An intuitive accounting software designed specifically for service-based small business owners.
FreshBooks is cloud-based invoicing and accounting software, founded in 2003 by Mike McDerment and Levi Cooperman in Toronto after McDerment accidentally overwrote a client invoice in Microsoft Word. The company says over 30 million small businesses have used it across 160+ countries.
FreshBooks has built its reputation specifically around ease of use for service-based freelancers, not full accounting depth. It holds a 4.5/5 rating on G2 from user reviews praising its simplicity and support, but a notably lower 3.7/5 on Trustpilot, where reviewers focus more on pricing and processing fees. That gap is worth knowing before you commit: people who like the product often still find the cost frustrating once they've used it a while.
The most common use case is sending professional invoices and getting paid faster, without wrestling with full double-entry accounting software built for a bookkeeper. FreshBooks generates invoices automatically from tracked time and logged expenses, then sends payment reminders so you're not the one chasing a late client.
A freelance designer tracks billable hours per project directly in the app, then converts that tracked time straight into an invoice with one click. A consultant sends a proposal through FreshBooks, and once the client accepts, it converts automatically into an invoice with the agreed terms already filled in.
FreshBooks also handles mileage tracking, expense categorization from receipt photos, and basic financial reports, covering the core bookkeeping a solo service business needs without the complexity of a full accounting platform.
Log billable hours against a project and convert them directly into a client-ready invoice, removing the manual step of transcribing hours into a bill.
Every plan tier is priced around how many billable clients you actively invoice, not team size or feature depth, a structure that's simple to understand but creates hard ceilings as you grow.
Send a proposal that converts automatically into an invoice once a client accepts, keeping the paper trail from pitch to payment in one place.
Capture receipts by photo and log mileage automatically through the mobile app, reducing manual expense entry at tax time.
Invite your accountant to view and work in your books directly, included on every paid plan without an extra per-seat charge for that specific role.
Freelancers and solo consultants with a modest, stable client list who want invoicing and time tracking to feel effortless rather than administrative.
A solo founder actively growing past a handful of regular clients, since crossing the 5-client Lite cap or the 50-client Plus cap forces a plan upgrade you may not otherwise need.
Automated invoicing from tracked time, online payment acceptance, automated late payment reminders, recurring billing, proposals and estimates, client retainers (Premium and up)
Time tracking by project, project profitability views, team timesheets (with added team member fee)
Mobile receipt scanning, bank account and credit card import, automated expense categorization, mileage tracking
Profit and loss, expense reports, accounts aging, basic financial reporting across all tiers
1 user included on every plan, additional team members at $11/month each, accountant access included
FreshBooks Payroll (Gusto-powered, $40/month + $6/employee, US only), Advanced Payments ($20/month, included free on Select), 100+ app integrations via the FreshBooks AppStore
Free Plan: Not available. FreshBooks offers a 30-day free trial, no credit card required, plus a 30-day money-back guarantee after you subscribe.
Lite — $23/month (regular list price) / $17.10/month (billed annually, roughly 10% off, some sources cite a $19 starting figure, confirm current rate directly): Up to 5 billable clients, unlimited invoices, expense tracking, time tracking, estimates. The client cap is the main constraint here, not missing features.
Plus — $43/month (regular list price): Up to 50 billable clients, everything in Lite plus proposals, recurring billing, double-entry accounting reports.
Premium — $70/month (regular list price): Unlimited billable clients, everything in Plus plus client retainers and more advanced reporting. This is the plan you're forced into once client count alone becomes the constraint, regardless of whether you need the extra features.
Select: Custom pricing for high-volume businesses. Includes Advanced Payments at no extra charge and dedicated account management.
Add-Ons: Extra team members at $11/month each, Payroll (Gusto-powered) at $40/month plus $6/employee, Advanced Payments at $20/month (Lite through Premium).
Annual vs. Monthly: Annual billing saves roughly 10% across every tier.
If You Cancel: 30-day money-back guarantee after your first purchase. No long-term contract required beyond that window.
⚠️ Worth knowing: FreshBooks has raised its list prices more than once in the past two years, with one documented case of a single plan climbing from roughly $25 to $45 per month over several years with no corresponding feature changes. The 90%-off promotional pricing frequently advertised lasts only 4-6 months before jumping to full list price, the same pattern seen across most accounting software in this space.
Prices last verified August 2026 from third-party sources current as of mid-2026; confirm exact current figures directly on FreshBooks' pricing page before subscribing.
A separate invoicing tool or manually built invoice templates, since FreshBooks generates professional invoices automatically from tracked time and expenses.
A standalone time-tracking app, since billable hours are logged and converted directly into invoices in one workflow.
Manually chasing late payments by email, replaced by automated payment reminders and online-payable invoices.
A human accountant or bookkeeper for tax filing and complex financial decisions. FreshBooks lets you invite an accountant to collaborate, but it doesn't replace their judgment.
Your payroll provider. FreshBooks Payroll is powered by Gusto and sold as a separate add-on ($40/month plus $6 per employee), not something built natively into the core product.
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