FreshBooks Review for Small Business Owners
FreshBooks is simple, modern accounting software built for freelancers, agencies, and service-based businesses. It makes invoicing, payments, and expense tracking a breeze — no accounting degree required.
What is FreshBooks?
FreshBooks is a cloud-based invoicing and accounting tool designed for service-based businesses.
Instead of bulky accounting systems, FreshBooks focuses on what most small business owners actually need: professional invoices, easy payments, expense tracking, and time tracking.
Think of it as your personal billing assistant — simple, intuitive, and client-friendly.
Key Features (Plain English)
Invoicing
Create and send professional invoices in minutes; set up recurring billing.
Payments
Accept credit cards, PayPal, and ACH directly from invoices.
Expense Tracking
Snap receipts, categorize expenses, and track spending easily.
Time Tracking
Log hours worked and automatically bill clients.
Reporting
Simple profit/loss, tax summaries, and client payment reports.
Projects & Collaboration
Share estimates, manage projects, and collaborate with clients.
Pros & ⚠️ Cons
Pros (Why People Love It):
Extremely easy to use — no accounting knowledge needed
Perfect for freelancers, coaches, and agencies
Great time tracking + invoicing combo
Clean, modern interface with strong client portals
Responsive mobile app
Cons (What to Watch Out For):
Limited features compared to QuickBooks/Xero
Not ideal for inventory-heavy businesses
Pricing rises quickly as you add more clients or features
Payroll requires integrations, not built-in
Why Using FreshBooks is Important
For service-based businesses, getting paid on time is everything. FreshBooks streamlines:
Invoices
Look professional and get paid faster
Payments
Clients pay online with one click
Time tracking
Bill every hour without manual math
Make better decisions
Stay organized for tax season
It’s like having a personal assistant who handles your billing so you can focus on work.
Expanded SaaSChooser Picks (Finance Tools by Level – Detailed View)
QuickBooks Online → Best All-in-One, Industry Standard
Who it’s for:
Small to medium businesses that want a tool most accountants/bookkeepers already use
Companies with employees, contractors, or multiple revenue streams
Anyone planning to apply for loans or funding (banks trust QuickBooks reports)
Why it’s great:
Covers everything in one platform: invoicing, expenses, payroll, reporting, and taxes
Huge integration ecosystem (Shopify, Stripe, PayPal, banks)
Recognized as the default standard in U.S. accounting
Who should avoid it:
Freelancers who only need invoicing (too advanced and pricey)
Ultra-budget startups who can’t justify ~$30–$50/month
Small to medium businesses that want a tool most accountants/bookkeepers already use
Companies with employees, contractors, or multiple revenue streams
Anyone planning to apply for loans or funding (banks trust QuickBooks reports)
Why it’s great:
Covers everything in one platform: invoicing, expenses, payroll, reporting, and taxes
Huge integration ecosystem (Shopify, Stripe, PayPal, banks)
Recognized as the default standard in U.S. accounting
Who should avoid it:
Freelancers who only need invoicing (too advanced and pricey)
Ultra-budget startups who can’t justify ~$30–$50/month
Xero → Best for Growing Teams & Collaboration
Who should avoid it:
U.S. businesses needing built-in payroll (requires add-ons like Gusto)
Solopreneurs — it’s more power than they need
FreshBooks → Best for Freelancers & Service-Based Businesses
Who it’s for:
Freelancers, consultants, agencies, and service pros who bill clients directly
Small teams that rely on time tracking + invoicing
Business owners who want simplicity first — not advanced accounting
Why it’s great:
Incredibly easy to use — no accounting knowledge required
Built-in time tracking + invoicing saves freelancers from underbilling
Clean, client-facing portals that look professional
Who should avoid it:
Retail or e-commerce businesses that need inventory management
Larger businesses
U.S. businesses needing built-in payroll (requires add-ons like Gusto)
Solopreneurs — it’s more power than they need
FreshBooks → Best for Freelancers & Service-Based Businesses
Who it’s for:
Freelancers, consultants, agencies, and service pros who bill clients directly
Small teams that rely on time tracking + invoicing
Business owners who want simplicity first — not advanced accounting
Why it’s great:
Incredibly easy to use — no accounting knowledge required
Built-in time tracking + invoicing saves freelancers from underbilling
Clean, client-facing portals that look professional
Who should avoid it:
Retail or e-commerce businesses that need inventory management
Larger businesses
FreshBooks → Best for Freelancers & Service-Based Businesses
Who it’s for:
Freelancers, consultants, agencies, and service pros who bill clients directly
Small teams that rely on time tracking + invoicing
Business owners who want simplicity first — not advanced accounting
Why it’s great:
Incredibly easy to use — no accounting knowledge required
Built-in time tracking + invoicing saves freelancers from underbilling
Clean, client-facing portals that look professional
Who should avoid it:
Retail or e-commerce businesses that need inventory management
Larger businesses — reporting and advanced features are limited
Freelancers, consultants, agencies, and service pros who bill clients directly
Small teams that rely on time tracking + invoicing
Business owners who want simplicity first — not advanced accounting
Why it’s great:
Incredibly easy to use — no accounting knowledge required
Built-in time tracking + invoicing saves freelancers from underbilling
Clean, client-facing portals that look professional
Who should avoid it:
Retail or e-commerce businesses that need inventory management
Larger businesses — reporting and advanced features are limited
Zoho Books → Best Affordable Alternative
Who it’s for:
Small businesses that need full accounting but can’t justify QuickBooks’ cost
Companies already using Zoho apps (CRM, Mail, HR, Helpdesk, etc.)
Owners who want automation and scalability without paying enterprise prices
Why it’s great:
Budget-friendly (~$15/month)
Strong automation (reminders, recurring invoices, workflows)
Part of Zoho One → you can scale into CRM, Projects, HR, and more under one platform
Who should avoid it:
Businesses that rely heavily on U.S.-based accountants (many prefer QuickBooks/Xero)
Companies needing advanced payroll features in the U.S.
Small businesses that need full accounting but can’t justify QuickBooks’ cost
Companies already using Zoho apps (CRM, Mail, HR, Helpdesk, etc.)
Owners who want automation and scalability without paying enterprise prices
Why it’s great:
Budget-friendly (~$15/month)
Strong automation (reminders, recurring invoices, workflows)
Part of Zoho One → you can scale into CRM, Projects, HR, and more under one platform
Who should avoid it:
Businesses that rely heavily on U.S.-based accountants (many prefer QuickBooks/Xero)
Companies needing advanced payroll features in the U.S.
Wave → Best Free Option
Who it’s for:
Freelancers, side hustlers, and very small businesses that just need the basics
Owners who want professional invoices and basic reports without paying
Startups running lean with 1–5 clients
Why it’s great:
Core features (invoicing + accounting) are completely free
Unlimited invoices and transactions
Great starter tool for those not ready to invest yet
Who should avoid it:
Businesses planning to scale quickly → Wave lacks advanced reporting & payroll
Product-based companies → no strong inventory management
Anyone who wants premium support → Wave offers limited help
Freelancers, side hustlers, and very small businesses that just need the basics
Owners who want professional invoices and basic reports without paying
Startups running lean with 1–5 clients
Why it’s great:
Core features (invoicing + accounting) are completely free
Unlimited invoices and transactions
Great starter tool for those not ready to invest yet
Who should avoid it:
Businesses planning to scale quickly → Wave lacks advanced reporting & payroll
Product-based companies → no strong inventory management
Anyone who wants premium support → Wave offers limited help
5-Tool Comparison Table (Finance SaaS)
| Tool | Best For | Invoicing | Expense Tracking | Payroll | Tax Compliance | Starter Pricing* | Beginner-Friendly |
|---|---|---|---|---|---|---|---|
| QuickBooks | All-in-one, industry std. | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐ | ⭐⭐⭐⭐ | ~$30/mo | ⚠️ Medium |
| Xero | Growing teams, collab | ⭐⭐⭐⭐ | ⭐⭐⭐⭐ | ⭐⭐⭐⭐ | ⭐⭐⭐⭐ | ~$13+/mo | 👍 Easy |
| FreshBooks | Freelancers, invoicing | ⭐⭐⭐⭐⭐ | ⭐⭐⭐ | ⭐⭐ | ⭐⭐ | ~$19+/mo | ✅ Very easy |
| Zoho Books | Budget SMBs, Zoho users | ⭐⭐⭐⭐ | ⭐⭐⭐⭐ | ⭐⭐ | ⭐⭐⭐ | ~$15+/mo | ✅ Easy |
| Wave | Ultra-budget, free option | ⭐⭐⭐ | ⭐⭐⭐ | ⭐ | ⭐ | Free | ✅ Very easy |
Ratings from Major Platforms
| Platform | Rating | What People Say |
|---|---|---|
| Capterra | ⭐⭐⭐⭐½ (4.5/5) | Loved for invoicing, ease of use, and client payments. |
| G2 | ⭐⭐⭐⭐½ (4.5/5) | Praised for simplicity; not ideal for complex businesses. |
| Trustpilot | ⭐⭐⭐⭐ (4.2/5) | Great for freelancers; some note feature limits. |
Real Customer Reviews on FreshBooks
I’ve been a freelance designer for 7 years and FreshBooks is by far the easiest invoicing tool I’ve used. Before, I was sending Word docs and chasing payments. Now clients click the invoice link and pay right away. The automatic reminders save me awkward conversations. My only gripe is that it gets pricey once you manage more than 5 clients, but the time saved makes up for it.
Amanda R. – Dallas, TX
“I run a small digital agency with 6 clients on retainer. FreshBooks makes recurring billing effortless. Every month invoices go out without me lifting a finger. The interface is clean and my clients like the professional look. However, once we needed more detailed financial reports, I realized QuickBooks has the edge there. Still, for a growing agency, FreshBooks is excellent
Chris M. – Denver, CO
My favorite feature is time tracking. I log hours every day for consulting projects, and FreshBooks turns them into invoices automatically. I no longer undercharge clients because I forgot to bill time. Reports are straightforward and easy to understand, even for someone who isn’t an accountant. I just wish the mobile app had more features for editing invoices.
Lena K. – Miami, FL
I used FreshBooks for my IT services company when I was starting out. It was fantastic for invoicing and expense tracking. But as soon as we grew and added inventory sales, it fell short. No strong inventory management meant I had to bolt on another tool. FreshBooks is still great if your business is service-only, but not if you sell products.
Raj S. – Phoenix, AZ
As a wedding photographer, I can’t deal with complicated software. FreshBooks gives me everything I need: invoices, expenses, and tax-ready reports. It even connects to my bank so I don’t lose track of receipts. During tax season, my accountant thanked me because everything was already in order. For creative professionals, this tool is a life-saver.
Sarah P. – Los Angeles, CA
I’m a business coach and manage around 12 clients at a time. FreshBooks is perfect for invoicing and collecting payments, but the client limit on the lower-tier plans is annoying. I had to upgrade sooner than I expected. Support has been responsive, though. Overall, it’s a simple system that keeps me organized, just not cheap if you’re scaling up.
Jamal H. – New York, NY
Don’t Want to Handle Accounting Yourself?
If managing books still feels overwhelming, NurturerAI can:
- Pull your FreshBooks data
- Spot payment or expense trends
- Provide actionable financial insights
Disclosure
We only recommend tools we’ve tested. Some links may be affiliate links—your price is the same.