Best Accounting Software for Self-Employed and Freelancers

Collective has made its mark on the accounting software for self-employed space with its comprehensive approach to freelancer financial management. As one of the best accounting software for self-employed users, Fiverr Workspace simplifies managing the business and finances of freelancing. 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.

How did we find using Clear Books?

The feature is built within the software to let you track business-related miles by using your smartphone. Another perk of the plan is that you can easily share your books with your accountant or export important documents. You can access a few different reports to check your business’s financial status, such as profit and loss reports, expense reports, balance sheets, and more. However, if you require extra features like VAT reporting and budgeting tools, you’ll have to upgrade to its Medium plan. One of FreeAgent’s biggest accolades is its sophisticated cash flow management features. The platform’s cash flow graph provides users with a visual representation of their forecasted cash flow over the next 90 days.

QuickBooks Online is a product developed by Intuit, a company that creates financial products for small and medium-sized businesses. You’ll rarely find a person who hasn’t heard of QuickBooks, as it has been an industry standard for many years. People have been using QuickBooks Online for many reasons, including its ease of use, a generous set of features, and affordability. QuickBooks’ isn’t the only great option for self-employed workers, though.

Its user-friendly interface and seamless integration with other QuickBooks products make it a top choice for self-employed individuals. The right software should include essential features like invoicing, expense tracking, and tax preparation. If you handle multiple clients or projects, look for tools with time-tracking or project-management capabilities. If you’re self-employed, having the right accounting software is crucial for managing your finances effectively.

Mobile Accessibility

best accounting software for self employed

This attribute allows even those with little to no accounting experience to effortlessly navigate their finances. And that’s why finding the best accounting software for self-employed needs is paramount. A big part of being self-employed is, in many cases, working with less infrastructure than a full-on business. This makes offering your customers or clients extra convenience a key competitive advantage. Turning your side gig into the main show is exciting, but to do it consistently and successfully, you need the right tools. I sure did when I started out—it was an agile way to start working, but it’s not sustainable as you grow.

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In their mileage tracker, Hurdlr also distinguishes between business mileage (for multiple businesses, if applicable) and personal mileage. Hurdlr’s app will automatically track all of your business mileage with just a click. You can easily start and stop business mileage to accurately and effortlessly track it for tax purposes. When tax season comes, then you’ve got all of your mileage categorized and totaled, and you’ll get the maximum deduction. Newbies to accounting or bookkeeping may find that Sage 50cloud is not as intuitive or easy to use as some of the other programs on this list. However, it provides you with all of the accounting functions you might need and is worth a little extra time to learn the program.

FreeAgent (Web, iOS, Android)

At Business.org, our research is meant to offer general product and service recommendations. We don’t guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services. Having an accountant at tax time is always helpful but did you know that best accounting software for self employed you can file your own business taxes? Without a background in accounting, I found the user experience of the old program to be counterintuitive and difficult to learn.

This human-AI hybrid approach ensures that growing businesses receive automated efficiency and expert guidance for complex financial decisions. These are some of the features you will gain access to by using this tool. This tool allows you to sync feeds from over 9,500 US and Canadian banks and collaborate with employees and contractors, all from an easy-to-use interface for non-accountants. Like Wave, Fiverr Workspace allows freelancers a lot of room with its free plan and offers only one paid plan. FreeAgent offers a single-paid plan with a 50% discount for the first six months. FreeAgent also stands out for its user-centric design, prioritizing ease of use and accessibility.

Features that match your needs

Entrepreneurs and freelancers who need versatile self-employed bookkeeping software with integrated tools for managing all aspects of their business. We appreciate how meaningful this is for freelancers — you’ll stop spending extra hours chasing payment and get time back for your actual work. For any sole proprietor — especially self-employed operations growing to include more bill payments — Xero is a winner. 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. There are five plans you can opt for, although the Self plan is the most suitable for self-employed individuals who are operating with a tight budget.

Key Features:

But while we love QuickBooks, its interface isn’t all that different from FreshBooks or Xero. All three options have a low learning curve and solid instructional videos to help you get set up. Along with sending invoices, this plan includes basic income tracking, client tracking, and payment acceptance—more than enough for freelancers with just a few clients and limited expenses.

With the advancement of easy-to-use yet powerful accounting technology, self-employed users like yourself have more choices than ever before. What sets Collective apart is its integration of AI technology (specifically GPT-4) into financial workflows. Collective leverages AI to automate expense categorization and account reconciliation, allowing freelancers to focus on their work rather than manual data entry. Because it features enterprise-grade functionality, AccountEdge Pro is perfect for advanced self-employed professionals running mostly high-transaction product-based businesses. As one of the best accounting software for self-employed individuals in terms of simplicity, ZipBooks aims to help streamline the core financial operations of solopreneurs.

The best platform for your precise business finance needs balances all these scales. Plus, since you’ve taken this longer-term approach to choosing a platform, chances are you’ll be happy with your choice from the get-go. If you’re registered as a U.S. sole proprietor, you can use this worksheet to simplify your tax season. When I tried changing my business type to all the other options, there weren’t equivalent features. The user interface is simple and appealing, without a lot of sparkle or frills. Creating invoices or other documents follows a step-by-step process, breaking down the big tasks into smaller ones, which should feel more organized than with many other apps.

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. When in doubt, the right accounting software provides easy invoicing, payment collection, expense tracking, tax planning, collaboration, and financial insights, all on an intuitive platform. Kashoo positions itself as an accounting solution that grows with your business. It starts with straightforward tools for basic bookkeeping, invoicing, payment management, and reporting. However, it can scale up to handle multi-location inventory tracking, enhanced analytics, and revenue recognition needs. Wave Accounting is a free, cloud-based bookkeeping software that helps self-employed individuals track their finances effortlessly.

Xero is a full-fledged accounting software that still remains accessible to solo professionals thanks to its easy-to-use dashboard and mobile apps. That’s not to say another software platform won’t have a specific tool or feature that’s more suited to your needs. Read on for our full reviews of the best accounting software for self-employed people, sole traders, and freelancers to find out which is best for you. With over 20 million users, it stands out by offering a unique blend of personal and business financial management. This offering is especially valuable for sole proprietors transitioning from traditional employment to self-employment.