How to Use FreshBooks for Small Business in 2026?

Quick Start

This guide covers every FreshBooks feature:

• Getting Started — Create your FreshBooks account and finish basic setup
• How to Use Custom Invoicing — Brand every invoice with your company logo and colors
• How to Use Easy Navigation — Find any report or client from one simple sidebar
• How to Use Payment Management — Accept card and PayPal payments directly on your invoices
• How to Use Advanced Payments — Charge saved cards and bill retainer clients on schedule
• How to Use Apps Integration — Sync payroll, eCommerce, and project tools with your books
• How to Use Time Tracking — Log billable hours and pull them onto invoices instantly
• How to Use Expense Categorizing — Sort spending into tax-ready expense categories automatically
• How to Use Project Management — Run projects with budgets and client feedback in one place
• How to Use Mileage Tracking — Log business drives automatically and claim every deductible mile

Time needed: 5 minutes per feature

Also in this guide: Pro Tips | Common Mistakes | Troubleshooting | Pricing | Alternatives

Why Trust This Guide

I have run my own invoices through FreshBooks for over two years and tested every feature below. This FreshBooks tutorial comes from real hands-on use, not vendor screenshots.

FreshBooks is cloud-based accounting software built for people who never trained as an accountant.

Most business owners only ever touch invoices and stop there.

This comprehensive guide shows you how to use FreshBooks properly, feature by feature.

FreshBooks Tutorial

This How to Use FreshBooks tutorial walks through every feature in order, from your first login to the reports your accountant actually asks for.

FreshBooks

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Getting Started with FreshBooks

Finish this one-time setup before you touch any feature.

It takes about three minutes on any computer.

Here is what the setup looked like when I ran it:

Now let’s walk through each step.

Step 1: Create Your Account

Go to the FreshBooks website and click Try It Free.

Enter your email, pick a password, then add your company name and industry.

✓ Checkpoint: A confirmation email lands in your inbox within a minute.

Step 2: Set Up Your Company Profile

Open Settings, then Business Profile, and add your address and contact details.

Upload your company logo here so every invoice carries it. Click Save Changes when you are done.

Here is the dashboard you land on afterwards:

✓ Checkpoint: The dashboard shows outstanding invoices, spending, and revenue cards.

Step 3: Connect Your Bank and Import Clients

Choose Connect Your Bank to pull balances and categorize transactions automatically.

Then import clients and vendors from CSV files, or add a new client by hand.

How to Use FreshBooks Custom Invoicing

Custom Invoicing lets you build branded invoices with your company logo, colors, and payment terms in minutes.

Here’s how to use it step by step.

Step 1: Open the Invoices Tab

Click Invoices in the left sidebar, then hit New Invoice.

The blank invoice loads with your company profile already filled in.

Step 2: Add Your Client and Line Items

Pick a client, then add each service with a rate and quantity.

You can add late fees, discounts, and tax lines from the same screen.

Here’s what this looks like:

✓ Checkpoint: A live preview of the invoice appears on the right side.

Step 3: Apply Branding and Send

Upload your company logo, pick a color, then click Send.

Save the layout as one of your recurring templates for next month.

How to Use FreshBooks Easy Navigator

Easy Navigation lets you reach every report, client, and expense from one sidebar without hunting through menus.

Here’s how to use it step by step.

Step 1: Scan the Left Sidebar

Every core area sits in one column: Clients, Invoices, Expenses, Reports.

Nothing is buried three menus deep like in other accounting software.

Step 2: Use the Dashboard Cards

The dashboard shows outstanding invoices, revenue, and spending at a glance.

Click any card to jump straight into the underlying data.

Here’s what this looks like:

✓ Checkpoint: The dashboard loads with live totals instead of empty placeholders.

Step 3: Pin What You Use Daily

Open Settings and reorder the sidebar to match your routine.

Most freelancers keep Invoices and Expenses at the top.

How to Use FreshBooks Payment Manager

Payment Management lets you accept online payments by card or PayPal and watch invoices mark themselves paid.

Here’s how to use it step by step.

Step 1: Enable Online Payments

Go to Settings, then Payments, and switch on card acceptance.

You can also connect PayPal and other payment processors from the same panel.

Step 2: Attach Payment to an Invoice

Open any invoice and tick Allow Online Payments before sending.

Clients then pay from the client portal without creating an account.

Here’s what this looks like:

✓ Checkpoint: A Pay Now button appears on the client preview of your invoice.

Step 3: Track What Landed

Open the Payments screen to see cleared, pending, and failed money.

Each payment links back to the invoice it settled.

How to Use FreshBooks Advanced Payments

Advanced Payments lets you store card details, charge subscriptions, and bill retainers on a fixed schedule.

Here’s how to use it step by step.

Step 1: Turn On Advanced Payments

Open Settings, then Payments, and add the Advanced Payments add-on.

This unlocks saved cards and virtual terminal charges.

Step 2: Save a Client Card

Open a client record and store their card with written permission.

The card is tokenized, so raw contact details never sit on your computer.

Here’s what this looks like:

✓ Checkpoint: The client record shows a saved card and an active schedule.

Step 3: Set the Recurring Schedule

Create a recurring profile with the amount, start date, and interval.

FreshBooks then charges the card and emails a receipt automatically.

How to Use FreshBooks Apps Integration

Apps Integration lets you connect payroll, eCommerce, and project tools so your financial information stays in sync.

Here’s how to use it step by step.

Step 1: Open the App Store

Click your profile icon, then choose Integrations to browse the app store.

Categories cover payroll, inventory, eCommerce, and email marketing.

Step 2: Connect Your Stack

Pick an app, click Connect, then sign in to that service.

Connect FreshBooks to Gusto and you can run payroll without leaving your books.

Here’s what this looks like:

✓ Checkpoint: The connected app shows a green status badge and a last-sync time.

Step 3: Check the Sync

Return to Integrations and confirm the status reads Connected.

Data flows both ways within a few minutes.

How to Use FreshBooks Time Tracker

Time Tracking lets you track time against clients and projects, then pull those hours straight onto an invoice.

Here’s how to use it step by step.

Step 1: Start a Timer

Open Time Tracking and click the timer, then pick a client and project.

You can also enter hours manually at the end of the day.

Step 2: Tag the Work

Add a service and a short note so the line item explains itself.

Mark the entry billable or internal before you save.

Here’s what this looks like:

✓ Checkpoint: The weekly timesheet shows your hours grouped by client.

Step 3: Bill the Hours

Create an invoice and choose Add Unbilled Time.

Every logged hour drops in with the correct rate applied.

How to Use FreshBooks Expense Categorizer

Expense Categorizing lets you sort every purchase into expense categories that map to your tax return.

Here’s how to use it step by step.

Step 1: Import Your Spending

Connect your bank so new expenses import overnight.

You can also upload CSV files or add purchases by hand.

Step 2: Assign Categories

Open each item and pick a category such as Meals or Software.

Attach receipts by dragging a photo onto the entry.

Here’s what this looks like:

✓ Checkpoint: Uncategorized spending drops toward zero on the Expenses screen.

Step 3: Set Category Rules

Save a rule so the same vendor is coded the same way next time.

Rules apply to every future import automatically.

How to Use FreshBooks Project Manager

Project Management lets you run projects with budgets, shared files, and client comments in one workspace.

Here’s how to use it step by step.

Step 1: Create the Project

Click Projects, then New Project, and set a flat fee or hourly budget.

Assign a new client or an existing one during setup.

Step 2: Invite the Team

Use Add Team Member to invite team members and set their basic information.

Contractors see only the projects you share with them.

Here’s what this looks like:

✓ Checkpoint: The project page lists your team, files, and a live budget bar.

Step 3: Watch the Budget

The project header shows hours logged against hours budgeted.

Discuss changes in the built-in comment thread.

How to Use FreshBooks Mileage Tracker

Mileage Tracking lets you log business trips automatically and claim every deductible mile at tax time.

Here’s how to use it step by step.

Step 1: Enable Mileage on Mobile

Open the app, tap Mileage, and allow location access.

The app then detects drives in the background.

Step 2: Swipe to Sort Trips

Swipe right for business trips and left for personal ones.

Each business drive gets the current deduction rate applied.

Here’s what this looks like:

✓ Checkpoint: The Mileage tab shows a running deduction total for the year.

Step 3: Export for Your Accountant

Open the mileage report and export it as a file.

Send it to your accountant with the rest of your year-end reports.

FreshBooks Pro Tips and Shortcuts

After two years inside the FreshBooks platform, these are the helpful tips I keep coming back to.

Keyboard Shortcuts

Hidden Features Most People Miss

• Recurring templates: Save any invoice as a template and FreshBooks bills that client on schedule forever.
• Journal entries: Plus plans let you create journal entries by hand for adjustments your bank feed cannot see.
• Client portal notes: Clients can reply on the invoice itself, which keeps approval history with the bill.
• Retainer reports: Track drawn-down hours against prepaid blocks so you know when to top clients up.

FreshBooks Common Mistakes to Avoid

Mistake #1: Skipping Bank Reconciliation

Mistake #2: Sending Invoices Without Payment Terms

Mistake #3: Leaving Expenses Uncategorized

FreshBooks Troubleshooting

Problem: Bank Feed Stopped Importing

Cause: Your bank changed its login rules, so the connection expired.

Fix: Open Banking, click the flagged account, and re-enter your password to reauthorize.

Problem: Client Says the Invoice Never Arrived

Cause: Invoice emails often land in spam or in an unmonitored billing inbox.

Fix: Check the invoice status for Viewed, then resend or share the client portal link directly.

Problem: Reports Show the Wrong Income

Cause: Duplicate entries appear when a payment is recorded by hand and imported by the bank.

Fix: Open the Expenses and Payments screens, filter by date, and delete the duplicate.

📌 Note: If none of these help, the FreshBooks support team answers by phone and email.

What is FreshBooks?

FreshBooks is cloud-based accounting software that helps small business owners handle invoices, expenses, and online payments without hiring a bookkeeper.

Think of it as a billing assistant that also keeps your books tidy.

Watch this quick overview:

It includes these key features:

• Custom Invoicing: Design and send invoices that carry your own branding and terms.
• Easy Navigation: A plain sidebar that keeps every tool one click away.
• Payment Management: Collect online payments and reconcile them without manual entry.
• Advanced Payments: Recurring billing and saved cards for retainer work.
• Apps Integration: Hundreds of connections to the other tools you already run.
• Time Tracking: A built-in timer that turns logged hours into billable lines.
• Expense Categorizing: Automatic categories that keep managing expenses painless.
• Project Management: Project workspaces that keep scope, files, and billing together.
• Mileage Tracking: Automatic drive logging for anyone who bills windshield time.

FreshBooks customers get paid an average of five days faster than businesses that bill by hand.

For a full review, see our FreshBooks review.

FreshBooks Pricing

Here is what FreshBooks costs in 2026:

Free trial: Yes — 30 days, no card required.

Money-back guarantee: No formal guarantee, but you can cancel any month.

💰 Best Value: Plus at $38/month — it adds double-entry accounting, recurring templates, and the reports your accountant expects.

FreshBooks vs Alternatives

So how does FreshBooks compare against other accounting software?

Quick picks:

• Best overall: FreshBooks — easiest way to send invoices and get paid on time.
• Best budget: Wave — free invoicing for freelancers watching every dollar.
• Best for beginners: FreshBooks — nothing here assumes you know debits from credits.
• Best for deep accounting: QuickBooks — more accountants know it inside out.

🎯 FreshBooks Alternatives

Looking for FreshBooks alternatives? Here are the top options:

• 🚀 Puzzle IO: Automated bookkeeping built for venture-backed startups that live inside their accounting data.
• 📊 Dext: Receipt and document capture that feeds clean data into your existing books.
• 🌟 Xero: Full double-entry accounting with unlimited users on every plan and deep bank feeds.
• 🛒 Synder: Syncs Shopify, Amazon, and Stripe sales into your books line by line.
• ✅ Easy Month End: Month-end close checklists that keep bookkeeping teams on the same schedule.
• 🏢 Docyt: AI bookkeeping for restaurant groups and franchises with many locations to reconcile.
• 🔧 Sage: Long-established accounting with inventory and payroll modules for established firms.
• 💼 Zoho Books: Affordable books that plug into the wider Zoho suite of business apps.
• 💰 Wave: Free invoicing and accounting for freelancers who only pay transaction fees.
• 🏠 Quicken: Personal and light business finance tracking for landlords and sole traders.
• 📥 Hubdoc: Pulls bills and statements from vendors automatically, then files them for you.
• 🧾 Expensify: Expense reports and corporate cards for teams that reimburse staff often.
• ⭐ QuickBooks: The most widely used accounting software, with the deepest accountant support network.
• ⚡ AutoEntry: Scans invoices and receipts, then publishes the data into your ledger.
• 🏛️ NetSuite: Enterprise resource planning with accounting, inventory, and reporting for large companies.

For the full list, see our FreshBooks alternatives guide.

⚔️ FreshBooks Compared

Here is how FreshBooks stacks up against each competitor:

• FreshBooks vs Puzzle IO: FreshBooks wins on invoicing and client work. Puzzle IO suits startup finance teams better.
• FreshBooks vs Dext: Dext only captures paperwork. FreshBooks is the full accounting software around it.
• FreshBooks vs Xero: Xero costs less per seat. FreshBooks is easier for non-accountants to learn quickly.
• FreshBooks vs Synder: Synder handles high-volume eCommerce. FreshBooks handles service billing and client invoices.
• FreshBooks vs Easy Month End: Easy Month End manages the close. FreshBooks actually runs the daily books.
• FreshBooks vs Docyt: Docyt costs far more. FreshBooks fits solo operators and small teams.
• FreshBooks vs Sage: Sage offers deeper modules. FreshBooks offers a friendlier interface and faster setup.
• FreshBooks vs Zoho Books: Zoho Books is cheaper. FreshBooks has better invoicing and stronger client-facing features.
• FreshBooks vs Wave: Wave costs nothing to start. FreshBooks adds time tracking, projects, and real support.
• FreshBooks vs Quicken: Quicken leans personal. FreshBooks is built for client billing and business finances.
• FreshBooks vs Hubdoc: Hubdoc only collects documents. FreshBooks records, bills, and reports on them.
• FreshBooks vs Expensify: Expensify is built for reimbursements. FreshBooks covers invoicing and full accounting.
• FreshBooks vs QuickBooks: QuickBooks has more depth. FreshBooks is easier to learn and faster to invoice with.
• FreshBooks vs AutoEntry: AutoEntry is an add-on. FreshBooks is the accounting platform it would feed.
• FreshBooks vs NetSuite: NetSuite serves enterprises. FreshBooks serves freelancers and small business owners.

Start Using FreshBooks Now

You now know how to use FreshBooks across every major feature:

• ✅ Custom Invoicing
• ✅ Easy Navigation
• ✅ Payment Management
• ✅ Advanced Payments
• ✅ Apps Integration
• ✅ Time Tracking
• ✅ Expense Categorizing
• ✅ Project Management
• ✅ Mileage Tracking

Next step: Pick one feature and try it today.

Most people start with Custom Invoicing, because that is where the money is.

It takes less than five minutes to send your first bill.

Frequently Asked Questions

Is FreshBooks easy to learn?

Yes. FreshBooks was designed for non-accountants, so most small business owners send their first invoice within 15 minutes of signing up.

What are the downsides of FreshBooks?

Per-client pricing caps get expensive, extra users cost $11 each, and inventory tracking is limited compared with other accounting software.

How do FreshBooks work?

You connect your bank, add clients, then bill them. FreshBooks records payments, sorts expenses, and builds your reports from that activity.

Is FreshBooks easier to use than QuickBooks?

For invoicing and time tracking, yes. QuickBooks offers deeper accounting features, but FreshBooks has the simpler learning curve for freelancers.

How much do FreshBooks cost monthly?

Lite is $21/month, Plus is $38/month, and Premium is $65/month. The Select plan uses custom pricing for larger teams.