10 Best Accounting Software For Self Employed And Freelancers

This focus on simplicity and user-friendliness positions TrulySmall as a top player among the best accounting software for self-employed individuals. It also appeals to those who value ease and efficiency over comprehensive, complex features. QuickBooks Solopreneur is an easy-to-use accounting solution designed specifically for freelancers and solopreneurs. This tool is part of the broader QuickBooks Online ecosystem and seamlessly integrates with its full suite of accounting products. Freelancers and self-employed professionals in retail or service industries who need integrated payment and self-employment accounting software.

Many small business accounting services provide onboarding guides or in-app wizards that help new users set up their bookkeeping software. However, if you’re tracking inventory, adding payment processing, or customizing settings, prepare to spend several hours. Most small business accounting software allows accountant access, but permission levels and collaboration features vary. Compare accountant options when reviewing bookkeeping solutions, or if you work with an accountant during tax season, ask if there’s anything you should consider. Not all cloud-based accounting software offers mobile apps for iOS and Android devices, but you may be able to use it through a mobile browser. Functionality also varies, with some accounting services providing robust mobile features, whereas others have limited tools.

Best Accounting Software for Freelancers

• For instance, Xero’s cash flow forecasting tool provides users with visualizations of their business’s bank balance in real time, including cash flow predictions for the next seven or 30 days.
• Its $15 a month starting price is a bit higher than average, but if your business relies largely on invoices to get paid, give FreshBooks a hard look anyway.
• Some of the features you’ll find with this software include accounting, invoicing, inventory and CRM, and are fully available on both mobile and desktop.
• OneUp aims to provide online merchants, consultants, and digital freelancers with a unified platform to streamline their freelance business operations with automation.

Its user-friendly platform also offers real-time financial insights and customizable reports, enabling users to make informed business decisions with ease. If you’re self-employed, having the right accounting software is crucial for managing your finances effectively. It helps you keep track of income, expenses, and taxes, making your life a lot easier. In this article, we will explore the top 10 accounting software options for self-employed individuals, comparing their features and benefits to help you find the right fit for your business.

The best apps also include tools for snapping photos of receipts, invoicing clients on the go and more. The more a platform’s mobile features overlap with those of its desktop suite, the better. The mobile app doesn’t support advanced tasks like tracking billable time directly, which cost it points in my assessment. Pricing also took a hit since all plans include only one user, and adding more comes with an extra cost.

QuickBooks Self-Employed: Best tax tracking

Most accounting software providers offer detailed guides or support services to assist with this process. It’s essential to back up your data before migrating and verify that all information has been accurately transferred. Some software also offers automated migration tools to simplify the process. Features include automated bank reconciliation, expense tracking, detailed reports and dashboards, mobile app access, and collaboration tools. It includes unlimited mileage tracking, adding income and expenses, a tax calculations summary, and export/email reports — you just have to do these tasks manually. What’s more, for self-employed workers who often find themselves on the go, Zoho Books’ comprehensive mobile app allows you to manage core accounting processes from anywhere.

Wave: Best Free Accounting Software for Freelancers

Its Simple Start plan comes packed with all the features self-employed individuals would need to manage their small businesses. Truly Small Accounting by Kashoo is a lightweight self employment bookkeeping software with incredible ease of use. Even if you’re a complete accounting easiest accounting software for self employed amateur, you won’t have a hard time using the software. It’s designed for self-employed individuals with no prior accounting or bookkeeping experience and who want to manage these processes without professional assistance. The Client Portal is another neat feature that lets your clients view and manage all their transactions.

Client and Customer Payment

We also like Zoho’s tax suite, which you can use to calculate, generate and file tax returns and reports. Whereas, frustratingly, most accounting platforms lack these fundamental self-employed tax tools, they’re part and parcel of Zoho Books. We like how easily you can customize your invoices and build them from projects or hours worked. Plus, you can distribute them quickly from either mobile or desktop, and the platform also automates your client payment reminders. Business News Daily has spent years evaluating hundreds of business software and services to identify the best solutions. We put ourselves in the shoes of business owners as we judge each product’s performance, weigh its costs and analyze how it compares to competing options.

You can handle advanced tasks like recording billable hours, creating invoices, assigning expenses to clients, and even receiving payments—all from your smartphone. Additionally, Zoho Books’ free plan is perfect for freelancers earning less than $50,000 annually. If you’re just starting or managing a smaller client base, this tier provides a comprehensive set of tools without the financial commitment. Think about usage limits, as some plans will have a cap on client numbers, and be realistic about what advanced features you’ll actually end up using. If you’re just using accounting software to submit a self-assessment tax return, there’s no point in paying for complex tools like mult-currency bank accounts. If you’re set on using QuickBooks as your accounting software provider, we recommend QuickBooks Online over QuickBooks Self-Employed.

Leveraging my accounting and bookkeeping expertise, I rigorously assess software using our internal case study that objectively scores key features while upholding editorial independence. Beyond just the superficial, we also really appreciated the customisable profit and loss statements. These are great for freelancers who want to gain a more nuanced look into their business’s finances. If you’re just looking to calculate a TAX return and file a self-assessment there are options out there that might be a better fit cost-wise (like Zoho Books free plan).

• Known for its seamless integration with Square’s point-of-sale (POS) systems, it simplifies expense tracking, invoicing, and financial reporting.
• Gone are the days of waiting until month-end to understand your financial health.
• You can start with the most basic plan and upgrade to a higher tier as your business expands.
• With FreshBooks, you can set up recurring bills, easily communicate with clients, and integrate with your favorite payment services.

Likewise, small business accounting software with payroll integration boosts operational efficiency and improves reporting accuracy. Sage 50cloud provides you with downloadable accounting software with secure online access on any device. The program delivers built-in accounting best-practices, as well as some powerful tools you might not find on other platforms. In particular, Sage 50cloud’s inventory management tools are among the best in the business, which is a boon for small business owners who maintain stock. Of course, FreeAgent makes the list of the best accounting software for self-employed individuals.

The platform lets you track your profitability and goals without having to upgrade to pricier plans, lending itself well to sole traders with smaller budgets. That’s why at Tech.co, we have full-time product researchers to re-run this testing process regularly. It’s the only way to ensure our results remain reflective of the present day. Self-employed workers and sole contractors have specific accounting needs that differ from those of larger businesses. So, when looking for an ideal platform to manage your finances, one-size-fits-all solutions don’t always cut it.

But if you didn’t find your match, you aren’t out of options—our self-employment honorable mentions each have something to offer. And sure, you can send those five clients an unlimited number of invoices each month—but that’s a perk only if you work on multiple projects with the same recurring customers. Security is a top priority for reputable accounting software for self-employed individuals. Look for software that offers robust security measures such as data encryption, two-factor authentication, and regular security updates. Additionally, ensure that the software complies with relevant data protection regulations to safeguard your financial information.

Clear Books – Best for managing complex tax processes

If you’re just getting started, don’t feel pressured to automate everything at once. Pick one or two software solutions that align with your firm’s biggest pain points, whether it’s general ledger accounting, workflow automation, or expense management. Once you see the benefits, you can gradually incorporate more tools to further streamline your operations. Xero helps small businesses and SMEs manage their financial operations, including invoicing, expense tracking, payroll, and financial reporting. Developed by Intuit, QuickBooks Online helps small and medium-sized businesses manage their finances efficiently.

You can try to estimate your own tax payments quarter to quarter, but both paid and free accounting software can track your income to help ensure your tax estimates are as accurate as possible. You can always integrate an expense management app, of course, but built-in expense tracking would make for an even easier accounting solution. One software worth considering is Financial Cents, an all-in-one accounting practice management solution. It helps firms automate task management, track deadlines, collaborate with teams, and manage client work seamlessly. This self employed bookkeeping software for freelancers organizes all your tasks in one place, so you don’t have to cross a proverbial town to get your accounting to-do list sorted out.

Accounting software for self-employed individuals typically includes features for creating and sending invoices, tracking payments, and managing accounts receivable. Some software also integrates with payment gateways, allowing clients to pay invoices online. This can help streamline your billing process and improve cash flow management. Collective is an AI-powered accounting software for the self-employed, offering financial reports, invoicing, payment collection, and an advanced view of business finances. It excels in business management by integrating essential applications and providing expert support, delivering high-end accounting services at a lower cost. FreeAgent simplifies accounting for self-employed individuals with intuitive features for managing finances, invoicing, expenses, and taxes.