Purpose of FreshBooks
FreshBooks is considered the number 1 cloud accounting app out today. It was designed to help companies handle their finances securely and easily. FreshBooks offers a simple and easy way yet very efficient to manage expenses, invoices, reports, and time tracking.
The Freshbooks software application's purpose is to help you save time on your accounting process with its automated and streamlined functions.
The key advantages of FreshBooks are its extensive features, affordable pricing plans, an exceptional level of customer support which is always proving to be the strong factor that makes them shine from the rest.
It is now used by about 24 million customers worldwide. And that speaks a lot for FreshBooks.
It offers a wide range of features such as cloud-based invoicing, online payment gateway, reporting functionalities, quick expense tracking, and you can transfer your timesheet data to invoice and collect payments faster.
Its customer support received the Gold medal at the 2014 Stevie Awards for Sales and Customer Service, and it’s the 2019 Best accounting software app.
Let’s see all other purposes that FreshBooks could be used for.
FreshBooks with Payroll
You could integrate it with Gusto to automatically import your payroll transactions for more accurate expense tracking and more accurate books.
After payroll is run in Gusto an expense is created in FreshBooks but the time tracked in Gusto would help you with payroll, benefits, HR, and personal finance by automating the most complicated, impersonal business tasks and making them simple and delightful.
FreshBooks with Gusto would allow that Payroll can be set to run on a recurring payment schedule that suits your needs, local, state and federal payroll taxes are automatically calculated, paid and filed for you, and your employees get their login so they can onboard themselves, access pay stubs, W-2’s, 1099’s and more.
See here how to connect FreshBooks with Gusto.
FreshBooks with Stripe
Stripe offers a fully integrated suite of payment products. It brings together everything that’s required to build websites and apps that accept payments and send payouts globally.
Stripe’s product role is to power payments for online and in-person retailers, subscription businesses, software platforms and marketplaces, and everything in between.
Billing convenience is what you need and also. giving your clients easy ways to pay is part of delivering stress-free payment transactions for your clients too. Connect your Stripe account or enable Stripe online payments through FreshBooks and start getting paid 2x faster.
This is how you could start using Stripe with your FreshBooks account.
FreshBooks Balance Sheets
FreshBooks Balance Sheets would show you the financial position of your company anytime. It’s always ready for your checking and it’s also calculated at the end of the quarter or year.
FreshBooks Balance Sheets would be useful in summarizing your business’ assets, liabilities, and owner’s equity that’s also known as shareholders’ equity.
The way the balance of your finance is sound is as follows: Assets = Liabilities + Owner’s Equity. When everything balances, all your finances have been accounted for.
Accounting reports like the Balance Sheet Report are available on the Plus and Premium plans only in FreshBooks.
Here are the steps to check and use the balance sheets in FreshBooks.
Bookkeeping is needed in every company whether big or small. What does bookkeeping entail:
- Categorizes daily transactions and expenses
- Balance out your accounts
- Generate financial statements
- Pays supplier or contractor invoices
- Ensure you’re 100% tax compliant
- Talk to a Bookkeeping Rep
- Easy Expenses
- Spend less time looking for receipts and more time growing your business.
With FreshBooks Bookkeeping, you’ll experience and enjoy a stress-free tax time since it would ensure that you’re 100% tax-compliant, so you avoid penalties and maximize deductions. FreshBooks would handle your day-to-day finances and would give you a better glimpse of your business’ health.
FreshBooks Bookkeeping would provide you accurate, up-to-date books at a lesser cost.
FreshBooks BillingFreshbooks Billing will save you time, money, and headaches when it comes to invoicing, payments, and billing reporting especially if you have a service-based business.
Every service-based-business owners experience how hard it is billing and invoicing services rendered. It could be a strenuous process from estimating services to tracking time to creating and sending invoices, and then tracking down the status of payments.
This would involve a lot of time for you and your staff but Freshbooks would make it easier for you and your staff and it would make the whole process easier and much more streamlined and systematic.
FreshBooks would make systemization possible in payments that would make you get paid faster.
FreshBooks Bank Reconciliation
FreshBooks provides a bank reconciliation feature which is the process of matching transactions from your bank statement to entries in FreshBooks. This would allow you to ensure that your books are accurately represented in your bank accounts and that your funds are all accounted for.
They would see that bank reconciliation is done at regular intervals for all your bank accounts, to ensure your business’ records are correct.
Accounting features like Bank Reconciliation are available on trials as well as Plus and Premium plans in FreshBooks. You could also invite your accountant to help you learn and be familiar with Bank Reconciliation.
Click on this link to get started with bank reconciliation in FreshBooks.
No one could deny that the best invoice generator software online is FreshBooks. With it, you could save a lot of your valuable time.
FreshBooks would make small businesses less time-consuming with their invoicing and billing that’s so simple and uncomplicated. Get paid much faster and be able to create professional looking invoices in seconds.
The invoice generator of FreshBooks is awesome. Be able to create and customize your invoice, add your logo and personalize your thank you email in a zest!
FreshBooks Invoice Template
The best way to invoice is surely through FreshBooks. You could create invoices instantly. Get paid faster with professional invoicing plus get unlimited access to beautiful customizable invoice templates. Grow your business with invoicing from FreshBooks.
Join 24 million people who have used FreshBooks invoicing and its free invoice templates. Download a free, customizable, professional Invoice Template. Create invoices in Word, Excel, PDF, Google Docs, Sheets, and more. You could browse their gallery of free invoice templates and select one that suits your business needs.
You deserve an invoicing system that gives you an edge and be on the fast track to getting paid, the efficient way.
FreshBooks has been helping business owners get paid since 2003. Their top designers always create beautiful invoice templates that are free for you to use.
FreshBooks Recurring Invoices
Recurring invoices have many benefits and some are improved cash flow and streamlined payment procedures for you and your company.
There are also lots of advantages of sending recurring invoices with FreshBooks.
Recurring invoices mainly would contribute a steady stream of monthly income. They would amazingly improve your cash flow from month-to-month so that you have enough money to cover your expenses and business costs and you’ll never run short.
It also is the reason why your payments are faster since by sending invoices at recurring intervals, you’ll encourage clients to lock into the same payment routine as before.
FreshBooks would also let you link to a client’s credit card which not only encourages prompt payment but making it convenient for everyone.
With recurring invoices, you don’t need to run or chase after your client’s payment.
In your client’s end, there’s no need for them to remember to make a payment and it would avoid any possible late payment fees.
By using FreshBooks, you could create an invoice from a template, set the schedule, link your client’s credit card, and make the relevant changes quick. In this way, you could relax more.
FreshBooks would also allow you to review recurring invoices before sending them. It’s ideal for clients where monthly invoice values fluctuate or might vary or change.
It also takes the pressure to email or to ring your client to remind them. FreshBooks takes care of all the tiny and big details in all your invoicing whether current or recurring.
Recurring invoices save you time and eliminate other hidden costs.
What type of business is fit for recurring invoices?
- Service-based businesses that bill for a fixed number of monthly working hours.
- Companies providing monthly service packages. It could be a website, newsletter, or blog subscription.
- Businesses offering maintenance plans for products that provide regular services.
- Businesses offering education and training material.
- Membership sites that have monthly dues.
- Software providers who charge a monthly license fee to use their products.
With FreshBooks setting up recurring invoices is easy as ever. Just enable the function when creating a new invoice and you’re good to start. Save time, money, and watch your bank balance grow without having to go after your clients for their payments.
FreshBooks Journal Entries
FreshBooks journal entries are the building blocks of financial accounting and record all transactions in your business. In FreshBooks, all your activities such as sending invoices, accepting payments, and creating credits and expenses are organized and compiled into journal entries.
All transactions entered in your FreshBooks account will have a corresponding Journal Entry, that affects at least two accounts in your Chart of Accounts. Whenever an amount is updated, the first entry is reversed, and the new ones are created and the difference is not booked alone. If you need to update or correct a Journal Entry, create a new one to reverse the old entry, and then create a second entry with the updated or corrected information instead.
Only Accountants invited to your account could create Journal Entries to help ensure your financial reporting is accurate.
If certain entries need to be recorded or corrected in your FreshBooks account, the Accountant can create entries manually on your behalf like Owner's Draw as an example.
Creating a Journal Entry can be done with the below steps:
- As an Accountant, click on the Accounting section
- Then click on the Chart of Accounts sub-tab
- Click on New Journal Entry
- New journal entry box with fields.
- Fill out the Entry Name, Date and Currency
- Enter in a Description for easy reference
- Choose the Accounts and enter in the amount in either the Debit or Credit field (one Account should be debited and one Account should be credited)
- Use the Add a line button if you need to add more entries
- Click Save to finish and the Journal Entry will be recorded.
You can use the General Ledger Report to view all manually created Journal Entries, which are called Adjustments on the report itself with the steps here.
Journal Entries are fixed and permanent records of transactions occurring inside the account and once created it could no longer be edited or deleted. This would ensure the accuracy of your book.
If a Journal Entry is missing information or you need to correct an error, use the below steps:
- Create a Journal Entry to reverse the error/incomplete entry (as in, the opposite of what’s been inputted in for debits and credits)
- Then create your new Journal Entry where you re-enter in the correct entry (to fix the error or add more detail).
- If you corrected one entry, this results in three Journal Entries, with the final one being the updated and corrected version. The ending balance will reflect the correct amount as usual.
Here is what would be included in your Journal Entry in FreshBooks.
An Asset is a resource that your business owns, like cash in hand, prepaid expenses, or office equipment. All Assets will appear in your Chart of Accounts.
Current Assets are generally what is used in the daily operations of your business and can be converted into cash easily like:
- Petty Cash
- Bank Accounts
- Accounts Receivable
- Customer Deposits
Fixed Assets may also be used in the daily operations of your business. They differ from Current Assets because they could last longer than one year:
To properly record the cost of Fixed Assets over time that they’re used, they are depreciated.
Depreciation is the accounting process that ensures that the cost of a Fixed Asset is allocated correctly over its useful life. Since there are many different methods for calculating this, Depreciation must be recorded manually since the cost would change through time.
Both Assets and Depreciation can be recorded by having your Accountant add an Account and create a Journal Entry.
A Loan is an amount of money that is borrowed and is meant to be paid back to the lender, often with interest costs. A-Line of Credit is a preset amount of money that can be borrowed as needed, repaid, and then borrowed again on a revolving basis often with interest costs.
Liabilities like Loans and Lines of Credit will appear in your Chart of Accounts and on your Balance Sheet Report.
To recognize a loan or a line of credit, as well as principal repayments, and any interest costs if it is applicable within FreshBooks, your Accountant can add an Account and create a Journal Entry.
Owner's Equity consists of an owner's investment into their business as well as any withdrawals from the business. This can be withdrawing funds for personal use, or depositing funds from a personal account to a business account to help with cash flow or funding of their business.
Equity, including Owner’s Equity, Common Stock and Retained Earnings will appear in your Chart of Accounts and on your Balance Sheet Report.
FreshBooks Time Tracking
You could make the most of your productivity with FreshBooks time tracking software since every second count. You could start tracking your time in FreshBooks and see exactly how much time you’re spending on clients and projects. And when the work’s done, you could easily generate an invoice with just a click.
- Timekeeping for your entire team
- Record time against a specific client
- Add detailed time entry notes
- Automatically bill for tracked hours
- Weekly and monthly views of your tracked time
- Track and manage time for a specific project
- Daily breakdowns of your tracked work hours
- Built-in and easy to use a timer on desktop and mobile
How could you track time in FreshBooks?
Just log into your account on your computer and click “Time Tracking.” From there you can either begin the time or log hours you’ve already worked.
Accounting Software FreshBooks
The best bookkeeping and accounting software FreshBooks would empower business owners like you to spend less time on bookkeeping and more time doing things you love.
With it, you’ll get paid for everything due to you! And it’s a great package of features that could make you send professional invoices fast, add tracked time, note pricing, calculate expenses and manage your business finances all in one place.
It’s also fully integrated with industry-standard double-entry accounting features available on any device, you can manage your bookkeeping with ease from anywhere at any time.
Never leave money on the table again. Try FreshBooks risk-free to take control of your business accounting and bookkeeping.
A Cloud-Based Accounting Software to Revolutionize Your Business. As a smart business owner, you know how important it is to protect your assets and keep your business finances in check. At FreshBooks, we’re here to support you every step of the way. That’s why our accounting software is cloud-based to ensure that your information is protected.
The safety of your private data is their top priority with FreshBooks’ cloud-based billing software and industry-leading secure servers.
Accounts Payable FreshBooks
Accounts payable FreshBooks would be responsible for more than just paying incoming bills and invoices. Accounts Payable are usually their department in larger companies but in smaller businesses accounts payable and receivable tasks are usually combined.
With accounts payable, it could keep guard of all payments needed in 3 categories:
Business travel expenses
Under this category includes advanced airline, car rental, and hotel reservations. Depending on the controls of a company, the account payable might process requests and distributes funds to cover travel expenses.
After a business journey has been done, AP would be responsible for settling funds distributed versus funds spent or for processing travel reimbursement requests.
Accounts Payable is responsible for distributing internal reimbursement payments, controlling and administering petty cash, and controlling the distribution of sales tax exemption certificates.
Employees must surrender a manual log report, receipts, or both substantiate reimbursement requests. Small expenses such as miscellaneous postage, out-of-pocket office supplies, or company meeting lunch are covered under petty cash.
AP often handles a supply of sales tax exemption certificates issued to managers to ensure qualifying business purchases don’t include sales tax expense.
Accounts Payable organizes and maintains vendor contact information, payment terms, and Internal Revenue Service W-9 information either manually or using a computer database. Depending on the internal controls of a company, an AP department either handle pre-approved purchase orders or accounts payable verify purchases after a purchase is made.
The AP department also handles end-of-month aging analysis reports that let management how much the business currently owes.
FreshBooks would also help to reduce costs by recognizing all the details and developing strategies to save business money. It also has a direct line contact between a business and its vendor representatives. Strong business relationships could be formed in the process.
What are the accounts payable FreshBooks process?
FreshBooks would have a set of procedures to follow before making a vendor payment. Set guidelines are essential because of the value and volume of transactions at any time.
The process involves:
- Receiving the bill and check If goods were purchased or services were rendered, the bill helps trace the quantity of what was received. The validity of the bill can be known during this time too.
- Review bill details would make sure that the bill includes vendor name, authorization, date, and verified and matching requirements to the purchase order.
- Updating records once the bill is received and the ledger accounts need to be updated based on the received bills and expense entry is usually required. The owner of the account would get an overview of this.
- Making timely payment since all payments should be processed before or at their due date on a bill, as agreed upon between a vendor and a purchasing company. Required documents need to be prepared and verified. Details entered on the cheque, vendor bank account details, payment vouchers, the original bill, and purchase order need to be scrutinized. This with the approval of the account owner.
- To make sure a company’s cash and assets are safe, the accounts payable process would have internal controls to:
- To prevent paying a fraudulent invoice
- To avoid paying an inaccurate invoice
- To eliminate paying a vendor invoice twice
- It would be certain that all vendor invoices are accounted for
What is included in accounts payable FreshBooks?
It would take care of internal payments for business expenses, travel, and petty cash.
As you could see, FreshBooks serves a lot of purposes. It’s a software app where all your bookkeeping and accounting needs could be filled and met.
It would make almost everything easier for you to manage everything in your company in one place.
Your company’s well-being begins with a fast invoice and smoothly ends getting paid and it could be done over and over again seamlessly. FreshBooks would be there in your growth and stability to make sure your financials stay intact, thriving, and organized.
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