Freshbooks Review: Pros, Cons, and Alternatives (with Video)

what is freshbooks scam legit review

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what is freshbooks scam legit reviewIf you’re looking for an accounting solution and you’re wondering whether FreshBooks could be a good option for you, you’re in the right place. In this FreshBooks review, we’ll be analyzing the pros, cons, and alternatives to help you decide if this is a good fit for you.

At the end of the year, when tax returns are reaching their due date, most entrepreneurs in the US are reminded they need to clean up their books. If you’re financial records haven’t been kept organized all year, you can find yourself running around like a chicken with the head cut off!

I’ll be honest that our first couple years with my husband’s construction business was very stressful around tax time. We had paper receipts, paper records, we weren’t as organized as we should’ve been, and we were very ignorant about the rules. As a result, we were nervous that we missed something important, we put off bookkeeping tasks thinking “someday” the time would come, and frankly, it all piled up.

Since the beginning days, we’ve realized, there’s an easier way and using accounting software doesn’t have to be that bad. In this Freshbooks review, I want to share my review of one accounting software I’ve tried. To be honest, this accounting software works well for my freelance marketing business, but it doesn’t work well for my husband’s construction business, and I’ll give details why later.  I’ll also share:

  • What is Freshbooks
  • How it Works
  • Pros and cons
  • a Compilation of other reviews
  • and more…

If this all sounds good to you, let’s get started…If you’d like to see this full review in video, check it out here:

What is FreshBooks? An Overview

After brimming with frustration from using Microsoft Excel and Word for small business accounting, Mike McDerment set out to create a better accounting solution.  He had his first meeting discussing his startup idea in his parent’s basement, and since, has taken the idea and used it to serve over 10 million customers!

freshbooks reviewFreshbooks is a cloud-based Accounting software for small to medium-size businesses.  It enables business owners to:

  • Send invoices
  • Track profit/loss
  • Set up recurring transactions
  • Track Time
  • Project Management (keeping things on schedule)
  • and Accepting payment (even from your phone)

For many solopreneurs and small to medium size agencies, other accounting software is more complex than necessary.  With Freshbooks, the interface and options are very simply, which makes it easier to manage the cashflow, keep the transactions organized, and focus on your primary trade. See More Features or Start your 30-DAY FREE TRIAL.

How Does FreshBooks Work?

1. Create Your Account

Freshbooks is very simple to get started. You simply CREATE AN ACCOUNT and begin with a 30-DAY FREE TRIAL by completing a simple registration form like this:what is freshbooks scam legit review

There’s no credit card required so there’s really no risk.

Connect Your Bank Accounts

When you connect your bank accounts, Freshbooks will automatically begin categorizing your transactions. Some transactions will show as “unknown” and you’ll need to correct the categories, but it’s very simple to do and use.

Categorize Expenses

In order to have accurate financial reports like profit and loss statements, you’ll need to accurately have the data unput into Freshbooks like your income sources and expenses.  You can easily input your expense data into Freshbooks by using the mobile app, taking pictures to capture receipts, and recording your expenses on-the-go.

Track the Time you Spend Working on Projects

How much time you’re spending on projects directly impacts how much you should charge for the service, but what if  you don’t know how much time you’re averaging on the service? You could be undercharging or leaving lots of money on the table. Freshbooks has time-tracking that enables you to calculate accurately how much time you’re spending on projects and charge accurately.

Send Estimates & Bill Clients

Freshbooks enables you to draft estimats for upcoming projects and get approval directly on the estimate. When a customer approves the estimates, it turns into an invoice, and they can pay directly on the invoice! What a time saver! Typically, you have to draft an estimate, draft a separate invoice, and get payment as three separate endeavors that each take time–Freshbooks eases that process entirely.

Set up Recurring Payments

Once you’re a little established, you may have clients you work with on a recurring basis who pay the same amount. Subscription services, service contracts, or other arrangements may leave you spending time every billing period sending out an invoice that looks almost the same as the last. With Freshbooks, you can set up recurring payments and reminders for clients.

The Good & the Bad

The Good:

PRO #1: Integrates with Stripe for recurring payments

PRO #2: Easy to use with Very simple interface

PRO #3: Tailored for freelancers and small to medium size agencies

PRO #4: Helps keep finances organized for compliance

PRO #5: Integrates with many different softwares like Gusto, GSuite, and others

PRO #6: Very good customer support

The Bad:

CON #1: Doesn’t integrate with all payment processors

CON#2: The subscription charges based on how many clients you have, so it can get pricey with more clients 

CON#3: Isn’t built for e-commerce or complex service-based businesses

CON#4: More expensive than other cloud accounting alternatives (like Quickbooks Online)

CON#5: Can get difficult to use with more employees and contractors (which is when it’s more time appropriate to use Quickbooks)

Who is FreshBooks For?

Freshbooks is designed for:

  • Self-employed people
  • Solopreneurs
  • Agencies
  • Consultancies
  • Small to Medium-Size Firms

Common Accounting Features That Freshbooks Doesn’t Have

Unfortunately, Freshbooks doesn’t have ALL of the features of every other accounting software, but you wouldn’t expect that, right? Instead, they’ve mastered having a simple-to-use, functional software that’s perfect for freelancers and small-to medium-size agencies. You’ll know you’ve either grown out of Freshbooks, or you need to continue looking for another solutions if you need:

  • Inventory Management
  • Payroll (which is why some people use other payroll software to pay Social Security, FICA, life insurance, IRAs, HSAs, and others)
  • Complex Invoicing
  • Budgeting
  • Screen-Capture
  • Something that can be used off of the cloud
  • Additional Integrations (like Project Management, Payroll, CRM, etc.) Freshbooks doesn’t have
  • Paypal integration
  • More clients than what’s included in their plans
  • To manage a large team
  • FreshBooks Tools & Training
  • Double-entry accounting
  • Bank reconciliation

FreshBooks Support

Freshbooks takes their customer support functions very seriously. As a result, they’ve ensured very fast support by email or by phone.

what is freshbooks scam legit review

What Are Common Complaints About FreshBooks?

The Features are Limited!

While the simplicity of Freshbooks is it’s most sought for quality, those who are used to a more complex accounting solution are left wanting more. Some people can’t wrap their heads around accounting without certain “perks”, so if this is you, Freshbooks may not be the best option.

What Are Common Positive Feedback About FreshBooks?

It’s simple and easy to use!

On the alternative side, others who are overwhelmed by the complexity of other software solutions like Excel, Quickbooks, or others, and might find a big relief from Freshbooks.  Many of the user reviews suggest ease of use being it’s #1 benefit.

FreshBooks Review Playlist

Here’s a playlist of Freshbooks Video Reviews, so you can see what it’s like and what others think of it:

FreshBooks Price

Freshbooks offers three payment plans: Lite, Plus, and Premium.  They break down like this…

what is freshbooks scam legit review

My Final Opinion of FreshBooks

Overall, Freshbooks is a great and affordable cloud-based accounting software if you have:

  • a small team
  • work as a solopreneur
  • run a freelance service business
  • or operate a small to medium size agency or firm

Once, you have multiple employees, need to reconcile bank ledgers, or need other features, you’ll probably need to look for a more complex solution like QuickBooks.

FreshBooks Alternatives

If you want to look at other alternative accounting solutions, QuickBooks is the alternative I recommend most. They offer:

  • Lots more features
  • Inventory Management
  • A large network of accountants and pros for instruction and collaboration
  • And, many courses to get instruction on its use

You can learn more about QuickBooks in my QuickBooks review here, or visit their site by going here.

VERDICT: Recommend

——————————————————-

Freshbooks Small Business Cloud Accounting Software

8.5

Budget Friendly

8.0/10

Ease of Use

9.8/10

Good Suite of Features

8.0/10

Accurate Analytics Data

8.0/10

Pros

  • Simple and Easy to Use
  • Tailored for freelancers and small to medium size firms
  • Very good customer support
  • Integrates with other very reputable software solutions
  • Helps keep the finances organized for compliance

Cons

  • Limited features
  • Fees are based on # of clients
  • Not built for e-commerce or complex service based business
  • More Expensive than others
  • Doesn't integrate with all payment processors
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6 thoughts on “Freshbooks Review: Pros, Cons, and Alternatives (with Video)”

  1. Sujandar Mahesan

    Freshbooks sounds exactly like Quickbooks software but just a better version than tat actually I guess. I read the Pros and Cons, the Pros looks really great and I don’t really find the cons a big disadvantage in this software. Thank you for sharing this article with us. I’m definitely going to try this accounting software for my taxes this summer.

    1. I’m glad to hear you’ve read the review and think this might be a good fit. It offers a similar solution as Quickbooks without many of the features that make it too complex for smaller businesses without inventory.

  2. Basically, I love the benefits, seeing that it can be linked to my bank account. Seeing also that Freshbooks is majorly for medium scale entrepreneurs, I don’t see why it’s pricey. If it was for both large scale, it would have been okay. Just saying that they should consider their target audience and reduce the price. 

    1. Pricing is a touchy subject because a company has to price in between covering their expenses, planning for growth, and satisfying customers. Being the number of customers they’ve had, I’d say the pricing is reasonable for many.

  3.  One of the reason i like freshbook is ability to brand your own in colors as well as add your logo but needs better reconciliation in terms of balances. You can do daily balance sheets, but I would rather have it calculate how my business is doing based on capital in our current account, then factor in what we earned and our expenses. Anyways im still gonna go for it.

    Thanks .

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