{"id":6214,"date":"2018-10-01T06:00:21","date_gmt":"2018-10-01T13:00:21","guid":{"rendered":"https:\/\/charlesavemktg.com\/blog\/?p=6214"},"modified":"2019-07-16T11:18:48","modified_gmt":"2019-07-16T18:18:48","slug":"freshbooks","status":"publish","type":"post","link":"https:\/\/charlesavemktg.com\/blog\/freshbooks\/","title":{"rendered":"Tools I Use: FreshBooks for Accounting"},"content":{"rendered":"\n

Please note this post contains affiliate links, which means I will make a small commission (at no cost to you) if you make a purchase after clicking on my links. If my review helps you, I\u2019d appreciate it if you used the links below. Thanks!<\/em><\/p>\n\n\n\n

I officially incorporated Charles Ave Marketing in 2013. At the time, I was emailing invoices that I created in Pages or InDesign, and manually trying to keep track of incoming payments. As my company grew and I began working with an accountant, it soon became clear that my system wasn’t sustainable. That’s when I discovered FreshBooks.<\/p>\n\n\n\n

What is FreshBooks?<\/h2>\n\n\n\n
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FreshBooks<\/a> is a cloud accounting software built for self-employed professionals. Using FreshBooks, you can send invoices, collect payments, create estimates, log expenses, and track your time, as well as track time for team members and freelancers you work with.<\/p>\n\n\n\n

Me? Accounting?<\/h2>\n\n\n\n

Accounting is one of those disciplines I never thought I’d need to learn. I certainly never wanted<\/em> to learn it. But as a business owner, knowing where your financials stand\u2014 what’s coming in and what’s going out \u2014 is crucial.<\/p>\n\n\n\n

The nice thing about FreshBooks is it makes it all easy. You get a clear picture of your earnings, what’s owed to you, your expenses, and your net profit.<\/p>\n\n\n\n

Probably the best-known accounting software out there is QuickBooks. The similar names make it confusing. But I realized right away that I found QuickBooks intimidating. FreshBooks had all the features I needed but a friendlier interface that was simple to use. Here’s a detailed comparison of FreshBooks vs. QuickBooks<\/a>.<\/p>\n\n\n\n

These are the features I love about FreshBooks:<\/p>\n\n\n\n

Invoicing made easy<\/h2>\n\n\n\n
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As a service-oriented business, I rely on invoicing<\/a>. Using FreshBooks, I can customize my invoices with my logo and brand colors, and personalize my thank-you email. The software enables you to accept credit cards and ACH payments, a feature many of my clients find convenient. For my monthly retainer clients, I can even set up automatic recurring invoices – one less thing to do every month!<\/p>\n\n\n\n

Clients have told me they love my invoicing system, and that reflects well on me. Using FreshBooks, clients can refer to present and past invoices, manage payments, and access records on their own. They even appreciate the automated payment reminders they get if an invoice has lingered a little too long.<\/p>\n\n\n\n

Similarly, I can use FreshBooks to send estimates<\/a> or project proposals to prospective clients. Once the prospect formally accepts the estimate online, I can turn that estimate into an invoice at the push of a button. It’s all ready to go out once the project is complete.<\/p>\n\n\n\n

Effortless expense tracking<\/h2>\n\n\n\n
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FreshBooks integrates with your bank accounts and credit cards, so there’s no manual entries or exporting and uploading files. Every day, FreshBooks<\/a> updates itself with your most recent spending, keeping records up-to-date automatically.<\/p>\n\n\n\n

FreshBooks has a mobile app which is useful for uploading receipts. You can snap a picture of the receipt and associate it with any expense. Because everything is cloud-based, your mobile and desktop versions of FreshBooks will stay in sync.<\/p>\n\n\n\n

Credit Card and ACH payment options<\/h2>\n\n\n\n
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Payments are well managed within FreshBooks. You can integrate Stripe or use FreshBooks Payments<\/a> to accept credit cards (Visa, Mastercard, Discover, and American Express) and Apple Pay directly from your invoices. If a client uses the online payment option, the invoice is automatically marked as paid in your FreshBooks account. Then, the invoice amount minus the transaction fee is deposited straight into your bank account. Credit card transactions cost 2.9% of the invoice amount + $0.30 per transaction. If you use FreshBooks Payments, processing fees are automatically imported as expenses. The entire process from client payment to your bank account usually takes about two business days.<\/p>\n\n\n\n

A new (and less expensive!) payment option just introduced for U.S. customers is ACH payments<\/strong>. ACH, or Automated Clearing House, is a network connecting major banks and all financial institutions in the United States. ACH payments cost 1% of the invoice amount through Freshbooks, so you’ll save fees over credit card payments. And, if your client usually pays by check, ACH is faster, more secure, and likely more convenient.<\/p>\n\n\n\n

Of course, you can also enter payments manually into your FreshBooks account, so if you’re paid in other means like mailed-in checks or Bank Wire (I’ve done both), you just have to make sure you keep the records up to date.<\/p>\n\n\n\n

Providing clients multiple ways to pay gives them choices, which they like, and helps you get paid faster, which you’ll like. According to FreshBooks<\/a>, 80% of users that accept online payments agree that it improves client relationships. I can attest that one of my own clients loves that she can pay me using her credit card, and her payments usually come in the fastest.<\/p>\n\n\n\n

There are no setup fees or additional monthly costs to offer online payment. FreshBooks makes it all fast, easy, and secure. Who doesn’t like that?<\/p>\n\n\n\n

Time tracking that saves time<\/h2>\n\n\n\n
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If you rely on hourly billing, time tracking is essential. Rather than trying to remember how much time you spent on a project and then creating a timesheet later, you and your team members can simply start a timer<\/a> within FreshBooks. When you’re done, you’ll have an accurate time log ready to magically transform into an invoice.<\/p>\n\n\n\n

What about tax time?<\/h2>\n\n\n\n

As I noted, I do work with an accountant, especially at tax time. Her name is Vicki, and she’s a godsend. I found her on Yelp<\/a> and now she’s one of my business mentors (I quoted her in this article about my best advice to female entrepreneurs<\/a> – that’s how much I love her).<\/p>\n\n\n\n

Vicki relies on my yearly Profit & Loss report (P&L) that FreshBooks creates. When we meet, she pores over it, and it acts as the basis of our entire discussion. Because FreshBooks does such a thorough job of tracking my invoices, categorizing expenses, and calculating net profit, the P&L gives a year-long view of my business that makes filing taxes easier.<\/p>\n\n\n\n

Other reports available in FreshBooks:<\/p>\n\n\n\n