Naga College Foundation, Inc.

M.T. Villanueva Ave., Naga City

AUDITING IN CIS ENVIRONMENT

Accounting System Software

PREPARED BY:
Mediarito, Brayan B.
Estefani, Anna Salve N.
Bandola, Gia Sarah B.
Pardiñas, Ella Mae T.
Antioquia, Charlotte P.

BSA-3B
DEVELOPMENT OF FRESHBOOKS
FreshBooks is an accounting software designed for solo business owners, freelancers and sole
proprietors. The software makes it easy to stay organized, keep track of payments owed and
expenses made, send invoices and accept payments. Flashback to January 2003, Mike was
running a four-person design agency and when it came to billing clients, Word and Excel were
frustrating to use. They simply weren’t built to create professional-looking invoices. Then one
day something happened that makes every small business owner cringe: He accidentally saved
over an old invoice, losing hours of work in the process. Knowing there had to be a better way,
Mike decided to create it himself. Over the next two weeks, he coded up a solution that became
the foundation of what is now FreshBooks. Mike spent 3.5 years growing FreshBooks from his
parents' basement. It was founded in 2004 by Mike McDerment, Levi Cooperman, and Joe
Sawada in Toronto, Ontario. FreshBooks moved out of the basement (then moved 3 more
times) and now consists of 500+ employees in offices around the world. More than 30 million
people in 160+ countries have used FreshBooks to make things like invoicing, expenses,
payments and financial reporting easier. FreshBooks can save you 550+ hours a year. For the
first time in FreshBooks history, in 2016 they redesigned and launched a new version of the app.
October 2020 after 15 years they have a new brand and logo.

BASIC FEATURES OF FRESHBOOKS

FreshBooks (freshbooks integrations) has added a ton of features recently, all designed to make
your life easier. These include the Quick Expense Creation (freshbooks expenses tracking)
feature, which allows you to create an expense directly from the Expenses tab instead of having
to click over to another screen.

The Retainers option is particularly useful if you're an attorney, accountant, or provide some
kind of service, allowing you to budget and reserve blocks of time while billing your clients a
retainer fee. But perhaps the most important addition to FreshBooks is double-entry accounting.

This addition allows FreshBooks to compete with products such as QuickBooks Online and
Xero. FreshBooks does not currently offer budgeting capability, but it does offer integration with
nearly 100 apps (freshbooks integrations) through the FreshBooks App Store, in categories
such as CRM, e-commerce, inventory management, marketing, project management, and tax
preparation. Everything in FreshBooks is designed to help you do things faster, whether that's
invoicing a client, recording a payment, tracking your time spent on a project, or snapping a
photo of your lunch receipt and uploading it to FreshBooks. The addition of the new Digital Bills
and Receipt Scanner makes that process even easier. It automatically captures receipt data
from any uploaded receipt, eliminating the need to enter the information manua
MODELS OF THE SYSTEM

FreshBooks offers much more than standard invoicing and expense tracking. You can also:

● Invoice clients
Depending on how quickly you type, invoicing in FreshBooks can be done in less than a
minute. While entering the invoice, you can create a new client; There is no need to stop
and add the customer first.

● Time tracking
When working from a different location, you can record your time using the mobile app.
You can even add a note to remind yourself of what you were working on, which can be
helpful if you have multiple clients.

● Record and track expenses

If you want to add it to a client's bill later, you can mark it as billable or add it to Cost of
Goods Sold (though it's unlikely that you need lunch to provide services to your client).
However, if you're making personalized invitations, you can add the cost of the paper to
your Cost of Goods Sold.

● Make client estimates

You might want to prepare a formal job estimate or project proposal for larger jobs. A
proposal is a more formal document that demonstrates the value of the services you
provide, whereas an estimate is simply a breakdown of the services you will provide
along with an estimate of their cost. With just a few clicks, you can easily turn an
estimate into an invoice if your client approves it.
● Record payments
In FreshBooks, the reporting options are pretty basic, but the addition of double-entry
accounting has made it possible to create reports like a General Ledger report and a
Profit & Loss report.

● My Team
The My Team feature is useful for businesses with employees, contractors, and
accountants alike. Invite them to use FreshBooks all you need to do.

The FreshBooks My Team page shows members of a sample project. You can invite
four kinds of team members (see above):

● Partners in business, will have full access to your FreshBooks account.

● Basic employees who can only view their own information but can track time
and expenses.
● Contractors who are able to keep track of their time and expenses, as well as
send you invoices.
● Accountants who are able to access reports from FreshBooks, classify
expenses, and write entries in journals.
PROCESS INVOLVED
FreshBooks allows you to set up automatic billing to send invoices at the click of a button. Your
clients can pay their invoices directly through the website or app so you can get paid in minutes.
They can even choose to keep a credit card on file in order to pay recurring invoices just
moments after their bill is sent.

Invoicing. Invoices can be created in minutes and are professional in appearance, and
there are a variety of useful options available.The processing of invoices includes the date of
issue, invoice number, due date, and amount. Notes and Terms can also be added.
● Add invoice due dates
● Customize invoice payment term
● Easily offer discounts
● Automatically calculate taxes
● Preview invoices before sending
● Choose your preferred currency
● Instant updates when an invoice has been viewed and paid
● Invoice from anywhere with the mobile app
● Automatically track inventory billed on invoices

Cash Collection. A cash receipt is an accounting entry that documents the collection of
cash from a customer. Cash receipts typically increase (debits) the company’s cash balance on
its balance sheet. Simultaneously, they decrease (credits) either accounts receivable or another
asset account. One way to track income in FreshBooks, is by marking Invoices as paid. This is
done by entering in a Client's payment manually, if you have the payment on hand like cash and
checks/cheques, or through one of the available online payment options. You're also able to
modify payments if you've done a partial or full refund.

● Go to the Invoices section

● Click on the Invoice you've received payment for
● Next, click on More Actions then select Add a Payment
● Add a payment button on an individual invoice.
● In the Add a Payment pop-up, the Amount will be populated with the full
outstanding total, the full Deposit, or the next available Payment Schedule - you
can overwrite this with a different amount if needed
● Add a payment box with fields to fill out.
● Next, choose the Payment Method in the dropdown - the Client's Credit will
appear if any is available as the first option
● The Date of the payment will default to today, click on it to change it to a different
date if needed
● If needed, click in Payment Notes and add details about the payment
● Check off the box next to Send client a payment notification email if you'd like to
inform your Client of the payment being made
● Click Add Payment and if selected, an email will be sent to your Client. The email
 will state that [Business] has received your [Payment Method] payment of
[Amount] for Invoice [Number].

Billing. A Bill is used to record a business transaction where the items and services from
a Vendor have been provided to the business owner, but payment isn’t due until a later date. If
you’ve already paid for an item or service in full upfront, this would be an Expense instead.
These Bills can be anything from raw materials, utility, and internet, or paying for contractors
and professional services for example.

● Go to the Expenses section

● Then click on the Bills sub-section underneath
● Click on the Bill you want to mark as paid
● Next, click on More Actions then select Add a Payment
● In the Add a Payment pop-up, the Amount will be populated with the full total of
the Bill - this can be overwritten if the Amount paid is different
● Next, choose the Payment Method in the dropdown
● The Date of the payment will default to today, click on it to change it to a different
date if needed
● If needed, in the Payment Notes field, add details about the payment
● Click Add Payment to finish and the Bill will now be marked as Paid.

ADVANTAGES AND DISADVANTAGES

Advantages
1. Multi-Platform Support
This online accounting solution is feasible across different operating system and can be used
through Linux, HP-UX, AIX, Solaris, Unix, IBM OS/400, Web browser (OS agnostic), Windows
2000, Windows 8, Windows 10, Windows 7, Windows Vista, Windows XP, MAC, iOS, and
Android.

You can take your application anywhere you go and can get done with billing & reports within
minutes. The Freshbooks app is a huge lifesaver quickly capturing expenses and images of
receipts. The FreshBooks mobile app allows you to remain in touch with your customers and
team members and manage your accounting and project concerns anytime, anywhere.

2. Simple to Create Reports

FreshBooks enables you to generate financial reports by simply processing data that has
already been entered. You can generate a profit & loss report with just a few clicks. You can also
quickly create an expense report allowing you to view things like this month’s total costs, or
monitor your balance sheet in real-time. FreshBooks also simplifies the taxation process. It
enables you to filter through your financial records and generate accurate tax reports. You can
also export your reports to a CSV file or other formats to share with a tax adviser or accountant.

3. Excellent Invoice to Payment Functionality

FreshBooks offers excellent invoice to payment features that can be very useful to small
companies. It enables you to track exactly when your client has opened your invoice email. This
helps a company deal with customers who claim they didn’t receive the invoice. FreshBooks
also makes sure your invoices are properly delivered to clients.

It is easy to manage your billing history as the app provides a lot of tools to help you keep track
of past and current invoices. For instance, you can quickly find any unpaid invoices from past
months. You can also send automatic payment overdue reminders to your client.

4. Seamless Project Collaboration

With FreshBooks, you and your team can effortlessly work together to ensure each task is done,
targets are met more quickly, and outcomes are delivered more efficiently. This platform is
designed mainly to help small businesses enhance their productivity. Because all project files,
messages, and other important project information can be conveniently kept in a single place,
you can be sure that every team member and business partner is in sync and all schedules will
be met. FreshBooks’ project-related features are extensive, which include live chat, task
deadline dates assigning, project status overview, file sharing, client rate/hour assigning, and
many more.

5. Track Expenses Easily

This feature is especially useful if you need to liquidate expenses after a client meeting: simply
take a snap of the receipt and attach the picture to an item in FreshBooks to log the expense.
You can easily track which expense belongs to which client or add the expense to an invoice as
a reimbursement deal with a client. Plus, FreshBooks allows you to import expenses directly
from your bank by linking the Expense Tool to your credit card or bank account. All this can help
you track the amount of money your company spends each day.

6. Pricing Plans are Flexible

You can opt for a plan according to your employee count, amount of work, and deliverance.
FreshBooks offers flexible pricing which goes monthly and if you don’t seem to like your
subscription, connect to Customer support between Monday to Friday (8 am to 8 pm) for
cancellation of the subscription.

The pricing chart for FreshBooks cloud accounting software are:

Lite: $15 (up to 5 clients)
Plus: $25 (for 50 clients) )
Premium: $50 (for 500 Billable clients at $10/per member) and advanced payments at
$20/month. )
Select/Custom: Custom pricing for 500+ clients for large organizations and Xero+Quickbooks
integration. )

7. FreshBooks Free Trial

In general, a fully-fledged accounting application doesn’t allow free use. However, you can use
Freshbooks Free Trial for 30 days to see if it fits your business requirements perfectly.

8. Country-Specific Tax Calculation

One of the biggest Pros of FreshBooks that also make it an excellent platform for your business
is its ability to get along with country-specific taxations system. FreshBooks App supports the
country-specific tax calculation needs of more than 120 countries.

9. FreshBooks Security
It’s a cloud-based application that keeps your worries of data loss or theft at bay. You can
authenticate yourself from anywhere using a desktop, Laptop, or mobile and save your reports
before you call it a day.
FreshBooks ensures further user security by limiting the number of users according to their roles
and subscription plan. None except you will be able to access the company’s data since the
accounting system is entirely role-based.

Disadvantages
Despite a wide range of excellent features, users have pointed out a few minor things that can
be improved in FreshBooks:
1. Most users are concerned about Freshbooks Pricing
Even though the users are provided with a FreshBooks Free Trial for 30 days assuring
money-back, the rest of the use charge users with higher fees. You won’t have to use
Freshbooks features all the time or every day.

If you don’t put it to use all its features, it is a bit pricey tool for what you get unless you only
have a few clients.

Subscription Cycle: Even though the company can limit the use according to the number of
clients, many professionals want the free version to be always free. Some also suggest the
subscription should be based on pay per usage/ pay on use model.

If you have to add more clients to your account countermanding the limit restrictions, it’s
mandatory to pay at least $29.95 a month.

2. Missing features as cons of Freshbooks

Following points contribute to the reasons why Freshbooks Accounting Software registered
some noticeable Missing features such as:

Integrations with Project Management, Payroll Tools, CRM, and Third-party apps.
FreshBooks Budgeting
Integration with payment processors such as PayPal
Double-entry accounting
FreshBooks Tools & Training
Inventory Management
Ability to add more clients to the plan
Payroll (which is why some people use other payroll software to pay Social Security, FICA, life
insurance, IRAs, HSAs, and others)
Screen-Capture
Something that can be used offline.
Usability Across Large Teams

3. FreshBooks (Invoice Template & Manual Entry)

While the data entering is manual while you use FreshBooks invoice template, you need to rely
on your manual skills more to get the numeration system. Manual entries need a certain amount
of your time, which is something you won’t expect from an automated accounting tool.

4. Lack of Multi-Currency Support

The format and taxable calculations are a bit troubling with FreshBooks , as it still doesn't
support all currencies. Lack of currency support has been one of the major drawbacks of
FreshBooks in bookkeeping activity.

As of now, FreshBooks doesn't enable you to enter your fiscal transactions in the local currency.
Users other than USD, Euro, Pounds, and Australian Dollar might have to face more of such
issues as the tool still requires a stronghold in non-western countries.

5. Ideal Solution for Small Enterprises

This cloud-based accounting software is often preferred by small business firms and freelancers
for in-depth basic level accounting and reporting. For big and complex calculations, it’s will
require some advanced-level modifications. Also, nobody would want to pay for an automated
tool and end with entering data manually.

CONTROLS WITHIN THE SYSTEM

FreshBooks is cloud-based accounting software that is used to send invoices, manage receipts,
and track time expenses while running business easy, fast and secure. It is the software that
automates tasks like invoicing, organizing and allows businesses to follow up with clients in just
a few clicks. As it lives on a cloud, businesses that use the software can securely access it from
desktop, tablet, phone from wherever they are. It is ideal for individual users like free launchers
who aspire to fast track the sales cycle and look more professional with the use of financial
documents that includes the logo and colors of the company brand.
FreshBooks is one of the fast and reliable accounting suites that turns complex financial
management into an enjoyable experience. The application enables Google Checkout, PayPal,
and credit card payments, and also integrates with a long list of business systems which can
streamline this process into a single system. It allows users to enjoy a friendlier and redesigned
interface allowing invoices to be more customizable and enabled with advanced tracking
capacity. The new version of FreshBooks is better at prioritizing tasks, allows complete
transparency, improved search filter, multi-currency expenses, and invoice conversations.
FreshBooks Invoicing Software
Billing System
FreshBooks can address the most crucial accounting requirements for small businesses. This is
because it makes collecting details easier and monitors everything in a very dependable way.
Even non-tech-knowledgeable individuals will find it simple to use because of its intuitive user
interface. With FreshBooks, businesses can brand invoices, establish due dates and impose
late fines. You can also send reminders when payments are past due and manage billing.
In addition, FreshBooks keeps track of your billing history, generates profit and loss reports, and
manages tax matters.
The biggest benefits of using FreshBooks include:
● Integrated financial management. You may handle invoices and collect payments with
FreshBooks on the same platform.
● Interface that’s simple and clear. You can automate job prioritizing and facilitate
collaboration with a contemporary, user-friendly interface.
● Whole suite from invoicing to payment. You can set due dates for invoices, monitor
invoicing, apply late fees, and collect money while making sure all tax obligations are
met.
● Monitoring spending. You may easily record expenses, keep tabs on them every day,
and utilize them to negotiate reimbursement settlements.
● Strong reporting. The platform processes data, creates balance sheets and spending
reports and summarizes taxes.
● Reasonable pricing. Payments are solely based on the number of users that are
actively using the system each month.
● Integrations with numerous third-party applications and top payment card issuers.
● Full-featured mobile applications. By giving access to documents on Android and iOS
devices, FreshBooks helps take finances outside of the office.

COMPANIES CURRENTLY USING FRESHBOOKS

FreshBooks is used by over five million businesses to streamline time tracking and client
invoicing.
Here are some examples of companies that are currently using FreshBooks;
Company Website Country Top Level Sub Level
Name Industry Industry

WePay wepay.com US Technical Software

Manufacturers

The RMG thermggroup.com US Business Accounting and

Group Service Accounting
Services

JPMorgan jpmorganchase.c US Finance Banking

Chase and Co. om
BooksTime bookstime.com US Business Accounting and
Service Accounting
Services

NewChip newchip.com US Education Training

Pools & More pools-more.com US Construction Commercial and

Residential
Construction