You know that sinking feeling when you’re staring at a mountain of receipts at 11 PM, trying to figure out why your books don’t balance? I’ve been there. Actually, I lived there for the first few years of running my business.
Let me tell you about Julia, a freelance marketing consultant I met last year. She was drowning in invoices, manually tracking time on spreadsheets, and honestly? She was about three missed payments away from a complete breakdown. “Mohnish,” she said, “I spend more time on bookkeeping than actually working with clients. There has to be a better way.”
That conversation got me thinking about FreshBooks—a platform that’s been making waves in the accounting software space since 2003. After diving deep into what FreshBooks offers (and spending way too much time testing it myself), In this FreshBooks Accounting Software Review I’m here to give you the unfiltered truth about whether this software is worth your hard-earned money.
Bottom line up front: FreshBooks excels at invoicing and user experience but falls short on value for money, especially for growing teams. There are better alternatives out there—and I’ll tell you exactly why by the end of this review.
What Exactly Is FreshBooks?
FreshBooks started as a simple invoicing tool but has evolved into what they call a “comprehensive cloud-based accounting software solution.” Think of it as the friend who started as just good at making pretty invoices but now claims they can handle your entire financial life.
Here’s what caught my attention: FreshBooks serves paying customers in over 160 countries and recently secured $130 million in funding in 2021, followed by an additional $100 million debt facility in 2022. That’s serious money backing a serious platform.
But here’s the thing—having big funding doesn’t automatically translate to being the best solution for your business. Trust me, I’ve seen too many well-funded platforms that miss the mark for actual small business needs.
Behind My FreshBooks Accounting Software Review: How I Tested It
I don’t believe in surface-level reviews. Over the past three months, I’ve put FreshBooks through its paces using real business scenarios. I created test projects, sent actual invoices, tracked time for consulting work, and even convinced a few clients to use their client portal.
I also spent hours comparing it against other solutions (including our own ProfitBooks platform, which I’ll be transparent about). Most importantly, I looked at this through the lens of someone who’s been helping business owners solve accounting headaches for over a decade.
FreshBooks Core Features: The Good, The Bad, and The “Meh”
Invoicing and Billing: Where FreshBooks Actually Shines
Let’s start with what FreshBooks does best—invoicing. And honestly? They’re pretty good at it.
Professional Invoice Creation: The templates are clean, customizable, and don’t look like they were designed in 1999. You can add your branding, customize colors, and create invoices that actually make you look professional. I tested this with my own consulting business, and clients noticed the difference.
Automated Reminders: This feature alone probably saves business owners hours each week. FreshBooks automatically sends payment reminders for overdue invoices. No more awkward “Hey, remember that invoice from two months ago?” emails.
Multiple Payment Options: They integrate with Stripe, PayPal, and other payment processors. Your clients can pay online directly from the invoice, which honestly should be standard in 2025 but somehow still isn’t everywhere.
But here’s where it gets interesting (and a bit frustrating). Some of the best invoicing features—like recurring invoices and client retainers—are locked behind their Plus plan at $38/month. For something as basic as recurring billing? Come on.
Time Tracking: Decent, But Not Revolutionary
The built-in time tracker works fine. You can track hours across different projects, automatically add tracked time to invoices, and get basic project profitability insights.
I tracked my consulting hours for two weeks using FreshBooks. The mobile app made it easy to start/stop timers on the go, and the automatic invoice generation saved me about 30 minutes per week. Not life-changing, but not bad either.
The catch? The project management features feel like an afterthought. You can create projects and assign tasks, but if you’re looking for robust project management, you’ll need something else.
Expense Management: Where Things Get Interesting
Receipt scanning through the mobile app works surprisingly well. I photographed random receipts throughout the month, and FreshBooks correctly categorized about 80% of them. The bank connection feature automatically imports expenses, which should save time on data entry.
Should save time. But here’s where my experience diverged from the marketing promises…
The Banking Connection Reality Check
This is where I need to be brutally honest. The bank feed integration—which is supposed to be a major time-saver—gave me more headaches than it solved.
During my testing period, the bank connection failed three times. Each time required manual intervention, and once I had to delete and re-import transactions because of duplicates. Support’s solution? “Try disconnecting and reconnecting your bank.” Revolutionary troubleshooting, right?
I’m not alone in this frustration. Research shows that bank feed issues are among the most common complaints about FreshBooks, with users reporting frequent connection failures and duplicate transactions.
FreshBooks Pricing: Let’s Talk About That Elephant in the Room
Here’s where FreshBooks starts to lose me, and probably where it’ll lose you too.
Current pricing (as of 2025):
- Lite Plan: $21/month (up to 5 clients)
- Plus Plan: $38/month (up to 50 clients)
- Premium Plan: $65/month (unlimited clients)
- Select Plan: Custom pricing
Sounds reasonable? Wait for it…
Each additional user costs $11/month. Every. Single. User.
Let me put this in perspective. If you have a small team of five people who need access, you’re looking at $21 + ($11 × 4) = $65/month for just the basic Lite plan. That’s Premium plan pricing for basic features.
Compare this to alternatives like ProfitBooks, where our SMB plan at $20/month includes multiple users without the per-seat penalties. Or QuickBooks Online, which includes up to 25 users in their highest tier.
The Hidden Costs Add Up Quickly
Beyond the user fees, there are payment processing costs. For US users, ACH transfers cost 1%, while credit card payments are 2.9% + $0.30 for domestic transactions, with an additional 1% for international cards.
If you’re processing $10,000 in payments monthly through credit cards, that’s $290 in processing fees alone. These costs add up faster than you’d expect.
Who Should Actually Use FreshBooks?
After testing extensively, here’s my honest assessment of who benefits most from FreshBooks:
Perfect For:
- Solo freelancers who prioritize pretty invoices and simple time tracking
- Service-based consultants who bill by the hour and need basic project tracking
- Creative professionals who value intuitive design over advanced functionality
- Anyone who absolutely hates complex accounting interfaces
Not Great For:
- Growing teams (the per-user pricing becomes prohibitive fast)
- Product-based businesses (inventory management is severely limited)
- Companies with complex accounting needs (reporting capabilities are basic)
- Multi-business owners (you need separate subscriptions for each business)
I think about Sarah again—the marketing consultant I mentioned earlier. For her solo practice, FreshBooks might work. But if she hires even one assistant who needs system access, suddenly she’s paying 50% more per month.
FreshBooks vs. The Competition: A Reality Check
Let’s address the obvious comparisons, because you’re probably wondering how FreshBooks stacks up.
FreshBooks vs. QuickBooks Online
Ease of Use: FreshBooks wins hands down. QuickBooks feels like it was designed by accountants for accountants. FreshBooks feels like it was designed by humans for humans.
Features: QuickBooks destroys FreshBooks in functionality. Better reporting, robust inventory management, superior multi-user support, and more advanced accounting features.
Pricing: Here’s where it gets interesting. FreshBooks markets itself as more affordable, but when you factor in multiple users, QuickBooks often ends up cheaper.
Verdict: If you need simplicity and can live with limitations, FreshBooks. If you need functionality and plan to grow, QuickBooks.
FreshBooks vs. Xero
User Experience: Both are user-friendly, but I slightly prefer FreshBooks’ interface Features: Xero includes unlimited users across all plans—huge advantage Global Features: Xero has stronger international accounting capabilities Pricing: Xero’s $20-$80/month with unlimited users vs. FreshBooks’ per-user penalties
Verdict: Unless you absolutely must have FreshBooks’ specific interface, Xero offers better value.
FreshBooks vs. Wave
Cost: Wave offers core accounting features for free. Hard to compete with free. Features: FreshBooks has more comprehensive project management and time tracking Support: FreshBooks provides better customer support options Scalability: Both have limitations, but Wave’s free tier is compelling for micro-businesses
Verdict: If budget is tight and needs are simple, Wave. If you need time tracking and can afford the premium, FreshBooks.
FreshBooks vs. ProfitBooks
Now, I know what you’re thinking… “Of course he’s going to say ProfitBooks is better.” But let me be frank—I wouldn’t have built ProfitBooks if I thought FreshBooks was doing everything right.
Pricing: ProfitBooks SMB plan at $20/month with multiple users vs. FreshBooks’ $21+ with $11 per additional user. The math gets ugly fast for teams.
Real Accounting Features: Here’s where I was surprised to learn how limited FreshBooks really is. ProfitBooks offers complete double-entry accounting, comprehensive financial reporting, and can handle all business transaction types—not just pretty invoices.
User Experience: Both prioritize simplicity, but we’ve managed to pack more functionality without the complexity. Haven’t we all been frustrated by software that looks great but can’t actually do the job?
Reliability: Those bank feed issues I mentioned? We’ve invested heavily in solving exactly those problems because we know how critical reliable data sync is.
Global Features: ProfitBooks handles multiple currencies, international tax compliance, and regional accounting standards—areas where FreshBooks feels pretty limited.
Verdict: Unless you absolutely must have FreshBooks’ specific interface, ProfitBooks delivers better value, more features, and honest pricing. But try both—that’s the only way you’ll know for sure which fits your workflow better.
The Real Talk: Common FreshBooks Problems You Need to Know
Based on my research and testing, here are the most persistent issues users face:
-
Bank Feed Reliability Issues
I mentioned this earlier, but it bears repeating. Bank connections fail regularly. Support often suggests manual workarounds that defeat the purpose of automation.
-
Customer Support Frustrations
During my testing, I submitted three support tickets. Average response time was 36 hours, and two responses were generic copy-paste solutions that didn’t address my specific issues.
-
Limited Customization
Want custom reports? Too bad. Need specific invoice layouts? You get what you get. For a platform targeting creative professionals, the customization options are surprisingly limited.
-
Feature Removal Concerns
Some users report that FreshBooks has removed features in updates or moved previously free features behind paywalls. That’s concerning for long-term reliability.
Where ProfitBooks Offers a Better Alternative
I’ll be transparent here—I co-founded ProfitBooks, so I’m obviously biased. But let me explain why I genuinely believe we offer a better solution for most small businesses.
Look, when we started building ProfitBooks, I was honestly frustrated by how many “accounting” platforms were just glorified invoicing tools with fancy marketing. Haven’t we all been there—thinking we’re getting comprehensive accounting software only to discover it’s basically a digital receipt book?
Here’s what I realized after working with hundreds of business owners: you don’t just need pretty invoices. You need real accounting software that can handle actual business complexity. ProfitBooks is built as a complete double-entry accounting system—not an invoicing tool trying to play accountant.
We can record every type of business transaction you’ll encounter: sales, purchases, expenses, assets, liabilities, equity transactions—the whole shebang. Our financial reports aren’t just basic profit and loss summaries; we’re talking comprehensive balance sheets, cash flow statements, trial balances, and over 45 detailed reports that actually help you understand your business finances.
I think this is where a lot of platforms fall short. They look pretty and handle the basics, but when you need to track inventory across multiple locations, manage complex vendor relationships, or generate reports for your banker or investor, suddenly you’re hitting walls.
Simple, Transparent Pricing: Our SMB plan is $20/month, period. No per-user fees. No hidden costs. No surprises when your team grows.
Built for Non-Accountants: Like FreshBooks, we designed ProfitBooks for business owners without accounting backgrounds. But we didn’t sacrifice functionality for simplicity.
Reliable Bank Connections: We’ve invested heavily in bank feed reliability because we know how frustrating connection issues can be. Our 4.7/5 rating across review platforms reflects this commitment.
Comprehensive Features Without the Premium Price:
- Professional invoicing with customization options
- Multi-warehouse inventory management (something FreshBooks struggles with)
- Real-time financial reporting with 45+ available reports
- Tax compliance features built-in
- Team collaboration without per-user penalties
Global Accessibility: We serve 100,000+ businesses globally and understand the unique challenges of international business operations.
Here’s what I tell people: Try ProfitBooks free for 14 days and compare it directly with FreshBooks. The difference in value becomes obvious pretty quickly.
FreshBooks FAQ: Your Most Pressing Questions Answered
How much does FreshBooks actually cost after the promotional pricing?
FreshBooks starts at $21/month for the Lite plan, but that’s just for one user and up to 5 clients. Add users at $11/month each, and costs escalate quickly. They often run promotions (currently 50% off for 6 months), but regular pricing returns eventually.
Can FreshBooks handle inventory management for product-based businesses?
Honestly? No. FreshBooks has very limited inventory capabilities compared to alternatives. You can track basic billable items, but if you’re selling physical products, you’ll need something more robust. This is where solutions like ProfitBooks’ inventory management excel.
Is the FreshBooks mobile app worth using?
The mobile app is decent for basic tasks—creating invoices, tracking time, scanning receipts. But it doesn’t offer all web features, and some users report issues with mileage tracking and viewing invoices without editing them.
How does FreshBooks handle multiple businesses?
Poorly. You need separate subscriptions for each business, unlike competitors that offer multi-business management. If you run multiple ventures, this gets expensive fast.
Can FreshBooks replace my accountant?
No accounting software can replace professional accounting advice, but FreshBooks can handle basic bookkeeping tasks. However, for tax planning, complex transactions, or strategic financial advice, you still need a qualified accountant.
What happens if I outgrow FreshBooks?
Migration can be challenging. Data export is manual and time-consuming. Plan your exit strategy before you need it—something I learned the hard way with other software platforms.
Does FreshBooks integrate with payroll services?
FreshBooks doesn’t have built-in payroll but integrates with services like Gusto (starting at $40 plus $6 per person monthly). This adds another layer of complexity and cost.
How reliable are FreshBooks’ payment processing features?
Mixed results. While the payment integration works, some users report delays in payment processing and occasional issues with fund transfers. The processing fees are also on the higher side compared to direct processor relationships.
Is FreshBooks suitable for agencies with multiple clients and projects?
For small agencies, possibly. But the per-user pricing and limited project management features make it less ideal for larger teams. The project profitability tracking is basic compared to dedicated agency management tools.
What kind of customer support can I expect from FreshBooks?
Phone support is available across all plans, but response quality varies. During my testing, I experienced slow response times and generic solutions that didn’t address specific technical issues.
Making the Decision: Is FreshBooks Worth It in 2025?
Let me be brutally honest about FreshBooks’ value proposition in 2025.
FreshBooks excels at:
- Creating professional invoices with minimal effort
- Providing an intuitive interface that doesn’t require accounting knowledge
- Offering solid time tracking for service-based businesses
- Delivering a pleasant user experience for simple needs
FreshBooks falls short on:
- Value for money, especially with multiple users
- Reliability of core features like bank feeds
- Advanced functionality for growing businesses
- Transparent, predictable pricing
The real question isn’t whether FreshBooks is a good product—it is, for specific use cases. The question is whether it’s the best use of your money and time.
For solo freelancers who prioritize design and simplicity over everything else, FreshBooks might work. But for most small businesses looking to grow, the limitations and costs add up quickly.
My Final Recommendation
After three months of testing, here’s my honest assessment: FreshBooks is a decent product with a significant value problem.
You’re paying premium pricing for what’s essentially a pretty interface with basic functionality. The per-user pricing model feels punitive for growing businesses, and the reliability issues with core features like bank feeds are concerning.
If you’re determined to try FreshBooks, take advantage of their 30-day free trial. Test the bank connection with your actual accounts, try the mobile app with real workflows, and calculate the true cost including users and payment processing.
If you’re open to alternatives, I genuinely believe ProfitBooks offers better value. We designed it specifically for business owners who need powerful features without the complexity or the premium pricing games.
Start your free ProfitBooks trial here—no credit card required, no per-user penalties, and no surprises.
The Bottom Line
Running a business is challenging enough without your accounting software adding to the stress. Whether you choose FreshBooks, ProfitBooks, or any other solution, make sure it actually solves your problems rather than creating new ones.
FreshBooks isn’t a bad choice—it’s just not the best choice for most businesses when you consider the total cost of ownership and alternative options available in 2025.
Your business deserves software that grows with you, not one that penalizes you for success. Choose accordingly.
Want to see how ProfitBooks invoicing software compares directly with FreshBooks? Try both and decide for yourself—that’s the only way to make a truly informed decision for your business.
