoices&#8230FreshBooks’ prices is really a disadvantage.

Bulk Editing &amp Creation

Another disadvantage that I’m still positively trying to puzzle out how you can solve is bulk development of invoices inside the FreshBooks’ interface.

It’s my job to have a lot of greater than a dozen invoices to produce in the finish of each and every month all at one time. The amounts and projects are unpredictable, and so i can’t set them as recurring invoices. Additionally they aren’t associated with any “trigger” just like a website purchase will be able to set to instantly generate a bill (something that i’m trying to change).

In either case &#8211 each month, I must click to produce each invoice by hand. There isn’t any method to batch create them, or perhaps open all of them in new home windows. I must create each one of these individually completely through.

The ironic factor is when I’d a trigger or something like that to sync using the API &#8211 it might be super simple. But in the centre area where I’m at &#8211 plenty of custom-ant invoices all at one time &#8211 FreshBooks causes it to be a little awkward.

One-offs

FreshBooks also offers a few one-off cons. I’d give them a call bugs when they had only happened once. However I generally have a problem with them once every couple of several weeks, so I’ll include them here.

Email click-throughs don’t always work

Every couple of several weeks, I’ll come with an invoice which goes towards the client. They notice (something which is awesome about FreshBooks &#8211 a customer can’t say they didn’t “see” your invoice). However they click on to pay for&#8230and it crashes.

Freshbooks View In Email

I haven’t had the ability to recreate it myself. However it has happened enough with a variety of clients &#8211 with lengthy-time clients which i trust and also have used FreshBooks &#8211 that there’s something happening. It’s pretty annoying if this does happen.

Automated Expenses Aren’t Right

FreshBooks is able to sync together with your bank and charge card company to instantly get expenses. You may also set rules and custom groups. However, FreshBooks’ also attempts to instantly tag expenses&#8230.and it is not too smart there.

FreshBooks Expenses

You are able to solve this problem to some degree with rules, but editing expenses continues to be likely to be a handbook task, about as tiresome like a spreadsheet.

Pro Tips about Using FreshBooks

Here’s a couple of from the training I’ve learned over 4+ years to obtain more from FreshBooks.

Keep an eye on advertising revenue like a self-client

Many freelancers have a side-project with ad revenue from Adsense, affiliate partners or ad buys. In FreshBooks, everything is to establish as “client.” To keep an eye on ad revenue, I produce the partner like a client but use my information.

After I obtain a payout, I create and save a draft invoice from that partner. Then open the invoice and measure the level as compensated entirely. The revenue will appear inside your books just like you invoiced them for charges that you simply were compensated out &#8211 just like a reverse invoice system.

FreshBooks Billing For Ads

FreshBooks Payment

Pre-fill all of your projects

I undervalued this selection of FreshBooks for some time. However if you simply perform a certain service for any defined rate &#8211 include that into FreshBooks. After that you can just select it when billing out a customer.

Have a generic &#8220Client&#8221 then make use of the Invoice label to recognize small projects.

Like I pointed out in prices &#8211 FreshBooks bases prices on the amount of clients you have. For those who have less than 25 regular clients along with a couple of miscellaneous projects included &#8211 here’s things i do to avoid wasting money. Give a client and refer to it as “Project” &#8211 some placeholder. Just edit and re-use that “client” for that miscellaneous projects. Whenever you complete the invoice, make use of the description label to mention and differentiate clients.

Next Steps

My knowledge about FreshBooks continues to be great. It’s not perfect also it isn’t for everybody. I’d recommend &#8211

  • Writing lower exactly what you’re searching for, the number of clients you’ve, and just what your present bookkeeping product is.
  • Register for a totally free trial (it normally won’t need a charge card) at FreshBooks.
  • Spend fifteen minutes clicking around. You’ll likely obtain a quick feeling of whether they are what you’re searching for.

If you are searching for options to FreshBooks, I’ve heard a great deal about &#8211

  • Xero &#8211 A current startup getting lots of press.
  • QuickBooks &#8211 The company within the space. Lately re-did their platform to become located in the cloud.
  • Invoicera &#8211 A different one which i attempted.
  • Toast Invoice &#8211 A little startup in Louisville. I loved it after i attempted it.

Whoever you hire on &#8211 cut back time bookkeeping and much more time marketing and enhancing your website.

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