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FreshBooks

FreshBooks is a cloud-based platform designed primarily for small service-based businesses and freelancers, offering tools for invoicing, expense tracking, , and payment processing. Founded in 2003 by Mike McDerment in , , the company emerged from McDerment's need for a streamlined invoicing solution while running his business, leading to the development of an intuitive platform that simplifies financial tasks for non-accountants. FreshBooks has grown to serve over 30 million users across more than 160 countries, emphasizing ease of use with features like automated reminders, online payments, and double-entry accounting to help users save up to 553 hours and $7,000 in billable time annually. The platform's mission centers on making business operations straightforward, guided by the 4Es philosophy of executing extraordinary experiences every day, while prioritizing award-winning customer support and diversity in its operations. Notable for its focus on small businesses rather than enterprises, FreshBooks differentiates itself through mobile accessibility, integrations with tools like payroll and , and a free 30-day trial to encourage adoption.

History

Founding and Early Years

FreshBooks was founded in 2003 in , , by Mike McDerment, Levi Cooperman, and Joe Sawada. The inspiration stemmed from McDerment's frustration as a web designer running a small agency, where he accidentally overwrote an important using and Excel, highlighting the need for a simpler, more reliable invoicing solution. The company began as a bootstrapped venture, with the founders self-funding development without external investment for its initial decade. The first version of the software was built and launched in 2003 as a web-based invoicing tool, initially serving McDerment's own needs before expanding to other users. This early iteration, later referred to as FreshBooks Classic, focused on core functionalities such as basic invoicing and simple client management, prioritizing accessibility over the complexities of traditional enterprise . From its , FreshBooks targeted small businesses and freelancers, emphasizing ease of use to address the pain points of billing processes. The platform's design philosophy centered on streamlining time-consuming tasks like creation and tracking, allowing users to focus on their core work rather than intricacies. By the mid-2010s, this approach had cultivated a loyal user base, setting the stage for a major platform redesign in 2016.

Key Milestones and Evolution

In 2016, FreshBooks underwent a significant platform rebuild, launching a completely redesigned product on September 20 that replaced its legacy PHP-based monolith with a modern built using the framework. This overhaul, which cost over $7 million, aimed to enhance through faster workflows, a brighter with simplified , and improved to support growing needs. The rebuild also introduced key features like multi-currency support, enabling users to handle international transactions more seamlessly and laying the groundwork for broader global adoption. Building on this foundation, FreshBooks expanded its international capabilities, adding 12 new languages—including Croatian, Danish, , , , , , Italian, , , , and —in June 2018 to complement existing options like English and . By 2020, the platform supported at least 14 languages overall, with per-client customization for invoices, estimates, and proposals, alongside multi-currency invoicing in over 170 currencies to reduce miscommunication and facilitate cross-border operations for freelancers and small businesses serving clients worldwide. These enhancements reflected FreshBooks' strategic push into over 160 countries, with users spanning more than 100 nations by the early 2020s. A pivotal shift occurred on , 2021, when founder Mike McDerment stepped down as CEO after 17 years, transitioning to chair of the board and an active executive role focused on vision and product direction. Don Epperson, who joined in 2019 as a board member and , assumed the CEO position, bringing over 20 years of experience in scaling tech companies like Simpli.fi. This change marked a deliberate toward enterprise-level growth, emphasizing global market launches, new product features, strategic partnerships, and operational expansions, including offices in five countries and the acquisition of Mexico-based Facturama to bolster international invoicing. In November 2023, CEO Don Epperson and President Mark Girvan departed the company amid a that included layoffs affecting about 6% of staff; Mara Reiff () and Wayne Jackson () were appointed as interim co-CEOs to guide the transition toward profitability. In mid-2022, FreshBooks fully discontinued its legacy "FreshBooks Classic" product and XML , completing the migration of all users to the modern cloud-based platform introduced in 2016. This transition eliminated support for the older version, which had been phased out to streamline operations and focus resources on the scalable, feature-rich new system, ensuring long-term innovation for users. In March 2025, FreshBooks appointed Shaheen Javadizadeh as its permanent CEO, succeeding the interim leadership, to drive further growth and innovation; the appointment coincided with securing $179 million CAD ($125 million USD) in debt financing from to refinance existing debt and support expansion.

Products and Services

Core Offerings

FreshBooks operates as a cloud-based platform delivered through a (SaaS) model, designed primarily for small and medium-sized businesses (SMBs), freelancers, and service professionals. The platform enables users to manage their financial operations efficiently from any device with , supporting over 30 million small businesses across more than 160 countries. The main product is a comprehensive suite that includes core functionalities such as invoicing, , and financial reporting. Invoicing allows users to create, send, and track professional invoices with automated reminders and online payment options. facilitates tracking and categorizing business expenses, including receipt uploads via . Financial reporting provides customizable reports like and loss statements and balance sheets to offer insights into business performance. In addition to the core suite, FreshBooks offers supplementary services including payroll processing, available in select markets such as the and , which automates employee payments, tax withholdings, and filings. Project management tools help users organize tasks, track time, and assign work to teams for better profitability analysis. Automated tax compliance features assist with calculations, tracking, and reporting to simplify tax preparation. FreshBooks employs a subscription-based model with four tiered plans: Lite, , , and Select. The Lite plan starts at a basic level for invoicing and supports up to five billable clients, suitable for solo freelancers. The Plus plan expands to unlimited estimates, invoices, time tracking, and expenses for up to 50 billable clients. The Premium plan builds on Plus with enhanced team collaboration and capabilities for unlimited billable clients. The Select plan provides customized solutions for larger teams with advanced needs.

Key Features and Integrations

FreshBooks provides core functionalities designed to streamline for small businesses. Time tracking allows users to log hours against specific clients and projects, with options for timers, manual entries, and conversion to billable items on invoices, helping to maximize productivity and ensure accurate billing. The platform employs double-entry accounting principles, recording every with corresponding to maintain balanced books and generate reliable like balance sheets and profit-and-loss reports. Automated invoicing supports one-time and recurring bills, enabling customization with branding, payment terms, and automatic reminders to reduce overdue accounts. Expense simplifies record-keeping by allowing users to tag , with built-in receipt scanning via mobile upload that extracts details like merchant, amount, and taxes for quick entry. Advanced tools enhance compliance and analysis within FreshBooks. Multi-currency support permits invoicing and payments in over 160 currencies, automatically handling rates for clients. Tax calculations are integrated for regional requirements, including / remittance in through automated return preparation and filing support, as well as compliance with the UK's Making Tax Digital (MTD) for via direct HMRC submissions. Customizable reports offer flexibility in viewing data, such as profit and loss, summaries, and expense breakdowns, with options to filter by date, client, or category for informed decision-making. In 2025, FreshBooks introduced updates including manual bank connections for easier transaction reconciliation and financial insights, as well as enhancements allowing dismissal and rehiring of employees. Integrations expand FreshBooks' ecosystem, connecting it to over 100 third-party applications through its to automate workflows. A free developer enables custom builds for tasks like client management and project automation. Notable connections include for seamless credit card and debit payments with low fees and instant deposits; for syncing contacts, calendars, and document attachments directly from or Drive; and tools for data migration to import historical records without manual re-entry. Security and usability features prioritize data protection and accessibility in FreshBooks. All data transmissions use 256-bit SSL encryption, equivalent to banking standards, with additional for file attachments via integrated tools like SendSafely. The platform offers dedicated mobile apps for and , supporting on-the-go invoicing, expense capture, and time entry with offline capabilities and biometric login. insights are provided through dedicated reports that project inflows and outflows based on statuses and expenses, aiding in forecasting without manual spreadsheets.

Operations

Headquarters and Global Presence

FreshBooks is headquartered in , , , at 225 King Street West, Suite 1200. The company maintains additional offices in at , , and other locations such as , , and , . The company's global operations serve customers across more than 160 countries, with a strong presence in , , , and other regions. FreshBooks supports localized features, including multi-currency invoicing in over 150 currencies, integration with international payment gateways like for global transactions, and compliance tools for regional tax calculations and reporting requirements. The platform is available in 16 languages to accommodate diverse markets. As of 2025, FreshBooks employs more than 500 people worldwide, emphasizing a remote-friendly work environment where most roles allow for flexible, distributed operations outside of onsite necessities. FreshBooks' international expansion accelerated with the opening of its first offices outside Canada in 2019, including in Amsterdam to tap into European tech talent and in Raleigh, North Carolina, to bolster U.S. operations, as well as in Zagreb, Croatia; the Raleigh office closed in 2023. This SaaS model's scalability enabled rapid adaptation to new regions without heavy infrastructure investments, supporting launches such as enhanced Australian market availability around 2020 through localized pricing and features.

Leadership and Organizational Structure

FreshBooks was founded in 2003 by Mike McDerment, Levi Cooperman, and Joe Sawada in , . McDerment, who served as the company's original CEO from its inception until 2021, played a pivotal role in establishing its focus on simplifying for small businesses. Cooperman contributed as an early operations leader, while Sawada brought technical expertise to the initial development efforts. Leadership transitioned in 2021 when Don Epperson succeeded McDerment as CEO, guiding the company through a period of product evolution and market expansion until November 2023. Following Epperson's departure, Mara Reiff and Wayne Jackson served as interim co-CEOs until March 2025, when Shaheen Javadizadeh was appointed as the new CEO, bringing over 25 years of executive experience in scaling technology and organizations to drive growth and innovation. Javadizadeh joined FreshBooks in late 2024 prior to assuming the role. McDerment transitioned to Chair of the Board, continuing to provide strategic oversight as a co-founder. The current executive team comprises key figures including Mara Reiff, who oversees customer-centric operations and data strategies with a background in engineering and ; Faye Pang, focused on brand scaling and ; and David Nute, appointed in July 2024, who manages financial strategy and compliance to support sustainable expansion. Technology leadership, previously held by Stefano Grossi until February 2025, emphasized product innovation, with ongoing efforts integrated across the executive structure to enhance core offerings. FreshBooks operates with a structure organized around core departments including , , , and , promoting cross-functional to maintain in a fast-paced environment. The company demonstrates a strong commitment to and through its dedicated framework, structured around three pillars—, , and —which includes employee groups, , , and belonging (DIB) modules, and partnerships such as with AllVoices for reporting and support tools. This approach is championed by executives like Pang, who has sponsored resource groups and hiring practices to foster equitable opportunities.

Funding and Financials

Early Funding and Growth

FreshBooks operated as a bootstrapped company from its founding in 2003 until 2014, sustaining growth through revenue generated by early subscribers to its cloud-based invoicing software. The company's first major external funding came in July 2014 with a $30 million Series A round led by Oak Investment Partners, alongside participation from Atlas Venture and Georgian Partners. This investment supported product enhancements, including a comprehensive platform rebuild launched in 2016, as well as team expansion to accelerate development and market reach. In July 2017, FreshBooks secured $43 million in a Series B round led by Partners, with Accomplice (formerly Atlas Venture's seed fund) and Investment Partners also participating. The funds enabled international hiring initiatives and expanded marketing efforts to broaden the company's presence beyond . In August 2019, FreshBooks received an undisclosed strategic investment from . By 2021, FreshBooks had raised approximately $150 million in total equity across these early rounds, which contributed to significant user base expansion, serving millions of customers worldwide. This culminated in a $80.75 million Series E round in August 2021, led by Accomplice, marking a bridge to further scaling.

Recent Investments and Valuation

In 2021, FreshBooks secured $80.75 million in Series E equity led by Accomplice, along with $50 million in debt financing, bringing the total round to $130.75 million and elevating the company's valuation to over $1 billion, thereby achieving status. In October 2021, the company acquired Germany-based FastBill to accelerate global expansion. In March 2025, FreshBooks obtained $125 million in financing from funds managed by Expansion Capital and Morgan Stanley Private Credit, equivalent to approximately $179 million CAD. This facility was primarily intended to refinance existing debt while supporting global expansion and potential strategic acquisitions, reflecting a shift toward debt-heavy financing to fuel growth without further equity dilution. By , FreshBooks had raised over $450 million in total across multiple and rounds. No major acquisitions were announced between 2022 and November , though the latest proceeds were earmarked for opportunistic to enhance its product ecosystem. As of , the company reported estimated annual revenue of approximately $150 million, underscoring its emphasis on profitability and leadership in the small and medium-sized business () market.

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