FreshBooks

What FreshBooks does

FreshBooks is a cloud-based accounting and small business management SaaS platform serving freelancers, solopreneurs, and small businesses with employees and contractors. Founded in 2003 in Toronto, Canada, the company provides an all-in-one platform spanning invoicing, billing and payments, expense and receipt tracking, time tracking, project management, payroll, estimating, proposals, client management, and financial reporting. The platform is hosted on Google Cloud Platform and supports both web and native iOS/Android mobile applications. It maintains PCI DSS Level 1 compliance and GDPR/CCPA-aligned data handling.

The product is organized into four tiered subscription plans (Lite at $23/mo, Plus at $43/mo, Premium at $70/mo, and custom-priced Select for high-volume customers), with add-on modules including FreshBooks Payroll ($40/mo plus $6/user/mo), Team Members ($11/user/mo), and Advanced Payments ($20/mo). Revenue is generated through subscription fees, payment processing transaction fees via FreshBooks Payments (backed by Stripe), and Buy Now Pay Later fee-sharing through Affirm and Afterpay integrations. The company operates a hybrid go-to-market combining product-led growth (30-day free trials, self-serve signup, aggressive promotional discounting) with a sales-assisted motion for Select-tier high-volume customers and dedicated phone support.

FreshBooks reports having served over 30 million small businesses across 160+ countries historically, though active paying customer counts are not publicly disclosed beyond the 2018 benchmark of 305,000 customers and $55M ARR. The company has expanded internationally through the October 2021 acquisition of Germany-based FastBill, operating a Dutch subsidiary (FreshBooks Netherlands B.V.) for EU market access. Its ecosystem includes 100+ third-party app integrations via the FreshBooks AppStore, partnerships with Bluevine (banking), Ownr (Canadian business registration), Kick (AI bookkeeping), Affirm and Afterpay (BNPL), Stride (health benefits), and Stripe (payments). The company is privately held under 2NDSITE Inc., headquartered in Toronto with offices in Amsterdam and Raleigh.

Name

FreshBooks

Legal name

2NDSITE Inc.

Website

https://freshbooks.com

Company type

Private

Founded year

2003

Operating status

Operating

Headcount range

251–500 employees

Short description

FreshBooks provides cloud-based accounting and small business management software for freelancers, solopreneurs, and SMBs, offering invoicing, payments, expense tracking, payroll, and time tracking on a tiered subscription platform serving 30M+ users across 160+ countries.

Ownership category

akta.pro rank

Product category

Cloud Accounting Software

NAICS

Software Publishers (5132), Software Publishers (513210), Accounting, Tax Preparation, Bookkeeping, and Payroll Services (54121)

SIC

Services-Prepackaged Software (7372)

akta.pro primary industry

Software/SaaS Subscriptions (Consumer & Prosumer) (CRAFAIAB)

Keywords

• Cloud accounting software
• Small business invoicing
• Freelancer bookkeeping
• Online payment processing
• Expense tracking software

Headquarters

HQ city

Toronto

HQ country

Canada

HQ region

North America

Offices3 records

Markets served

GTM type

B2B

Offering type

Software

Cost components

Technology or R&D, Personnel, Marketing or Sales, Operations, Infrastructure

Revenue model

1. Subscription Plans: FreshBooks generates primary revenue through tiered SaaS subscription plans (Lite, Plus, Premium, Select) billed monthly. Add-ons include Team Members ($11/user/mo), Advanced Payments ($20/mo), and FreshBooks Payroll ($40/mo + $6/user/mo).
2. Payment Processing (FreshBooks Payments): Revenue from credit card and ACH transaction fees through the FreshBooks Payments platform, with lower credit card transaction fees and capped ACH fees available on the Select plan.
3. Buy Now, Pay Later Integration: BNPL options through Affirm and Afterpay partnerships allow clients to split purchases into installments, with FreshBooks receiving full invoice amounts upfront after deducting a fee.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels7 records

Core offering

FreshBooks sells a cloud-based, all-in-one small business management and accounting platform delivered as tiered SaaS subscriptions (Lite, Plus, Premium, Select). The product unifies professional invoicing, online payment acceptance (credit card, ACH, Apple Pay, Google Pay, BNPL via Affirm/Afterpay), expense and receipt tracking, mileage tracking, time tracking, project profitability, team payroll, and double-entry accounting reports in a single interface. It is sold primarily to freelancers, solopreneurs, and small businesses in the U.S., Canada, the U.K., and Germany, with mobile apps for iOS and Android and a public REST API for integrations.

Product overview

FreshBooks is an all-in-one cloud accounting and small business management software platform that provides a unified solution for small businesses, freelancers, and self-employed professionals. The core platform encompasses invoicing, billing and payments, expenses and receipt tracking, time tracking, project management, estimating, proposals, client management, team management, and financial reporting. The platform operates on a tiered subscription model with four main plans: Lite (up to 5 clients), Plus (up to 50 clients), Premium (unlimited clients), and Select (high-volume billing with reduced fees). Optional add-ons include FreshBooks Payroll ($40/month + $6/user), Team Members ($11/month per user), and Advanced Payments ($20/month). The platform offers native integrations with payment processors (Stripe, Affirm, Afterpay), and extends functionality through the FreshBooks AppStore with 100+ third-party integrations including Zapier, Square, HubSpot, Gusto, and others. Mobile applications for iOS and Android provide on-the-go access to core accounting features including receipt scanning and mileage tracking.

Differentiator

Problem solved

Functional benefit

Products and services

• FreshBooks Cloud Accounting Platform All-in-one cloud accounting and small business management software offering invoicing, online payment acceptance (credit card, ACH, Apple Pay, Google Pay, and BNPL via Affirm and Afterpay), expense and receipt tracking, time tracking, project profitability, team payroll, double-entry accounting reports, and bank reconciliation. Sold as a tiered subscription (Lite, Plus, Premium, Select) primarily to freelancers, solopreneurs, and small businesses across the U.S., Canada, the U.K., and Germany.
• FreshBooks Payroll Standalone payroll add-on that enables small businesses to pay themselves and team members, with integrated expense tracking and automated tax calculation. Priced at $40/month plus $6/month per user and sold as a separately billable add-on to the core platform.
• FreshBooks Payments Integrated online payment processing service supporting credit card, debit card, ACH, Apple Pay, Google Pay, and Buy Now, Pay Later options via Affirm and Afterpay. Generates transaction-fee revenue and is offered with lower credit card fees and capped ACH fees on the Select plan. Advanced Payments (instant payouts) sold as a $20/month add-on or included with Select.
• FreshBooks Mobile Apps Native iOS and Android applications enabling on-the-go access to invoicing, expense tracking, receipt scanning, and GPS-based automatic mileage tracking for freelancers and small business owners. Distributed via the Apple App Store and Google Play Store.
• FreshBooks AppStore Curated marketplace of 100+ third-party app integrations including Zapier, Square, HubSpot, Gusto, FundBox, Stripe, and others, extending the platform with payment, HR, ecommerce, communication, and automation capabilities.

Quantifiable outcome

• Save up to 553 hours each year using FreshBooks
• +3 more outcomes

Named customers1 record

Segments6 records

Ideal customer profiles4 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration19 records

AI capability8 records

Feature7 records

Partnerships

Seven partnerships are on record, tiered core and minor.

• OwnrcoreGTM or Marketing Partner · 2 June 2026FreshBooks partnered with Ownr, a business registration platform that has helped over 255,000 Canadians incorporate their businesses, to streamline the process of starting and managing a business in Canada. The collaboration combines Ownr's registration and compliance tools with FreshBooks' invoicing and financial management features, targeting Canadian entrepreneurs.
• BluevinecoreGTM or Marketing Partner · 26 February 2026FreshBooks partnered with Bluevine, the largest small business banking platform in the U.S., to integrate Bluevine's high-yield business checking account with FreshBooks' financial platform. The partnership aims to streamline banking and bookkeeping workflows, reduce manual work, speed up reconciliation, and provide clearer visibility into cash flow for U.S. small businesses.
• StrideminorGTM or Marketing Partner · 30 October 2025FreshBooks partnered with Stride to expand access to affordable health, dental, and vision plans for self-employed professionals and small business owners in the U.S. ahead of the Open Enrollment Period, addressing rising health insurance costs.
• AffirmcoreTechnology or Integration · 17 October 2025FreshBooks integrated a Buy Now, Pay Later (BNPL) feature into its Payments offering through a partnership with Affirm, enabling clients in the U.S. and Canada to pay invoices in installments. Clients can split purchases into flexible payments with no late or hidden fees, with businesses receiving full invoice amounts upfront after deducting a fee.
• FastBillcoreStrategic or Co-development Partner · 7 October 2021FreshBooks acquired FastBill, a Germany-based cloud accounting and invoicing software provider, as part of its global expansion strategy. The acquisition supported FreshBooks' growth in European regions with FastBill's team and operations remaining in Frankfurt, Germany. FastBill served small businesses and self-employed professionals across 16 European countries.
• Google Cloud Platform (GCP)coreTechnology or IntegrationFreshBooks utilizes Google Cloud Platform for all hosting requirements, benefiting from GCP's environment for fast feature delivery, continued product innovation, reliable security, stability, and reduced downtime risk.
• StripecoreTechnology or IntegrationFreshBooks integrates with Stripe for payment processing and identity verification services, expanding its Stripe partnership with $125M debt from Morgan Stanley used to support growth. Stripe handles risk identity and verification, payment processing, and analytics.

Scale indicators10 records

Recent moves7 records

Expansion highlights6 records

Others

• Stripe: Stripe is FreshBooks' payment-processing backbone and a strategic partner, but also a broader SMB financial infrastructure provider. As Stripe expands into embedded finance and SMB banking, the relationship is both cooperative and increasingly competitive at the platform layer.
• Gusto: Gusto is a payroll, benefits, and HR platform that integrates with FreshBooks via the AppStore. While not a direct accounting competitor, it is a strategic partner and a potential bundle competitor as it expands into accounting-adjacent SMB financial workflows.

Broad incumbents

• NetSuite (Oracle): Oracle's NetSuite is a cloud ERP suite for small-to-mid businesses that includes accounting, invoicing, and expense management. While higher-end than FreshBooks, it competes for the same growing SMB that outgrows FreshBooks and serves as an 'upgrade destination.'
• Square (Block): Block's Square offers payments, banking, and integrated software to SMBs, with growing accounting and invoicing capabilities. It competes for the same micro-SMB wallet and is integrated into the FreshBooks AppStore ecosystem.
• Sage Business Cloud Accounting: Sage is a long-established accounting and payroll software incumbent with a broad SMB-to-mid-market portfolio. Its cloud accounting product overlaps heavily with FreshBooks, especially in the UK and European SMB segments where Sage has deep distribution.

Regional players

• Lexoffice: Lexoffice is a leading German cloud accounting and invoicing SaaS for SMBs and freelancers, directly competitive with FastBill in FreshBooks' European stronghold. It is a relevant regional comparable for FreshBooks' European expansion thesis.

Direct peers

• Xero: Xero is a leading global cloud accounting platform serving small businesses and accountants. It overlaps almost 1:1 with FreshBooks on invoicing, expense, and bank reconciliation features and competes directly in the US/Canada and European SMB markets.
• Wave Financial: Wave offers free and low-cost cloud accounting, invoicing, and receipt scanning targeted at very small businesses and freelancers — a near-direct free-tier competitor that pressures FreshBooks' Lite plan pricing.
• Zoho Books: Zoho Books is part of the Zoho One suite and provides invoicing, expense, and bookkeeping tools to SMBs globally. It competes head-on with FreshBooks, often at lower price points, particularly in international markets.
• QuickBooks (Intuit): Intuit's flagship SMB cloud accounting platform, the dominant incumbent in the same category FreshBooks competes in. QuickBooks offers invoicing, expense tracking, payroll, and AI-assisted bookkeeping aimed at the same freelancer and SMB segments.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/freshbooks
• YouTubeyoutube.com/user/freshbooks
• Facebookfacebook.com/freshbooks
• Instagraminstagram.com/freshbooks
• LinkedInlinkedin.com/company/freshbooks

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles7 records

Subsidiaries1 record

Funding overview

Funding rounds10 records

Investors18 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A2 records

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about FreshBooks