FreshBooks Invoicing Tutorial: Complete Guide to Professional Invoicing

Introduction

FreshBooks is one of the most popular cloud-based invoicing and accounting platforms for small businesses, freelancers, and service professionals. With its intuitive interface, powerful automation features, and comprehensive invoicing tools, FreshBooks makes it easy to create professional invoices, get paid faster, and manage your business finances.

This complete tutorial will walk you through everything you need to know about FreshBooks invoicing, from creating your first invoice to setting up advanced automation workflows.

What you'll learn:

• Step-by-step invoice creation (with interactive 10-step wizard)
• Invoice customization (templates, logos, colors, branding)
• FreshBooks Payments setup (credit cards, ACH, Apple Pay)
• Time tracking to invoice conversion (with calculator)
• Expense tracking and markup strategies (with calculator)
• Automation features (recurring invoices, payment reminders, late fees)
• Client portal and communication tools
• Pricing plans comparison (Lite, Plus, Premium, Select)
• FreshBooks vs competitors (QuickBooks, Wave, Xero)

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What Makes FreshBooks Invoicing Different?

FreshBooks stands out in the crowded invoicing software market for several key reasons:

User Experience First: FreshBooks was built from the ground up with user experience as the top priority. The interface is clean, intuitive, and designed for non-accountants. You don't need any accounting knowledge to create professional invoices.

Mobile-First Design: The FreshBooks mobile app is consistently rated as one of the best in the industry, allowing you to create invoices, track expenses, and manage your business from anywhere.

Time Tracking Integration: FreshBooks includes built-in time tracking that seamlessly converts tracked hours into invoiced line items, making it perfect for service professionals who bill by the hour.

Client Portal: Every client gets access to a professional client portal where they can view all their invoices, make payments, and communicate with you - all without you having to manually send updates.

Automation Capabilities: From recurring invoices to payment reminders to late fee calculations, FreshBooks automates many of the tedious tasks that eat up your time.

Payment Processing: FreshBooks Payments is integrated directly into the platform, allowing clients to pay invoices with credit cards, bank transfers, or even Apple Pay - right from the invoice itself.

FreshBooks Invoice Customization

Invoice Templates

FreshBooks provides three professionally designed templates:

Classic: Traditional invoice layout with your logo at the top, clear line item table, and prominent total. Best for professional services, consultants, and agencies.

Modern: Contemporary design with bold typography and accent colors. Great for creative professionals, designers, and tech companies.

Simple: Minimalist layout focusing on clarity and readability. Ideal for freelancers and small businesses that want a clean, no-frills look.

All templates are fully responsive and look great on mobile devices.

Branding Options

Make your invoices unmistakably yours:

Logo Placement: Upload a logo up to 200KB. FreshBooks automatically sizes it appropriately for professional presentation.

Brand Colors: Use your exact brand colors (hex codes supported) for headers, accents, and call-to-action buttons.

Custom Fonts: Choose from Google Fonts library or use system fonts. FreshBooks ensures fonts render correctly in PDFs and emails.

Header Images: Add full-width header images for visual impact (photographers and designers love this feature).

Custom Fields

Add unlimited custom fields to capture business-specific information:

• Project code / Job number
• Job site address / Location
• Purchase order number
• Department / Division
• Account representative
• Contract number
• Billing period / Service dates

Custom fields appear on invoices and in FreshBooks reports, making it easy to filter and analyze your data.

FreshBooks Payments: Getting Paid Faster

Setting Up FreshBooks Payments

FreshBooks Payments integrates directly with Stripe and WePay to process credit cards, bank payments, and Apple Pay.

Application Process:

1. Go to Settings > Payments
2. Click "Accept Credit Cards"
3. Complete the application (takes 5-10 minutes)
4. FreshBooks typically approves accounts within 24 hours
5. Once approved, payment buttons automatically appear on all invoices

FreshBooks deposits funds into your bank account on a rolling basis (typically 2-3 business days).

Payment Options for Clients

When you enable FreshBooks Payments, clients see a prominent "Pay Now" button on invoices with multiple payment options:

Credit Cards: Visa, Mastercard, American Express, Discover

ACH Bank Transfer: Direct bank-to-bank transfer (lower fees for large invoices)

Apple Pay: One-tap payment for clients using Safari or iOS devices

Offline Payments: Clients can mark invoices as "paid by check" or "paid by cash" for your records

Auto-Charge Saved Payment Methods

For recurring invoices or retainer agreements, FreshBooks can automatically charge a client's saved payment method:

1. Client enters credit card or bank account information
2. You enable "Auto-Charge" on recurring invoices
3. FreshBooks automatically charges the card when each invoice is generated
4. Client receives a receipt immediately

This is perfect for subscription services, monthly retainers, or any recurring billing.

Automation Features That Save Time

Recurring Invoices

Set up invoices that generate and send automatically on a schedule:

Frequency Options:

• Weekly (every Monday, every other Thursday, etc.)
• Monthly (1st of the month, 15th of the month, last day of month)
• Quarterly
• Yearly
• Custom (every 6 weeks, every 3 months, etc.)

Configuration:

1. Create a normal invoice
2. Click "Make Recurring"
3. Set frequency, start date, and end date (or "Never End")
4. Choose "Send Automatically" or "Generate as Draft"

FreshBooks generates the invoice on schedule and either sends it immediately or saves it as a draft for you to review first.

Automatic Payment Reminders

FreshBooks can automatically send payment reminders for overdue invoices:

Default Schedule:

• 3 days before due date: Friendly reminder
• On due date: "Your invoice is due today"
• 3 days after due date: First overdue reminder
• 7 days after due date: Second overdue reminder
• 14 days after due date: Final reminder

Customization:

• Edit email templates for each reminder
• Change timing (send reminder 1 day overdue vs 3 days overdue)
• Disable reminders for specific clients
• Set reminders only for invoices over a certain amount

Tracking: FreshBooks tracks which reminders have been sent and shows client engagement (opened email, clicked links, etc.).

Late Fees

FreshBooks can automatically calculate and apply late fees to overdue invoices:

Percentage-Based: Add 5% (or any percentage) to the invoice total after the due date

Flat Fee: Add $25 (or any amount) for each overdue invoice

Compound Late Fees: Apply late fees weekly or monthly as the invoice remains unpaid

Late fees are configured per client or as a global default, and FreshBooks automatically adds them to invoices when they become overdue.

Time Tracking and Invoicing

FreshBooks includes powerful time tracking features that integrate seamlessly with invoicing.

Desktop and Mobile Time Tracking

Desktop Timer:

• Click "Start Timer" from any project or task
• Timer runs in the background
• Click "Stop" when you're done
• Add notes describing what you worked on
• Time entries automatically sync to the cloud

Mobile App:

• Start/stop timer from your phone
• Add time entries manually (great for tracking after the fact)
• Attach photos to time entries (useful for documenting job sites or deliverables)

Converting Time to Invoices

When creating an invoice:

1. Click "Import Hours"
2. Select the client and date range
3. FreshBooks shows all unbilled time entries for that client
4. Select which entries to include
5. Click "Import"

FreshBooks automatically:

• Creates invoice line items from time entries
• Applies your billable rate
• Includes task descriptions as line item text
• Calculates totals

Team Time Tracking

If you have a team, FreshBooks tracks time for multiple people:

Individual Rates: Set different hourly rates for each team member (e.g., senior consultant $150/hr, junior consultant $75/hr)

Role-Based Rates: Apply rates based on the type of work (design $125/hr, development $150/hr, project management $100/hr)

Blended Rates: Invoice all team time at a single blended rate, regardless of who did the work

Detailed Reporting: See who worked on what, when they worked, and how much time was spent

Expense Tracking and Invoicing

FreshBooks makes it easy to track expenses and bill clients for reimbursable costs.

Recording Expenses

Manual Entry:

1. Go to Expenses > + New Expense
2. Enter vendor, amount, category, and description
3. Mark as "Billable to Client"
4. Attach receipt photo (mobile app makes this easy)

Receipt Scanning:

• Take a photo of any receipt with the FreshBooks mobile app
• FreshBooks automatically extracts vendor, date, and amount
• Review and save (takes 5 seconds)

Credit Card Import:

• Connect your business credit card or bank account
• FreshBooks automatically imports transactions
• Categorize expenses and mark billable items
• No manual data entry required

Billing Clients for Expenses

When creating an invoice:

1. Click "Import Expenses"
2. Select the client and date range
3. Choose which expenses to bill
4. Apply markup if desired (10% markup, 20% markup, or custom)
5. Click "Import"

FreshBooks adds expenses as invoice line items with full details. If you've attached receipt images, clients can view them directly from the invoice.

Client Portal and Communication

Every FreshBooks client gets access to a professional client portal.

What Clients Can Do

View All Invoices: Past, current, and upcoming invoices in one place

Make Payments: One-click payment via credit card, bank transfer, or Apple Pay

Download PDFs: Get PDF copies of invoices for their records

View Payment History: See all payments, dates, and amounts

Communicate: Send messages directly to you from the portal (no need for separate email threads)

Manage Auto-Pay: Update payment methods or disable auto-charge

Client Experience

Clients access the portal via:

• Link in the invoice email
• Direct portal URL you share
• Login at your-business.freshbooks.com/client

The portal is white-labeled with your business name and logo, creating a professional branded experience.

Tips for Getting the Most from FreshBooks

1. Set Up Recurring Invoices Immediately

If you have any clients on retainer or subscription billing, set up recurring invoices on day one. This alone can save you hours every month.

2. Enable Payment Reminders

Turn on automatic payment reminders to reduce follow-up time. Most businesses see 20-30% faster payment when reminders are enabled.

3. Use FreshBooks Payments

Even with the 2.9% fee, accepting online payments typically results in getting paid 2-3 weeks faster. The time value of money and reduced collection effort usually outweigh the fees.

4. Track Time Even for Fixed-Price Projects

Even if you're not billing hourly, track your time. This data helps you:

• Price future projects accurately
• Identify scope creep
• Understand which clients are most profitable
• Make better business decisions

5. Customize Invoice Templates

Take 15 minutes to customize your invoice template with your logo and brand colors. Professional branding increases trust and can reduce payment times.

6. Use the Mobile App

Install the FreshBooks mobile app and enable notifications. You'll be amazed how quickly you can handle invoicing tasks during downtime.

Troubleshooting Common Issues

"Client Says They Didn't Receive Invoice"

Check: Go to the invoice and look for the "Viewed" status. This shows if the email was opened.

Solutions:

• If not viewed: Check that the email address is correct, and check their spam folder
• If viewed: Point out that it was viewed on [date] at [time] - this usually resolves the issue
• Resend via portal link or download PDF and send through their preferred channel

"Payment Not Showing Up"

FreshBooks Payments: Payments typically take 2-3 business days to deposit. Check the Payments page to see the expected deposit date.

Manual Payments: If a client paid by check or wire transfer, you need to manually record the payment in FreshBooks (click "Record a Payment" on the invoice).

"Recurring Invoice Not Sending"

Check:

• Is "Send Automatically" enabled on the recurring invoice profile?
• Is the client email address valid?
• Is the recurring invoice active (not paused or ended)?

Go to Recurring Invoices > Edit > Make sure "Send Automatically" is checked.

Conclusion

FreshBooks is one of the most user-friendly and powerful invoicing platforms available, especially for service-based businesses, freelancers, and small agencies. Its combination of intuitive design, robust automation, integrated time tracking, and professional client experience makes it an excellent choice for businesses that want to get paid faster and spend less time on administrative tasks.

The investment in FreshBooks (starting at $17/month) typically pays for itself many times over through:

• Time savings: 5-10 hours per month on invoicing and follow-up
• Faster payments: Average 15-20 days faster than manual invoicing
• Fewer errors: Automated calculations eliminate math mistakes
• Better cash flow: Automatic reminders and online payments reduce late payments
• Professional image: Branded invoices and client portal enhance credibility

Whether you're a solo freelancer just starting out or an established agency with a team, FreshBooks scales with your business and provides the tools you need to manage invoicing professionally.

Start with the free 30-day trial to experience the difference for yourself - no credit card required, and you can import your existing client and invoice data in minutes.

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