As an accountant and online business bookkeeper, there are two main cloud accounting programs that I use and recommend to my clients. Today I want to discuss the pros and cons of Freshbooks Cloud Accounting.
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Freshbooks was originally created in 2003 when it's founder, Mike McDerment, became frustrated with using Word and Excel for his business purposes.
Freshbooks is one of the biggest online cloud accounting programs for invoicing and keeping track of clients. This is why it is so popular among online business owners.
Until Freshbooks was revamped in 2017 and implemented the double entry accounting techniques in November 2018, I wasn't able to support my clients using Freshbooks. But you can still get the old version of Freshbooks, it is known as Freshbooks Classic. The new, revamped version is known as New Freshbooks.
I'm an accountant and doing the accounting and bookkeeping properly using double entry bookkeeping was just something that had to be done when I work with my clients. And now Freshbooks has implemented this and I can support my clients who use the New Freshbooks and even recommend Freshbooks to those who are asking for more information.
Note: All of my reviews and information about the New Freshbooks. I am not a fan of the original Freshbooks and cannot recommend it, but I do recommend the New Freshbooks. When you see the word Freshbooks, I am always referring to the New Freshbooks.
Let's see if Freshbooks is right for you and your business needs.
Also check out: Making Your Business Recordkeeping Easy
Pros of Freshbooks Cloud Accounting
- Well-designed user interface
- 200+ integrations with other programs
- Easy to use
- Good mobile app
- Brandable and attractive invoice templates
- Excellent customer Service
- Comparable Monthly Cost to other Programs
Well-Designed User Interface & Ease of Use
Freshbooks was developed and designed by a small business owner. The way I see this is that it means it was designed for other small business owners because small business owners are able to know the needs of other small business owners easier than the big companies.
This also means that when you are using Freshbooks, the user interface is easy to use and it's easy to find things while navigating around in your dashboard.
Integrations with Other Programs
Online business owners are known to use multiple different programs. One of the most important things we tend to look for is how well each of these programs can actually talk to each other.
Freshbooks knows this and has been working to develop these integrations. There are over 200 integrations currently with Freshbooks. These integrations include: dropbox, gusto, stripe, Gsuite, PayPal, and Acuity, among so many others. If you have any questions about whether a certain program that you use is integrated with Freshbooks, just look at their integrations list and you'll be able to see it there.
We live in an age when almost everything is done on our phones. That includes doing your bookkeeping. Plus with the app, you easily take pictures of your receipts and store them in your bookkeeping program. This feature alone is totally worth it, because I know how hard it is to be able to scan in your receipts so that you have electronic copies of everything.
Part of the original reason that Freshbooks was created was to make invoicing clients easier for small businesses. The invoices are easily brandable to your business. They are super easy to create and send.
Plus, your clients can pay you directly from the invoice. They can even pay using their credit cards.
Excellent Customer Service
Freshbooks has really good customer service whenever you have any kind of question. They are always there to help you. One of their goals is to help you as a business owner succeed with your business and they know that having excellent financial records is part of that process.
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Comparable Monthly Cost
When I look cloud accounting programs, I am really only comparing Quickbooks and Freshbooks. The price of either program is comparable for what is included.
There are 3 options available: lite, plus and premium.
Lite version includes:
- Send unlimited invoices and estimates
- Track your expenses
- Time tracking
- Financial reports
- Contact management
- Project management
- 1 user
- Bill up to 5 clients
Plus version includes:
- Everything from the lite version
- More advanced reporting
- Live bank feeds
- Bill up to 50 clients
- 1 user
Premium version includes:
- Everything from the lite and plus versions
- 1 user
- Bill up to 500 clients
Through January 3, 2020, you can get the the plus and premium versions for 70% off for the first 3 months when you waive the free trial period.
If you know Freshbooks is for you, this deal is definitely for you.
Cons of Freshbooks Cloud Accounting
- Limited number of users (additional users is an additional cost)
- Some features are limited
- Getting more of the limited features can be costly
Limited Number of Users
Each account comes with one user and each additional user is $10/month per user.
Some of the features, see users above and the numbers of clients you can bill, are limited per the program you choose to invest in.
Costly Add-on Features
The monthly cost to use Freshbooks and the features you really want could add up.
Just adding one additional user will add $10 to your monthly cost.
You can add on the ability to bill more clients as well, essentially adding to your monthly cost.
Is Freshbooks Right For You?
Now that you have seen the biggest pros and cons about Freshbooks, is it the right program for you to use? Does it have all of the features that you are looking for?
What are you looking for that it doesn't have?
Sometimes you also just need to sign up for the free trial and try out the program to see what is a right fit for you.
Also check out: Do I Use the Accrual or Cash Basis of Accounting?