FreshBooks Does Not Offer Business Checking Accounts

FreshBooks is accounting software, not a bank. It does not offer checking accounts, debit cards, or any of the services a bank provides. What FreshBooks does is help you track money that moves in and out of a checking account you open somewhere else.

If you use FreshBooks, you will still need to open a business checking account with an actual bank or credit union. FreshBooks connects to that account to show you your balance, categorize your transactions, and generate reports — but the account itself lives at your bank.

Key Takeaways

  • FreshBooks is accounting software that tracks transactions, not a financial institution that holds your money.
  • You must open a business checking account with a bank or credit union separately from FreshBooks.
  • FreshBooks can connect to your bank account to automatically pull in transaction data and organize it.
  • FreshBooks charges a monthly subscription fee for its software, separate from any fees your bank charges for the checking account.

What FreshBooks Actually Does

FreshBooks is a tool for managing your business finances on paper (or rather, on screen). You can create invoices, track expenses, monitor cash flow, and see how much money you have coming in and going out. It organizes all of that information in one place so you can understand your business's financial health.

To do this, FreshBooks needs to connect to your actual bank account. When you link your checking account to FreshBooks, the software reads your transactions and sorts them into categories like "office supplies" or "client payments." This saves you from typing everything in by hand.

But FreshBooks never touches your money. Your bank holds your funds. FreshBooks just watches what happens and helps you make sense of it.

Where to Open a Business Checking Account Instead

You have two main options: a traditional bank or a credit union. Traditional banks are larger institutions with many branches and online services. Credit unions are member-owned cooperatives, usually smaller, sometimes with lower fees.

Both can connect to FreshBooks. When you open an account, ask the bank or credit union whether they support third-party accounting software connections. Most do, but it is worth confirming before you sign up.

Some banks market themselves as "small business" banks and offer features designed for people like you — lower minimum balances, fewer fees, or tools to help with invoicing. Others are general-purpose banks that work fine for business use. The choice depends on what matters to you: branch locations, customer service, fees, or specific features.

How FreshBooks Connects to Your Bank Account

Once you have opened a checking account, you can link it to FreshBooks through a find connection. FreshBooks uses a service called Plaid or connects directly to your bank's system. You enter your bank login information into FreshBooks (not into FreshBooks' servers — the connection is encrypted), and FreshBooks then reads your transactions.

This connection is read-only. FreshBooks can see what you spent and what you received, but it cannot move money, make payments, or change your account settings. Your bank controls all of that.

Once linked, FreshBooks pulls in your transactions automatically, usually within a day of when they post. You can then review them, assign them to categories, and generate reports showing where your money went.

The Cost of Using FreshBooks Plus a Bank Account

FreshBooks charges a monthly subscription. The cost varies depending on which plan you choose — they offer plans for solo freelancers, small teams, and larger businesses. You can see their current pricing on their website.

Your bank or credit union will also charge fees, though many business checking accounts have no monthly fee if you keep a minimum balance or set up direct deposit. Some charge per transaction or per check written. These fees are separate from what you pay FreshBooks.

So your total monthly cost is the FreshBooks subscription plus whatever your bank charges. Neither organization charges the other — they are completely separate.

Alternatives if You Want Banking and Accounting Together

Some banks and financial technology companies offer both a checking account and built-in accounting tools in one platform. Square Cash, PayPal, and some online banks include basic bookkeeping features alongside the account itself. These can be simpler if you want everything in one place and do not need the depth of accounting that FreshBooks provides.

However, most small business owners find that a dedicated accounting tool like FreshBooks, paired with a straightforward business checking account, gives them more control and better reporting. You are not locked into one company's limited accounting features, and you can switch accounting software without changing banks.

What to Look for in a Business Checking Account

Since you will be using FreshBooks to track your account, focus on what matters for the account itself: monthly fees, minimum balance requirements, how many free transactions you get, and whether the bank charges for things like wire transfers or stop payments.

Also confirm that the bank supports connections to third-party software. Most do, but some regional banks or very small credit unions may not. A quick call to the bank's business line will tell you whether they work with FreshBooks.

If you plan to deposit checks, ask whether the bank offers mobile check deposit — it saves you a trip to a branch. If you receive a lot of payments from customers, ask about payment processing options or whether they integrate with invoicing tools.

Frequently Asked Questions

Can I use FreshBooks without a business checking account?

Technically yes, but it defeats the purpose. FreshBooks is designed to track transactions in a real bank account. You could enter transactions manually, but that is slow and error-prone. A business checking account and FreshBooks work together.

Does FreshBooks charge my bank account directly?

No. You pay FreshBooks separately, usually by credit card or through your bank's bill pay system. FreshBooks does not have access to move money from your account. Your bank charges you for the account itself, and FreshBooks charges you for the software.

If I switch banks, do I lose my FreshBooks data?

No. Your FreshBooks data stays in FreshBooks. You straightforward disconnect the old bank account and connect the new one. FreshBooks will start pulling transactions from your new bank going forward. Your historical data remains.

Does FreshBooks work with all banks?

FreshBooks works with most banks and credit unions in the United States, but not all. Before opening an account, you can check FreshBooks' list of supported institutions, or call the bank and ask whether they support FreshBooks connections.

What if I need a debit card or checks from FreshBooks?

FreshBooks does not issue debit cards or checks. Your bank does. When you open a business checking account, the bank will provide you with a debit card and checkbook as part of the account. FreshBooks is only for tracking and organizing what happens with that account.