17 Best Accounting Software For Freelancers Reviewed For 2024
Best Accounting Software For Freelancers Shortlist
Our one-on-one guidance will help you find the perfect fit.
Finding the right accounting software for freelancers is challenging, as there are many options to choose from. You want to manage your finances better but must determine which tool fits your needs best. I've got you! Drawing from my years of experience using various accounting tools for businesses of all sizes, I'll help you find the best options available today.
Accounting software for freelancers allows you to track income and expenses, generate invoices, and manage taxes. They save you time, reduce errors, and keep your finances organized. The main pain points they solve include time-consuming manual bookkeeping, tax preparation headaches, and financial mismanagement.
Here is my ultimate list of the best accounting software for freelancers:
Why Trust Our Software Reviews
We’ve been testing and reviewing accounting software for freelancers since 2023. As CFOs, we know how critical and challenging it is to make the right decision when selecting software. We invest in deep research to help our audience make better software purchasing decisions.
We’ve tested over 2,000 tools for different finance and accounting use cases and written over 1,000 comprehensive software reviews. Learn how we stay transparent & our software review methodology.
Best Accounting Software For Freelancers Summary
| Tools | Price | |
|---|---|---|
| Paymo | From $3.90/user/month (billed annually) | Website |
| Zoho Books | From $15/user/month (billed annually) | Website |
| Wave | From $14/user/month | Website |
| Bonsai | From $19/user/month (billed annually) | Website |
| FreeAgent | From $13.50/user/month | Website |
| ZipBooks | From $15/user/month | Website |
| QuickBooks Self-Employed | From $10/month | Website |
| 1tap Receipts | From $7/user/month (billed annually) | Website |
| Kashoo | From $324/year | Website |
| Sage Debit and Credit Card Processing | From $10/user/month | Website |
Compare Software Specs Side by Side
Use our comparison chart to review and evaluate software specs side-by-side.
Compare SoftwareHow To Choose Accounting Software For Freelancers
You'll want to ensure the best fit possible when looking for accounting software for freelancers. Here are the questions you should be asking yourself before making a purchasing decision:
⬜ What are your goals for employing accounting software?
⬜ Have you ever used accounting software before?
⬜ What are 3 key software features you can't live without?
⬜ What unique or niche needs does your company have?
⬜ What channels does it need to connect to? Time tracking, invoicing, other?
⬜ What's your budget for accounting software?
It could be helpful to write down the answers to these questions before you start reading the reviews below. That way, you can measure each tool against the features, functionality, and flexibility you actually need.
Best Accounting Software For Freelancers Reviews
This section provides an in-depth analysis and overview of various accounting software tailored for freelancers. I will discuss the pros and cons of each tool, its features, and its best use cases.
Paymo is project management and time-tracking software for small businesses and freelancers. It is best for these tasks due to its comprehensive tools for managing client work, tracking time, and measuring profitability.
Why I picked Paymo: I chose Paymo for its robust task management and time-tracking capabilities, which stand out from other accounting software. Its ability to integrate time tracking with project management makes it ideal for freelancers who need to manage multiple projects (and bill for them) efficiently.
Standout Features & Integrations
Features include automatic time tracking, task management with Kanban boards, team collaboration tools, invoicing, and estimates.
Integrations include Slack, Google Drive, QuickBooks, Xero, Zapier, HubSpot, JotForm, Adobe Creative Cloud, Google Calendar, and Microsoft Outlook.
Pros and cons
Pros:
- Invoicing and estimates
- Comprehensive task management
- Automatic time tracking
Cons:
- The learning curve for new users
- Limited accounting features
Zoho Books is an online accounting software designed for growing businesses. It offers a comprehensive suite of financial management tools.
Why I picked Zoho Books: I chose Zoho Books for its extensive features that cater to comprehensive financial management. Unlike other tools, Zoho Books offers a holistic approach to managing finances, making it ideal for freelancers who need an all-in-one solution. Its integration with other Zoho services further enhances its utility, providing a seamless experience for users.
Standout Features & Integrations
Features include invoicing, billing, expense tracking, task automation, multi-currency support, budgeting, and financial reporting.
Integrations include Zoho CRM, Zoho Projects, Zoho Inventory, Zoho Subscriptions, Zoho Expense, PayPal, Stripe, Square, Google Workspace, and Microsoft Office 365.
Pros and cons
Pros:
- Strong integration with Zoho services
- Multi-currency support
- Comprehensive financial tools
Cons:
- Limited third-party integrations
- Complex user interface
Wave Accounting is a small business software that provides accounting and financial management tools for freelancers and small businesses. It offers features such as invoicing, expense tracking, and payroll and is known for its user-friendly interface. It is best for free accounting and invoicing because it provides a comprehensive suite of financial tools at no cost, making it accessible for freelancers and small business owners.
Why I picked Wave: I chose Wave for this list because it offers a robust set of free accounting features, which is rare among accounting software. This makes it particularly appealing for freelancers who need to manage their finances without incurring additional costs. Wave is best for free accounting and invoicing because it combines essential financial tools with an intuitive interface, making it easy for users to handle their accounting needs without any financial burden.
Standout Features & Integrations
Features include customizable invoicing, expense tracking, and payroll management.
Integrations include PayPal, Etsy, Shoeboxed, Zapier, Google Sheets, Slack, HubSpot, Mailchimp, Stripe, and QuickBooks.
Pros and cons
Pros:
- Automated reminders
- User-friendly interface
- Free accounting tools
Cons:
- No advanced reporting
- Limited customer support
Bonsai is a business management software platform designed for freelancers and small businesses. It is best for all-in-one business management because it consolidates client management, project management, financial management, and various templates into one integrated platform.
Why I picked Bonsai: I chose Bonsai for the list because it offers a comprehensive suite of tools that cater to freelancers' diverse needs. Unlike other software, Bonsai integrates client, project, and financial management into a single platform, making it versatile. Bonsai is best for all-in-one business management due to its extensive range of features that streamline various business operations.
Standout Features & Integrations
Features include client management, project management, financial management, and various contract, proposal, and invoice templates.
Integrations include QuickBooks, Calendly, Zapier, Stripe, Google Calendar, Slack, Trello, Asana, Dropbox, and PayPal.
Pros and cons
Pros:
- Extensive templates
- User-friendly interface
- Comprehensive toolset
Cons:
- No advanced inventory management features
- Limited customization options
FreeAgent is an award-winning accounting software designed for freelancers and small businesses. It is best for tax filing and compliance due to its comprehensive features for managing VAT, Self-Assessment, and end-of-year filing directly to HMRC.
Why I picked FreeAgent: I chose FreeAgent for its robust tax management capabilities, which are crucial for freelancers who need to stay compliant with tax regulations. Its ability to handle VAT, Self-assessment, and end-of-year filing makes it stand out from other accounting software.
Standout Features & Integrations
Features include invoicing, expense management, cash flow monitoring, tax forecasting, and integration with Amazon for online sellers.
Integrations include Amazon, PayPal, Stripe, GoCardless, Zapier, Google Workspace, Slack, Mailchimp, Dropbox, and Shopify.
Pros and cons
Pros:
- 30-day free trial
- UK-based support team
- Comprehensive tax management
Cons:
- No built-in inventory management
- Limited to UK tax regulations
ZipBooks is free accounting software and an online invoicing platform offering accounting, billing, expense management, and intelligence features. It provides a simple and robust solution for freelancers to manage their finances and grow their businesses. It is best for intelligent insights and automation. It offers data-driven intelligence beyond historical reports to automate, predict, and advise.
Why I Picked ZipBooks: I chose ZipBooks for its unique ability to provide intelligent insights and automation, which sets it apart from other freelancer accounting software. The software's data-driven intelligence allows users to make impactful decisions with ease. ZipBooks is best for freelancers needing actionable insights and automated processes to streamline their financial management.
Standout Features & Integrations
Features include a full suite of reports and insights, automated expense tracking, and seamless invoicing and billing. ZipBooks also offers smart tagging, time tracking, and mobile accounting to manage finances.
Integrations include PayPal, Stripe, Square, Gusto, Slack, Google Drive, Dropbox, Trello, Asana, and QuickBooks.
Pros and cons
Pros:
- User-friendly interface
- Automated processes
- Intelligent insights
Cons:
- No phone support
- Limited advanced features
QuickBooks Self-Employed is specialized accounting software designed for solopreneurs and freelancers. It offers features like tracking income and expenses, managing mileage, and organizing tax deductions. It also provides support options and a recommendation tool to help users find the right plan for their business.
Why I picked QuickBooks Self-Employed: I chose QuickBooks Self-Employed for its robust automatic mileage tracking feature, which stands out from other accounting software. This tool is particularly beneficial for freelancers who frequently travel for work, as it uses the phone’s GPS to track miles automatically, making it easy to categorize trips and maximize tax deductions.
Standout Features & Integrations
Features include automatic mileage tracking, income and expense tracking, and tax organization tools.
Integrations include PayPal, Venmo, Apple Pay, TurboTax, QuickBooks Payments, QuickBooks Time, QuickBooks Online, QuickBooks Desktop, Mailchimp, and various bank accounts.
Pros and cons
Pros:
- Mobile app access
- Easy tax organization
- Automatic mileage tracking
Cons:
- Basic reporting features
- Limited to solopreneurs
1tap Receipt is a tool that simplifies receipt and expense management for freelancers and self-employed individuals. It is best for receipt and expense management due to its automatic data extraction and bookkeeping features.
Why I picked 1tap Receipts: I chose 1tap Receipts for its specialized focus on receipt and expense management, which is crucial for freelancers who need accurate financial records. The tool stands out for its automatic data extraction, making it easier to manage receipts and expenses without manual entry. This feature mainly benefits freelancers who often deal with numerous small transactions.
Standout Features & Integrations
Features include automatic data extraction, cloud storage, real-time sharing with accountants, and automatic currency conversion.
Integrations include Xero, QuickBooks, FreeAgent, Sage, Dropbox, Google Drive, OneDrive, Evernote, Expensify, and Receipt Bank.
Pros and cons
Pros:
- Real-time sharing
- Cloud storage
- Automatic data extraction
Cons:
- Basic reporting options available
- No built-in invoicing capabilities
Kashoo is an online accounting software designed for small business owners and freelancers. It is best for automated income and expense tracking because it allows users to connect their bank accounts and automate their bookkeeping tasks, ensuring accurate and up-to-date financial records.
Why I picked Kashoo: Kashoo stands out on this list because it focuses on automation and simplicity. This makes it ideal for freelancers who need to manage their finances efficiently. Kashoo's automated income and expense tracking feature eliminates redundant tasks, allowing users to focus on their core business activities.
Standout Features & Integrations
Features include automated bookkeeping, easy expense tracking, and a customizable chart of accounts.
Integrations include Stripe, PayPal, Square, FreshBooks, QuickBooks, Xero, Zoho Books, Wave, Sage, and FreeAgent.
Pros and cons
Pros:
- Customizable accounts
- Easy expense tracking
- Automated bookkeeping
Cons:
- Few third-party integrations
- Limited advanced features
Sage is a comprehensive accounting software solution designed to help businesses of all sizes manage their finances efficiently. It is mainly known for its AI-powered financial insights, making it a standout choice for freelancers seeking advanced analytical capabilities.
Why I picked Sage: I chose Sage for this list because of its unique AI-powered financial insights, which set it apart from other accounting software. This feature provides freelancers with real-time, actionable data, helping them make smarter financial decisions. Sage's AI capabilities make it the best choice for freelancers who need detailed financial analysis and forecasting.
Standout Features & Integrations
Features include AI-powered financial insights, automated bank reconciliation, and comprehensive reporting tools.
Integrations include Microsoft 365, Stripe, PayPal, AutoEntry, OneDrive, Outlook, Excel, Word, PowerPoint, and Teams.
Pros and cons
Pros:
- Automated bank reconciliation
- Comprehensive reporting
- AI-powered insights
Cons:
- Limited mobile app functionality
- The steeper learning curve for beginners
Other Accounting Software For Freelancers
Below is a list of additional accounting software for freelancers I shortlisted but still need to reach the top list. It is worth checking them out.
- Xero
Best for app integrations
- FreshBooks
Best for accounts payable
- Bench
Good for bookkeeping with a personal touch
- Hurdlr
Good for real-time expense tracking
- LessAccounting
Good for minimalistic accounting needs
- Pandle
Good for easy bookkeeping with automation
- BrightBook
Good for simple, free accounting
Accounting Software For Freelancers Selection Criteria
Selecting accounting software for freelancers involves evaluating functionality and specific use cases that address freelancers' unique needs and pain points. As an expert who has personally tried and researched these tools, I focus on criteria that ensure the software meets the demands of freelance accounting tasks.
Core Accounting Software for Freelancers Functionality - 25% of Total Weighting Score
- Ability to create, send, and track invoices
- Tools to record and categorize expenses
- Generation of profit and loss statements, balance sheets, and other financial reports
- Features to help with tax calculations and filings
- Integration or built-in tools to track billable hours
Additional Standout Features - 25% of Total Weighting Score
- Tools that automate repetitive tasks like invoicing and expense categorization
- Availability of mobile apps for on-the-go accounting
- Compatibility with other tools like payment processors and project management software
- Personalized views for tracking critical financial metrics
- Features that provide predictive insights and anomaly detection
Usability - 10% of Total Weighting Score
- Clean, user-friendly design that simplifies navigation
- Ability to tailor the interface to individual needs
- Fast loading times and minimal downtime for ease of use
- Features that ensure the software is accessible to all users, including those with disabilities
Onboarding - 10% of Total Weighting Score
- Availability of comprehensive video tutorials
- Pre-built templates for invoices, reports, and other documents
- Guided tours that help new users get started quickly
- Access to real-time support and educational webinars
Customer Support - 10% of Total Weighting Score
- 24/7 support through various chat, email, and phone channels
- Quick response times and compelling issue resolution
- Extensive library of articles and FAQs
- Active user communities for peer support
Value For Money - 10% of Total Weighting Score
- Competitive pricing with flexible plans
- Availability of free trials to test the software before committing
- The balance between the number of features and the cost
- Discounts are available for long-term commitments or referrals
Customer Reviews - 10% of Total Weighting Score
- High overall satisfaction ratings
- Positive feedback on critical features
- Positive reviews on customer support experiences
- High ratings for usability and interface design
Trends For Accounting Software For Freelancers
The landscape of accounting software for freelancers is rapidly evolving. In 2024, several key trends are shaping the tools and technologies available to independent workers, making financial management more efficient and accessible.
- AI and Automation: Artificial Intelligence (AI) and automation are transforming accounting processes. AI-powered tools can handle repetitive tasks such as data entry, bookkeeping, and reconciliation, freeing freelancers to focus on higher-level strategic work. This technology also improves accuracy and efficiency, making it a valuable asset for freelancers managing their finances.
- Enhanced Data Security: Data security has become a top priority with the increasing amount of sensitive financial data handled online. Accounting software providers are integrating advanced encryption and backup systems to protect against cyber threats. This trend ensures that freelancers' financial information remains secure and confidential.
- Integration with Other Tools: Freelancers often use various tools to manage their work, from project management software to payment gateways. The trend towards integration means that accounting software is increasingly compatible with other business tools, allowing for seamless data flow and improved efficiency. This integration helps freelancers streamline their workflows and reduce the time spent on administrative tasks.
- Customizable and User-Friendly Interfaces: User experience is critical to adopting accounting software. In 2024, there will be a strong emphasis on customizable and user-friendly interfaces that cater to the specific needs of freelancers. These interfaces will make it easier for users to navigate the software, generate reports, and manage their finances without requiring extensive accounting knowledge.
The trends in accounting software highlight the importance of flexibility, security, and efficiency. By leveraging AI and integrated tools, freelancers can better manage their finances and focus on growing their businesses.
What Is Accounting Software For Freelancers?
Accounting software for freelancers is designed to help self-employed individuals manage their financial transactions, invoicing, and tax obligations. Freelancers use this software to track income and expenses, generate invoices, and prepare for tax season, ensuring accurate financial records and compliance with tax regulations.
Accounting software for freelancers' primary components include expense tracking, invoicing, and tax preparation features. These tools allow users to categorize expenses, create and send invoices, and generate financial reports, providing a comprehensive solution for managing freelance finances.
Features Of Accounting Software For Freelancers
As a freelancer, managing your finances efficiently is crucial to your success. The right accounting software can streamline your financial management, allowing you to focus more on your core work. Here are some essential features to look for in accounting software tailored for freelancers:
- Payment Processing: Ability to accept a variety of in-person or online payment methods, including credit card or Android iOS apps like Square. This ensures your clients can pay what they owe by whatever method they choose, decreasingly the likelihood of missed or delayed payment.
- Expense Tracking: Expense tracking is the backbone of financial management. It involves recording all outgoing payments, from subscriptions to operational costs. This feature is vital for freelancers to maintain detailed records, which simplifies tax preparation and helps identify cost-saving opportunities.
- Invoicing and Income Management: Invoicing is not just about getting paid; it’s about professionalism and efficiency. The software should allow you to generate, send quickly, and track invoices. This feature ensures timely payments and a clear view of your income streams, helping you identify your most profitable clients or projects.
- Profit and Loss Reports: A Profit and Loss (P&L) report compares your income to your expenses, showing your net profit or loss over a specific period. This feature helps you understand your business’s financial health, enabling you to make informed decisions and identify areas for improvement.
- Third-Party Compatibility: Integration with other tools and platforms, such as PayPal, Stripe, or project management software, is crucial. This feature allows for automatic data import and export, saving time and reducing errors from manual data entry.
- Receipt Scanning: Receipt scanning lets you easily capture deductible purchases. This feature is especially vital for simplifying freelancer finances by eliminating the need for manual data entry and ensuring all expenses are tracked accurately.
- Tax Support: The software should assist with tax planning and filing, including estimated quarterly tax payments. This feature helps freelancers manage their unique tax obligations, ensure compliance, and maximize deductions.
- Time Tracking: Time tracking is essential for freelancers who bill by the hour. The software should allow you to log hours worked on different projects, ensuring accurate billing and providing insights into how your time is spent.
- Mobile Accessibility: It is crucial to access key business accounting features on the go. Mobile apps enable you to manage your finances in real time, whether traveling or working remotely, ensuring you stay on top of your financial management.
- User-Friendly Interface: A user-friendly interface is essential for freelancers who may need a background in accounting. The software should be intuitive and easy to navigate, reducing the learning curve and making financial management less daunting.
- Financial Reporting and Projections: Real-time financial reporting provides insights into cash flow, profits, and other critical metrics. This feature helps freelancers make data-driven decisions, spot negative trends early, and plan for future growth.
Choosing the right accounting software can significantly impact your freelance business. It saves time, reduces errors, and provides valuable insights into your financial health, helping you make informed decisions and focus more on your core work.
Benefits Of Accounting Software For Freelancers
As a freelancer, managing your finances can be a daunting task. Accounting software can simplify this process, offering a range of benefits that can save you time, reduce errors, and help you stay organized. Below are five primary benefits of using accounting software for freelancers.
- Time Efficiency: Accounting software automates many of the repetitive tasks in bookkeeping, such as invoicing and business expenses tracking, allowing you to focus more on your core work.
- Accuracy: Accounting software minimizes the risk of errors by reducing the need for manual data entry, ensuring that your financial records are accurate and up-to-date.
- Financial Insights: These tools often come with reporting features that provide valuable insights into your financial health, helping you make informed business decisions.
- Tax Preparation: Accounting software can simplify tax season by organizing your financial data and generating necessary reports, mailing your taxes accurately, and filing them on time.
- Professionalism: Using accounting software can enhance your professional image by providing polished, branded invoices and financial statements, which can impress clients and improve your business reputation.
Investing in accounting software can significantly streamline your financial management processes, allowing you to focus on growing your freelance business. The benefits outlined above demonstrate how these tools can enhance efficiency, accuracy, and professionalism, making them a valuable asset for freelancers.
Costs And Pricing Of Accounting Software For Freelancers
This section estimates average accounting software plans and expenses for freelancers. The data is based on current pricing trends and standard features offered by various software providers.
| Plan Type | Average Price | Common Features |
| Free Plan | $0 | Basic invoicing, expense tracking, limited reports, 1-2 user access |
| Personal Plan | $10 - $50/month | Income/expense tracking, generating invoices, payable/receivable management |
| Business Plan | $50 - $150/month | Multi-user access, recurring invoicing, expense reporting, inventory management |
| Enterprise Plan | $150+/month | Custom fields, automated reporting, project costing, advanced budgeting |
When choosing accounting software, freelancers should weigh the initial purchase or subscription cost against the features and support offered.
Accounting Software For Freelancers FAQs
Here are some commonly asked questions about accounting software for freelancers.
Can accounting software help freelancers with tax compliance?
Many accounting software solutions offer features designed to help freelancers with tax compliance. These features may include automatic tax calculations, generation of tax reports, and integration with tax filing services. Some software even provides reminders for tax deadlines and helps track deductible expenses, making it easier to comply with tax regulations.
Is cloud-based accounting software secure for managing my freelance finances?
Cloud-based accounting software is generally secure, as reputable providers implement robust security measures to protect your data. These measures often include encryption, two-factor authentication, and regular security audits. However, it’s essential to choose a trusted provider and follow best practices, such as using strong passwords and regularly updating your software, to ensure the highest level of security for your financial information.
How can accounting software improve my invoicing process?
Accounting software can significantly streamline your invoicing process by automating many tasks. You can create and send professional invoices quickly, set up recurring invoices for regular clients, and track the status of your invoices in real time. Some software also allows you to accept online payments directly through the invoice, reducing the time it takes to get paid. Additionally, automated reminders can be sent to clients for overdue payments, improving your cash flow management.
How do I migrate my financial data to a new accounting software?
Migrating your financial data to new accounting software typically involves exporting it from your current system and importing it into the new one. 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.
What kind of customer support can I expect from accounting software providers?
Customer support varies among accounting software providers, but most offer multiple channels for assistance, including email, phone, and live chat support. Some providers provide extensive online resources, such as knowledge bases, tutorials, and community forums. When choosing accounting software, consider the level of support you may need and whether the provider offers the necessary resources to help you resolve any issues that may arise.
What’s Next?
Ready to compound your abilities as a finance professional? Subscribe to our free newsletter for expert advice, guides, and insights from finance leaders shaping the tech industry.