FreshBooks invoicing setup guide
TL;DR:Set up professional invoicing in FreshBooks in 15 minutes by configuring your business profile, connecting a payment gateway, customizing your invoice template, and sending your first invoice. Key steps: (1) Add business details in Settings, (2) Enable online payments via Stripe or PayPal, (3) Create your first client profile.
Product name note: FreshBooks pricing, plan names, and feature availability may change over time and vary by region. Verify current plan details, menu labels, and feature availability in your own account before following this guide.
Before you begin: What you’ll need
Product naming note: FreshBooks refers to its invoicing feature as “Invoices” within the billing section.
- Active FreshBooks account — Sign up for a free trial or paid plan at freshbooks.com
- Your business details — Legal business name, address, phone number, and email
- Company logo (optional but recommended) — JPG, PNG, or GIF file at least 400×400 pixels for crisp invoice display
- Client information — Names and email addresses of people you’ll invoice
- Payment processor account (optional) — Stripe or PayPal account if you want clients to pay online
- Banking details (optional) — Bank account information if you plan to enable ACH or bank transfer payments
Estimated time: 15 minutes
Difficulty: Beginner
Cost implications: The core invoicing features are included free with FreshBooks. Online payment processing carries standard credit card transaction fees (no monthly gateway fees), and some advanced features require a paid plan.
Step-by-step walkthrough
Step 1: Configure your business billing profile
Your business profile is the foundation for all invoices. This information appears in the header of every invoice you send.
Log into FreshBooks and click Settings in the left sidebar. Select Billing & Upgrade. Under the “Business Information” section, enter your official business name exactly as it should appear on invoices. Add your full business address, phone number, and the email address where clients should reach you for invoice questions.
While you’re here, upload your company logo by clicking Add Logo. Make sure your logo file is at least 400×400 pixels in JPG, PNG, or GIF format—smaller files will appear blurry on the final PDF. This logo can automatically appear on every invoice, building brand consistency.
Once you’ve filled in all required fields, click Save. Your business details are now live and will populate the header of all new invoices automatically.
Expected result: Your business name, address, phone, and logo now appear at the top of every invoice you create.
💡 Pro tip: If you work under a doing-business-as (DBA) name, use that instead of your legal entity name—it’s what your clients recognize and expect to see.
Step 2: Set up online payment gateways
Enabling online payments lets clients pay invoices instantly with a click, reducing payment delays and manual follow-up.
From the Settings menu, select Accept Online Payments. FreshBooks supports Stripe and PayPal as primary payment processors. Click Connect next to your preferred payment method. If you choose Stripe, you’ll be taken to Stripe’s secure login to authorize the connection. If you choose PayPal, follow the same authorization flow.
Before connecting, make sure your FreshBooks account email has been verified—check your inbox for a verification email and click the confirmation link. If you skip this step, the payment gateway option won’t appear.
Once connected, FreshBooks can automatically add a “Pay Now” button to the bottom of every invoice PDF and email. Clients can click this button, enter their payment information securely, and their payment is recorded in FreshBooks instantly. You’ll receive a notification of the payment, and the client will get a receipt.
Expected result: A “Pay Now” button appears on all future invoices, and clients can process credit card or PayPal payments without leaving their email.
💡 Pro tip: Standard credit card processing fees apply per transaction (typically 2.2–2.9% + fees). FreshBooks doesn’t charge a separate monthly gateway fee, so you only pay when you actually receive payments.
Step 3: Customize your invoice template
A branded invoice builds professionalism and helps clients recognize your business at a glance.
Go to Settings and select Invoice Settings. Click Customize or Invoice Template (depending on your plan). You’ll see options to choose from pre-designed templates: Modern, Classic, or Bold. Each template has a different layout and visual style—select the one that best matches your business aesthetic.
Next, customize the color palette. Click Colors and select your primary and accent colors from the palette or enter custom hex codes to match your brand exactly. You can also toggle options like showing your logo on every page, displaying your company phone number, or including custom fields.
Set your default payment terms by clicking Payment Terms. Select from Net 15, Net 30, Net 60, or create a custom due date. These terms can automatically apply to all new invoices unless you override them on a per-invoice basis. This saves time and ensures consistent payment expectations.
Once you’re satisfied with the design, click Save. All new invoices will use this template automatically.
Expected result: Your invoices now reflect your brand colors, logo, and standard payment terms without manual setup on each invoice.
💡 Pro tip: Test your template by creating a draft invoice and previewing it as a PDF before sending it to a real client. This catches any formatting issues early.
Step 4: Create a new client profile
Client profiles store billing information so you can select them quickly when creating invoices, rather than re-entering details each time.
Click the Clients tab in the main navigation. Click + New Client in the top right. Enter the client’s full legal name (as it appears on their business registration), their primary email address, and their billing address. These fields are required.
Optionally, add additional contact information: a secondary email address (useful for sending copies to their accounting department), phone number, or a custom reference number like a client ID. You can also add multiple contacts under a single client profile—for example, both the project manager and the accounts payable person—so invoices can be sent to multiple recipients.
Click Save Client. The client is now stored in your FreshBooks database and will appear in the client dropdown whenever you create a new invoice.
Expected result: A new client card is created and saved to your database, ready to be selected on future invoices.
💡 Pro tip: Add notes in the client profile (like “Net 30 terms” or “Always CC accounting@company.com”) so you remember important details for future invoicing.
Step 5: Build and send your first invoice
Now you’ll create and send a real invoice to put all your setup work into action.
Click + Create New at the top of the page and select Invoice. The invoice builder will open. In the client dropdown at the top, select the client profile you just created. Your business details and the client’s billing address will auto-populate.
Add line items by clicking + Add Line Item. For each item, enter a description (e.g., “Website design — 20 hours”), the quantity, rate, and any applicable tax. FreshBooks will calculate the subtotal, taxes, and total automatically. Add as many line items as needed.
Review the invoice details: due date (pulled from your default terms), payment terms, and any notes you want to include (like “Thank you for your business” or specific payment instructions). You can override the due date or terms on this individual invoice if needed.
Before sending, click Preview to see exactly how the invoice will appear as a PDF and how the email notification will look. This is your last chance to catch any errors.
When you’re ready, click Send. The invoice will be emailed immediately to the client at the email address on file. You’ll see a confirmation message, and the invoice will move to “Sent” status in your invoice list.
Expected result: A professional, branded invoice lands in your client’s inbox with your logo, business details, and a “Pay Now” button (if you enabled online payments).
💡 Pro tip: If you’re not ready to send yet, click Save Draft instead. You can come back later, make changes, and send when you’re ready. Use the “Send Later” toggle to schedule the email for a specific date and time.
Step 6: Set up automated payment reminders
Automated reminders reduce the follow-up work of chasing late payments and ensure clients don’t accidentally forget.
Go to Settings and select Automations. Under “Payment Reminders,” toggle Enable Automatic Reminders to the on position. FreshBooks lets you configure up to three separate automated email sequences:
1. First reminder — Send X days before the invoice due date (e.g., 3 days before)
2. Second reminder — Send on the due date or X days after
3. Third reminder — Send X days after the invoice becomes overdue (e.g., 15 days late)
For each reminder, set the number of days and customize the email message if desired. FreshBooks provides default templates that you can edit to match your tone.
Once configured, click Save. From this point forward, FreshBooks can automatically send these reminders to clients on the dates you specified. You’ll see a log of all sent reminders in the invoice details so you know when clients were contacted.
Expected result: FreshBooks sends up to three automated payment reminder emails to clients, reducing manual follow-up and improving on-time payment rates.
💡 Pro tip: Don’t set reminders too aggressively—one reminder before the due date and one after is standard practice. Multiple reminders in quick succession can frustrate clients.
Common problems and fixes
| Problem | Likely cause | What to try first |
|---|---|---|
| Problem | Likely cause | Fix |
| The “Accept Online Payments” option is missing or grayed out | Your account email hasn’t been verified, or your subscription is inactive | Check your inbox for a FreshBooks verification email and click the confirmation link. Ensure your subscription is active (not in a canceled trial). |
| Company logo appears blurry or pixelated on the PDF invoice | Logo file is too small (under 400×400 pixels) or in a low-resolution format | Re-upload your logo as a JPG, PNG, or GIF file at least 400×400 pixels. Use a professional design tool or ask your designer for a high-resolution version. |
| Clients say they never received the invoice email | Email landed in their Spam/Junk folder, or their email server is filtering FreshBooks domain | Ask the client to check their Spam folder and whitelist emails from *@freshbooks.com. Alternatively, copy the unique invoice URL from your FreshBooks dashboard and send it to them manually via your own business email. |
| Invoice total or tax calculation is wrong | Line item quantities, rates, or tax settings are incorrect | Double-check each line item’s quantity and rate. Verify that the correct tax rate is applied (or disabled if not needed). Edit the invoice and recalculate before re-sending. |
| Default payment terms aren’t applying to new invoices | Template settings weren’t saved, or you’re using an older invoice template | Go back to **Invoice Settings > Payment Terms**, select your default, and click **Save**. If using a legacy template, delete it and create a new one. |
Verification checklist
- Your business name, address, phone, and logo appear on a test invoice PDF
- A test client profile has been created and is accessible in the Clients dropdown
- You’ve sent at least one test invoice and received a confirmation message
- The “Pay Now” button (or payment link) appears on the test invoice if online payments are enabled
- A test client email address received the invoice in their inbox (not Spam)
- Default payment terms (Net 15, 30, etc.) are automatically populated on new invoices
- At least one automated payment reminder is configured in **Settings > Automations**
- Your invoice template uses your custom colors and branding (not the FreshBooks default)
When to consider a different approach
FreshBooks invoicing is built for small businesses and freelancers with straightforward billing needs. However, there are scenarios where a different tool might be better:
Complex inventory or SKU management: If you sell dozens of products with varying tax rates, quantity tracking, and warehouse management, you may outgrow FreshBooks’ line-item invoicing. ERPs like NetSuite or specialized e-commerce platforms handle inventory better.
Highly customized invoices: If your invoices require complex branding, multi-language support, or heavily customized fields that don’t fit FreshBooks’ template system, you might need to build custom invoicing logic or use a more flexible tool.
Multi-entity or multi-currency billing: If you operate multiple businesses or invoice clients across different countries with different currencies and tax codes, FreshBooks’ per-account structure becomes limiting. Enterprise accounting software handles this more elegantly.
If you’re unsure whether FreshBooks is right for your business, see our accounting software comparison article to explore alternatives based on your specific invoicing and billing needs.
Frequently asked questions
Q: Can I send the same invoice to multiple clients at once?
A: No, each invoice in FreshBooks is tied to a single client. However, you can create a duplicate invoice quickly by opening a sent invoice, changing the client name, and saving it as new. For bulk billing to many clients at once (like a SaaS subscription), consider using FreshBooks’ recurring invoice feature instead.
Q: What happens if a client pays their invoice online using the “Pay Now” button?
A: The payment is recorded in FreshBooks instantly, the invoice status changes to “Paid,” and both you and the client receive automated confirmation emails. The payment is deposited into your connected Stripe or PayPal account per your normal payment schedule (usually 1–2 business days).
Q: Can I set different payment terms for different clients?
A: Yes. While you can set a default payment term in your invoice template (like Net 30), you can override it on any individual invoice. When creating an invoice, change the due date or terms field before sending, and that invoice will use the custom terms instead of the default.
Q: Is there a limit to how many invoices I can send with FreshBooks?
A: No, there’s no invoice limit on any FreshBooks plan. Invoice availability can vary by plan and region, so confirm the current plan details before relying on this feature. The main differences between plans relate to advanced features like expense tracking, team members, and reporting.
Q: Can I automate invoice creation for recurring clients?
A: Yes. FreshBooks has a “Recurring Invoices” feature that automatically generates and sends the same invoice at regular intervals (weekly, monthly, quarterly, etc.). Set this up by creating an invoice, checking the “Make this a recurring invoice” box, and specifying the frequency. This is especially useful for retainer clients or subscription billing.
Advanced tips for FreshBooks billing
Once your basic invoicing is running smoothly, consider these power-user strategies:
Set up recurring invoices for retainer clients. If you bill the same amount to a client every month (like a retainer or subscription), create a recurring invoice template. FreshBooks can automatically generate and send it on your specified schedule, eliminating manual invoice creation. Simply check the “Recurring” box when creating an invoice and set the frequency (monthly, quarterly, etc.).
Use invoice deposits for large projects. For projects with significant upfront costs, set up a partial deposit invoice first, then create a final invoice for the remainder. This improves cash flow and sets clear payment expectations. You can also mark invoices as partially paid in FreshBooks to reflect deposit-style billing.
Integrate invoicing with your checkout or subscription platform. If you use Shopify, Stripe Billing, or a similar platform, explore FreshBooks’ API and third-party integrations (via Zapier) to automatically create invoices when customers purchase. This eliminates double-entry and keeps billing data synchronized across tools.
Customize email templates with your voice. While FreshBooks provides default email templates for invoices and payment reminders, you can edit the message text to include your company’s tone and voice. Go to Settings > Email Templates to customize what clients see when they receive an invoice or reminder.
Sources and notes
- FreshBooks official product page — used to verify current product positioning, trial availability, and feature descriptions.
- FreshBooks support documentation — used to confirm common setup issues and troubleshooting flows.
- This guide is for general setup education and is not tax, accounting, or legal advice. Consult a qualified professional for business decisions.
Information checked: May 2026. Product names, pricing, and setup screens may change over time.
