Best Accounting Software for Self-Employed and Freelancers

QuickBooks is also one step ahead of competitors when it comes to artificial intelligence. The platform lets you extract relevant information from invoices, categorize expenses, and flag potential errors or unusual charges with its powerful AI toolkit. This makes QuickBooks a great option for individuals keen on saving time by streamlining manual processes. Most accounting software offers customer support, tutorials, and guides to help you learn how to use it. In summary, OneUp stands out for its ease of use and all-inclusive plans, making it a top choice for those managing their own businesses. Self-employed users will find it particularly beneficial for keeping their finances organized and accessible.

One tool for self-employed finances and maximum tax-deductions

If you feel like hiring someone for your accounting needs, consider interviewing OneUp’s Business Assistant and seeing if they’re right for the job. Not to mention, let’s hope you’re catching this article early because FreshBooks has a 60% off sale for the next 6 months. They regularly have promotions going on, so keep your eyes peeled for the next one. Xero makes accounting feel like a piece of cake by featuring real-time collaboration.

What makes the best self-employment accounting software?

FreshBooks shows your profitability, cash flow, and where your money is going with business health and financial reports. Do-it-yourself bookkeeping is very common for the micro business, self-employed freelancing startup, especially when on a tight budget. If you have none of those concerns, doing it yourself should work for you.If it sounds like it will be too hard, then look for a Bookkeeper to outsource your bookkeeping to. Since you’re self-employed you don’t have the resources of a large company to make sure you’re paid properly and your books are balanced. Wave accounting software is the solution you need to take charge of your business and keep your hard-earned money safe. Create graphs, charts, and dashboards to see at a glance where your income is coming from and which expenses are cutting into your bottom line.

• But while we love QuickBooks, its interface isn’t all that different from FreshBooks or Xero.
• This means that if you make purchases on credit, make sure you have all the invoices from the vendor.
• Setting and sticking to a budget will help you manage your cash flow and ensure you have organized tax records.
• Zoho Books is a great choice for those who want a comprehensive accounting solution without breaking the bank.
• After trying out the software ourselves, we were impressed by its user-friendly templates for invoices and estimates.

What if I just want to try Wave to see if it works for my business?

When you create a project, you can add the services that you’ll perform. Set the amount or the percentage, and Fiverr Workspace will generate the invoice for you. Other features of note are sales tax handling (if you have to charge it) and a deep accounting section with your entire chart of accounts. And when you want a big-picture view, head to the Reports section, where you can create your custom reports in addition to the five that are already in place. It’s great for a quick overview or to make important business decisions—because yes, we’re self-employed, but we’re running a business all the same.

Expense Tracking

The onboarding is fast, as QuickBooks only wants to know your industry to give you some advice on expenses folks in your industry usually write off. From then on, you’ll have a set of messages on the dashboard to help you set everything up, from adding your business details to checking whether you’re married or not (relevant for taxes). Wave lets you attach your receipts to expenses, so you have everything in one place, but it won’t extract data for you—you’ll have to input it manually. It also has some useful extra features, including Wave Checkouts, which allows you to accept payments from your website with a payment link.

• It combines essential features like sales and inventory management with time tracking.
• You are likely already educated in one accounting field or the other, but that’s not enough.
• In summary, AccountingSuite is a versatile tool that can help self-employed individuals manage their finances effectively.
• However, if you do get other reports with your accounting software, you might have an easier time growing from a one-person operation into a team.

As a freelancer, you might benefit from fundamental financial analyses such as cash flow graphs and charts. It’s worth seeking accounting platforms that include these basic analyses, though you might not need other financial reports — these are often geared toward full-on businesses. However, if you do get other reports with your accounting software, you might have an easier time growing from a one-person operation into a team.

About Self Employed’s Editorial Process

Accounting software requires a paid monthly subscription, though fret not — these monthly prices are among the lowest you’ll encounter when pursuing business technology. Plus, if your business income is under $50,000, Zoho Books is entirely free. Otherwise, you might pay as low as $7.50 for the first many months, though the price will eventually increase to between $10 and $15. Although each vendor offers more expensive plans, these include features designed for full-on businesses. Self-employed users, though, generally only need what’s in a vendor’s lowest-priced package.

Enter payment options embedded in invoices — no more clients logging into their bank accounts or peer-to-peer payment platforms (or writing and mailing checks). Instead, everyone who owes you money can pay it right from where they see their charges detailed. This convenience can encourage repeat customer and client transactions while streamlining your cash flow.

How did we find using Clear Books?

As you can see, there’s a wide range of self employment accounting software on the market, and each has its own strengths and weaknesses. Using the receipt capture feature, you can take pictures of your receipts and upload them to Sage. All the receipt information will be automatically extracted and categorized. Once you connect your bank or credit card accounts, Sage will automatically categorize incoming transactions as well.

You’ll pay highly competitive prices for access to fundamental invoicing tools and bank reconciliation features. Step up to Sage Accounting’s self employed accounting higher-priced tier, and you add expensing, quoting, estimating and cash flow management to the picture. Plus, for your first six months, this tier’s monthly price is actually less expensive than the lower-priced tier — $7.50 as compared to $10. AccountingSuite may not be the most famous accounting software, but it has a lot to offer for self-employed individuals and small business owners.