Step-by-Step Guide to Creating FreshBooks Invoices2024

In today’s digital age, efficient invoicing is crucial for businesses of all sizes. FreshBooks offers a powerful solution for creating and managing invoices and streamlining the billing process for entrepreneurs and small business owners. With its user-friendly interface and robust features, FreshBooks has significantly impacted how companies handle their financial transactions and keep track of payments.

This guide will walk readers through the process of creating invoices using FreshBooks. It will cover setting up a FreshBooks account for invoicing, the steps to make a new invoice, how to customize invoices to match brand identity, and the best practices for sending and managing invoices. Additionally, it will touch on invoice tracking capabilities, helping users stay on top of their finances and ensure timely payments from clients.

Setting Up Your FreshBooks Account for Invoicing

Creating Your Business Profile

To begin using FreshBooks for invoicing, users need to set up their account profile. This is where they can manage their personal information and login credentials for accessing all businesses associated with their email ¹. To access the account profile, users should select their profile picture or initials in the top right corner and then choose “Account Profile” ¹.

In the account profile, users can customize various settings:

1. Profile Photo: Upload an 80×80 pixel image in GIF, JPEG, PNG, or TIFF format. If no photo is uploaded, initials will be used ¹.
2. Email Address: This is used to log into the FreshBooks account ¹.
3. Password: Used for account login ¹.
4. Time Zone: Choose the appropriate time zone for logging time entries ¹.
5. Time Format: Select between 12-hour or 24-hour display ¹.
6. Language: Choose from English (US, Canada, or UK), Spanish, or French for the interface ¹.
7. Loading Screen Display: Opt for the FreshBooks logo or inspirational quotes ¹.

Users can also log out of FreshBooks on all devices, including mobile, from this section ¹.

Adding Client Information

Adding clients is a crucial step in setting up the FreshBooks account for invoicing. There are three main ways to add a new client:

1. From the Dashboard: Select “Create New” and then “Client” ².
2. In the Clients section: Click the “New Client” button ².
3. On an invoice: Use the “Add a Client” button in the “Billed To” area ².

When adding a client, the following information can be included:

• First Name and Last Name or Company Name (at least one is required) ²
• Email Address
• Phone Number (Business and/or Mobile)
• Address (including Country, Street, City, State, Zip Code)
• Tax Name and Tax Number (depending on the country) ²

Users can also set up payment reminders, and late fees, and adjust currency and language settings for each client ².

Customizing Invoice Settings

FreshBooks offers various options to customize invoice settings for a professional and personalized look:

1. Invoice Template: Users can select from different templates when creating a new invoice ³.
2. Logo or Banner: Add a company logo or banner to the invoice ³.
3. Color and Font: Customize the color scheme and font to match brand identity ³.
4. Recurring Invoices: Convert a new invoice into a Recurring Template for automatic generation ³.

For individual clients, users can modify the following settings:

• Send Reminders: Set up to three personalized payment reminders at specified intervals ³.
• Charge Late Fees: Add a one-time flat fee or percentage-based fee after the due date ³.
• Currency and Language: Adjust these settings for each client ³.
• Invoice Attachments: Include the option to send the invoice as a PDF attachment in emails ³.

By carefully setting up the FreshBooks account and customizing invoice settings, users can create a professional invoicing system that aligns with their business needs and brand identity.

Creating a New Invoice in FreshBooks

FreshBooks offers multiple ways to create a new invoice, making it convenient for users to start billing their clients. Users can initiate the process from the Dashboard by selecting the “Create New” button and then choosing “Invoice.” Alternatively, they can navigate to the Invoices section and click on the “New Invoice” button. Those who prefer to work from the client perspective, can go to the Clients section, select a specific client, access the Invoices sub-tab, and click the “+” button to create an invoice assigned to that client ¹.

Selecting a Client

The first step in creating an invoice is selecting the client to be billed. In the “Billed To” section, users can either choose an existing client or add a new one. To add a new client, users can fill in the blank fields with the necessary information. For existing clients, users have the option to edit their information, which will also update the client’s profile, or remove the client to select a different one ¹.

Adding Line Items and Descriptions

Once the client is selected, users can proceed to add items or services to the invoice. FreshBooks provides two main options for this:

1. Add an existing Item or Service: Users can choose from their list of pre-defined items by entering an existing item name ¹.
2. Create a new Item: Users can fill out blank fields for “Item Name,” “Description,” “Rate,” and “Quantity.” This new item will automatically be added to the list for future use ¹.

To streamline the invoicing process, users can manage their items and services in the settings. This allows them to include specific descriptions, rates, and/or sales taxes that will be automatically filled out when adding the item to invoice ¹.

Applying Taxes and Discounts

After adding line items, users can apply taxes and discounts to the invoice:

1. Adding Taxes: Users can select the “Add Taxes” link under the item’s rate and check up to two existing sales taxes to apply. Alternatively, they can create new sales taxes as needed ¹.
2. Adding a Discount: To reduce the invoice’s total, users can apply either an amount-based or percentage-based discount ¹.

It’s important to note that sales tax is imposed on the price of some items and services and is charged as a percentage of the selling price at the time of sale. The amount of sales tax to charge depends on the state, city, and country where the business operates, and multiple or different taxes can be charged simultaneously ⁴.

When creating a new sales tax, users should enter the percentage of the sales tax in the “Rate” field, provide a “Tax Name,” and if needed, enter the sales tax number in the “Tax Number / ID” field ⁴.

By following these steps, users can create comprehensive and accurate invoices in FreshBooks, ensuring that all necessary information is included and that taxes and discounts are applied correctly.

Customizing Your FreshBooks Invoice

Customizing invoices in FreshBooks allows business owners to create a professional and branded look that stands out to clients. By personalizing various elements, users can enhance their invoices’ appearance and functionality.

Adding Your Logo

Adding a logo to invoices helps create a more professional impression and makes them easier to identify. FreshBooks offers multiple ways to incorporate a logo:

1. From the Dashboard:
   • Click “Create New” and select “Invoice”
   • Drag and drop the logo file or select it from the computer
   • Click to open the file, and the logo will be added to the invoice ⁵
2. Through Settings:
   • Log in to the FreshBooks account
   • Click on the “Settings” tab at the top of the page
   • Select the “Branding” tab on the left side
   • Click “Choose File” and select the logo file
   • Click “Upload Logo” and then “Save” at the bottom of the page ⁶

Users should note that accepted file formats include JPEG, GIF, and PNG when uploading a logo. The recommended logo size is 266 x 200 pixels, though larger images will be scaled proportionally to fit ⁷.

Choosing a Color Scheme

FreshBooks provides options to customize the color scheme of invoices, helping to align them with the business’s brand identity:

1. Template Selection: Users can choose from three templates: Simple, Modern, and Classic. Each template offers a different layout and placement of business information ⁷.
2. Color Customization:
   • For any template, users can select from five preset colors
   • A custom color option is available for further personalization
   • The chosen color will affect the invoice’s lines and text
   • In the Modern template, the color also applies to the block above the banner ⁷
3. Font Selection: Users can choose between “Modern” and “Classic” fonts to complement their chosen color scheme ⁷.

Setting Payment Terms

Establishing clear payment terms on invoices is crucial for maintaining healthy cash flow and setting client expectations:

1. Importance of Payment Terms: Payment terms inform clients when they’re expected to pay and what payment methods are accepted ⁸.
2. Customizing Payment Terms:
   • FreshBooks allows users to set and customize payment terms before sending invoices
   • It’s recommended to maintain consistent terms across invoices for client familiarity ⁸
3. Payment Schedules: For more flexible options, FreshBooks offers payment schedules:
   • Users can create payment plans for clients, allowing for multiple partial installments
   • Up to 12 payments can be scheduled, specifying percentages or amounts and dates for each ⁹
4. Late Fees and Reminders:
   • Users can set up late fees to motivate timely payments
   • Automated payment reminders can be activated for each scheduled payment ⁹
5. Payment Methods: Offering multiple payment options increases the likelihood of prompt payments. FreshBooks Payments allows clients to pay directly from their invoice using payment links ⁸.

By customizing these elements, businesses can create invoices that not only look professional but also facilitate smoother payment processes and reinforce their brand identity.

Sending and Managing Invoices

Sending Invoices via Email

Emailing invoices has become the preferred method for many businesses due to its speed and efficiency. It ensures immediate delivery, saving time and facilitating quicker payments ¹⁰. To send an invoice via email using FreshBooks, users can follow these simple steps:

1. Create or open the invoice in FreshBooks.
2. Select “Send.”
3. Confirm the client’s email address and subject line (automatically filled out by FreshBooks).
4. Click “Send Invoice” ¹⁰.

When composing the email, it’s important to include key information such as the sender’s name, company name, and invoice number in the subject line. The body of the email should briefly inform the client about the attached invoice ¹⁰.

Setting Up Recurring Invoices

For businesses with subscription-based services or ongoing work, FreshBooks offers a recurring invoice feature. This allows for the automatic generation of invoices based on a set frequency ¹¹. To create a recurring template:

1. Navigate to the “Invoices” section and select “Recurring Templates.”
2. Choose “New Recurring Template.”
3. Fill out the invoice details, including client information and due dates.
4. Set up the recurring schedule, specifying frequency (weekly, monthly, yearly, or custom) and the number of invoices to generate ¹¹.

Users can also add unbilled time and expenses as placeholders, which will automatically pull available entries onto Invoice ¹¹. Dynamic variables can be used to substitute placeholder text with appropriate date or time values when the invoice is generated ¹¹.

Tracking Invoice Status

Effective invoice tracking is crucial for maintaining consistent cash flow. FreshBooks provides a comprehensive system for monitoring invoice statuses:

1. Draft: Initial status when an invoice is created but not yet sent ¹².
2. Sent: Invoice has been sent to the client or marked as sent ¹².
3. Viewed: The client has opened and viewed invoice ¹².
4. Paid: Invoice has been fully paid ¹².
5. Partial: Invoice has been partially paid ¹².
6. Overdue: Payment deadline has passed without full payment ¹².

For invoices set up with automatic payments, additional statuses include:

• Auto Paid: Invoice paid automatically with a saved credit card ¹².
• Retry: Payment processing encountered an issue and will be retried ¹².
• Failed: Payment processing failed after retry attempts ¹².

To manage late payments, it’s recommended to first make a courtesy phone call to the client. If unsuccessful, a follow-up email with the original invoice attached often proves effective ¹³.

By utilizing these features and maintaining diligent invoice management, businesses can streamline their billing processes and improve overall financial efficiency.

Conclusion

FreshBooks has revolutionized the invoicing process for small businesses and entrepreneurs. Its user-friendly interface and robust features have a significant impact on how companies handle their financial transactions and keep track of payments. From setting up a personalized account to creating and customizing invoices, FreshBooks offers a comprehensive solution to streamline billing processes and enhance professionalism.

The step-by-step guide provided offers valuable insights to create, send, and manage invoices efficiently. By leveraging FreshBooks’ capabilities, businesses can improve their cash flow, save time, and maintain strong client relationships. As companies continue to adapt to digital solutions, FreshBooks stands out as a powerful tool to simplify financial management and support business growth.

FAQs

1. How can I generate an invoice using FreshBooks? To create an invoice in FreshBooks, begin by navigating to the Dashboard and clicking on the “Create New” button. From there, choose “Invoice”. Next, go to the “Invoices” section and click on “New Invoice”. After that, select a client from the “Clients” section, click on the “Invoices” sub-tab, and then press the “+” button to create an invoice for that client.
2. What are the sequential steps to manually create an invoice? To manually create an invoice, start by crafting an invoice header that includes your business information. Then, add your client’s contact details. Provide essential invoice information such as invoice number and date. Specify your payment terms. List all the services provided along with an itemized cost breakdown. Include any applicable taxes and consider adding notes for clarity or additional information.
3. Is FreshBooks a suitable platform for invoicing? Yes, FreshBooks is highly regarded for its comprehensive invoicing capabilities. It also offers functionalities for tracking time and managing projects, making it particularly useful for freelancers and businesses that handle project-based work.
4. What are the typical steps involved in invoice processing? Invoice processing generally involves several key steps:
   • Receiving the Invoice: Initially, you receive an invoice from a supplier following the delivery of goods or services.
   • Entering Data into the System: The details from the invoice are then entered into your accounting system.
   • Three-Way Matching: This step involves matching the invoice details with purchase orders and delivery notes to ensure consistency.
   • Payment Approval: The invoice must be reviewed and approved before payment can be processed.
   • Payment Processing: Once approved, arrangements are made for the payment to be processed.
   • Storing the Invoice: Finally, the invoice is stored for record-keeping and future reference.