6 Best Accounting Software for Freelancers

Zoho Books stands out as my top pick for freelancers looking for accounting software primarily because of its excellent project accounting features and low price. It simplifies tracking project income, expenses, and billings from multiple clients, which is crucial for anyone juggling diverse projects.

If you’re frequently on the move, Zoho Books’ mobile app will likely impress you. 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.

Standout Features

• Mobile app: Many accounting apps often fall short when it comes to such robust features, making Zoho Books an easy choice for freelancers who prioritize mobile flexibility. For this reason, it also leads our roundup of the best mobile accounting apps.
• Telephone support: With other similar software like QuickBooks Online, you’ll have to submit a ticket and wait for a call from an agent. But with Zoho Books, you can make a call directly, which is helpful if you encounter serious issues that must be resolved immediately.

Use Cases

• Freelancers with less than $50,000 in annual revenues: Its free plan can help small-time freelancers track income and expenses without committing to monthly subscriptions.
• Project-based freelancers: If you’re a freelancer who earns per project, Zoho Books’ project accounting features will help you manage project-related income and expenses in one place. You can also track time and bill it to clients the next time you issue an invoice.
• Freelancers wanting an affordable QuickBooks Online alternative: Zoho Books has a feature set comparable to QuickBooks Online but at a more affordable price. Both provide essential bookkeeping tools, such as bank reconciliation, invoicing, and income and expense tracking. Zoho Books is our choice for the best overall QuickBooks alternative.
• Freelancers looking for scalable software: It has five paid subscriptions, and each tier adds different features that you may find useful as you grow your freelance business.

Zoho Books earned top marks for its mobile app and general accounting and project management features. I couldn’t award a higher mark for ease of use, however, mostly because the wide range of features might require a bit of a learning curve for someone new to the platform.

The invoicing limits only slightly impacted its overall score in my assessment. In my evaluation, I chose the Professional plan, which includes an invoicing limit of 10,000 invoices per year. While this limit is more than sufficient for freelancers, I had to give more credit to other providers that don’t impose any limits, even if the 10,000 invoicing cap is unlikely to affect most freelancers.

If you often need bookkeeping support, I strongly recommend QuickBooks Online. One of the things I appreciate most is the extensive QuickBooks ProAdvisor network. This makes it easy for freelancers like me to find expert help for tasks such as connecting bank accounts or creating customized reports.

For basic needs, the Simple Start plan would likely cover the essentials: invoicing, income and expense tracking, bill payments, and basic reporting. If you need time tracking, upgrading to the Essentials plan would be an easy next step.

Standout Features

• Receipt scanning: With QuickBooks Online, you can scan receipts for operating expenses and billable expenses and attach actual receipts to your expense entries for documentation purposes. With just your smartphone camera, you can capture receipts and match them with expense entries easily.
• Sales tax tracking: You can track and manage your sales taxes in every transaction. QuickBooks will apply the correct sales tax automatically based on the transaction address you provide.
• Mileage tracking: Some freelancers need to travel to give the best service to clients. You can use QuickBooks Online’s mileage tracking to stay on top of your mileage expenses for client billing. You can also account for nonbillable mileage expenses to track your expenses and profit.

Use Cases

• Freelancers seeking help from a local bookkeeper familiar with QuickBooks: If you don’t have time to maintain your books, you can find a QuickBooks ProAdvisor who is knowledgeable in and certified by QuickBooks.
• Freelancers in ecommerce: Freelancers can connect QuickBooks Online to ecommerce platforms like Shopify for integrating ecommerce activities with accounting. In fact, QuickBooks Online is our top recommended ecommerce accounting software.

QuickBooks Online excels in general accounting, which makes sense since it’s widely considered one of the best small business accounting software options available. I recommend the Simple Start plan as the best starter plan for freelancers. This plan offers great A/P and A/R features, as it can perform basic to intermediate invoicing and billing.

However, it took a hit in project accounting, which is a major criterion I considered in this rubric. If you need more project accounting features like tracking income per project or comparing actual with estimated labor and inventory per project, I highly suggest picking a higher plan.

The same issue applies to customer service. You need the Advanced plan to make a direct phone call to an agent. For lower-tier plans, you’re limited to submitting a ticket and waiting for someone to call you back, which feels like a missed opportunity for better support.

FreshBooks is a user-friendly accounting software that works well for freelancers, especially those with little or no accounting experience. It’s clean, intuitive interface makes it easy to navigate, and setting up a company file is straightforward. The streamlined dashboard ensures you can quickly learn and use the program without feeling overwhelmed.

I especially recommend FreshBooks to service-based freelancers because of its project accounting features. For example, it includes a time-tracking tool that lets you capture billable hours and convert them directly into invoices. In addition, you can communicate with team members, if any, and compare actual versus estimated costs per project to evaluate your efficiency in performing work.

Standout Features

• Customizable and recurring invoices: You can personalize your invoices before submitting them to clients. You can upload your company logo, edit the invoice fields, modify their designs, and add personalized messages for your customers. Moreover, you can let FreshBooks handle recurring invoices so that you won’t have to do it on a monthly or weekly basis.
• Payment reminders: There’s no need to send hundreds of emails or spend hours calling your clients—FreshBooks will automatically send them customized reminders.

Use Cases

• Freelancers wanting to DIY accounting: FreshBooks’ design puts the users with no accounting knowledge in mind. If you want to do DIY accounting, FreshBooks’ user-friendly interface makes it easy for you to record invoices and bills.
• Service-based freelancers tracking hourly labor: Tracking time within FreshBooks makes it ideal for freelancers who need to bill clients for hours worked. You can directly bill time worked to clients after tracking it.

I gave FreshBooks high marks for project accounting and A/R, which makes it an excellent choice for freelancers without an accounting background who handle client projects and bill by the hour. However, I had to dock points for its banking features. Its banking tools aren’t as streamlined, and you can’t track cash from multiple bank or credit card accounts unless live bank feeds are connected, which can be limiting.

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. This limitation can make it less appealing for freelancers or small teams who need more flexibility.

Wave’s free plan, Starter, stands out as a great choice for freelancers needing basic income and expense tracking without breaking the bank. It’s especially appealing for those just starting out or operating on a tight budget.

While it doesn’t offer advanced features like time tracking or project accounting, I like that it includes recurring invoices and billing—something you’d typically find in premium paid plans. The minimal transaction fees for bank and card payments are another plus, making it even more cost-effective.

Standout Features

• Free accounting and invoicing: Wave is a convenient solution for freelancers who don’t want to pay monthly subscription fees. Its basic features in the free version are more than enough for freelancers who want to track income and expenses of their freelance services.
• Affordable solution for streamlined income and expense tracking: When you upgrade to the paid tier, you can connect your bank account and upload receipts to help you better track your income and expenses.
• Assisted bookkeeping: For freelancers who are willing to outsource bookkeeping, the Wave Advisor program offers bookkeeping support starting at $149 monthly. This price point is more affordable than other online bookkeeping services.

Use Cases

• New freelancers wanting to track income and expenses: New freelancers often don’t need advanced features right out the gate. Wave’s simple accounting features are more than enough for a new freelancer.
• Freelancers on a tight budget: If you think subscribing to paid software is outside your budget, Wave Starter is a cost-efficient choice.

I gave Wave a below-average score for general accounting features, which reflects its ability to handle only the basics. For many freelancers, this might be enough, but it does fall short if you’re looking for more advanced functionality. Its mobile app also took a hit in my assessment. While it lets you capture receipts, send invoices, and accept payments, it’s limited—you can’t enter or pay bills, categorize transactions, or view reports.

On the flip side, Wave earned high marks in value. The pricing, of course, is unbeatable since it’s free, and I appreciate how the platform focuses on the essentials like invoicing and income and expense tracking. This simplicity makes it a good choice for those who only need basic accounting tools without unnecessary extras.

QuickBooks Solopreneur is a practical choice for freelancers focused on tracking income and expenses for tax purposes. It’s designed for Schedule C (Form 1040) filers, including sole proprietors and single-member LLCs. It simplifies tax preparation by automatically categorizing income and expenses into appropriate tax categories, estimating tax payments, and transferring data directly to Schedule C for filing.

An added benefit is the inclusion of estimate management, a feature that was unavailable in QuickBooks Self-Employed, which is what QuickBooks Solopreneur replaced. This is especially helpful for project-based freelancers who need to create and manage client estimates seamlessly. Another major improvement over Self-Employed is the sophisticated invoicing system.

Standout Features

• Income tax tracking: Solopreneur estimates how much income tax you should pay to the IRS each quarter and then will automatically transfer your information to TurboTax for you in the preparation of your return.
• Sales tax tracking: The program will help you track sales tax collected so that you know how much to pay the state or local government. While it has an assisted filing feature, it doesn’t mean that it files your sales tax returns. Instead, it provides information that you can include in your tax returns upon completion of the forms.
• Mileage tracking: Tracking mileage is tedious if done manually. Using QuickBooks Solopreneur’s automatic mileage tracking, you can use your smartphone’s GPS to track your miles. You can also classify business and personal trips with just a swipe.

Use Cases

• Freelancers wanting to track income and expenses only for tax purposes: Solopreneur enables users to track income and expenses and estimate tax payments. The tax estimation feature helps freelancers determine how much money they should prepare for their tax obligations.
• One-person businesses: As the name itself implies, Solopreneur is built exclusively for one-person businesses, like freelancers, independent consultants, and gig workers.

As a fintech solution and digital banking provider, 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 Found offers a lot, its features aren’t comprehensive. I still prefer Zoho Books or QuickBooks for a more complete bookkeeping and accounting service.

Standout Features

• Business card: Found provides a business debit Mastercard that you can use to pay for expenses electronically or to withdraw cash for up to $550 per day.
• Bookkeeping services: You can track expenses using the Found app, which are automatically recorded as long as they are deducted from the debit card. However, you must subscribe to Found Plus if you want to import activity from other banks, credit cards, Venmo, or PayPal.
• Tax services: Under Found Plus, Schedule C filers can pay quarterly federal tax payments. However, tax estimation and autogenerated tax forms are available in both the free and paid options.

Use Cases

• Freelancers looking for simple bookkeeping: Found’s bookkeeping features are simple and closely related to all transactions going in and out of your bank account. For a freelancer, this kind of bookkeeping system is enough to track cash flow.
• Freelancers looking for business checking: If you want to separate personal and business transactions, Found can handle all your freelance business transactions. With a Found Plus business checking account, you get basic bookkeeping features plus 1.5% APY, unlimited custom rules, categories, and tags, and automatic expense imports.
• Those looking for an all-in-one banking app: Found combines banking, bookkeeping, taxes, and invoices. It charges no minimum fees, has no credit checks, accepts checks and cash deposits, estimates state and federal taxes, and sends invoices.