Bookkeeping can be a tedious task for many freelancers. Keeping track of income, expenses, invoices, payments, taxes, and more takes time from doing billable client work.
Fortunately, there are many excellent accounting software programs available to make things easier. In this article, I will cover the top 8 bookkeeping tools ideal for freelancers.
I reviewed options based on features, pricing, ease of use, and suitability for solopreneurs.
8 Best Accounting Software For Freelancers
Choosing the best accounting software for freelancers must keep track of mileage, invoices, and other billable expenses. The accounting software needs to be affordable and easy to use.
Many top accounting software offer basic plans suited to your financial needs. With accounting software, as a freelancer, you can keep your personal expenses and business finances separate to ensure you are paid on time.
Here are my picks for the best accounting software for freelancers and self-employed people.
Editor’s pick
Create professional invoices with customizable templates
Best Budget Option
Free accounting and financial software
Best Overall
Allows you to customize professional invoices quickly.
Best Overall: FreshBooks
FreshBooks is a well-established accounting software designed with freelancers and small businesses in mind.
The starting price is $15/month, and you can get a 30-day free trial. It offers a user-friendly interface, making it easy for freelancers to track their income and expenses, create professional invoices, and manage their financial records.
It offers advanced accounting features to help users manage their finances and streamline business operations. The accounting software for freelancers allows you to create and customize professional invoices quickly.
You can add your logo, set up recurring invoices, and send them to clients via email or regular mail. You can easily track your business expenses by snapping photos of receipts or manually entering them.
For service-based businesses, it offers time-tracking tools. You can track hours worked and billable rates and quickly turn that time into invoices. Create and send detailed estimates to clients before starting a project.
These estimates can be easily converted into invoices once approved. It also integrates with various payment gateways, allowing clients to pay invoices online through credit card payments and other methods, simplifying the payment process.
Pros Using FreshBooks
- User-friendly and intuitive interface.
- Invoicing features allow customization and automated reminders.
- Expense tracking and time tracking features.
- Robust mobile app for on-the-go accounting.
- Excellent customer support.
Cons Using FreshBooks
- Limited features compared to more complex accounting software.
- It may not be suitable for larger businesses with complex needs.
With FreshBooks, you get one of the best invoicing experiences tailored for freelancers and solopreneurs. The combination of powerful features and ease of use makes this our top pick.
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Best Budget Option: Wave Accounting
Wave Accounting, now known as Wave Financial, is a free accounting and financial software platform designed for small businesses, particularly freelancers and entrepreneurs. You also have a wide range of monthly options available.
One of the standout features of Wave is that it’s free to use, making it an attractive option for small businesses with tight budgets. You can create professional invoices with customizable templates and send them to clients via email.
You can set up recurring invoices for regular clients. Easily record and categorize expenses.
You can upload receipts and link expenses to specific clients or projects for better expense management. Connect your credit card and bank accounts to automatically import transactions, helping you keep your financial records current.
Wave provides basic financial reports, including profit and loss statements and expense reports, to give you insights into your business’s financial health. Create and send detailed estimates to clients, which can be converted into invoices when the appraisal is approved.
If your business operates internationally, Wave offers multi-currency support for invoicing and reporting in different currencies.
Wave takes security seriously, using encryption and secure data storage to protect your financial information.
Pros Using Wave
- Completely free core product
- Easy to use
- Integrates with bank accounts
- Unlimited invoicing software
- Sales tax calculations
Cons Using Wave
- There are minimal features for the free version
- Must pay for add-ons like payroll and accounting
- Lack of income reports
- Customer support requires a paid plan
- No mobile app
Wave Accounting is known for its simplicity and cost-effectiveness, which can particularly appeal to small businesses and freelancers.
Yet, it may not have as extensive features as some paid accounting software, so it’s essential to consider your business needs when choosing an accounting solution.
Editor’s Pick: QuickBooks Online
QuickBooks is a widely used accounting software that offers a comprehensive set of features to help businesses manage their financial data and operations effectively.
As a freelancer, you can create professional invoices with customizable templates. You can also set up recurring unlimited invoices and schedule automatic invoice delivery.
Easily record and categorize expenses, including the ability to upload and attach receipts to transactions.
Another great function is connecting your bank and credit card accounts to automatically import and reconcile transactions, ensuring your financial records are accurate.
QuickBooks provides a variety of financial reports, such as profit and loss statements, balance sheets, and cash flow statements, to give you insights into your business’s financial health.
You can create and send detailed estimates to clients and convert them into invoices when accepted. QuickBooks allows for online payment processing, making it easy for clients to pay invoices via credit card or bank transfer.
Pros Using QuickBooks
- Solid accounting feature set
- Useful reports and insights
- Scales well as your business grows
- Integrates with many other business apps
- Established name and reputation
Cons Using QuickBooks
- More expensive than some competitors
- The interface is not as intuitive as some other options
- Overkill for simple bookkeeping needs
QuickBooks is the best choice if you want powerful accounting tools that can grow with your freelance business over time. It’s a good value for the robust feature set and offers a 30-day free trial to a premium plan.
Intuit Accounting Software
Intuit offers a range of accounting software solutions tailored to freelancers, including QuickBooks Self-Employed and QuickBooks Online. These platforms provide freelancers with various tools to manage their finances efficiently.
The accounting software allows you to create and customize professional invoices, set up recurring invoices, and track invoice status. The program automatically imports and reconciles bank and credit card transactions.
Another highlight is that it can generate financial reports like profit and loss statements, balance sheets, and cash flow statements for better financial insights. The software will also offer you payroll services as your freelance business expands.
You can track billable hours for projects or clients and associate them with specific tasks or projects. Most importantly, it simplifies your tax preparation with features like automatic sales tax calculations and tax reports.
Pros Using Intuit Accounting
- Seamless integration with other Intuit products.
- Robust invoicing features.
- Accessible from anywhere with an internet connection.
- Tax support and reporting capabilities.
Cons Using Intuit Accounting
- Costs can add up if you require additional features.
- It may be overwhelming for freelancers with minimal accounting experience.
Xero Accounting Software
Xero is an accounting software focused on small businesses and freelancers. It offers tools for invoicing, expense, cash flow tracking, reporting, and more. You can create and send professional invoices to clients.
Another highlight is that it allows you to record and categorize business expenses and automatically match bank transactions with your records. On the other hand, it generates financial statements and reports.
As your business grows, you can use it to manage employee payroll and tax calculations and support multi-currency transactions. With the mobile app, you can access your accounting system on the go.
Pros Using Xero
- User-friendly interface
- Strong expense tracking features
- Automatic bank feeds and reconciliation
- Over 600 app integrations
- Affordable pricing plans
Cons Using Xero
- Less robust accounting than QuickBooks
- Limited payroll features
- Smaller user base than some competitors
Xero is an excellent option for an affordable accounting solution with solid tools for tracking expenses and cash flow. The bank integration makes it easy to reconcile transactions.
Zoho Books
Zoho Books is an accounting and invoicing app for freelancers and small business owners. It’s affordable and integrates with other Zoho business apps.
With the accounting software, you get many features to create and send professional invoices.
It allows you to track and record your expenses while matching bank transactions with your records. Whether you need inventory management or want to create financial statements, this program does it all.
Pros Using Zoho
- Inexpensive pricing
- Very scalable with business growth
- Zoho integration ecosystem
- Bank connectivity
- Customizable invoices
Cons Using Zoho
- No native payroll solution
- Third-party app integrations cost extra
- Less robust reporting than competitors
- Steep learning curve
Zoho Books offers capable accounting tools bundled into the Zoho ecosystem. Existing Zoho users can get more value from the integrations. But the learning curve is higher.
Sunrise Accounting Software
Sunrise is an up-and-coming accounting software designed for small businesses and freelancers. It offers basic accounting features and is known for its simplicity. As with most other programs, it creates and sends invoices to clients.
Sunrise also provides you with expense tracking and does bank reconciliation for you. Whether you need inventory management or financial reporting, Sunrise makes everything easier for you as a freelancer.
Pros Using Sunrise
- Easy-to-use interface.
- Affordable pricing.
- Invoicing and expense tracking.
- Bank reconciliation features.
Cons Using Sunrise
- Limited features compared to more established software.
- Customer support may be limited.
Sunrise Accounting offers capable accounting tools bundled into the Sunrise ecosystem. It is an affordable option for freelancers starting.
Moxie Accounting Software
Moxie Accounting is a lesser-known accounting solution tailored to freelancers. It offers core bookkeeping features and is gaining popularity for its simplicity. It is also a very versatile accounting solution with many features.
Moxy Accounting provides a comprehensive general ledger module that allows you to record and track all financial transactions. This includes accounts payable, accounts receivable, and economic activities.
You can create and customize professional invoices using the system. It offers templates, the ability to add your company logo, and options for recurring invoices. You can also send invoices to clients directly from the software.
It easily reconciles your bank and credit card statements with the software. It helps ensure that your financial records match your bank balances, minimizing errors.
The software assists at tax time by calculating taxes owed and generating reports that can be shared with your accountant or used for tax filings.
Pros Using Moxie
- Straightforward interface.
- Cost-effective pricing.
- Invoicing and expense tracking.
- Mobile app for on-the-go accounting.
Cons Using Moxie
- It may lack some advanced features found in more prominent software.
- Limited customer support.
As the accounting software is still in the beginning stages, it still needs some advanced features found in other accounting software, and the support is limited. But I recommend keeping an eye on this software as it is still in the starting phase.
What Is Important In Accounting Software For Freelancers?
Accounting software for freelancers should cater to the specific needs and challenges of self-employment. Here are some essential features and considerations for freelancers when choosing accounting software:
- Invoicing Tools: Freelancers need easy-to-use invoicing features. Look for software that allows you to create professional invoices, customize them with your branding, and send them to clients electronically. It should also support recurring invoices for retainer clients.
- Expense Tracking: Effective expense tracking is crucial for freelancers to claim deductions and manage costs. The software should allow you to categorize and record expenses, upload receipts, and generate expense reports.
- Income Tracking: The ability to track income from multiple sources is vital for freelancers who often have various clients or revenue streams. Ensure the software can categorize income sources and provide income summaries.
- Tax Support: Freelancers often have to manage self-employment taxes. Look for accounting software that calculates estimated tax payments, provides tax-related reports, and helps you stay organized for tax season.
- Bank Reconciliation: This feature helps you reconcile your financial records with your bank statements, ensuring that document records are accurate. It’s essential to identify any discrepancies.
- Integration with Payment Platforms: If you receive payments through platforms like PayPal or Stripe, ensure the accounting software can integrate with these services to record transactions automatically.
- Financial Reporting: Generate financial reports like profit and loss statements and balance sheets. These reports provide insights into your business’s financial health and can be essential for decision-making.
- Time Tracking: Many freelancers bill clients by the hour. A built-in time tracking feature can help you keep accurate records of your billable hours.
- Mobile Accessibility: If you’re often on the go, having a mobile app or a web-based platform accessible on smartphones or tablets can be beneficial for managing your finances from anywhere.
- Compliance with Tax Regulations: The software should be designed to help you comply with tax regulations specific to self-employment and freelancing.
Wrap-Up: So, Which Accounting Software Should You Choose
Choosing the right bookkeeping tool for your freelancing business is a significant decision. It impacts how efficiently you manage your finances, track your income, and handle tax responsibilities.
Each of the accounting software options mentioned here has its strengths and weaknesses, so the best choice ultimately depends on your specific needs, budget, and level of expertise.
Remember, it’s essential to invest time in understanding the software you select, as this will streamline your financial management and allow you to focus on what you do best – delivering your freelance services.
Whether you opt for a well-known platform like QuickBooks or a budget-friendly option like Wave Accounting, the right tool can make a difference in your freelancing journey.