Is Freshbooks The Right Invoicing Software For You?

To get paid promptly, you need to send invoices promptly. And if you are billing hourly, then untracked time leads to uninvoiced work. Freelancing is hard enough without you taking money out of your pocket.

Invoicing and accounting software can help you build out a cash flow system, and help you appear more professional to your clients. There are several tools available. For the past three years, I’ve used Freshbooks to make invoicing, expense tracking, and filing my annual taxes much simpler. Here’s a look at a few of the core features, and how I’ve either used them or not.

Invoices are Easy to Send, Easy on the Eyes

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Creating invoices from a spreadsheet is time-consuming and looks sloppy. Freshbooks makes it easy to send invoices that look professional. You can include your company branding, and include links that allow your clients to pay online.

 

Time tracking is meh…

Here’s what I can about the time tracking in Freshbooks: It exists. It gets the job done, but it’s not particularly fancy or fully-featured. I’m not a fan of billing by the hour, so I haven’t used this feature in some time.

…but expense tracking is dope.

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The killer feature of Freshbooks is the expense tracking feature. Here’s where the magic happens:¬†Image 2016-03-02 at 7.52.38 AM

You can sync your business credit cards and bank accounts to Freshbooks.(note: learn how to separate your personal and business finances here). ¬†Every time you spend money, it’ll be automatically tracked for you. Tracking expenses are significant; it lowers the amount of taxes you have to pay. If you don’t have a lot of expenses it may not matter, but I’m a big proponent of investing my business, so this feature probably saves me about $1,000/year in tax liability.

The Reports Make Taxes A Breeze.

The combination of invoicing, expenses tracking with a robust reporting tool makes tax planning a breeze. I print off a yearly profit-and-loss sheet, hand it over to my accountant. Boom. done. The reporting feature makes it easy to keep track of the numbers in my business and do quarterly reviews.

Freshbooks Might not be for You If:

  • You are primarily looking for a simple time tracking & billing piece of software.
  • You don’t send many invoices or work with a small number of clients.
  • Are freelancing on the side and don’t need a full-fledged financing system.

Freshbooks Might be for You If:

  • You are looking for a complete accounting solution for your freelance business.
  • You suck at keeping track of your expenses.
  • You are looking at ways to invest money to reduce the amount of non-billable hours you work.

I’ve relied on and used Freshbooks heavily since I started my consulting business, but I understand it’s not for everyone. If you have any questions, I’m more than happy to answer them in the comments below.