Self-Employed Accounting Software

I also downloaded the mobile apps to get a sense of how easy they were to use and to try out receipt capture. Accounting for freelancers is a really specific task, and I wanted to be sure I got a real sense of how it would feel. After all of that testing, I landed on these eight apps as the best accounting software for freelancers. Freelancers and the self-employed should make sure their accounting software supports customer invoicing, as well as an easy way for clients to submit payment.

It crawls through your spending on your credit card to help you claim tax deductions later. However, after a short period of use, most people realize that Quickbooks is not the best way to save taxes. It is ill-equipped and misses out on some features that the best accounting services come loaded with. Couple that with high pricing plans and it turns into a deal-breaker. Calendly has a completely free basic version and offers paid plans with advanced features—like SMS meeting notifications and meeting reports—from $8/seat/month.

Get paid quickly through professional invoices

Xero covers billing forms, inventory tracking, double-entry accounting, and independent contractor expense tracking. It also easily integrates with thousands of apps to keep your finances in one place. Most freelancers will get by with the Starter bookkeeping for independent contractors version, though as you grow your business you could upgrade to the Standard or Premium tiers of service. Also, independent contractors use Instabooks to record and add expenses to client projects and invoice them accurately and get paid on time.

It’s best practice to separate your business and personal finances. But if your business is very small, a side hustle or brand new, you might not want to open separate business banking and business credit card accounts right away. Regardless of its size, though, you’re still responsible for your freelance business’s taxes — so you need a way to clearly delineate between your business and personal expenses. The right accounting software for your business will help you do this with ease. Zoho made our pick as best accounting software for part-time contractors because its basic, free version provides everything most contractors will need–all at no cost.

Run your business your way

And unlike some paid software, Wave doesn’t limit the number of clients you can invoice per month. But different free accounting options have different benefits, so we recommend looking over our list of the best free accounting software for small businesses to find the right one for you. Wave Accounting is a good solution for freelancers and self-employed people who need a simple way to invoice clients and separate business and personal expenses.

QuickBooks doesn’t file taxes for you, but it integrates with Intuit’s TurboTax to do so. There are also some handy support pages to help you with deductions and write-offs. Even if you don’t choose Wave as your accounting app, you can still grab it here and have a read. When you start out, most of the pages will have no data to show, but FreshBooks has scribbled tips everywhere to show you what will happen on each page. It’s as if a mentor took a pen and marked the important bits for you.

Best for Mileage Tracking

QuickBooks Self-Employed enables you to create custom tags for expenses so you can better track how much you are spending in each category. You’ll be able to run reports that will highlight where you are spending and earning money. The main difference between the four plans is the number of different clients that can be billed per month. In the Premium plan, unlimited clients can be billed per month. At Business.org, our research is meant to offer general product and service recommendations.

Other services and apps can help you track time, but if you choose an accounting website whose time tracking capabilities meet your needs, that’s one less app or service to maintain—and pay for. Some offer timers and timesheets, but most at least allow you to create time-based records and bill your customers for your services. All of the services I’ve reviewed here let you create invoices—sometimes recurring ones, even—and estimates, and send them to customers online.