Freshbooks - Disaster Avoided
A year ago, I was about to set out on an adventure.
I formed an LLC for the creative agency, ShadBoost, and got insurance.
It was official.
But I was not prepared for what happened next.
Word quickly spread that I was open for business.
The phone started to ring.
Contracts got signed.
I started going out on photoshoots and designing logos left and right.
When it was just a few clients, it was easy to keep track of.
But as the number of clients increased, things started going wrong.
I'd loose time sheets.
I'd forget to bill clients for that lens rental.
And I'd loose track of who paid and who didn't.
There is only one word to describe it.
A new business's worst nightmare.
But, thankfully, that didn't actually happen.
Yeah, that's right. (That last part never became reality.)
That's because, almost from day one, I found out about Freshbooks.
Freshbooks is a cloud-based small-business accounting solution that makes doing business almost effortless.
The time-tracking is super simple to use.
It is easy to keep track of billable expenses. (And add a markup if needed)
And when it is time to invoice a client, all the time and expenses for that client can be added with a couple of clicks.
You can even calculate sales tax automatically and add discounts.
And when I have a client that is slow to pay, I can add a late-fee that gets calculated automatically after a certain period of time.
Another thing I love about Freshbooks, is that I never have to wonder if the client get the invoice.
Freshbook shows when the client has received and viewed it.
Did I mention it is cloud-based?
That was super important to me.
Because it means that I can keep track of time and send invoices on the go.
Whether it is on my PC, Macbook Pro, or mobile device.
Now with ACH (Available only in the U.S.A.)
You know what a headache it can be to get clients to pay in a timely fashion. As I mentioned above, I use FreshBooks' automatic late fee feature to encourage clients to pay on time. And now that FreshBooks has made the Automated Clearing House (ACH or also known as bank transfer) payment option available, it is going to be even easier to process payments and save transaction fees doing it.
How does ACH in FreshBooks work?
The ACH network connects you with all financial institutions across the U.S.A. It is the fastest and cheapest way to transfer money electronically from one individual or business's bank account to another.
When you send your client an invoice, they can now choose to pay with ACH. Next they will have to enter their information to connect their bank account and FreshBooks Payments will verify that they have sufficient funds in their account. If so, the transaction will get approved and in just 3-5 days, the funds will appear in your account. (FreshBooks said that by the end of 2019 you can expect to see same day and next day deposits.)
The benefit for your clients, is the simplicity. They don't have to bother with checks, postage, or credit card bills. ACH is more convenient. And that usually means they will send funds faster.
That brings us to advantages for you. FreshBooks says that ACH can enable you to get paid up to 2x faster. Plus, since you are essentially working directly with the clients bank, and not a credit card company, you are cutting out a middle man. That saves you transaction fees. The FreshBooks ACH transaction fee is only 1%. And that will make a huge difference... especially on large invoices.
So ACH is a welcome addition to the payment options inside of FreshBooks. You can learn more about it here.
There is more I can say (I use Freshbooks almost everyday), but you will learn more by trying it out than you will from hearing me rave.
Try the free version (up to 3 clients) and tell me what you think.
Full Disclosure: Please note that many of the links to products on this blog are affiliate links. If you end up purchasing a product because of my recommendation, I will get rewarded with a small commission - at no cost to you. That's right. It doesn't cost you a dime more... and it pays for my coffee. I only link to products that I personally use and recommend because the companies are helpful and trustworthy. If you have any questions, please ask. Thanks!
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