FreshBooks Accounting Software Review
In a nutshell
FreshBooks excels at invoicing and time tracking - if those are your primary needs, it is hard to beat. Born in 2003 when founder Mike McDerment accidentally saved over an invoice, the platform has grown to serve over 30 million users worldwide. The interface is polished and the mobile experience is strong, making it practical for service-based businesses that live in invoices and projects. MTD VAT filing works via direct HMRC submission, with automatic VAT calculations on transactions. However, this is not a full accounting solution - reporting is basic, there is no CIS support, and inventory features are limited. Plans range from £15/month (Lite) to £35/month (Premium), with frequent promotional discounts available.
Pros
- Genuinely free plan for businesses under £35,000 turnover
- Full MTD compliance for VAT and Income Tax
- Excellent value on paid plans with generous feature sets
- Strong automation capabilities for invoicing, reminders, and workflows
- Seamless integration with Zoho CRM, Inventory, and 50+ other Zoho appsExcellent invoicing with professional templates and customisation
- Built-in time tracking on all plans - not a paid add-on
- MTD-compliant VAT submissions to HMRC
- Intuitive, user-friendly interface with minimal learning curve
- Strong mobile app with mileage tracking and receipt capture
- Unlimited team members on all plans (additional users £8/month)
- 24/7 chatbot support plus phone support during business hours
- 100+ third-party integrations including Stripe and PayPal
- Multi-currency support with automatic exchange rate updates
- Client portal for customers to view invoices and make payments
- Strong mobile app highly rated for functionality
Cons
- Limited as a full accounting solution - basic reporting and budgeting
- No CIS support - unsuitable for construction industry
- Billable client limits on plans may force upgrades as business grows
- No free plan available
- Inventory features are basic - not suited for product businesses
- Double-entry accounting only on Plus plan and above
- Client messaging function is difficult to use
- Cannot create custom reports from scratch
FreshBooks excels at invoicing and time tracking – if those are your primary needs, it’s hard to beat. MTD VAT filing works, but accounting features are lighter than dedicated bookkeeping platforms.
The interface is polished and the mobile experience is strong. Service-based businesses that live in invoices and projects will appreciate the workflow, but those needing robust reporting or inventory might find gaps.
Best for: Service businesses, consultants, agencies billing by project or hour
Limitations: Limited as a full accounting solution; less suited to retail or inventory businesses