FreshBooks VS FreshBooks Classic

FreshBooks has been a part of the accounting scene since 2003 and is one of the biggest names in the invoicing and accounting industry. In 2017, the company launched a completely new version of the software, but unlike most companies, FreshBooks didn’t simply eradicate the older version — it gave existing users the option to choose between FreshBooks or FreshBooks Classic.

That means if you’ve never used FreshBooks before, your choice is easy — you have to use the new version of FreshBooks. However, if you’ve used FreshBooks Classic in the past, you can opt to keep using FreshBooks Classic. The company has no plans to get rid of or cut support for the older version.

But which version is better? How does the newer iteration of FreshBooks stack up to the tried and true FreshBooks Classic? What’s the difference between each version, and what’s actually changed?

That’s exactly what we’re here to answer. We’ll give you the complete lowdown on both FreshBooks and FreshBooks Classic, so that you can learn the key differences between each version of FreshBooks.

Don’t have time to read the whole post? Or looking for a different accounting option? Check out our top-rated accounting solutions to see our favorite recommendations.

FreshBooks VS Classic FreshBooks

When you compare the two versions of Freshbooks, both are easy to use with strong customer support and great mobile apps, but there is a key difference — FreshBooks is accounting software with expensive pricing plans, while FreshBooks Classic is invoicing software with scalable pricing plans.

And that’s not the only difference between the two products. But before we dive deep into comparing both versions, here’s a quick overview of each FreshBooks option.

FreshBooks

FreshBooks, the redesigned version, has the same ease of use and great customer support that users grew to love. The biggest difference is that FreshBooks is actually accounting software. FreshBooks has two plans with double-entry accounting and key accounting features like journal entries and bank reconciliation.

This version also adds several new features like project management, built-in communication on client invoices, and proposals, as well as over 80 integration options. The downside is that these new features come at a steep price.

FreshBooks Classic

Unlike the new version of FreshBooks, FreshBooks Classis isn’t accounting software — it’s invoicing software. While this distinction could rule FreshBooks Classic out for small businesses looking for a full accounting solution, FreshBooks Classic’s affordable pricing plans make it a good option for small businesses in need of simple invoicing software.

FreshBooks Classic throws in a few light bookkeeping tools like expense tracking and offers 20+ reports and 40+ integrations.

Features

When the company first redesigned the FreshBooks software, FreshBooks Classic still had far more features to offer. And while there are a few nice touches from Classic that the newer FreshBooks doesn’t have (like customer reviews and better reporting), the recent addition of double-entry accounting puts the current version far ahead. With bank reconciliation, journal entries, proposals, and built-in client communication, FreshBooks has more to offer.

Here’s a more detailed breakdown of how each version of FreshBooks compares.

Accounting

One of my biggest issues with FreshBooks in the past was that despite the company’s name — “FreshBooks Cloud Accounting” — neither version of the software offered actual accounting. Luckily, FreshBooks has fixed this with the release of a brand new double-entry accounting update. This update applies to the new version of FreshBooks and includes features like bank reconciliation, journal entries, and more reporting.

For small business owners who aren’t looking for a full accounting package and just want a few tools to manage their income and expenses, FreshBooks Classic could still be a good choice, but for businesses looking for accounting, new FreshBooks is the clear winner.

Invoicing

Both FreshBooks and FreshBooks Classic have strong invoicing. Each version offers two invoice templates and a variety of automations, such as recurring invoices and tracking when invoices are viewed and received. One of the most notable differences is that FreshBooks has a built-in chat feature where you can discuss invoices directly with your clients.

The other difference is that the new FreshBooks invoice templates are modern clean, modern, and customizable. Here’s an example of a FreshBooks invoice.

While the classic invoice options get the job done, they lack the luster of the newer invoice samplings. Here’s an example of FreshBooks Classic invoices for comparison.

Proposals

While both versions of FreshBooks offer estimates, the new version of FreshBooks takes this a step further and offers an additional proposals features. With proposals, you can showcase your company’s work. Unlike estimates, you have space for large amounts of writing, images of your work, and more.

Inventory

Sadly, the new version of FreshBooks dropped one of the best FreshBooks Classic features — inventory. Only the classic version of Freshbooks will track your item quantity. FreshBooks does have a section where you can manage your items, but there are no inventory management features.

Reporting

FreshBooks offers eight reports (plus an additional three if you use the more expensive plans), while FreshBooks Classic offered over 20 reports.

Project Management

One feature you won’t find with FreshBooks Classic is project management. With FreshBooks, you can now manage hourly and flat-rate projects. This feature includes basic job costing and a communications tool to help you manage your projects.

Automations

While both versions of FreshBooks have automations that make the software easier to use, FreshBooks is missing two classic features: default email messages and the ability to collect customer reviews.

Mobile Apps

FreshBooks has always been known for strong mobile apps, and the latest version is no exception. Both FreshBooks and Classic FreshBooks offer fully-featured mobile apps that make it easy to run your small business on the go.

Security

FreshBooks uses the same security measures for both versions of the software. The company offers strong security and takes a variety of security measures including 256-bit SSL encryption, Cisco-powered firewalls, and regular intrusion detection and vulnerability testing.

Pricing

FreshBooks offers three pricing plans ranging from $15 – $50/month. Classic FreshBooks offers four pricing plans ranging from $12.95 – $39.95/month, plus a fifth custom plan for larger businesses. You can receive a small discount for purchasing a yearly subscription instead of a monthly subscription of either version of the software.

FreshBooks Classic is more affordable and more scalable, but FreshBooks offers more bang for your buck, so this section is a draw.

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Hardware & Software Requirements

As cloud-based software, both FreshBooks and FreshBooks Classic are compatible with nearly any device so long as you have an internet connection.

Users & Permissions

Neither FreshBooks nor FreshBooks Classic is particularly well-suited for companies with multiple users. FreshBooks only offers a single user for each price plan, although you can purchase additional users for $10/month each. Classic FreshBooks offers 1 – 2 users depending on the pricing plan, and additional users can be purchased for $10/month each.

FreshBooks Classic requires extra users to log in with your same login, though you can set user permissions, whereas FreshBooks has no user permissions at this time. FreshBooks Classic wins by a hair in this category.

Ease Of Use

Here is where the new design shines. The current version of FreshBooks worked out some of FreshBooks Classic’s navigational difficulties, making FreshBooks easier to use than ever. Both apps share the same great customer service so it’s easy to get help if you want some extra assistance learning and using the latest software.

Customer Service & Support

FreshBooks, as a company, offers some of the best customer support around. Both FreshBooks and Classic FreshBooks offer phone support, email support, in-software help, and well-developed help centers. Phone wait times are almost non-existent and representatives are friendly and helpful. The company also maintains an active FreshBooks blog with tons of information on how to succeed as a small business.

Reviews & Complaints

For as long as we’ve been following FreshBooks, the software has been much-loved by users and received only a small handful of complaints. Today this is still the case. The tricky part about FreshBooks reviews is that it’s nigh impossible to tell which reviews refer to the new version of FreshBooks and which refer to FreshBooks Classic.

Some users complain that they don’t like the updated app and prefer FreshBooks Classic, while others praise the new version and say they like it more than the original. While it is again difficult to tell which version customers are referencing in reviews, it’s easy to see this pattern: users love that FreshBooks is easy to use, has excellent customer service, and offers great invoicing with strong mobile apps. The verdict is still out on which version users will end up likely best.

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Integrations

When the new version of FreshBooks first launched, integrations were a big issue. Now FreshBooks offers 80+ integrations, which beats out Classic FreshBooks’ 40+ integrations.

The Key Differences Between FreshBooks & FreshBooks Classic

We’ve compared the ins and outs of each version of FreshBooks, so now let’s break it down into the main difference between each version of FreshBooks.

1. Software Type: FreshBooks offers double-entry accounting making it full-on accounting software, whereas FreshBooks Classic is simply invoicing software.
2. Pricing: FreshBooks is more expensive than FreshBooks Classic and is less competitive. While the monthly payments may seem only slightly higher for FreshBooks than FreshBooks Classic, when you compare these prices to other competitors in the accounting industry, FreshBooks is much more expensive considering the available feature set. If you’re looking for more bang for your buck from your accounting software, check out our top FreshBooks alternatives.
3. Feature Selection: While both versions share many of the same features, FreshBooks offers more value with accounting features, proposals, and project management. However, FreshBooks Classic is the only version that offers inventory tracking.
4. Integrations: While both products cover key integrations across a variety of industries, FreshBooks offers more integrations than FreshBooks Classic.
5. Maintenance: One of the most important considerations is that while FreshBooks Classic isn’t going anywhere, this version may not be as actively maintained as the new version of FreshBooks. The FreshBooks team is putting the development power and ideation into making the new version better, so updates are going to be FreshBooks, not FreshBooks Classic.

Which Is Best For My Business?

If you’re set on using FreshBooks, which version should you go with?

Choose FreshBooks If…

• You are a new user
• You need accounting software
• You are okay with paying top-dollar for great ease of use and customer support
• You want to be able to communicate with clients directly on invoices
• You want to send proposals to clients

Choose FreshBooks Classic If…

• You are an existing FreshBooks Classic user who prefers the old design and doesn’t need double-entry accounting
• You need invoicing software
• You want a scalable pricing option

FreshBooks VS Classic: The Final Verdict

If you had asked me a few months ago which software I preferred, I would have said, “if it ain’t broke, don’t fix it.” When the company first released the software, new FreshBooks seemed like a classic case of “style over substance” and had sacrificed key features for looks. However, now that FreshBooks has been updated, it’s easier to see the company’s vision for the software.

FreshBooks offers the same great customer support and positive user experience people seem to love, with more functionality. With more features and the addition of double-entry accounting, New FreshBooks is the only way to go if you want true cloud accounting. The proposals feature, built-in invoice communication, added usability, and 80+ integrations are also a nice addition.

FreshBooks Classic keeps invoicing simple and affordable and could still be the way to go in some instances. For example, only FreshBooks Classic offers user permissions, which could be key for some businesses. If you’ve used FreshBooks Classic before, talk to a FreshBooks representative about reinstating your account.

Maybe after reading this matchup, it’s clear that you need accounting software but you want to explore all of your options. There are plenty of great accounting programs, and a lot are far cheaper than FreshBooks. Read our invoicing reviews and accounting reviews to explore all of your options.

If you’re an existing FreshBooks user, we’d love to hear from you! Let us know which version you like best in the comments below.

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