The 10 Best Self-Employed Accounting Software Products Reviewed

The best self-employed accounting software can save you a ton of valuable time by automating mundane administrative activities, so you can focus on doing the work that pays. It also minimizes the possibility of human error, so you don’t have to worry about risking compliance issues or making mistakes when filing taxes.

Most accounting software solutions offer professional templates for quotes, estimates, proposals, contracts, and invoices, so you’ll have everything ready to close a client and get paid as soon as possible. In this guide, we’ve reviewed the best accounting software for freelancers, looking at each tool’s features and functionality to help you make an informed decision.

The Best Accounting Software for Freelancers Ranked for 2023

Here’s a quick rundown of the top 10 accounting software solutions on the market and the areas they excel in:

1. FreshBooks — The best and most straightforward accounting tool for self-employed professionals and freelancers, with one-click invoicing and built-in time tracking.
2. Zoho Accounting — Robust tool for freelancers who want to automate data entry and ensure that every business transaction is tax compliant.
3. Xero — Simple and easy to learn, with excellent project tracking capabilities, multi-currency invoicing support, automatic data capturing, and bank reconciliation.
4. Bonsai — Great for managing multiple clients and tracking every second spent on individual tasks thanks to advanced time-tracking and project management functionality.
5. Sage — Complex accounting tool with lots of features and a three-month free trial to try them out in practice and see if it’s the right choice for you.
6. QuickBooks — Streamlined invoicing and expense tracking, with the added benefit of business funding for startups and self-employed entrepreneurs.
7. Turbotax — A solid choice if you need help with tax prep and calculation, as it’ll ensure you stay tax compliant and never miss a tax deduction.
8. Melio — The best free accounting software for self-employed professionals, with built-in payment tracking and full protection against fraud, forgery, bounced checks, and chargebacks.
9. Wave — Free invoicing and accounting features with unlimited expense tracking and receipt scanning, as well as one-on-one coaching support.
10. Moxie — Excellent client management features with built-in time tracking, Google Calendar integration, and one-click invoicing.

How Does Self-Employed Accounting Software Work?

Accounting software is fairly straightforward in terms of its functionality. Once you’ve connected your business accounts to the platform, it’ll automatically record all business transactions across payables and receivables and track billable hours. It will allow you to monitor your cash flow in real-time, help you provide multiple payment options for your clients, and enable you to make smart, informed business decisions through insightful reports.

In other words, you don’t have to spend precious work hours endlessly editing spreadsheets and trying to figure out how tax forms work. Plus, you won’t have to hire an accountant or pay a lawyer to put together contracts for clients – and the software can save you from having to manually send awkward payment reminder emails. With the best self-employed accounting software, all that’s taken care of for you, so you can focus on making money.

The Best Freelance Accounting Tools Reviewed

Here are in-depth reviews of the 10 best accounting software solutions for freelancers and self-employed individuals:

1. FreshBooks — Best Accounting Tool for Self-Employed Professionals and Freelancers

FreshBooks is a simple, intuitive accounting and invoicing software tool. It makes it easy to keep an eye on the bigger picture and check the profitability, cash flow, and health of your business at any given time.

With FreshBooks, invoicing takes only a few seconds. All you need to do is choose a template type, customize the color and font if needed, and enter your client’s email address. They’ll receive a professional invoice with payment instructions based on the payment options you’re offering.

There are various invoice template types to choose from, and you can make them as simple or as detailed as possible, depending on the type of service you provide.

You can even make the invoices recurring if you’re working with one client on a monthly basis, so you don’t have to manually send them each month. When you enter a due date in the invoice, FreshBooks will automatically initiate a reminder email sequence, gently nudging your client to ensure they pay on time.

The tool further streamlines payments by giving your clients a range of options, including Visa, MasterCard, ApplePay, Discover, and wireless bank transfers for the majority of banks in the US.

FreshBooks is a superb option for consultancy services, as it allows you to set up checkout links on your website, so your clients can pay upfront whenever they schedule a consultation call. This ensures you’ll get paid and eliminates the need to chase clients after you’ve already done the work.

And if you’re in a creative field and are billing clients by the hour, FreshBooks has you covered as well. It helps you track time spent on each project, so you can clearly show your clients how much time you’ve spent on each task and avoid any disputes regarding the invoice.

You’ll also be able to generate detailed reports and easily track every dollar earned and spent, so you’ll always know exactly how profitable your business is. We rate FreshBooks as the best accounting software overall.

2. Zoho Accounting — Robust Tool for Freelancers to Ensure Tax-Compliant Business Transactions

Zoho Accounting is an end-to-end accounting tool that helps you keep money coming into your business, stay on top of all business expenses, and remain compliant with local and federal tax laws.

It’s a great option for freelancers because it makes the process of onboarding clients a breeze. It lets you send professional-looking quotes to clients with detailed descriptions of the services you provide and convert them into invoices in seconds after completing the work.

The tool also lets you effortlessly track time spent on each task and project, which is a lifesaver if you’re working with multiple clients and are often jumping between tasks. By having everything neatly organized in one place, you can easily keep track of billable hours for each client and correctly invoice them, which will greatly speed up the payment process.

With Zoho Accounting, you can also import your bank statements and avoid manual data entry, saving valuable time and eliminating the possibility of making errors. Furthermore, you can set up rules to categorize every transaction, so it’s easier to track taxes, insurance, refunds, and other expenses.

Another area where Zoho excels is in financial reporting. You’ll be able to generate these in-depth reports at any time, as well as schedule them on a weekly, bi-weekly, or monthly basis and receive them via email.

These reports are vital since they give you an overview of your cash flow and profitability, let you see which projects are bringing in the most money compared to the hours worked, and allow you to make data-backed decisions that will ultimately increase your profit.

3. Xero — Simple and Easy to Learn, With Excellent Project Tracking Capabilities

Xero is an easy bookkeeping software product that anyone can use with no prior experience with accounting tools. The software can be an effective solution for solo entrepreneurs and offers tools for payroll and contact management capabilities for freelancers contracting out work.

What Xero excels at is project tracking, both for measuring time spent on tasks and profitability. You’ll be able to easily add every completed task to a client’s invoice and see the overall profitability for each project upon completion.

The invoices you send through Xero can be fully customized, and they even feature a “Pay Now” button with a direct payment link, making it easier for your clients to pay you, greatly shortening the time it takes for the money to reach your business account.

When it comes to accepting payments, you’ll be able to offer a wide variety of options, including credit and debit cards, online payment services like PayPal, and even Google Pay. Additionally, all payments are protected against fraud with multiple layers of security, so you don’t have to worry about fake transactions and chargebacks from dishonest clients.

Another useful feature you can take advantage of is automatic bank reconciliation. It lets you connect your business bank account to Xero and automatically records every transaction, keeping your financial data secure and ensuring your bank statements are up-to-date.

4. Bonsai — Great for Managing Multiple Clients and Tracking Every Second on Tasks

Bonsai is an excellent solution for entrepreneurs who need to manage multiple clients on a daily basis. Whether you’re a professional consultant or are running your own business with consultancy services on the side, Bonsai lets you easily schedule client meetings, keep every project and all files organized with Client CRM, and create professional contracts when you’re ready to engage with clients long-term.

The product also comes with incredibly useful project management and time-tracking features. It enables you to break down every project into specific tasks, track time on each task individually, attach relevant files and work documents to each item on the to-do list, and create detailed timelines for each project.

Another reason to opt for Bonsai is the plethora of forms the tool offers you. These include everything from generic proposals, quotes, invoices, and tax forms to more industry-specific ones like SEO (Search Engine Optimization) and Marketing, design, tutoring, translation, virtual assistant, and many, many other forms.

Put simply, Bonsai is an invaluable tool that will save you countless hours, help you stay organized and productive, and make it easier to receive payment for your work.

5. Sage — Complex Accounting Tool With Lots of Features and a Three-Month Free Trial

Sage is a tool primarily designed for accountants, with lots of features and functionality that facilitate bookkeeping. While it’s a bit on the complex side, you can effectively utilize it as a solo entrepreneur since it offers all the key features you’ll need, from client invoicing to VAT returns.

Sage lets you create, send, and track fully customized invoices, making it easy to get paid for any kind of work you do for your clients. In addition to invoices, you can create quotes and estimates with reference files and links for your clients’ convenience.

What’s interesting when it comes to invoicing with Sage is that the tool automatically converts dozens of currencies using live exchange rates, making it super-easy to work with clients all over the world by eliminating the possibility of any disputes regarding exchange rates. This makes Sage one of the best invoicing software for self-employed professionals.

In addition to invoicing, Sage streamlines expense tracking by letting you connect your bank accounts to the platform, apply customized rules for every transaction, and automatically import and sort all your business expenses.

The tool can also help you file your taxes and get tax returns, making sure you stay compliant and that you get every dollar back.

With Sage, you’ll also have access to a robust reporting feature, which will help you gain insight into the profitability of your business as a whole, as well as all individual projects that you undertake during the year.

6. QuickBooks — Streamlined Invoicing and Expense Tracking

QuickBooks is an excellent option for startups and solo entrepreneurs for several reasons. In addition to helping you handle all the financial aspects of your business, you can apply for business loans with low-interest rates directly from the tool. You’ll see all the costs upfront, so there will be no surprises, and the money will be in your business account in just two business days.

What’s more, QuickBooks makes it easy to track all the money coming in and out of your business accounts. Once you’ve connected your business bank accounts to the platform, every payment your clients make through QuickBooks payments is automatically logged, so you don’t have to spend a single second on manual data entry.

You’ll be able to offer your clients payment options through QuickBooks, including credit cards, eChecks, and ACH bank transfers. To make things even smoother, you can add a button directly to your invoices to make it effortless for your clients to pay you for the completed work.

QuickBooks for freelancers also helps you easily track all business expenses. As long as the payment was made from one of your connected business accounts, all you need to do is snap a photo of the receipt and upload it through the mobile app.

The tool handles the rest and automatically sorts expenses into appropriate categories, so you’ll always have a finger on the pulse of your business cash flow and will never miss a single tax deduction.

7. Turbotax — Stay Tax-Compliant and Take Advantage of Every Tax Deduction

Turbotax isn’t accounting software in the strict sense of the word but rather a handy tool that helps you handle everything regarding business taxes with ease.

You can choose to do taxes on your own through the platform, with an expert’s help, or fully outsource tax filing to the Turbotax team of experienced professionals.

When it comes to tax prep and calculation, you won’t find a better option on the market. This is evident by Turbotax’s guarantee that every tax calculation will be 100% accurate. Even on the off chance something goes wrong, everything’s double-checked by the company’s experts, so you’ll never have to worry about tax compliance or missing a tax deduction.

Unfortunately, that’s the extent of Turbotax’s utility. It can’t help you with invoicing, expense tracking, automated data entry, or other financial aspects of your business beyond taxes.

8. Melio — Best Free Accounting Software for Self-Employed Professionals

Melio is a super flexible accounting solution that can be effectively used by virtually any type of business. It enables you to pay all business expenses online in just a few clicks, automatically capture all bills, accept payments from international clients in the currency of their choice, and get paid faster.

The best thing about Melio is that the core service is completely free. This includes invoicing, payment link creation, payment and expense tracking, and complete protection against fraud, chargebacks, forgery, and bounced checks.

Additionally, every ACH transaction is free of charge, so as long as you’re working with domestic clients who are happy to pay for your services via bank transfers, Melio is completely free.

The company will, however, charge you a fee of 2.9% for every credit card payment made to your business. While this might not sound like a deal breaker, the fees certainly add up if you’re working with several clients, in which case a flat $15 for a different accounting software is a much more affordable option.

9. Wave — Free Invoicing and Accounting Features With Unlimited Expense Tracking

Wave is a simple, user-friendly accounting platform that gives you a detailed overview of your business’s financial health, helps you organize everything for tax season, and enables stress-free invoicing and payments.

The product provides all the core accounting tools you would expect. You’ll find the basic invoicing, payment processing, and accounting features within the platform, but not necessarily too much more. What does make it stand out is the fact that both invoicing and accounting functionality are completely free of charge.

You can probably guess what that means — every transaction comes with a fee. So, while it can be a decent option if you work with a single client and send only one recurring monthly invoice, it’s not really viable if you receive a dozen smaller payments from multiple clients all over the world.

Another thing worth mentioning is that you can get coaching from Wave’s professional advisors and learn everything you need to know about handling both the platform and your business finances.

10. Moxie — Excellent Client Management Features With Built-in Time Tracking

Moxie is another super simple accounting tool that helps you keep your finances organized, lets you manage all your clients and contracts in one place, and ensures you get paid faster by streamlining the invoicing process.

It offers dozens of professionally designed invoice templates for freelancers and self-employed professionals, which you can touch up in seconds and send to your clients. It also allows you to easily convert tracked hours into ready-to-bill invoices with a single click, add details regarding each deliverable you’re billing the client for, and set up automatic payment reminders.

To ensure everything runs smoothly, Moxie also helps you take full control over your relationship with the clients. This includes creating professional estimates, quotes, and proposals, collating all client data in one place, real-time updates on the status of your proposals, and project tracking with clear deadlines.

Moreover, Moxie brings clients closer to you through the Client Portal, allowing them to easily keep track of project progress, share valuable feedback on your work, and exchange messages, notes, and key files that will help you stay productive.

The platform also features a built-in calendar that makes it infinitely easier to track everything from deadlines to scheduled meetings. You can also customize it with different views, filters, fonts, colors, and statuses, so you’ll always know what needs to be done and when.

The Moxie calendar also integrates with your personal Google Calendar, so it automatically pulls any meetings or events, ensuring you never miss an appointment with a client or a business partner.

Comparing The Best Accounting Software For Self-Employed Workers

Here’s a quick side-by-side comparison of the best accounting software for self-employed professionals, so you can see what each of the tools is best suited for and choose the one that’s best for you. So what are the best options for bookkeeping for the self-employed?

Key Details to Consider When Buying Self-Employed Accounting Software

The core functionality of the accounting software solutions we’ve covered sits within a fairly narrow band, and they all facilitate invoicing, automate data entry, and give you invaluable insights into the financial health of your business.

However, there are a few key differences between them that you should pay attention to, especially considering that an accounting tool is a long-term investment with a recurring monthly cost.

Here are the key factors you should consider when choosing between different providers:

Features

As we mentioned, most (if not all) accounting tools on the market will cover all the bases, such as invoicing, tax filing, reporting, and data entry. However, some of them go above and beyond and also offer a wide variety of quote and invoice templates, automated email reminders for due payments, expense tracking, and quick and simple tax calculation and filing.

That said, if you opt for a feature-rich solution, you’ll likely get overwhelmed by all the options and will have to spend a few weeks learning how to use it. So, it’s best to strike the perfect balance and choose the software that covers all of your needs but doesn’t include dozens of features you’re never going to use.

Ease of Use

Next, you should think about how easy or complex the solution you’re considering is. The idea behind self-employed accounting software is to simplify things and make it easier to track your work and get paid for it. That’s why you shouldn’t opt for a super complicated solution that will take you weeks, if not months, to learn in order to use properly.

Integration Capabilities

If you’re already using a bunch of tools to run your business and keep things smooth, it would only make sense to opt for freelance accounting software that integrates with those tools. For example, if the platform you choose can be natively integrated with your Google Calendar, you’ll be able to see all your scheduled meetings and events, as well as set up reminders from one app.

Device Compatibility

Depending on which device and operating system you’re going to use the accounting software on, you should opt for a solution that supports them. Not every platform is compatible with Windows, macOS, and Linux simultaneously, so be sure to check the information on the official website to ensure your device is supported.

Additionally, all the tools we’ve covered in this guide offer mobile support, whether in terms of a dedicated app or a website you can access through your phone, so you’ll be able to keep your finances sorted while on the go.

Price

Before you make the final decision, make sure to also compare the pricing plans of different tools you’re interested in. While “free” accounting and invoicing features might sound appealing, you might end up paying a small fortune through transaction fees if you’re not careful.

So, carefully read through the descriptions of all pricing plans/tiers and make sure you understand what features and functionality are included and which are paid add-ons.

Conclusion – What is the Best Accounting Software for Self-Employed People in 2023?

As you’ve seen from this guide, there are many excellent accounting self-employed solutions on the market, all of which are infinitely better than working with spreadsheets and spending valuable time on manual data entry.

If you’re on the fence and can’t decide which tool you should try out, we strongly recommend FreshBooks as the best bookkeeping software for self-employed professionals, freelancers, and startups. It’s simple, easy to use, offers a ton of customizable templates for all financial aspects of your business, and lets you offer a bunch of payment options to your clients.

But don’t take our word for it — test the tool yourself and see it in action. Click the button below to start your 30-day free trial and turn bookkeeping from a chore you dread into an easy 15-minute activity.

Self-Employment Accounting Software FAQs