FreshBooks is one of the faster accounting platforms to set up — most freelancers are sending their first invoice within an hour of signing up. Here is the complete setup guide optimized for Canadian freelancers with GST/HST requirements.
Step 1: Create Your Account
Go to freshbooks.com and start a free 30-day trial. Select “Freelancer” or “Self-Employed” as your business type. Enter your business name (or legal name if you do not have a registered trade name). FreshBooks defaults to CAD for Canadian accounts — confirm currency is set correctly during setup.
Step 2: Business Profile Setup
- Go to Settings → Business Profile
- Enter: business name, address (province is important for tax configuration), phone, and email
- Upload your logo if you have one — it appears on all invoices automatically
- Enter your website URL if applicable
- Enter your GST/HST registration number if you are registered — this will appear on invoices
Step 3: Configure GST/HST
This is the critical step for Canadian freelancers registered for GST/HST:
- Go to Settings → Taxes
- Click Add Tax
- Name: “HST” (or “GST” for Alberta/non-HST provinces)
- Rate: enter your province’s rate (Ontario: 13%, Alberta: 5%, Nova Scotia: 14%, etc.)
- Enter your registration number (format: 123456789 RT0001)
- Set whether this tax applies to all new invoices by default
- Create a second tax called “Zero-rated export” at 0% — apply this to invoices for clients outside Canada
Step 4: Set Up Clients
- Go to Clients → Add a Client
- Enter client name, company name (if applicable), email, phone, and address
- The client’s province determines the default tax rate applied to invoices — verify this is correct
- For US clients: set country to USA; the zero-rated export tax will apply automatically if configured in Step 3
- For regular clients, set default payment terms (Net 14 is recommended for most freelancers)
Step 5: Invoice Template
- Go to Settings → Invoice Customization
- Choose a template that matches your brand aesthetic
- Add your GST/HST registration number in the “Notes” or “Footer” field if it does not appear automatically
- Set payment instructions — for Interac e-Transfer: “Please send payment to [your email]. Include invoice number in message.”
- Enable Late Payment Reminders (highly recommended) — FreshBooks will automatically email clients 1, 7, and 14 days after due date
Step 6: Connect Your Bank Account (Plus Plan and Above)
- Go to Accounting → Bank Accounts → Connect a Bank
- Search for your Canadian bank and authorize the connection
- Transactions import automatically and appear in the “Review” queue
- Categorize each transaction and match it to existing invoices where applicable
- Set up rules for recurring transactions to auto-categorize
Step 7: Expense Setup
- Go to Expenses → Add an Expense Category if you want custom categories
- FreshBooks default categories map reasonably well to T2125 — review and customize for your business
- For home office expenses, create a category called “Business Use of Home” to track these separately
- Enable receipt scanning in the FreshBooks app (Plus and above) to photograph receipts on the go
Frequently Asked Questions
Do I need to set up a chart of accounts in FreshBooks?
FreshBooks has a simplified approach to accounts compared to QuickBooks — it uses expense categories rather than a traditional chart of accounts. For most sole proprietors, the default FreshBooks categories are sufficient and can be supplemented with custom categories for specific T2125 lines (home office, vehicle). You do not need accounting knowledge to configure FreshBooks correctly.
How do I set up recurring invoices for retainer clients?
Go to Invoices → Recurring Templates → New Recurring Invoice. Enter the client, amount, and frequency (weekly, monthly, etc.). FreshBooks automatically creates and sends the invoice on the scheduled dates. Clients can set up auto-pay through the client portal, making retainer billing entirely automated.
Can FreshBooks handle project-based billing?
Yes — FreshBooks has a Projects feature where you can track time, expenses, and billing by project. On Plus and above, you can see profitability per project. This is particularly useful for agencies and consultants who work on defined projects with specific scopes and budgets.