FreshBooks vs Square Invoices

Side-by-side comparison — pricing, features, ratings, use cases. Find which Fakturace fits you best.

⚖️ Editor's verdict
🏆 FreshBooks wins by 42 points
FreshBooks is an excellent choice for freelancers and small service-based businesses that value ease of use, time tracking, and efficient invoicing
See why ↓
74/100
🔍 Independently researched · 📊 Data-driven
FreshBooks
FreshBooks
74/100
529 Kč starting
Service-based small businesses and freelancers who need an intuitive way to send invoices, track billable hours, and get
★ Best

💰 Pricing

Starting at 529 Kč

🔧 Features

✓ Unlimited Invoices✓ Recurring Billing✓ Expense Tracking✓ Time Tracking✓ Esignatures✓ Proposals✓ Mobile App✓ Accountant Access✓ Payment Collection

📋 Assessment

💪 Strengths

  • FreshBooks excels at turning time into money. The built-in time tracking lets you start a timer from the web or mobile app, assign it to a project or client, and with one click, all those billable hours appear on an invoice. This eliminates the manual reconciliation that plagues many freelancers who track time separately from billing.
  • The customization options for invoices are a strong suit. You can tailor every element—logo, colors, fonts, and fields—to match your brand. Plus, the automated features like 'Send Reminders' and 'Charge Late Fees' work in the background, so you don't have to manually chase clients for payment, which can be a huge time saver.
  • FreshBooks' double-entry accounting is a sophisticated layer that many competitors at this price point don't offer. It allows your accountant to have full access to your books, making tax season much smoother. The 'Accounting' feature automates journal entries and provides a real-time financial picture, bridging the gap between simple invoicing tools and full-fledged accounting software.
  • The mobile app is genuinely award-winning and functional. You can create and send invoices, snap photos of receipts for expense tracking, and even view cash flow—all from your phone. For a freelancer on the go, this means you never lose a billable hour or a receipt, which directly impacts your bottom line.
  • The client portal is a differentiator. Clients can approve estimates, comment on invoices, and process payments in a secure space, which reduces email back-and-forth and speeds up approval cycles. This feature is particularly useful for agencies managing multiple stakeholders on a single project.

⚠ Watch out for

  • The client limits on lower tiers are restrictive. The Lite plan caps at 5 clients, which even a part-time freelancer will likely exceed quickly. The Plus plan allows 50 clients, but if you're building a bigger agency, you'll need to jump to the Premium plan at $50/month, which feels pricey for the added client slots.
  • FreshBooks is not built for product-based businesses. There's no inventory management, point-of-sale support, or robust product catalog. If you sell physical goods or need to track stock levels, you'll quickly outgrow FreshBooks and should look at alternatives like QuickBooks or Xero.
  • Payment processing fees are additional. FreshBooks charges a percentage per transaction (typically 2.9% + 30¢) for credit card payments, and ACH transfers have a fee too. For high-volume businesses, these costs can add up significantly, making the base subscription price misleading.
  • The double-entry accounting features, while powerful, have a learning curve. Navigating to the 'Accounting' section may reveal capabilities that are buried under a simple interface, but for non-accountants, this could require professional help to set up properly, which is an extra cost.
  • Some users report that the mobile receipt scanning is not always accurate, requiring manual corrections. This can be frustrating if you rely on it to keep your expenses organized. While the feature is convenient, it's not flawless and could lead to missing or mis-categorized expenses.

🎯 Best for

Service-based small businesses and freelancers who need an intuitive way to send invoices, track billable hours, and get paid online.

🚫 Who should skip

Product businesses that need inventory management, larger organizations with complex accounting needs, or budget-conscious users seeking a free invoicing tool.

💰 Hidden costs

Payment processing fees (2.9% + 30¢ per card transaction, or more for American Express) are not included in the monthly subscription. If you exceed the client limits on a lower plan, you'll need to upgrade to a pricier tier or pay for additional seats.

📚 Learning curve

Moderate — the interface is inviting and simple for invoicing, but understanding double-entry accounting, bank reconciliation, and how to configure tax rates correctly may take some time for beginners.

🧑‍⚖️ Verdict

FreshBooks is an excellent choice for freelancers and small service-based businesses that value ease of use, time tracking, and efficient invoicing. It's particularly strong for those who bill per hour or retainer. However, if you sell physical products, need inventory management, or have a large cl

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Square Invoices
Square Invoices
32/100
Free tier
Small business owners, freelancers, and retailers who already use or plan to use Square POS and want a free, integrated

💰 Pricing

🆓 Free tier available

🔧 Features

✓ Free Tier✓ Pay As You Go✓ Pos Integration✓ Milestone Payments✓ Digital Contracts✓ Estimates✓ Recurring Billing✓ Mobile App✓ Payment Links

📋 Assessment

💪 Strengths

  • The biggest draw is the lack of a monthly fee. You pay only when you get paid—a transaction fee of 2.9% + $0.30 per card payment. For a freelancer who sends a few invoices a month, this is invaluable; you aren't bleeding money on a subscription you barely use. Even if you invoice $50 a month, you're only paying about $1.75 in fees. This pay-as-you-go model is perfect for sporadic billing or seasonal businesses.
  • Integration with the Square ecosystem is exceptional. If you already use Square POS, your customers, inventory, and payment history are automatically synced. When you send an invoice, it appears in the same dashboard as your in-person sales, and all transactions are reconciled in one place. This eliminates manual data entry and gives you a unified view of your cash flow. You can also accept payments via Square's virtual terminal or card readers right from the invoice.
  • The free tools that come with invoicing are not just gimmicks—they're genuinely useful. Digital contracts allow your customer to e-sign a contract and then pay in the same session, which is perfect for service businesses. Estimates can be converted to invoices with one click, and recurring billing is built-in (though it's basic, it's free). Milestone payments are a standout: you can set up multiple installments for a project, send reminders automatically, and track which stage has been paid. This is a feature that many paid competitors charge extra for.
  • The invoice customization, while not unlimited, is sufficient for most small businesses. You can add your logo, choose colors, set your own payment terms, and include custom fields like purchase order numbers. The templates are clean and professional, and everything renders well on mobile—which is crucial since many customers pay from their phones. You can also enable automatic reminders for late payments, which saves you from awkward follow-up emails.
  • Speed to setup and ease of use are top-notch. You can sign up with just an email and start sending invoices within minutes. The interface is intuitive, mirroring Square's clean design. You don't need any technical knowledge to set up your first invoice, and the system handles sales tax, discounts, and tips seamlessly. For a non-tech-savvy contractor or consultant, this is as good as it gets.

⚠ Watch out for

  • The transaction fee of 2.9% + $0.30 applies to every card payment, and it's not the lowest rate available. Some dedicated invoicing platforms like FreshBooks offer 2.9% + $0.30 on their upper tiers, but they also come with a monthly fee that includes additional features. If you invoice large amounts—say $10,000 a month—you'll pay $320 in fees, which could be exorbitant compared to a subscription service with a lower rate. High-volume businesses should definitely compare rates.
  • You are locked into Square's payment processing. You cannot connect PayPal, Stripe, or any other gateway to your invoices. This is a significant limitation if you or your clients prefer alternative payment methods. Square does support ACH bank transfers (at 1%, capped at $10) and even cash/check recording, but for businesses that need to accept PayPal or other wallets, this is a non-starter.
  • The invoicing features are less sophisticated than dedicated tools. For example, you can't set up complex tax rules (like different tax rates per product or location) beyond basic sales tax. Multi-currency is only available in certain countries, and even then, it's limited. Customization is basic—you can change colors and logo, but you can't tweak the layout or create fully-branded invoices with detailed HTML/CSS. If you need advanced automation, like automatic late fees or conditional logic in recurring invoices, you'll be disappointed.
  • Customer support is a mixed bag. Square offers email support, live chat, and phone support, but response times can be slow (especially for free users), and the knowledge base is extensive but sometimes dated. Many users report that phone support is helpful once you get through, but the wait times can be long. There's also no dedicated technical support for the invoicing product—it's part of the general Square support queue. For a small business owner, this can be frustrating if you hit a snag on a deadline.
  • The recurring billing feature is basic. You can set up weekly, monthly, or yearly invoices, but you can't customize the frequency (like every 15 days) or add a start/end date easily. You also can't pause a subscription without deleting it. For service providers who need flexible subscription management, this might be too rigid.

🎯 Best for

Small business owners, freelancers, and retailers who already use or plan to use Square POS and want a free, integrated invoicing solution.

🚫 Who should skip

Businesses that need advanced invoicing features like multi-currency, complex tax management, or the ability to accept payments from multiple non-Square gateways.

💰 Hidden costs

There is no monthly fee, but you pay 2.9% + $0.30 per card transaction, 3.5% + $0.15 for manually entered cards, and 1% for bank transfers. Additional fees may apply for instant transfer of funds.

📚 Learning curve

Minimal — setup is easy if you already have a Square account, and the invoice interface is intuitive with clear navigation and built-in templates.

🧑‍⚖️ Verdict

Square Invoices is an excellent choice for freelancers, sole proprietors, and small businesses that already use Square for in-person payments or want a zero-monthly-fee invoicing solution. It's best for those who send a manageable number of invoices and value integration with the Square ecosystem. H

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📊 Use Case Suitability

Higher score = better fit. Scores from editorial review.

Use CaseFreshBooksSquare Invoices
Freelance Services Invoicing95— FreshBooks is built specifically for freelancers and service providers, with unl
Time Tracking and Billing for Agencies88— The built-in time tracker lets you capture billable hours on projects and transf
Recurring Billing for Subscriptions and Retainers85— Automated recurring billing handles monthly retainers and subscriptions, reducin
Expense Tracking for Small Business Taxes80— You can scan receipts, categorize expenses, and integrate with bank accounts to
Proposals and E-Signatures for Client Approvals75— FreshBooks includes proposal creation and e-signature tools, which streamline co
Freelance Service Invoicing—95 Freelancers need simple, professional-looking invoices without a subscription. S
Retail with Online Payments—90 For brick-and-mortar retailers using Square POS, invoices sync with in-store sal
Construction Milestone Billing—88 Contractors can break large projects into milestone payments, collect deposits w

🧭 Which One Should You Pick?

Choose FreshBooks if...

  • You are: Service-based small businesses and freelancers who need an intuitive way to send invoices, track billable hours, and get
  • 👍 Unlimited invoices with professional customization, automated due-date reminders, and late fee optio
  • 👍 Built-in time tracking that lets you log billable hours and attach them directly to invoices.
  • 👍 User-friendly interface designed for non-accountants, with easy mobile expense capture via receipt p
  • 💰 From $23/mo
  • ⚠ Trade-off: Lower-tier plans have strict client limits: 5 on Lite and 50 on Plus, which feel

Choose Square Invoices if...

  • You are: Small business owners, freelancers, and retailers who already use or plan to use Square POS and want a free, integrated
  • 👍 No monthly fee — you only pay when you get paid, which is ideal for low-volume or sporadic billing.
  • 👍 Deep integration with the Square ecosystem, including Square POS, the dashboard, and payment process
  • 👍 Built-in features like digital contracts, estimates, and recurring billing are free and easy to set
  • 💰 Free tier available
  • ⚠ Trade-off: Transaction fee of 2.9% + $0.30 is higher than some competition, especially for

❓ Frequently Asked Questions

What are the pricing tiers and what limits do they include?

FreshBooks has three main plans: Lite at $23/month (up to 5 clients), Plus at $43/month (up to 50 clients), and Premium at $70/month (up to 500 clients). All plans include unlimited invoicing, expense tracking, and time tracking, but client limits can force upgrades as you grow.

Is there a free plan?

No, FreshBooks does not offer a forever-free plan. It does provide a 30-day free trial on all tiers so you can test the features before paying.

Can FreshBooks accept credit card payments from clients?

Yes, FreshBooks allows you to accept credit card and ACH bank payments directly on invoices. However, payment processing fees (typically around 2.9% plus 30¢ per transaction) are not included in the subscription cost.

Does FreshBooks support recurring invoicing and retainers?

Yes, FreshBooks has automated recurring billing, making it easy to send repeat invoices for monthly retainers, subscriptions, or ongoing services. You can set billing cycles, automatic payment reminders, and late fees.

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