The best accounting software for freelancers must be easy to use, especially for users with limited accounting knowledge who want to focus more on managing the business. It should have essential general accounting features, such as expense tracking and reporting, and tools useful to freelancers, like mileage and invoice tracking. Niche features like tax calculation and tax write-off tracking are bonus features to have.
Here are the six best accounting software for self-employed individuals and freelancers:
- Zoho Books: Overall best freelancer accounting software with an outstanding mobile app
- QuickBooks Online: Best for access to local bookkeeping assistance
- FreshBooks: Best easy-to-use software for service-based freelancers
- Wave: Best free accounting software
- QuickBooks Solopreneur: Best for profit tracking and comprehensive tax support
- Found: Best digital banking platform with bookkeeping functionality
Create unlimited invoices, estimates, and bills for FREE with Wave |
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The Fit Small Business mission is to provide small business owners with the best answers to their small business questions. Whenever possible, we evaluate all of the software we recommend by conducting an in-depth internal case study where our experts determine the strengths and drawbacks of each software by recreating real-life bookkeeping scenarios.
There are only two scenarios where we may recommend a platform that has not been subjected to our case study: if the solution is not a complete bookkeeping system or if we don’t have access to evaluate the software. We evaluate all software on the same set of criteria, regardless of whether it is a partner company.
Comparison of Best Accounting Software for Freelancers
Monthly Pricing | Users Included | Free Trial | |
|---|---|---|---|
 | $0 to $275 | 14 days | |
 | $35 to $235 | 1 to 25 | 30 days |
 | $19 to $60 or custom | 30 days | |
 | FREE or $16 | 1 or Unlimited | ✕ |
| $25 | 1 | 30 days |
 | FREE or $19.99 | 1 | 30 days |
Estimate Tax for Schedule C | Manage Projects | Track Time and Bill them To Clients | Mobile App | |
|---|---|---|---|---|
| ✕ | ✓ | ✓ | ✓ |
| ✕ | ✓ | ✓ | ✓ |
| ✕ | ✓ | ✓ | ✓ |
| ✕ | ✕ | ✕ | ✓ |
| ✓ | ✕ | ✕ | ✓ |
| ✓ | ✕ | ✕ | ✓ |
Zoho Books: Best Overall Accounting Software for Freelancers Looking for an Outstanding Mobile App
Pros
- Offers an outstanding mobile app
- Has a free plan for those who make less than $50,000 a year
- Manages sales tax collections
- Tracks time and expenses and adds easily to an invoice
- Tracks project profitability
Cons
- Charges additional for receipt capture
- Can’t transfer income/expense to Schedule C
- Can’t calculate quarterly estimated tax payment
- Can’t connect bank feeds in the Free plan
Monthly Pricing | Users Included | Max. Number of Invoices per Year | |
|---|---|---|---|
Free | Free for businesses with less than $50,000 in annual revenue | 1 user, plus 1 accountant | 1,000 |
Standard | $20 | 3 | 5,000 |
Professional | $50 | 5 | 10,000 |
Premium | $70 | 10 | 25,000 |
Elite | $150 | 10 | 100,000 |
Ultimate | $275 | 15 | 100,000 |
Add-ons:
- Additional users: $3 per user monthly
- Receipts scanning: $10 for 50 scans per month
- Snail mail credits for sending invoices: $2 per credit
You can try any of the paid plans for free for 14 days with no credit card required.
Zoho Books is our overall best accounting software for freelancers because of its excellent project accounting features that help freelancers manage project income, expenses, and billings from different clients.
We recommend it particularly for freelancers on the go because of its outstanding mobile app that allows you to create and send invoices, receive payments, record time worked, and assign expenses to customers. Many similar accounting software include mobile apps, but they are often unable to perform advanced tasks, like recording billable time. For this reason, Zoho Books tops our list of the best mobile accounting apps.
Also, its free plan is optimal for those who make less than $50,000 in annual revenue. This is sufficient for many freelancers, especially those who are just starting out and those who manage only a few clients.
On the downside, Zoho Books has a limited support network of bookkeepers who provide bookkeeping assistance. Freelancers might have a hard time looking for Zoho Advisors as they’re not as accessible and popular as the QuickBooks ProAdvisor network. If you want a vast network of bookkeepers to help you, we recommend QuickBooks Online.
Zoho Books aced our mobile app criterion and excellent marks for general accounting and project management features. We docked a few points for ease of use primarily because of its extensive feature set, which may require a learning curve for new users. Furthermore, we deducted points for pricing because of its invoicing limitations. For instance, the free plan allows up to 1,000 invoices a year only, which may be limiting for some freelancers.
QuickBooks Online: Best for Access to Local Bookkeeping Assistance
Pros
- Offers access to a vast network of independent ProAdvisors
- Manages sales tax with automatic sales tax rates based on customer address
- Includes receipt capture to generate transactions from uploaded receipts
- Monitors time and expenses and adds them to customer invoices (requires Essentials)
- Tracks miles with mobile app automatically
Cons
- Has no customer service telephone number—you must submit a request to be called
- Requires a subscription to the expensive Plus version to track project profitability
- Can’t calculate quarterly tax payments or transfer information to Schedule C
QuickBooks Online has four plans, and our recommended tier for freelancers is Simple Start.
- Simple Start: $35 per month for one user
- Essentials: $65 per month for three users
- Plus: $99 per month for five users
- Advanced: $235 per month for 25 users
If you buy now, you get 50% off for three months, plus a free guided setup from a QuickBooks expert. Otherwise, you can get the 30-day free trial (without free guided setup) and pay the regular price at the end of the trial.
If you often need professional bookkeeping support, we strongly recommend QuickBooks Online. What sets it apart is that it has a vast QuickBooks ProAdvisor network, which makes it easy for freelancers to look for a ProAdvisor who can help them with bookkeeping tasks—from connecting bank accounts to generating customized reports. If you need one, then reference our guide on how to find a QuickBooks ProAdvisor.
QuickBooks Online’s entry-level plan, Simple Start, can be sufficient for most freelancers, especially those who only need basic accounting features, like invoicing, basic reporting, and income and expense tracking. If you need to pay bills, then you can easily upgrade to the Essentials plan.
A significant drawback to using QuickBooks is that it doesn’t have a free plan. If you are just starting your freelancing career or have a limited budget, you can save money by using an alternative like Zoho Books’ free plan. If you’re seeking comprehensive tax support, you can consider QuickBooks Solopreneur, which allows you to estimate quarterly taxes and generate tax schedules for Schedule C filers.
QuickBooks Online earned an excellent mark in general accounting—which isn’t surprising given that it’s our overall best small business accounting software. It could’ve earned more points in project accounting if it could compare actual vs estimated labor and inventory without the need to upgrade to the highest plan, QuickBooks Online Advanced.
Similarly, you need Advanced to be able to make a phone call to an agent—which is why we docked a few points for customer service. With the lower tiers, you have to submit a ticket and wait for someone to call you.
Furthermore, we couldn’t award a higher ease of use score because it may take time to set up a company file. QuickBooks Online also took a slight hit in pricing because you have to upgrade to a higher plan to get more users, as there is no option to add seats in any plan.
FreshBooks: Best Easy-to-Use Software for Service-based Freelancers
Pros
- Has an easy-to-use interface for non-accountants
- Tracks mileage on mobile app
- Has excellent project management tool
- Lets you track hours and expenses and add them to invoices
- Can track time and bill clients for hours
Cons
- Requires pricey Premium plan for over 50 billable customers
- Has no expense or income tracking by class
- Can’t track COGS for freelancers dealing with inventory
- Requires bank account feed to track cash transactions accurately
- Is expensive for multiple users
FreshBooks has four plans:
- Lite: $19 per month for five billable clients
- Plus: $33 per month for 50 billable clients
- Premium: $60 per month unlimited billable clients
- Select: Custom pricing for unlimited billable clients and specialized features
You can try the Lite, Plus, and Premium plans for free for 30 days.
Add-ons:
- Additional team members: $11 per seat monthly
- Gusto payroll: $40 monthly plus $6 per employee per month; billed separately by Gusto (read our review of Gusto)
- Advanced payments: $20 per month (for Plus, Premium, and Select plans only)
FreshBooks is an easy-to-use accounting software for freelancers without or with little accounting knowledge—its interface is non-intimidating and easy to learn. It’s easy to set up a company file, and the dashboard is very streamlined, allowing you to navigate and learn how to use the program easily.
We particularly recommend it for service-based freelancers due to its strong focus on project accounting. For instance, it has a built-in time tracking tool that allows you to capture billable time. You can easily convert time entries to invoices and customize your invoices to make them more professional-looking.
On the flip side, FreshBooks can be expensive for multiple users, as all tiers include only a single user—and you have to pay $11 for each additional user. If you need a more affordable solution for multiple users, you can consider Wave (discussed in the next section). It offers a paid plan that allows you to set up an unlimited number of users for only $16 per month.
FreshBooks’ high scores in project accounting and ease of use make it a good pick for non-accountant freelancers handling client projects and billing by the hour. The platform took a hit in general accounting features because its banking feature is not that streamlined. It cannot be used to track cash from multiple bank or credit card accounts unless live bank feeds are established.
Moreover, FreshBooks earned average marks in mobile app because its app can’t perform advanced tasks, like tracking billable time. Also, as mentioned earlier, all plans only include one user—which explains the low score for pricing.
Wave: Best Free Accounting Software for Freelancers
Pros
- Offers a free version for a single user; ideal for most freelancers and solopreneurs
- Is easy to set up and use
- Allows you to create and send unlimited invoices to your clients
- Lets you process payments at affordable fees
- Offers receipt capture add-on in the free plan
Cons
- Doesn’t allow you to connect your bank accounts in the free plan
- Doesn’t separate income and expense by class or location
- Has limited customer support in the free tier
- Can only accommodate multiple users in the paid version
Wave offers two subscription options:
- Starter: Free; includes one user and accounting and invoicing features
- Pro: $16 per month or $170 per year; includes unlimited users and additional features like bank feeds and unlimited receipt capture
Add-ons:
- Bookkeeping support: $149 per month
- Accounting and payroll coaching: $379
- Assisted payroll services through Wave Payroll: $40 per month for tax service states and $20 per month for self-service states plus $6 monthly per employee
- Receipt scanning: $8 per month or $72 per year for Starter; included in Pro
Wave’s free plan, Starter, which leads our roundup of the best free accounting software, is a good pick for those who only need simple income and expense tracking features and want free software. It lacks advanced functions like inventory management and project accounting but includes recurring invoices and billing, which are often present only in premium plans of paid software. Additionally, Wave charges minimal transaction fees for bank transactions and card payments.
Unfortunately, Wave lacks many advanced features in both the free and paid tiers. For example, it has no project accounting features, which can be a huge problem for freelancers who handle big projects. In that case, we recommend FreshBooks because of its excellent project accounting features.
Wave’s below-average score in general accounting features shows that it can handle only basic functions, which is all most freelancers would need. It also didn’t do well in mobile accounting, as the app has very limited features. You can capture receipts, send invoices, and accept payments, but you can’t enter or pay bills, categorize transactions, and view reports.
However, Wave aced pricing and also did well in ease of use since it focuses only on the essential tools needed for basic accounting, such as invoicing and income and expense tracking.
QuickBooks Solopreneur: Best for Profit Tracking and Comprehensive Tax Support
Pros
- Is built exclusively for one-person businesses, including freelancers
- Is inexpensive and easy to use
- Provides tax support for Schedule C (Form 1040) filers
- Transfers income and loss information to TurboTax for tax filing
- Automatically tracks business mileage
Cons
- Won’t allow you to customize the chart of accounts
- Lacks double-entry accounting features
- Has no telephone number for customer service
- Doesn’t track assets and liabilities for a balance sheet
- Won’t let you upgrade directly to QuickBooks Online
QuickBooks Solopreneur costs $25 per month or $120 for the first year if you opt for an annual subscription. You can try it for free for 30 days or purchase it immediately and get 50% off for three months.
QuickBooks Solopreneur, a new product replacing QuickBooks Self-Employed, is ideal for freelancers who only want to track income and expenses for tax purposes. It provides various tax support tools for Schedule Schedule C (form 1040) filers or those who report their income and expenses as a sole proprietor or a single-member LLC.
For instance, it automatically categorizes income and expenses into relevant tax categories. It also helps estimate tax payments and will transfer income and expenses to Schedule C when it’s time to file a tax return. Those who often travel for work can also use its built-in mileage tracker to track and log their business miles.
One of the best improvements is the inclusion of estimate management, which isn’t offered in QuickBooks Self-Employed. We believe this is a great feature, especially for project-based freelancers.
On the downside, QuickBooks Solopreneur isn’t a great fit for freelancers who have plans to scale their operations and launch a business. For this, we recommend QuickBooks Online, which has more useful small business accounting features and has built-in payroll management through QuickBooks Payroll—in case you’ll be hiring employees.
Found: Best Digital Banking Platform With Bookkeeping Functionality
Pros
- Has free bookkeeping features
- Calculates quarterly estimated tax payments
- Tracks expenses automatically
- Offers banking services
Cons
- Is not a full bookkeeping software
- Requires Found Plus for unlimited custom rules, categories, and tags
- Won’t let you auto-import expenses in the free plan
- Doesn’t give 1.5% APY in the free tier
With a Found business checking account, you can use the Found app for free or get Found Plus for $19.99 a month (or $149.99 per year) for additional features. With the paid option, you can enjoy the following perks:
- 1.5% APY on accounts with balances up to $20,000
- Unlimited custom rules, tags, and categories
- Automatic expense import from receipts
- Ability to import activity from bank, credit card, Venmo, and PayPal
- In-app quarterly federal tax payments for all Schedule C filers
- Priority custom support
You can sign up for a 30-day free trial to see how it works before buying the program.
As a fintech platform and digital banking solution, Found offers in-app banking services with bookkeeping, tax preparation, and invoicing features. It enables freelancers to manage their online banking easily and track their expenses via the app. Though the solution offers a lot, its features aren’t comprehensive. We still prefer Zoho Books or QuickBooks for a more complete bookkeeping and accounting service.
How We Evaluated Accounting Software for Self-employed
We evaluated the best accounting software for self-employed individuals with the following features in mind:
10% of Overall Score
The price of the software is considered in the evaluation but we didn’t place a heavy weight on this criterion. Since freelancers don’t need advanced accounting features, we believe that most freelancers would benefit greatly from the lowest or lower tier plans of most software products.
20% of Overall Score
25% of Overall Score
Project accounting has the highest weight in the evaluation because most freelancers handle project-based transactions with clients. We like to give more credit to software programs that allow freelancers to assign expenses and income by project, assign billable expenses to projects, and manage project costs.
15% of Overall Score
A mobile app is important for freelancers who work across different devices. The mobile app must also have the same features as the desktop or web-based app for accessibility.
10% of Overall Score
Ease of use is a top concern since most freelancers might not have the time to learn complicated software. An easy-to-use software is a big plus in our evaluation. However, we also considered the availability of support channels since some freelancers might need assistance in using the software.
10% of Overall Score
We included user ratings from popular review websites to capture the overall impact of the software to actual users.
10% of Overall Score
Features To Look for in Freelance Accounting Software
As self-employed individuals providing services or selling goods, freelancers have different requirements for accounting software than most businesses. Generally, some of the important features to look for in freelance accounting software, include the ability to:
- Capture expense receipts either through desktop or mobile
- Track business mileage
- Create and customize invoices
- Bill clients and accept payments online
- Manage sales tax if providing a taxable service
- Assign hours and expenses to customer
- Track project profitability for fixed-fee contracts
- Transfer income and expense to Schedule C
- Calculate quarterly income tax payments
Frequently Asked Questions (FAQs)
Yes—QuickBooks Solopreneur costs $25 per month and is designed exclusively for one-person businesses, including freelancers. However, you may wish to subscribe to QuickBooks Online Simple Start for $35 per month if you send many invoices to customers.
While not as feature-packed as QuickBooks Online, many freelancers love FreshBooks for its simplicity and great customer service.
Yes, and good examples are Wave and Zoho Books’ free versions. These free solutions provide basic accounting features, like invoicing and income and expense tracking.
Bottom Line
While Zoho Books is our highest-rated accounting software for freelancers, QuickBooks Online might be better for those wanting to outsource bookkeeping through the QuickBooks ProAdvisor network. Meanwhile, FreshBooks is great for non-accountants for its easy-to-use interface, whereas Wave Starter is a free alternative.
For freelancers who only want to compile their income and expenses and file a tax return, QuickBooks Solopreneur may be optimal. If you prefer a digital banking solution with built-in bookkeeping features, look into Found.
