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FreshBooks offers affordable accounting software for small businesses. Its plans have pricing starting at $17 per month. It’s also easy to use. However, Freshbooks started primarily as an invoicing software and is geared towards freelancers and self-employed people who bill hourly or offer service based businesses. They have great time tracking and client management tools, but it isn’t as suited to the eCommerce use case as our recommended tools (QuickBooks and Xero). It also has fewer native integrations than our recommended tools, so you’ll have to rely on integration tools like Zapier. Additionally, it’s going to be harder to find a bookkeeper who is familiar with the platform as it’s less popular among professional accountants.
FreshBooks was founded in 2003 by Mike McDerment and Joe Sawada, who were frustrated by the poor accounting software options available at the time for small businesses and entrepreneurs. Based in Toronto, Canada, McDerment and Sawada originally built the cloud accounting service to help their own fledgling design business manage invoicing and finances more easily. They focused on creating an intuitive, user-friendly platform that small business owners could use without an accounting background. After the initial version saw strong adoption, FreshBooks rapidly expanded its features while maintaining its core emphasis on simplicity and ease-of-use. Within a few years it had become one of the most popular accounting solutions for small businesses in North America.
FreshBooks pricing 💰:
FreshBooks offers four pricing plans - Lite, Plus, Premium, and Select.
The Lite plan is $17 per month and allows sending unlimited invoices to up to 5 clients.
The Plus plan costs $30 per month and allows up to 50 clients. It includes features like project tracking, expense tracking, accounting reports, and integration with payment providers.
The Premium plan costs $55 per month and has unlimited clients. Additional features include automated late payment reminders, multi-user access, and advanced reporting.
The Select plan is customized pricing based on business needs and includes a dedicated account manager. It has all the features of Premium plus advanced permissions, custom reports, and API access.
All paid plans have a 30-day free trial. Additional fees apply for exceeding monthly transaction limits and add-ons like payroll through Gusto.
FreshBooks is an accounting software designed for small and medium size businesses.
Why is FreshBooks better than Excel?
FreshBooks has some advantages over excel:
Pre-built integrations with banks and credit card companies that you would have to import manually in Excel.
More checks to prevent you from accidentally making a mistake in your books.
Pre-built reporting tools to make sense of your financial data.
Is FreshBooks good for eCommerce?
It won't be ideal for eCommerce. It doesn't have inventory tracking and won't have other features necessary if you've scaled above $100k in annual revenue. It has fewer plug-ins than our recommended accounting software and will not scale with your business like QuickBooks or Xero will.
Does FreshBooks work with Shopify?
No, you will have to use Zapier or a third-party app to sync with Shopify or manually import Shopify data.
Is FreshBooks PCI compliant?
Yes, FreshBooks is PCI-DSS Level 1 compliant.
Is FreshBooks SOC 2 compliant?
Yes, FreshBooks has completed a SOC 2 certification.
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