Freelancing has become one of the most reliable sources of earning in recent days. According to research, more than 55 million freelancers reside in the USA alone. The trend is gaining popularity worldwide as you are your boss while you freelance. Whether you may be a full-time self-employed or a part-timer, you will find some accounting software that will assist you in running the business more efficiently.
When you think about freelancing, you may consider utilizing your productive hours in doing things that you love, such as writing, designing, programming, campaigning, dealing with new clients, etc. But most probably, you find it tough to manage your bookkeeping, which is also an inevitable part of your job. However, the progress of your business entirely depends on your accounting system and control over it.
Managing your accounts is not so sinewy these days. There are bunches of accounting tools to simplify your tasks. Both paid and free versions are available.
So, in this article, we will discuss the best accounting software for freelancers. Virtunus’ special team has invested a large amount of time in researching and trailing them to help you out with detailed and reliable information.
Stick to us till the end, learn more about accounting solutions, and boost your freelance business.
What is Accounting Software?
According to Investopedia, the definition of accounting software is as follows:
Accounting software is a computer program that assists bookkeepers and accountants in recording and reporting the financial transactions of a firm. The functionality of accounting software differs from product to product. Larger firms may choose to implement a customized solution that integrates a vast amount of data from many different departments. Small firms often choose an off-the-shelf product.Investopedia
The Must-Have Features of a Freelance Accounting Software
- Automatic bank feeds
- Income statement
The Non-mandatory Features of an Accounting Software
- Integration of numerous tools
- Generation of all financial reports
Why It’s Essential to Keep an Invoicing and Accounting Software?
Firstly, if you want to boost your productivity, you need to manage your business finances. Without proper bookkeeping, you can generate an overview of your business. In this respect, accounting software will provide you all the necessary things.
Secondly, you can avoid the hassle of tax calculation and pay it on time. As you don’t have 50 hours in your everyday clock, you can save your time by using this sort of tool.
What Makes Freelance Accounting Software Magnificent
With the expansion of freelancing, there emerge numerous accounting tools to ease your tasks. But all the solution plans don’t include the same features. So, consider the following credentials while picking one.
Every single penny is consequential for a freelancer. You can’t pay for a tool that exceeds your slim budget. Therefore, a user-friendly accounting solution should charge a minimum monthly subscription. If the software is free and offers essential features, it will gain customer satisfaction throughout the world.
Convenient to Use
One of the most crucial factors of an accounting tool is that is must be easy to use. Freelancers can’t manage enough time to adjust his books. Most importantly, they may lack accounting knowledge. So, the software should provide such a simple work frame that the users can handle it without any hassle.
Automations for Saving Time
Who doesn’t want to save time by automating their tasks? If you can do so, you can invest your saved time in another productive sector.
However, a befitting bookkeeping tool should offer automation. It should automatically generate live bank feed, invoices, income statement, receipt, payroll, and any other necessary options.
Personal and Business Finance Management
As a freelancer, you may feel the necessity to separate and manage your personal finance from your business accounts. Sometimes, it becomes a time-consuming fact since you have to deal with different balance sheets. In this case, a standard bookkeeping software will help you to supervise your personal and business finance.
Ability to Make You Organized
If you stay focused and organized towards your goal, you can accomplish your project before the deadline commences. But very often, you may sense that you are amorphous as you have to juggle various tasks every day. This sort of hunch may sip out all of your energy, resulting in decreased productivity. And so, a palatial accounting solution must have the knack to keep you organized by making everything handy.
Support in Tax Paying
Calculation and payment of taxes are a breathtaking task for a freelancer. The process will seem more frustrating if you don’t have any previous experience related to it. But you need not be afraid of it because an automated accounting tool will support you to estimate your taxes. Consequently, you can pay them in time to avoid legal complications.
Again, the tool must have the ability to trace sales taxes. Different cities impose different sales tax rates, so the software should automatically record them according to your provided location.
Besides, it should keep an eye on your inventory if you trade products or services. Furthermore, the plan should track business miles.
The Best 14 Freelance Accounting Software
- WP ERP Accounting
- QuickBooks Self-Employed
- Sage Business Cloud Accounting
- Zoho Books
- AND CO
FreshBooks: Perfect for Small Business with Complex Billing
It is cloud-based bookkeeping software where you will get plenty of options to conduct your business. The manufacturer has designed the tool for a small business owner who needs varying billing system.
- Easy to use interface
- Available on Web, iOS, and Android
- Online access to bank accounts for convenient transactions
- Customizable invoices
- Live support excluding holidays
- Demands an add-on for inventory management
- Requires manual input of Sales tax rates
- Business miles can’t be traced
- No option for recording assets and liabilities in Lite version
Features of FreshBooks
Billing may appear to be effortless if you agree upon a rate with your clients, and they pay it accordingly. On the contrary, if you have to record your billing hours and pay other service providers, the process may become more intricate. Under this circumstance, you need FreshBooks because it will allow you to generate complex billing.
You can add several clients and projects here. Its automated payment reminders ensure timely payment of any upcoming or due invoices. However, with the upgraded solution, you can offer lucrative plans to your clients, claim delay fees, and many more.
WP ERP Accounting: Best For The Non-Accountants
This smart and synergistic accounting tool help you to manage your accounts without a hitch even if you don’t have any knowledge about trial balance, ledger, income statement, debit, credits, etc. Its graphical dashboard generates an overview of your full accounting system so that you can have a complete picture of your business growth.
It allows you to create invoices and receive payments. You can even make payments if necessary. With the help of this software, you can manage your inventory, create estimation, pay taxes in time, and what not! It’s a full-fledged accounting tool that will take your business to the next level.
- Convenient dashboard
- Graphical interfaces
- Super simple to use
- Live bank feeds
- Double-entry accounting system
- Easy payment management
- Wide Range of Extensions
- 24/7 live support
- The system set-up process may take a while.
Features Offered by WP ERP Accounting
- Reconciliation with banks
- Track payments
- Record sales transactions
- Helps to create estimations
- Calculate sales tax
- Advanced inventory management
- Payroll and reimbursement
QuickBooks Self-Employed: Best for Tax Support
If you wish to pay your taxes in time, QuickBooks Self-Employed is your best option. It will save you time as you can integrate it with TurboTax. There is no need for manual tax calculation because it automatically transmits data into TurboTax at the time of tax filing. Besides, you can add your personal and business bank accounts for quick and safe transactions. Most importantly, it allows you to keep a record of your earning and expenses.
- Integration of TurboTax
- Simple to use
- Keeps record of personal and professional expenses done from the same account
- Does not track sales taxes
- No inventory management and time tracking
Features of the Software
QuickBooks Self-Employed offers plenty of options, especially where taxes are concerned. Here’s an idea of what QuickBooks Self-Employed has to offer: features
- Well-organization of income and expenses
- Distinguish business expenditure from personal expenses
- Register tax deductions
- Management of fixed asset
- Computation of estimated quarterly taxes
Xero: Suitable for Inventory Management
Xero is one of the best accounting software for freelancers. You can analyze your e-commerce business using the tool. It will create a feeling of happiness as you deal with it. Its simple inventory management system will enable you to keep an eye on your inventory units and expenses. As a result, you can understand where you should invest your capital and time.
However, with the growth of your business, you can add different integrations as per your need. It allows you to integrate more than 700 apps such as PayPal, Shopify, Gusto, etc.
- Convenient inventory management
- Can connect to your bank accounts
- No user limitation
- Subscription includes Hubdoc
- For tracking business miles, additional add-on requires
- Don’t calculate estimated taxes
- An established plan is necessary for capturing receipt and tracing time
Features Offered by Xero
- Minimize manual data input by collecting data from the specific banks and credit cards
- Generate appropriate invoices after automatically analyzing sales tax rates
- Allow to print or email invoices
- Automatically calculate earnings and cost and thus determine profitability
- Also records unpaid bills
Sage Business Cloud Accounting
It’s another cloud-based accounting solution for freelancers. Like all other bookkeeping services for small businesses, Sage serves smartly in controlling your invoices, quotations, reports, VAT, etc. Additionally, it gives you a complete overview of your business by forecasting the cash flow.
If you encounter any issues dealing with the tool, the company ensures 24/7 support.
Have you ever used any of the Zoho’s products like Zoho Projects or Zoho CRM? If your answer is yes, then Zoho Books will never scotch your expectation. You can make your customized management tool by conjugating Zoho Books with other Zoho programs. This astounding accounting software will ease your toil to a great extent.
- Can be integrated with different Zoho products
- Client portal
- Convenient mobile app
- Inventory management
- No automation in sales tax rate calculation
- Does not prepare the sales tax return
Zoho Books Features
- Connection with bank and credit card accounts for secured transactions
- Track time and business miles
- Permit to create and send invoices
- Supports multiple currencies
- Calculate sales taxes
- Enable to scan and attach receipts to transactions
FreeAgent: Fantastic for Estimation
There can be no better option than FreeAgent if you need to generate estimates as a freelancer. The tool enables you to make sustaining estimates and to deliver them to your clients.
Plus, its convenient dashboard creates a graphical picture of your income and expenses. Additionally, it foretells your potential profit. It automatically provides you with live bank feeds.
Apart from these, FreeAgent also aids you in generating invoices and tracking time. The time tracking system converts your billable hours to the invoices and sends it to the client for payments. Not only that, you can set a payment reminder to avoid any delay payment. Lastly, it’s available on Web, iOS, and Android.
KashFlow: Provides Excellent Online Support
When a freelancer accounting tool provides online management of all the tasks related to bookkeeping and tax, nothing can bar your productivity. Thanks to KashFlow because you can use the app anytime from anywhere. It is undoubtedly a miraculous feature for a freelancer.
The tool not only supports your accounting system but also helps you in your HR management.
It offers the following features.
- Live bank feeds
- Bank reconciliation
- Smooth transactions
- Online VAT returns
- Customizable dashboard
ZipBooks: Excellent for Professional Accounting
If you are opting for the best free apps for the self-employed, ZipBooks will satisfy your demand. You can complete your tasks more effectively using this accounting tool. Let’s have an in-depth look at it!
- User-friendly interface
- Satisfactory customer support
- Excellent time, task, and project management
- Quick invoicing
- Lacks inventory management
- No Android apps available
- Limitations in invoice customization
- Fewer reports
Features of ZipBooks
- Intelligence features
- Expense recording
- In-depth reports
Wave: Amazing for Free Invoicing and bookkeeping
It is one of the most lucrative free accounting solution tools for freelancers. You will love the app as you can do whatever you need to manage your books ranging from sending invoices to receipt capturing using the mobile application. Besides, you can process your payroll with the upgraded version.
- An efficient set of features for small businesses
- Convenient invoice and transaction management
- User-friendly interface
- Quick payouts
- Does not include detailed time recording
- Lacks mobile app version
Features of Wave Accounting Tool
- Recurring billing
- Management of contacts
AND CO: Applicable for Both Accounting and Legal Tasks
All the essential features that a freelancer needs from an accounting tool are found in AND CO. it does not only maintain your bookkeeping but also provides legal support. It protects your right as you can make freelancing contracts containing e-signing options with your clients. You can even store your document and take proper steps if the client does pay. All the procedure is commodious.
- Particularly designed for freelancers
- Extremely easy to use
- Customizable invoices
- Contains timer
- Offers proposals and contracts submission
- Don’t provide any tax support
- Limitation on integrations
Prominent Features of AND CO
- Allows to set goals
- Time tracking opportunity
- Originate Invoices from Proposals
- Automatically generates invoice
- Invoice Reminders
- Integration of payment
- Tracking of receipt
- Ability to set payment alerts
This open-source accounting software for freelancers will change your mind if you use it. It will make your bookkeeping easy and efficient. Let’s have a glimpse of its
- Completely free of cost
- Trace income and expenses
- Can include bank account
- Available in different platforms like Windows, MacOSX, and Linux
- Supports multiple currencies
- No in-depth features
Features offered by GnuCash
- Offers double-entry bookkeeping system
- Exhibits graphs and reports of financial data
- Stock tracking privilege
- Planned transactions
- Financial assessment
Freelancers need such accounting software that will take care of all the financial aspects. At the same time, it should be easy to use and time-saving tool. In this case, Adminsoft Accounts will render its features for your business growth.
With this tool, you can handle invoicing, budgeting, inventory, purchase order, etc. Besides, it helps you manage your HR department partially. Most surprisingly, it supports multi-currencies.
According to a statement of the manufacturer company, there are more than 300,00 happy customers. It implies the fact that the tool embodies enough options for managing your freelance accounts.
If you are searching for the best accounting software for freelancers that require no monthly subscription, QuickFile will meet all of your needs. You can manage your accounting system effortlessly by dint of its automatic invoicing and receipt management systems. Furthermore, if you think you need something more from the software, you can upgrade to the paid version for better performance.
- Traceable invoices
- VAT management
- Monitors payments
- Enriched reporting and API system
- Promote multi-currencies
- No inventory support
- Limited reports
- Descriptions should be typed manually
Features of The Tool
- Billing and invoicing
- Management of tax
- Trace income and expenses
- Reconciliation with Bank
What is the best accounting software for the self-employed?
It’s strenuous to determine the best accounting software for everyone. One tool may work best for you, but it may seem ineffective to others. The selection depends on your necessity. But we hope all the discussed software is best in their perspective.
How does accounting software work?
It tracks the data when you make any transaction. The standard ones can automatically collect information from your bank account that you have set down. They can even secure your data in the cloud. As a result, you can access them in case your hard drive crashes.
What do you need from your accounting software?
A: The fundamental elements that you can expect from accounting software are as follow:
• Tax calculations
• Receipt scanning
• Bank reconciliation
Should your accounting software also serve as an invoice generator?
You can determine the fact basing on the nature of your business. When you have to create a bunch of invoices for your clients, you should go for a tool that generates invoices.
Wrapping Up: 13 Best Accounting Software for Freelancers: Paid and Free Versions
We all want to reduce our workload by simplifying our tasks. And so we use different task management software. They all aim to save our productive hours so that we may enjoy a happy personal life along with our job.
Therefore, accounting software offers freelancers everything they need. Bookkeeping is no more a terrifying task as long as you use the right tool for your self-employed business.
To sum up, we’ve visualized every ins and outs of freelance accounting software for your better understanding.
If you have any queries regarding, best accounting software for freelancers, please leave us a comment.