FreshBooks

FreshBooks is the best accounting software for people who sell their time, and a poor fit for people who sell things. That single distinction predicts almost every review we have read.

For a consultant, agency or trades business, the workflow is exactly right. Time tracked against a project becomes a line on an invoice; the invoice chases itself with automated reminders; the client pays by card from the email; the payment reconciles. Project profitability reporting answers the question service businesses actually ask — did this engagement make money? — which QuickBooks and Xero handle less directly. The interface is the friendliest in the category and the mobile app is genuinely good for capturing receipts on the move.

The limits are real. Billable-client caps apply per plan — Lite covers 5 clients, Plus 50 — and exceeding them means upgrading. There is no inventory tracking, so product businesses are immediately out of scope. Double-entry accounting is present but less complete than Xero or QuickBooks, and some accountants push back on it for anything complex. Additional team members cost extra per user per month.

Our guidance: freelancers and service businesses under about 50 active clients will be happier here than anywhere else. Product sellers, or anyone whose accountant wants full double-entry rigour, should choose Xero or QuickBooks.