Best Accounting Software Freelancers Can Use to Their Advantage

Having to handle freelance money and account for it can be very stressful for anyone. So, you need to know the tools that can help you out.

Through time, we’ve researched several accounting software programs that target independent professionals. And now, we’ve come up with efficient solutions. 

This guide is for you if you want to find the best accounting software freelancers can use or 1099 bookkeeping tools. They come with features from invoicing to expense tracking, and even income management.

Now, let’s outline the best solutions that will suit your freelance business best.

Why Accounting Software Matters for Freelancers

If you have ever tried to track your finances with a spreadsheet, then we don’t need to convince you. As a freelancer, you’ll mostly have several clients to manage and may work with multiple types of income. To really avoid the mixing of business and personal expenses, traditional solutions won’t be enough. Accounting software, especially for self-employed people, offers convenience and efficiency.

An accounting tool helps freelance work become a business in the right direction. It helps to monitor your financial state and makes tax time more bearable. You’ll be able to give your clients accurate invoices and use different payment models. Now, you no longer have to fuss over tax season or waste much of your time on administrative work. 

Top 10 Best Accounting Software Freelancers Use

Here are some of the best accounting software freelancers widely use:

1. FreshBooks

FreshBooks appears to be the number one favorite when it comes to the best accounting software freelancers use. And for good reasons, the interface really satisfies people, and even has functionality. For as low as $19 per month, it best matches the features of tracking time. It also helps prepare professional invoices and create proper reports.

This software is a good match for those who use a per-hour rate. It’s for those who can easily convert billable hours into invoices. And with this software, you can just get it done automatically.

2. QuickBooks Solopreneur

There’s one feature that may make QuickBooks Solopreneur particularly appealing to you. It is the tax preparation. With $10 per month, the features include a mileage tracker, which uses the GPS on your phone. It also makes tax estimations every three months and can be linked with TurboTax.

It structures expenses to enhance retirement by giving the user a way to categorize business expenses. This separates it well from personal expenses, so it’s more efficient for tax time.

3. Wave

Some freelancers have to work with limited resources. They would be glad to know that Wave offers high value-for-money for all its basic operations. Most of the general features are things you can use for free. You can also track different incomes and expenses. In fact, you can send unlimited invoices and come up with basic financial reports. Wave gets money from payment processing fees.

4. Bonsai

For $21 per month, Bonsai is much more than just an accounting tool. This is because it acts as a freelance business management tool. All these come together with good accounting functionalities.

This makes it ideal for freelancers who wish to control their business flows within the appropriate platform. From communication to work invitations, project completion, review, and payment.

5. Zoho Books

Zoho Books, at $15 per month, has a lot to offer in terms of managing a business’s finances. Its multi-product integration will please customers who rely on other Zoho products. So, your workflow will just be smooth and unaffected. One thing that stands out is that it comes with multi-currency support. So, it is ideal for freelancers who have clients from different countries.

6. Xero

Available at a monthly subscription of $15, Xero is another one of the best accounting software freelancers use. It is cloud-based accounting software perfect for freelancers, given that it can easily expand as the business progresses.

Currently, Xero supports more than 700 apps, real-time bank feeds, and collaborative tools. These allow any freelancer to have additional options for further development of accounting processes. And trust us, you’ll need that wiggle room as the business grows.

7. Paystub Generators

Several sites assist freelancers in preparing professional employment stubs. Even though they are not full-fledged accounting systems, they are inexpensive. They will let you create official-looking pay stubs that can assist in many situations. Examples are when trying to get a loan or rent an apartment. It works in those cases when you need to present proof of regular income.

8. 1tap Receipts

Struggling freelancers who seem to have an endless pile of paper receipts can now sigh in relief. That’s where 1tap Receipts, with subscriptions beginning at $7/month, comes in. This app was developed to recognize receipt pictures and organize the parsed data by expense type.

It’s also built to work with other accounting systems. That includes QuickBooks and Xero. Now, you can imagine how much less painful this makes tax season.

9. Kashoo

Kashoo, at $20/month, is one of the advanced 1099 bookkeeping tools and makes use of automation. It applies artificial intelligence to income and expense categorization. And most of the time, it will predict the right thing. It uses machine learning algorithms that naturally improve with time. 

They study your categorization patterns. Then, they can follow that to reduce the need for you to always enter data. That makes it one of the simplest systems possible for freelancers. Especially those who are not willing to spend much time on accounting.

Final Comments

As a freelancer, knowing the best accounting software freelancers and 1099 workers use is important. The right tools will enable you to know the health of your business by way of financial reporting. Choose software with good features, like generating statements of profits and losses. Look out for what analyzes your income and even puts your expenses in the right categories. Another good option is what comes with an analysis of cash flow, so as to make better decisions. The most important step is moving beyond some traditional and tedious solutions. And choosing a better system designed for freelance success.

Keep your freelance finances in check with our pay stubs tool. Generate professional pay stubs that help you track earnings. So, you can simplify tax prep and maintain accurate records. Take control of your business today!