Many freelancers and self-employed people don’t know much about accounting and have more important things to do than keep their books, so the best accounting software for them should be easy to use.
This is the post in which I will provide a detailed description of the best accounting software for freelancers.
In addition to the usual accounting features, such as billing, mileage tracking, and expense reporting, it should also be able to do tax calculations, keep mileage logs, and store old invoices.
Let’s get started!
What Is the Accounting Software?
Accounting software is used to handle and record a day’s financial activities of a company. These transactions include the management of fixed assets, expenses, revenue, accounts receivables, payable accounts, subledger accounting, reporting, and analytics.
The following are some of the advantages of using accounting software: simple data entry: it can usually be done quickly, does not require much effort, and is required only once.
Quick procedures; there is little to no waiting time, for instance between the sale and the billing process. preserving records digitally is a crucial component of the Making Tax Digital initiative for VAT.
Who are the Freelancers?
A freelancer is a person who works as an independent contractor and gets paid by the job or task, often for work that lasts for a shorter amount of time.
One of the best things about being a freelancer is that you can set your own hours, choose where you want to work, and keep a better balance between your work life and your personal life.
Freelancing is a type of work that you do on your own. Freelancers usually work on their own as self-employed people, using their skills on a contract or project basis instead of being hired by a company.
Since Freelancer has been around since 2009 and has grown to become the biggest marketplace for freelance work, you can be sure that it is real and not a scam. Freelancer came out to the public for the first time in 2009.
The List Of accounting software for freelancers
The best accounting software for freelancers is easy to use, doesn’t cost a lot, and has all the bells and whistles you need to run your business smoothly.
There are many good options for freelancers, but three stand out because they have the best mix of useful features, ease of use, and cost. Here is a list of what we think are the best choices.
Freshbooks is thought to be one of the best accounting software for freelancers because it combines a lot of different functions related to money management into a single interface.
Freshbooks is a tool that helps self-employed people in any part of the world keep track of their income, expenses, time, and payments from customers.
With FreshBooks, you can make invoices for your clients, keep track of which ones they’ve paid, and mark the rest as costs that can’t be billed.
It also has a helpful support staff that is quick to answer phone calls and emails from users. The average amount of time it takes to answer an email question is less than an hour.
The cheapest plan for FreshBooks costs $15 per month, but you might want to move up to the $25 premium plan. If you need more apps than the basic set, your monthly subscription cost will go up.
And have an opportunity that just checks out the FreshBooks discount article, where you can easily get exclusive deals at your FreshBooks desired pricing plans.
If you are a new customer who wants to skip the 30-day free trial and buy right away, you could save 60% on the Lite, Plus, or Premium plan for six months.
FreshBooks Key Features
- Obtaining clearance for projects before beginning work on them requires providing estimates, which are comparable to bids. Simply by clicking a button, you may transform those estimates into bills.
- Invoicing software that allows your clients to pay you with their debit or credit card, as well as providing you with templates to help you get charged for your freelancing work and get paid for it.
- Time tracking allows you to determine the number of billable and non-billable hours associated with each project.
- It complies with the Making Tax Digital standard and is authorized by HMRC.
2. Zoho Books
Zoho Books is the best accounting software for self-employed people overall because it has a lot of features, a good mobile app, and great customer service.
It lets you make and send invoices and keep track of the time and money spent on projects. Also, if your annual income is less than $50,000, you don’t have to pay for the service.
When you sign up for one of its paid plans, you can use live chat and talk to a customer service person over the phone.
This is a feature that companies that sell accounting software almost never offer to their customers.
Zoho Books Key Features
- Zoho Books’ mobile app is ideal for freelancers that work remotely. You may use the app to enter expenses, send invoices, snap images of receipts, and log work hours.
- Record project time and bill clients. Use Zoho Book’s project monitoring function to monitor each project’s earnings.
- Compared to Zoho Books’ competitors, which require users to submit a ticket before receiving a call, telephone help is a big selling factor. Zoho Books can make phone calls for urgent issues.
The accounting software that Xero offers is made for freelancers with more experience who need a few extra features.
Since it is mostly made for accountants and bookkeepers, your accountant may suggest that you use it to do your own bookkeeping.
This is one of the reasons. On the other hand, if you want to grow your freelance business a lot in the future, you might want to look into this option.
Accounting software like Xero is hosted in the cloud, which means that small business owners can manage their finances from anywhere.
It also works with more than a thousand other apps. It costs less than similar products like QuickBooks Online and doesn’t charge extra for adding new users, so it’s a good choice for businesses that are growing and need to add more employees.
Xero Key Features
- By integrating Trello, you may track your time against tasks on your board.
- By selecting “Contact History,” you may view a client’s email, invoices, and payment history.
- Xero Projects, which displays your earnings from completed projects.
- Hubdoc automatically imports data from documents, including client names, invoice totals, and payment due dates.
- You’ll need to manage your inventory if you decide to convert your freelance business to an online store at some point.
4. QuickBooks Online
QuickBooks Online is a well-known name in small business accounting because it has more than 5 million customers around the world.
Since it came out in 2014, Intuit’s QuickBooks Self-Employed has been quietly getting more and more popular. It gives freelancers and other very small businesses a simple way to keep track of their finances.
We recommend QuickBooks Online to freelancers who must collect taxable payments because of its powerful built-in capability to calculate sales tax to apply to an invoice.
It will accumulate your liability by jurisdiction, help you file the sales tax return, and let you upload receipts to the banking center where the receipt is read and matched to an existing transaction or added as a new one.
QuickBooks Online Key Features
- Simple billing, with the option to accept online payments.
- Automatic tracking of mileage.
- A Mobile application that is easy to use.
- The app lets you separate business expenses from personal ones right there.
- You can get rid of paper receipts because you can take a picture of them.
- Estimated tax calculations every three months.
- You should be able to work with your accountant.
In conclusion, QuickBooks Self-Employed might be the best choice for freelancers who just want to track their income and expenses so they can fill out their tax returns.
FreshBooks is a great choice for freelancers whose business is based on projects or services, while Lendio Accounting has a nice range of features that are free.
Zoho Books is the accounting software for freelancers that got the best rating from our company. However, QuickBooks Online might be a better choice for freelancers who want to scan receipts or who need to collect sales taxes from their clients.
Frequently Asked Questions
Do I need accounting software as a freelancer?
You’ll need easy-to-use accounting software for freelancers that can also keep track of and manage invoices. If you charge more than one client, make sure you use accounting software made for freelancers that can keep track of different invoices.
Can I use QuickBooks as a freelancer?
Freelancers who need to keep tabs on their finances, as well as figure and pay their quarterly estimated taxes, can use QuickBooks Self-Employed to do so. This software is useful for sole proprietors who work out of their homes and want to separate their business and personal finances.
Who is FreshBooks best for?
FreshBooks is designed for single-user accounts, making it ideal for freelancers and other self-employed professionals. Additional team members cost $10 per month, which is a significant chunk of the base monthly price.