The Pros and Cons of Using FreshBooks Software

Every business, regardless of size or industry, requires a dependable system for tracking revenue, expenses, and cash flow to maintain financial health and promote growth. This is where invoicing and accounting software comes into play, automating repetitive tasks, reducing human error, and providing business owners with crucial insights into their financial standing. By simplifying and centralizing these processes, businesses can allocate more time and resources to other critical aspects, such as marketing, customer relations, and product development.

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As a result, having robust invoicing and accounting software can be a game-changer for businesses, and FreshBooks is one such option that is widely used by millions worldwide. While FreshBooks offers a range of appealing features, examining both the advantages and drawbacks is crucial to making an informed decision when considering adopting this software. In this article, we’ll also break down this accounting software’s features, use cases, and pricing to help you decide if FreshBooks is the right fit for your business.

If you need a robust project management solution to pair with FreshBooks, consider AceProject. It’s a cost-effective option with pricing that’s not tied to the number of users, making it a practical choice for teams of any size.

FreshBooks – Invoice and Accounting Software

FreshBooks is a widely trusted cloud-based accounting and invoicing software built for freelancers, self-employed professionals, contractors, and small businesses. Today, it serves over 30 million users across 160+ countries, offering an intuitive, mobile-friendly platform that simplifies financial management. Along with invoicing and expense tracking, it also integrates features similar to leading Time Tracking Software featured in Spotsaas, helping users manage hours, payments, project profitability, and tax reports, all in one place.

What makes FreshBooks stand out is its ability to deliver both time savings and financial efficiency. Automations for recurring invoices, expense tracking, and reporting can save users up to 553 hours annually, while streamlined billing processes help recover as much as $7,000 in otherwise lost billable hours each year. Combined with its modern design, strong integrations, and tiered pricing that adapts to business size, FreshBooks has positioned itself as one of the most practical accounting solutions for freelancers, agencies, and growing businesses worldwide.

The Pros or Advantages of FreshBooks

Understanding the pros of FreshBooks is important because it highlights how the platform can simplify daily operations, save time, and improve accuracy in managing finances. These benefits come directly from user experiences, giving you practical insights into how FreshBooks performs in real business settings. The accounting software’s pros include:

User-Friendly Dashboard: Many users appreciate the intuitive layout, saying they can navigate invoices, expenses, and reports without needing formal accounting knowledge. This ease-of-use saves hours of frustration compared to clunky alternatives, making FreshBooks accessible even for freelancers new to bookkeeping.
Automated Invoicing: Users report that recurring invoices and automatic payment reminders significantly reduce late payments. The automation feels like having a virtual assistant handling billing, freeing up time to focus on delivering work instead of chasing clients for money.
Time Tracking Integration: Freelancers particularly value the built-in timer, which lets them track hours directly on client projects. Instead of juggling spreadsheets or external tools, FreshBooks links tracked hours to invoices, ensuring no billable work is forgotten or undercharged.
Expense Management: Many users like how FreshBooks automatically pulls transactions from bank feeds and organizes receipts. This cuts down manual entry and helps them keep taxes in order. Several note that receipt capture through the app is a lifesaver during audits.
Project Collaboration: Teams using FreshBooks appreciate being able to assign tasks, share updates, and track time inside one platform. They say it reduces the back-and-forth on email and keeps everyone aligned, especially when managing multiple client projects simultaneously.
Strong Mobile App: Business owners frequently mention how convenient it is to send invoices, record expenses, or check client payments from their phone. Many say the app allows them to handle urgent tasks on the go, without being tied to a laptop.
Multi-Currency & International Support: Users working with overseas clients value how FreshBooks automatically handles different currencies. This feature helps them avoid manual conversions, ensures clients see invoices in their local currency, and makes receiving global payments far smoother than other platforms.
Responsive Customer Support: Many reviewers highlight the human support FreshBooks offers. Instead of waiting days for email responses, users mention they often reach a real person by phone in minutes. This quick assistance has saved businesses from delays when handling urgent billing or technical issues.

The Cons or Disadvantages of FreshBooks

Recognizing the cons is just as crucial as knowing the benefits. Real-world user feedback reveals challenges that could impact costs, scalability, or workflows. By understanding these drawbacks upfront, you can decide if FreshBooks is the right long-term solution for your business needs. Here are some of the most notable:

Client Limits on Lower Plans: Freelancers often complain that the Lite and Plus plans cap billable clients. Many find themselves forced into higher tiers earlier than expected, which feels restrictive compared to competitors that offer more generous limits at similar prices.
Costs Can Add Up: Users point out that FreshBooks looks affordable at first, but the total price climbs with add-ons, transaction fees, and extra team members. Small businesses say they sometimes underestimate these costs, only to realize later that FreshBooks is more expensive than expected.
Limited Advanced Features: Some business owners note that FreshBooks lacks deeper accounting functions like inventory tracking or advanced reporting. While fine for basic bookkeeping, those scaling into product businesses or complex financial structures often feel the platform is too limited for long-term growth.
Mobile App Limitations: Users who rely heavily on mobile mention frustration when certain desktop features aren’t available on the app. Tasks like detailed reporting or setting up advanced invoice customizations can’t be done on mobile, forcing them back to their computers.
Not Ideal for Large Enterprises: Larger companies often report that FreshBooks doesn’t scale well for their needs. The simplicity that freelancers love becomes a limitation when managing dozens of employees, multiple departments, or intricate accounting processes requiring more robust ERP-style solutions.
Learning Curve for Advanced Features: Some users say that while invoicing is simple, digging into advanced reports, integrations, or project management features takes more time to master. This learning curve frustrates business owners who expected everything to be as effortless as sending an invoice.
Customization Restrictions: Businesses wanting to fully brand invoices or create tailored reports find FreshBooks limiting. Users often mention wishing for more design options and flexibility in reporting, saying the software forces them to settle for generic-looking documents.
No Built-In Payroll (U.S. Only via Gusto): Several U.S.-based businesses note disappointment that FreshBooks doesn’t have integrated payroll. While integration with Gusto is possible, users see it as an extra cost and hassle, especially compared to competitors with built-in payroll options.

FreshBooks Key Features

Understanding FreshBooks’ features is essential before committing, because this is where the software proves its value. Features determine whether the platform simplifies your work—or becomes another headache. With FreshBooks, the appeal is in its simplicity and automation. Exploring its full toolset will show you exactly how it can replace manual tasks, streamline payments, and strengthen client relationships while giving you more time to focus on your actual business. Key features include:

Invoicing Tools: FreshBooks offers customizable invoices, automatic late fees, due dates, deposits, and discounts. You can send multilingual, multi-currency invoices and even preview them before sending. Features like recurring invoices and reminders ensure you get paid on time while looking professional.
Payment Options: Clients can pay via credit card, ACH, PayPal, or international currencies. Payments are recorded automatically, with recurring billing, refunds, and secure checkout links supported. Fast bank deposits keep cash flowing, while strong security measures protect your data.
Expense Tracking: Log and categorize expenses easily, attach receipts, and track vendors. FreshBooks remembers vendors, supports multi-currency, and makes editing simple. Tax-friendly categories and expense summaries keep you ready for tax season without endless spreadsheets.
Estimates and Proposals: Create professional proposals with rich detail, including timelines and deliverables. Clients can e-sign instantly, and approved estimates convert seamlessly into invoices. With the mobile app, you can send and manage proposals from anywhere.
Time Tracking: Use timers, daily breakdowns, and team tracking to log billable hours effortlessly. Hours can be tied to specific clients or projects, ensuring accurate billing. With the Chrome extension, you can track time inside popular apps like Asana or Trello.
Project Management: Invite clients, employees, or contractors to collaborate, share files, and track conversations. Project overviews, due dates, and central communication keep everything on schedule while ensuring accountability.
Accounting & Reporting: Generate balance sheets, profit and loss reports, tax summaries, and trial balances. FreshBooks supports general ledger entries, COGS tracking, invoice histories, and reconciliations. This allows businesses and accountants to maintain full financial visibility.
Client Management: Store contact info, track communications, and add internal notes to impress clients with personal details. FreshBooks makes updating client data fast and easy while keeping your most active clients accessible.
Mobile Access: With FreshBooks’ iPhone and Android apps, you can send invoices, log expenses, and track client activity on the go. You’ll always know when clients have viewed invoices, so you never miss a beat.
Integrations & Add-Ons: FreshBooks connects with tools like Google Apps to streamline client communication and productivity. These integrations make running your business smoother by syncing data across platforms you already use.

FreshBooks Use Cases

Understanding FreshBooks’ use cases clarifies where the software delivers the most value. While it’s an excellent choice for freelancers, it also adapts well to various industries and business models. Consequently, evaluating your specific needs helps you determine whether FreshBooks provides the right features — so you avoid paying for unused capabilities or missing critical functionality. Take time to compare your workflows and priorities against FreshBooks’ strengths before committing. Its main use cases include:

Freelancers: FreshBooks simplifies invoicing, time tracking, and expense logging. Freelancers can keep finances organized, send professional invoices, and get paid faster while focusing on client projects instead of paperwork.
Businesses With Contractors: The platform makes collaboration easy by tracking project expenses, managing contractor billing, and keeping financial data transparent. This ensures smooth workflows between the company and independent contractors.
Businesses With Employees: FreshBooks helps teams manage expenses, time logs, and client invoicing collectively. Employees can contribute to project tracking while owners maintain oversight of the company’s financial health.
Self-Employed Professionals: FreshBooks allows solo business owners to manage clients, track income, and automate payments. This frees up time to grow their practice without being buried in accounting tasks.
Accountants: Accountants benefit from FreshBooks’ organized records, financial reports, and tax summaries. It makes client account management simpler, reducing the time needed for audits and compliance.
Construction: Project-based billing, expense tracking, and invoice management help contractors stay on top of job costs. FreshBooks keeps construction projects financially organized even without full inventory tracking.
Consultants: Billable hour tracking, recurring invoicing, and expense monitoring help consultants streamline operations. They can focus on providing expertise while maintaining accurate financial records.
IT and Technology: Tech businesses can manage client billing, project hours, and expenses in one place. FreshBooks simplifies finances so IT teams can focus on innovation and service delivery.
Legal: Lawyers use FreshBooks to track billable hours, generate detailed client invoices, and maintain transparent financial communication. This ensures fair billing and compliance with legal accounting requirements.
Marketing and Agencies: Agencies manage multiple client accounts, projects, and contractor costs in FreshBooks. It provides transparency in project billing, helping maintain client trust and ensuring profitability.
Creatives: Designers, writers, and artists can invoice professionally, track project costs, and simplify tax preparation. FreshBooks supports them in balancing business and creative work.
Professional Services: From consultants to service providers, FreshBooks streamlines financial operations. It reduces admin burdens while ensuring accurate client billing and cash flow management.

FreshBooks Pricing and Costs

Understanding the pricing is essential because FreshBooks’ affordability depends heavily on business size and feature needs. While entry-level plans may start cheaply, required add-ons, transaction fees, or additional users can quickly raise the total cost. Annual billing offers savings of around 10% compared to paying monthly, which can add up for long-term users. However, consider implementation, training, and any third-party integrations you’ll need—these often carry extra charges. Evaluate long-term scaling costs and compare them with competitors to avoid surprises. A clear cost projection helps ensure FreshBooks fits your budget as you grow.

Here are the plans available:

Lite Plan ($21/month | $170.10/year): Ideal for freelancers and very small businesses with up to 5 active clients. This plan covers the basics—sending invoices, tracking expenses, and generating simple reports. It’s best for those who want simple bookkeeping and invoicing without paying for extras.
Plus Plan ($38/month | $307.80/year): Ideal for self-employed professionals or small businesses working with up to 50 clients. It includes recurring billing, proposals, and financial reports, making it the go-to choice for growing businesses that need stronger automation and cash flow tools.
Premium Plan ($65/month | $526.50/year): Ideal for businesses with employees, contractors, or larger client lists who need unlimited invoicing. It comes with advanced reporting, project profitability tracking, and customization options—best for scaling companies that can’t afford feature restrictions.
Select Plan (Custom Pricing): Ideal for established businesses with complex needs. This plan includes priority support, lower transaction fees, custom onboarding, advanced reporting, and data migration. It’s tailored for companies that want full flexibility, premium service, and enterprise-level support.

Add-Ons:

Team Members – $11/month per user
Advanced Payments – $20/month
FreshBooks Payroll – $40/month + $6/month per user

Conclusion

Choosing the right accounting software isn’t just about features on paper—it’s about how well the tool integrates into your daily workflow and supports your growth. FreshBooks has earned its reputation by delivering an intuitive interface, strong automation, and tools that help freelancers and small businesses stay financially organized. However, it’s not without limitations, especially when it comes to scalability, add-on costs, and handling complex accounting needs.

That’s why understanding the pros, cons, features, use cases, and pricing is essential before committing. For many entrepreneurs, FreshBooks offers a balance of simplicity and functionality that makes financial management less of a burden and more of a strategic advantage. Take the time to evaluate your unique needs, test its free trial, and decide if FreshBooks aligns with both your current operations and your long-term business goals.