FreshBooks Review of its Cloud-Based SMB Accounting Software

Additional features include vendor and bill management, a reporting tool called Project Profitability, and customizable email signatures. FreshBooks is a heavy-duty accounting ERP that caters to small and large organizations alike. It has a solid execution that is easy to master, especially for those without a background in accounting, and easily tackles the most difficult of tasks.

• FreshBooks’ easy-to-use Double-Entry Accounting tools and reports show profitability, cash flow health, and details your spending.
• FreshBooks accounting software gives you instant access to the tools you need to manage your finances.
• On the left side of the screen, you will find a menu of FreshBooks’ main features.
• Highest-tier Select plan only comes with two users and lower-tier plans put limits on billable clients.

Given its massive user base, QuickBooks is often viewed as the gold standard for small business accounting software. FreshBooks is a cloud-based accounting software company that was founded by Michael McDerment in 2003. Over 100,000 customers currently use FreshBooks for their accounting and invoicing purposes. The tool was designed https://www.scoopearth.com/the-importance-of-retail-accounting-in-improving-inventory-management/ exclusively for small and micro businesses, so it offers a notably basic interface and intuitive user experience. You can invite business partners, employees, contractors, and accountants to your FreshBooks account. Contractors can view only projects that you allow them to see, and they can track time toward those projects.

Is FreshBooks Built On Double-Entry Accounting?

Record the expense, then FreshBooks will assign it to the proper account based on the transactions it receives from the bank feeds. FreshBooks doesn’t perform well in terms of banking and cash management. You can’t reconcile bank statements unless you connect your bank account. If you’re uncomfortable connecting your bank account, then this isn’t for you. At the very least, good accounting software should allow you to record a check in the register—but that’s not possible with FreshBooks. Another nice feature is the ability to create recurring invoices, which comes in handy if you’re billing a customer for the same amount on a regular basis.

Read below for an overview of just some of FreshBooks’s key features and functionality. If you do opt to use FreshBooks as a small business accounting solution, understanding which benefits you may or may not have access to with each plan can help you choose your best option. After working as an accountant for many years in various industries, including retail accounting healthcare and property management, she returned to her first love, writing. She specialized in accounting and business articles, with an emphasis on software reviews, which she wrote for more than 20 years. She continues to write for the first publication she ever wrote for, CPA Practice Advisor, while blogging for several software companies.

Can FreshBooks connect to your bank account?

It’s equally easy to send invoices and collect payments; you can distribute your invoices with one click. For ongoing services, you can make the invoice recurring and automate the send so you don’t waste time manually recreating it month after month. Clients can also pay your invoices online, directly from the documents.

Even so, FreshBooks handles sales taxes more or less the same way other accounting apps for small businesses do. A Sales Tax Summary report will help you complete any necessary related forms. Most businesses will require an accountant to help manage their expenses and tax returns. FreshBooks streamlines the creation of accounting reports by pulling in data from invoices, payments, expenses, and your bank account. FreshBooks also provides the ability to invite your accountant to view your account.

FreshBooks Features

QuickBooks Online, by comparison, only offers time tracking in its $55-per-month plan and above. Highest-tier Select plan only comes with two users and lower-tier plans put limits on billable clients. The software started out primarily as a solution for managing invoices and grew to become an accounting product.

We encourage you to research and compare multiple accounting software products before choosing one. Xero users track mileage and time through project tracking and expense claiming tools that are only found in the highest-tier Established plan. I’ve never enjoyed bookkeeping but doing the admin part of my business (invoicing client, tracking expenses, tracking down clients who haven’t paid me) with Freshbooks has been so helpful to me. FreshBooks has multiple invoicing features and is easy to use, making it ideal for business owners who send a lot of invoices.

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). Most accounting software companies provide these basic services even in their cheapest plans. FreshBooks is best for small business owners who don’t have an accounting background. You can create and send invoices, track expenses, manage projects and clients, and view reports. When you add a user to your account, you assign them a role that determines which features they can access.

And with automation for invoices, expenses, and billing – you can say goodbye to manual data entry. After much research and analysis, we recommend FreshBooks as the best accounting software for invoicing. We spent several hours reviewing FreshBooks and comparing it with the top accounting software platforms. We went through all the steps of setting up and using the software for the first time.