# FreshBooks

FreshBooks is cloud accounting for freelancers and small service businesses, rated 4.5/5 on G2 (~690 reviews) and 4.5/5 on Capterra (~4,400 reviews). Profile: pricing, ownership, history.

**Category:** Cloud accounting / invoicing for freelancers and small service businesses  
**Vendor:** FreshBooks Inc.  
**Founded:** 2003  
**HQ:** Toronto, Ontario, Canada  
**Website:** https://www.freshbooks.com  


## About

FreshBooks is cloud-based accounting software designed for freelancers, self-employed professionals, and small service businesses. Founded in 2003 in Toronto by Mike McDerment after he accidentally saved over a client invoice in a Word document, the product initially focused on simple online invoicing before expanding into time tracking, expense management, project collaboration, and full double-entry accounting. FreshBooks was acquired by Rhino Atlantic in 2019 in a deal that valued the company at roughly $400 million and took it off the independent startup track; it now operates as a standalone brand within that portfolio. The platform serves over 30 million users across 160 countries and is consistently rated among the easiest-to-use accounting tools for non-accountants running service businesses.

## Ratings

| Source | Score | Reviews |
|---|---|---|
| G2 | 4.5/5 | 690 |
| Capterra | 4.5/5 | 4,400 |
| Gartner Peer Insights | 4.3/5 | 45 |
| TrustRadius | 8.2/10 | 120 |

## Funding

Pre-acquisition: ~$65M across 3 disclosed rounds. Acquired by Rhino Atlantic in 2019 (valuation ~$400M); no public funding disclosed post-acquisition.

| Round | Amount | Date | Lead |
|---|---|---|---|
| Series A | $30M | Oct 2014 | OpenView Venture Partners |
| Series B | $25M | Jun 2015 | Georgian Partners |
| Series C | ~$10M (est.) | 2017 | Undisclosed |
| Acquisition | ~$400M (est.) | 2019 | Rhino Atlantic |

## Viability

Low risk for most users. FreshBooks is a well-funded private company under Rhino Atlantic's ownership with over 30 million registered users and a track record since 2003. Post-acquisition it has continued shipping product updates and has not signaled any direction changes that would threaten continuity. The main watch-item is ownership: as a private company under a financial buyer, an eventual resale or restructuring is possible, though no signals point to that near-term. For freelancers and very small service businesses the platform is stable, but teams that need multi-entity accounting or complex inventory should evaluate whether FreshBooks' intentionally simple scope fits their trajectory.

## Pricing

FreshBooks pricing is straightforward on paper but the client-cap structure catches people. Lite ($19/mo) allows only 5 active clients, Plus ($33/mo) allows 50, Premium ($55/mo) is unlimited. If you bill more than 5 clients regularly, Lite is not a real option regardless of business size. Add-ons for additional team members cost $11/person/mo on top. The 30-day free trial is genuine and requires no credit card. Annual billing saves about 10% across tiers. For a solo service business billing 10-20 clients, Plus at $33/mo is effectively the entry price.

| Plan | Price | Best for |
|---|---|---|
| Lite | $19/mo | Solo freelancers billing up to 5 active clients; invoicing, expense tracking, time tracking |
| Plus | $33/mo | Growing freelancers and small service businesses billing up to 50 clients; adds proposals, recurring billing, double-entry accounting |
| Premium | $55/mo | Small teams with unlimited clients; adds project profitability and customized email signatures |
| Select | Custom pricing | Larger service businesses needing custom contract terms, lower credit card rates, and dedicated account management |

## What reviewers say

_~690 G2 reviews at 4.5/5 and ~4,400 Capterra reviews at 4.5/5, plus TrustRadius and Gartner Peer Insights_

**Praised:**
- Ease of use is the single most-cited strength: non-accountants say they send their first invoice within minutes and that the interface never feels like accounting software
- Time tracking integration with invoicing is tight; reviewers who bill by the hour consistently call it the best-value feature in the product
- Customer support response quality earns high marks in a category where support is often a pain point; multiple reviewers mention getting issues resolved by phone on first contact

**Complaints:**
- Client caps per plan tier frustrate growing freelancers: the Lite plan is capped at 5 active clients, forcing an upgrade to Plus ($33/mo) even for users who only need one more billing relationship
- Double-entry accounting depth is thinner than QuickBooks or Xero for users who need serious bookkeeping; a professional accountant working in FreshBooks often supplements with other tools
- The Lite plan lacks team features entirely, so any solo practitioner who occasionally brings in a contractor hits a wall without stepping up to a higher tier

## Compliance

- **SOC 2:** Yes (SOC 2 Type II)
- **GDPR:** Yes
- **HIPAA:** No
- **SSO:** No (not offered on standard plans)

## Integrations

- Stripe
- PayPal
- Gusto
- HubSpot
- Mailchimp
- Shopify
- Squarespace
- Zapier
- Google Workspace
- Zoom

## FAQs

### Is FreshBooks right for freelancers?

Yes, FreshBooks is built almost entirely around solo practitioners and small service businesses. The invoicing flow, time tracking, and project billing are tighter than any general-purpose accounting tool. The main friction is the 5-client cap on the Lite plan; if you regularly bill more than 5 clients you will need Plus ($33/mo) or higher. For freelancers who also need inventory, manufacturing, or payroll beyond US and Canada, look at QuickBooks or Xero instead.

### How much does FreshBooks cost?

Paid plans run from $19/mo (Lite, 5 clients) to $55/mo (Premium, unlimited clients). Each additional team member added to any plan costs $11/mo. A 30-day free trial is available with no credit card required. Annual billing reduces the monthly equivalent by roughly 10%. Always check the live pricing page, as FreshBooks has adjusted tiers several times.

### Who owns FreshBooks?

FreshBooks was acquired in 2019 by Rhino Atlantic (sometimes referred to as Rhino), a private equity-backed holding company. Before the acquisition it was a venture-backed independent startup founded by Mike McDerment in Toronto in 2003. It operates as a standalone brand post-acquisition.

### Does FreshBooks do double-entry accounting?

Yes, FreshBooks added double-entry accounting in 2019 on its Plus and Premium plans. It produces a balance sheet, profit and loss statement, and trial balance. That said, professional bookkeepers working in complex multi-entity structures often find it thinner than QuickBooks Online or Xero, and accounts with heavy inventory or manufacturing complexity are better served by those tools.

### What integrations does FreshBooks support?

FreshBooks integrates directly with Stripe, PayPal, Gusto (payroll), HubSpot, Mailchimp, Shopify, and Squarespace, among others. Zapier connects it to hundreds of additional apps. A direct QuickBooks import exists for teams migrating in. The integrations library is narrower than QuickBooks Online's but covers the services most small service businesses actually use.


## Sources

- [G2: FreshBooks reviews](https://www.g2.com/products/freshbooks/reviews): rating 4.5/5, ~690 reviews
- [Capterra: FreshBooks](https://www.capterra.com/p/57284/FreshBooks/): rating 4.5/5, ~4,400 reviews, sub-scores and demographics
- [TrustRadius: FreshBooks](https://www.trustradius.com/products/freshbooks/reviews): score 8.2/10, ~120 reviews
- [Gartner Peer Insights: FreshBooks](https://www.gartner.com/reviews/product/freshbooks): rating 4.3/5, ~45 ratings
- [FreshBooks pricing page](https://www.freshbooks.com/pricing): Lite $19/mo, Plus $33/mo, Premium $55/mo, additional user $11/mo
- [Crunchbase: FreshBooks](https://www.crunchbase.com/organization/freshbooks): funding rounds, acquisition by Rhino Atlantic 2019
- [Wikipedia: FreshBooks](https://en.wikipedia.org/wiki/FreshBooks): founding, history, acquisition, products
- [LinkedIn: FreshBooks company page](https://www.linkedin.com/company/freshbooks/about/): employee count ~500, HQ Toronto, industry