After this tutorial, FreshBooks will automatically:
- Send recurring invoices to repeat clients on any schedule (weekly, monthly, after each job)
- Email payment reminders 3 days before the due date, on the due date, and if overdue
- Accept credit card and bank transfer payments directly from the invoice, no checks to deposit
- Track who has opened, viewed, and paid every invoice
- Generate expense reports and income summaries automatically for tax time
Why Manual Invoicing Is Costing You Real Money
Let's be honest about what manual invoicing really costs. If you're creating invoices in Word or Google Docs, emailing them manually, and following up by phone when someone's late, you're probably spending 3-5 hours per week on billing-related tasks.
At a $75/hour billing rate, that's $225-375 per week of your time spent on paperwork that software can handle completely. That's $11,700-19,500 per year.
FreshBooks costs $17-55/month depending on the plan. The math writes itself.
FreshBooks Pricing: Which Plan Do You Need?
Most small businesses start with the Plus plan at $30/month, it handles up to 50 clients (more than most small businesses have), includes recurring invoices, automatic reminders, and online payments. All the automation features we're setting up today are available on Plus.
Try FreshBooks free for 30 days → No credit card required.
Step-by-Step: Set Up FreshBooks Invoicing Automation
Create Your Account and Business Profile (10 minutes)
Go to freshbooks.com and sign up for the 30-day free trial. You won't need a credit card to start.
- Enter your business name and select your industry
- Upload your business logo (optional but makes invoices look professional)
- Enter your business address and phone number
- Set your default payment terms (Net 14 and Net 30 are standard, meaning payment is due 14 or 30 days after invoice date)
- Enter your bank account details if you want to accept direct bank transfers
Screenshot: FreshBooks account setup screen business profile tab showing logo upload, business name, address fields, and payment terms dropdown set to "Net 14"
Add Your Clients (15 minutes)
Click Clients → New Client and add each of your regular customers. FreshBooks saves their information so every future invoice auto-fills their name, address, and email.
For each client, add: name, company name (if applicable), email address, billing address, and any notes about their payment terms or preferred contact method.
Screenshot: FreshBooks "Add New Client" form with fields for name, company, email, billing address, and a "Default Payment Terms" field
Set Up Automatic Payment Reminders (10 minutes)
This is the most impactful single setting in FreshBooks, and most people don't know it exists. Automatic payment reminders email your clients for you when invoices are coming due or overdue.
Go to Settings → Invoice Settings → Payment Reminders. Enable and configure three reminders:
- Reminder 1: 3 days before due, "Just a heads-up, your invoice is due in 3 days"
- Reminder 2: On the due date, "Your invoice is due today"
- Reminder 3: 7 days after due, "Your invoice is now 7 days overdue"
You can customize the message for each reminder. FreshBooks sends these automatically, you never need to chase a client again. They either pay when reminded, or you have a clear record of reminders sent when you need to escalate.
Screenshot: FreshBooks Settings → Invoice Settings → Payment Reminders, showing three reminders configured with checkboxes enabled and custom messages visible
Create Recurring Invoices for Regular Clients (15 minutes)
A recurring invoice is one that FreshBooks creates and sends automatically on a schedule you set. If you have clients you invoice every month, every week, or at regular intervals, set up recurring invoices and you'll never think about it again.
To create a recurring invoice:
- Go to Invoices → New Invoice
- Select your client, add line items (services + prices), set the amount
- Look for the "Make Recurring" option and toggle it ON
- Set the frequency: weekly, every 2 weeks, monthly, quarterly, etc.
- Set the start date and whether it should end (or run indefinitely)
- Save, FreshBooks will create and send this invoice automatically going forward
Screenshot: FreshBooks invoice creation screen with the "Make Recurring" toggle highlighted, showing frequency options: Weekly / Biweekly / Monthly / Quarterly / Annually
Enable Online Payments (10 minutes)
This single step typically reduces average payment time by 11 days. When clients receive an invoice with a "Pay Now" button, they click it, enter their card, and they're done. No checks to write, no trips to the bank.
FreshBooks offers two payment options:
- FreshBooks Payments: Built-in processor. Credit cards: 2.9% + $0.30 per transaction. ACH bank transfers: 1% (max $10). Easiest setup, just enable it in Settings.
- Stripe: If you already have a Stripe account, connect it to FreshBooks. Same rates apply.
Go to Settings → Payments → FreshBooks Payments and follow the setup steps. Takes about 10 minutes to verify your bank account.
Screenshot: FreshBooks Payments setup screen showing the "Enable Online Payments" button and a preview of what the "Pay Now" button looks like on a client invoice
After setting up FreshBooks with automated reminders and online payments, his invoicing takes less than 20 minutes a week. His 8 chronically-late clients dropped to 2. Cash flow improved enough that he stopped using his business line of credit entirely.
Pro Features Worth Enabling
Invoice "Seen" Notifications
FreshBooks tells you the moment a client opens and views your invoice. This is incredibly useful: if a client claims they "never received" an invoice, you can see exactly when they opened it. This alone eliminates most late-payment disputes.
Expense Tracking for Tax Prep
FreshBooks also tracks business expenses, you can connect your business bank account or credit card, and FreshBooks automatically categorizes expenses. At tax time, your accountant gets a clean report instead of a shoebox of receipts. Most FreshBooks users on Plus and above save 5-8 hours at tax time from this feature alone.
Time Tracking for Hourly Billing
If you charge by the hour (attorneys, consultants, cleaners, etc.), FreshBooks has a built-in time tracker. Click start when you begin work, stop when you finish. At billing time, convert tracked time to line items on an invoice in one click.
Ready to stop chasing invoices?
Try FreshBooks free for 30 days, no credit card required. Set up takes about an hour.
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