Thanks to accounting software solutions like FreshBooks, invoicing and payment of bills has never been any more comfortable.
Founded back in 2002, this software solution targets small-sized businesses. The software is cloud-based and offers accounting applications.
Now, paying and managing payroll functions and bills can be done quickly.
This platform has come a long way since its birth. Back in 2014, the platform announced that in its first round of institutional investment it raised $30 million.
By 2016, FreshBooks unveiled a new interface. This upgrade helped the app have a faster load time.
Now, you get to spend less time on accounting and focus more on your business. What more can you ask for?
But there’s a little issue.
As a beginner, using FreshBooks might be a bit daunting. You need to familiarize yourself with the software to effectively use it.
This review will provide with a detailed understanding of the FreshBooks software, its features, benefits, and weaknesses.
So, shall we?
What is FreshBooks?
FreshBooks is a cloud-based solution that streamlines your client invoicing and time tracking.
The FreshBooks software is a fast and reliable accounting suite that reduces the complexity of financial management.
Now, you can manage recurring subscriptions and invoices in a matter of minutes. Within that same system, you can collect online payments.
Integrated into FreshBooks’ software is a wide range of business applications and systems. The software also enables credit card, PayPal, and Google Checkout as a medium of payment. These tools help you streamline your accounting process.
With FreshBooks, there is a high chance of you uniting your financial control into a single system. Now you don’t have to pay to maintain multiple software infrastructure.
Even as a freelancer, FreshBooks still comes in handy for you. The software gives you that professional look with custom-branding for your financial documents, including your colors and logo. You also fast track your sales cycle and collection using FreshBooks.
One of the fantastic things about FreshBooks is its flexible pricing plan. This pricing plan gives room for small and medium businesses to enjoy the software’s functionalities.
FreshBooks also gives you access to fully-functional mobile add-ons and apps. Interestingly, you can get these apps and add-ons on any iOS and Android device. These apps let you take the convenience and power of FreshBooks anywhere you want.
You can access your records and manage your accounting whenever you want to with FreshBooks.
The FreshBooks platform seamlessly and safely takes your finances out of the office.
Pros of Using FreshBooks
FreshBooks has unique features that attract small and medium businesses.
Let’s look at the pros of using this accounting solution, shall we?
A major selling point of FreshBooks is how it helps you charge and invoice clients efficiently.
You don’t have to deal with following up on late payments or loads of paperwork. FreshBooks automates and streamlines the entire process which gets you paid faster.
The FreshBooks software integrates with third-party platforms. You can use the software with platforms like QuickBooks, Bidsketch, MailChimp, and Gmail.
You can offer business services via FreshBooks software. These services include shopping carts, tax software, team and management apps, CRM, payroll, and third-party help desk services.
FreshBooks’ security goes beyond the traditional 265-bit SSL encryption. The software has multiple-layered cyber-security. You want to employ this level of protection because you handle sensitive data.
The software has AES encryption for banking and credit card details, server vulnerability scanning, and hacking and intrusion detection. But that’s not all!
This platform also has physical backup servers that are off-location. These servers are used to safely keep your information in case the central server fails or gets damaged.
Now you can have more confidence in cloud-based services.
Setting up an account with FreshBooks is quite easy.
All you need to do is fill essential details about your business in a form. Then, you can decide to watch a couple of tutorial videos to get familiar with the platform’s features and dashboard.
Next, you can set up contact details for your clients and link to your bank account.
Voila! You are in business.
Client Read Notifications
The software helps you in sending out links for invoices to your clients. The software also notifies you if and when the client opens the link or reads the invoice. Now you don’t have to worry about the “I never received it!” stunts some clients may pull.
FreshBooks payment system runs through WePay. This system lets you save fees over Stripe or PayPal. The software does this by auto-importing and passing on these fees to your client.
Another big win is auto-billing. Here, FreshBooks doesn’t charge a fee. The upside here is your clients will like the free fees-processing.
FreshBooks lets you have a hassle-free and on-time payment.
Conversion of Expenses
With your business checking account connected to FreshBooks, importing and converting expenses into billable items is easy.
Different Sections For Product and Services
If you use a FreshBooks invoice, you have a separate section for services and another for products. These sections make it easier for you and your clients to make breakdowns. And, it’s easier to calculate the total amount.
Private Accountant Log-in
A useful tool of the FreshBooks software is its Accountant Center. This tool gets your accountant an individual log-in.
With the Accountant Center, your accountant has access to journal entries and necessary information to maintain your accounting.
FreshBooks’ interface is quite user-friendly. However, the project management tool can come in handy to meet your business needs.
The tool integrates with third-party management services like Basecamp.
Cons of Using FreshBooks
Even the best accounting solutions come with drawbacks, FreshBooks is not any different.
So, let’s explore the cons of this software, shall we?
To make use of the platform’s billing and invoices, you need an internet connection. This requirement is because FreshBooks doesn’t have a downloadable offline program.
However, your mobile phone’s wireless data bundle can work for you.
Not Exactly Accounting-Oriented
Though this billing and invoicing solution has a cloud accounting tag, it is not precisely accounting-friendly.
Amongst FreshBooks missing accounting features, it does not have a general ledger. Also, there is no room for double-entry bookkeeping. However, you can use its billing and invoice services.
Limited Invoice Design
The billing software limits your invoice design customization. You can only add your business logo and change the color scheme. Nothing more/1
You will need creativity when it comes to entering and organizing information on your invoices.
No Accounts Payable
Though the platform lets you import expenses from your linked bank account, the software doesn’t give room for substantial accounts payable.
You will run into this issue when it comes to bills. You can’t keep track of those you owe, how much you owe, or when you are meant to pay back.
Since you can’t track these expenses with FreshBooks, you need to use another software. Tracking your expenses lets you calculate your finances accurately, with both income and debts included.
Can’t Track Unbillable Expenses
There are situations where you have expenses related to a particular project or client but don’t want to include it as a cost on your invoice. This kind of situation can be daunting if you are using FreshBooks.
FreshBooks does not provide a way to track or save these kinds of expenses. You either bill them to your client or calculate them with your profit or loss.
No Standard Tax Rate
Every time you are sending invoices with FreshBooks, you need to choose the right tax rate. You can’t save a particulate rate to the information file of a client.
This process can be a chore if you have loads of invoices to process.
Features of The FreshBooks Software
The FreshBooks software comes with its fantastic features. Now you can track your expenses, send invoices online, manage projects and payments, and so much more.
So, let’s go through the unique features of this accounting software, shall we?
This platform has an invoicing feature that combines dynamic edibility with the positive side of templates. The software also connects these two systems with the flow of changes that it allows across the board. You don’t have to touch multiple settings after setting them.
Whatever changes to settings you might do, the invoicing tool carries them throughout your estimate or invoice. These changes can also be tied to your clients. You will be surprised at the amount of time you’ve saved.
FreshBook’s expense tracker also helps you send out reminders on late payments. This reminder is sent via mail to your clients so that they can pay on time. You are free from having to send payment reminders manually.
If you like, you can include a penalty for late payment if your client pays late.
FreshBooks has a financial reporting feature that puts financial reports at the tip of your finger. In a matter of minutes, you can view your business’s financial strength easily.
The billing software easily fetches your expense reports, and profit and loss statements. These reports give you clarity on your financial state.
With this feature, you can connect all your credit cards, payment gateways, and bank accounts, all in a single system.
You can view all the information on your financial situation all in one place. You know where expenses lie and from where revenues come.
Credit Card Payments
Thus billing and invoicing solution has a customized online payment portal that allows you to receive credit card payments. Once you have the email address of a client or prospect, FreshBooks lets you send customized emails to them. Through this email, they sign into your payment portal to make payments.
The payment scheme allows your client to pay the initial recurring monthly payment, a full fee upfront, or an initial retainer fee.
Through this portal, you can accept credit cards online. And, your payment system is exceptionally streamlined.
FreshBooks also has a mobile chip and credit reader integrated with its mobile app. You can receive payments from clients wherever you are.
Open Team Communication
FreshBooks gives room for communication between your team members.
The Executive team, the accounting department, the staff; everyone can get access and see the financial situation of your organization. And, they also know where the cash is going to and from where it comes.
Depending on your preferences, you can go with any of FreshBooks’ pricing plans.
You can decide to go with the monthly plan or the discounted yearly plans.
So, let’s find out the pricing model for FreshBooks, shall we?
The Lite plan goes for $15 per month and $13.50 per month if billed yearly.
With the lite plan, you get unlimited estimates and invoices; you can track expenses and time, and import expenses from your bank account instantly. Also, you can accept credit card payments online.
However, you are limited to five clients.
The Plus plan is the most used, and it goes for $25 per month and $22.50 per month if billed yearly.
With the plus plan, you get the features of the lite plan coupled with access to automatic payment reminder. You can also charge late fees for invoices that are overdue, send proposals, and schedule repeating invoices.
The Plus plan also allows you to view accounting reports like Chart of Accounts, Trial Balance, and General Ledger. And, you can have up to 50 clients with this plan.
The Premium plan comes with all the features of the Plus plan, but you can have up to 500 clients.
The plan goes for $50 per month and $45 per month if billed yearly.
Using FreshBooks as an accounting solution is easy for the following reasons:
- FreshBooks has a flexible pricing plan to suit whatever preference you have. You can subscribe monthly or yearly.
- The software supports five different languages; English, Dutch, Polish, Turkish, and Swedish.
- FreshBooks is cloud-based with a customer base that includes small businesses and freelancers.
- You can access FreshBooks from any mobile device or computer with an Android, Windows or iOS operating system.
The platform has fantastic customer service. They make it easy for you to get support. If you have questions about how to get started, how to import your data, and so on, head straight to their support page. You’ll get all the answers you need!
To Wrap It Up
FreshBooks is one of the best accounting software that streamlines the entire accounting process. Now you can send invoices online, track expenses, and lots more.
Though the software has its flaws, it still stands as one of the best cloud-based accounting solutions out in the market.