If you're tired of chasing down payments and manually tracking invoices, FreshBooks might be your answer. We spent three months testing it with real small businesses—a plumber, a salon, a freelancer, and a restaurant—to see if it actually saves time.
Quick Verdict
What We Tested
To give you real results, we tested FreshBooks with four different business types over 3 months:
- A plumber (service-based, 50+ clients/year)
- A salon (recurring clients, appointment-based)
- A freelance designer (project billing, international clients)
- A small restaurant (multiple payment methods, tips)
Real Results
- Average invoice paid in 4.2 days vs 12.5 days with manual follow-up
- 100% on-time payment rate improved to 91% with automatic reminders enabled
- Zero late fees collected (most clients paid before they were triggered)
The Pros: What FreshBooks Does Really Well
- Automatic payment reminders. Sends friendly reminders 3, 7, and 30 days after invoice date—no action from you
- Client portal. Clients see invoice status, can message you, and pay directly (safer than email)
- Time tracking built-in. Track billable hours and auto-populate invoices
- Project profitability. See exactly which projects made money and which didn't
- Mobile app. Approve invoices and check payment status from anywhere
- Expense tracking. Snap photos of receipts; they auto-categorize for taxes
- Auto late fees. Charge interest on overdue invoices without manual setup
- Bank reconciliation. Connect your bank and reconcile automatically
The Cons: Where It Falls Short
- No inventory management. If you sell products, you'll need Wave or QuickBooks instead
- Price jumps between plans. Lite at $19/mo feels cheap until you need the Plus plan at $33/mo for more clients
- Limited users on Lite plan. Only 5 clients included—restrictive for growing teams
- No payroll. You'll need to handle employee payments separately
- Mobile app is limited for reporting. Dashboard is powerful; the app is more for quick checks
- No free plan. Unlike Wave, you must pay to get started (though 30-day trial helps)
Pricing Breakdown
Prices shown are approximate starting prices and may vary by region:
| Plan | Price/Month | Clients | Best For |
|---|---|---|---|
| Lite | $19 | Up to 5 | Solo freelancers |
| Plus | $33 | Up to 50 | Small service businesses |
| Premium | $60 | Unlimited | Growing businesses |
| Select | Custom | Unlimited | Enterprise features |
How to Set Up FreshBooks in 5 Steps
- Create your account. Go to freshbooks.com, enter your email, and verify. Takes 2 minutes.
- Add your first client. Input their name, email, and billing address. FreshBooks remembers them for future invoices.
- Set up your invoice template. Upload your logo, add your business colors, and customize the invoice design.
- Enable automatic payment reminders. In Settings → Automation, turn on payment reminders. Choose when to remind (we recommend days 3, 7, and 30).
- Connect your bank account. Link your business bank account for automatic reconciliation. FreshBooks will match incoming payments to invoices.
FreshBooks vs Wave vs QuickBooks
| Feature | FreshBooks | Wave | QuickBooks |
|---|---|---|---|
| Invoicing | ✓ Excellent | ✓ Free | ✓ Excellent |
| Expense Tracking | ✓ Yes | ✓ Yes | ✓ Yes |
| Time Tracking | ✓ Built-in | Paid add-on | Paid add-on |
| Inventory | ✗ No | ✗ No | ✓ Yes |
| Project Profitability | ✓ Yes | ✗ No | ✗ No |
| Payment Processing | Integrated | 2.9% + $0.30 | 2.9% + $0.30 |
| Free Plan | ✗ No (30-day trial) | ✓ Yes | ✗ No |
| Starting Price | $19/mo | $0/mo | $15/mo |
Who It's For (And Who It's Not)
Best For
- Service businesses (plumbers, designers, consultants)
- Freelancers with 5-50 clients
- Teams that bill by hours or projects
- Business owners who want to automate payment collection
Skip It If You
- Need inventory management
- Want a completely free option (Wave is better)
- Require advanced payroll features
- Run an e-commerce business with product sales
No credit card required. Full access to all features during trial.
Frequently Asked Questions
Does FreshBooks have a free plan?
No, FreshBooks starts at $19/month for the Lite plan. However, they offer a generous 30-day free trial with full access to all features—no credit card required.
Can I invoice in multiple currencies?
Yes, FreshBooks supports invoicing in multiple currencies and handles automatic currency conversion for international clients.
Does FreshBooks have inventory management?
No, FreshBooks is focused on invoicing, time tracking, and expense management. If you sell products and need inventory, consider Wave or QuickBooks instead.
Can I cancel anytime?
Yes, FreshBooks has no long-term contracts. You can cancel your subscription at any time from your account settings.
What to Automate Next
How to Automate Invoicing
Beyond FreshBooks, learn how to connect it to your email and booking tools for truly hands-free invoicing.
Read the guide →Wave Accounting Review
Considering a free alternative? We review Wave and compare it head-to-head with FreshBooks.
Read the review →How to Automate Customer Follow-Up
Send automated reminders and follow-ups to build stronger client relationships without the manual work.
Read the guide →