Cloud accounting software maker FreshBooks is debuting a card reader in early 2016 aimed at helping small businesses with real-time payment strategies via mobile devices.

The FreshBooks card reader also aims to help step potential payment fraud. It plugs into an iPhone audio jack and allows users to accept credit cards on the fly, including EMV chip cards. Invoices and reports are automatically updated as charges are processed.

"Running your own business has all kinds of challenges, but getting paid shouldn't be one of them," said Mike McDerment, co-founder and CEO, FreshBooks, in an announcement. "The FreshBooks Card Reader is the next step as we continue delivering on our promise. Seventy-five percent of small businesses already use mobile devices to run their businesses, and the FreshBooks Card Reader will offer them with yet another way to streamline their workflow while on-the-go."

The reader integrates into the FreshBooks platform and payments are processed in less than 60 seconds. Credit card information is encrypted and the data is not stored on the device.

"The whole integration together is really what makes this great," said FreshBooks user Leslie Lipps, a marketing consultant. "It's already built in with what I use every day – invoices, estimates, and expenses. When my clients are ready to pay, I can easily just open my phone, accept the credit card payment on the spot, and know that my FreshBooks records will be automatically updated."

FreshBooks customer, Morgan Peterman, a veterinarian, said the reader saves time on the payment processing aspect of his business. "My reports are updated automatically, and my clients are amazed at how quickly and easily I can accept payments using my phone. On top of that, the card reader also brings a heightened level of professionalism to the way I present myself."

Users can accept Visa, MasterCard and Amex cards from clients and the reader is compatible with iPhone and iPod Touch devices running iOS 8 or newer and the latest version of the FreshBooks iOS app.