Accounting for Freelancers: 10 MustHave Tools for Financial Management

But FreshBooks falls short in some fundamental areas, so a software choice like Zoho Books or Xero could work better for you. Xero’s self-employed bookkeeping software helps you organize and fast-track your bill payments. Automate your bill entry and payment schedule so you never miss a deadline. Then track outgoing payments so you know exactly how much cash you have available.

Unlimited accounting, starting at free.

• Utilizing popular accounting tools, we supplement this with smooth data integration and clear financial reporting, customized to fit your individual business needs.
• Expensify simplifies expense reporting and reimbursement processes.
• At $25 a month, QuickBooks Online includes mileage tracking, cash flow management, and sales tax tracking.
• You’ll also experience peace of mind knowing your personal financial information is backed-up and secure.
• For more details about Atomic Brokerage, please see the Form CRS, the Atomic Brokerage General Disclosures.
• PayPal’s integration with various accounting tools ensures that your payment data is accurately recorded and reconciled.

Some tools (like FreshBooks and Zoho Books) let you build a library of services or rates, so you can add line items with one click. Turning your side gig into the main show is exciting, but to do it consistently and successfully, you need the right tools. You may have used invoice generators and spreadsheets in the past. I sure did when I started out—it was an agile way to start working, but it’s not sustainable as you grow. Moxie also integrates with Zapier, letting you further automate your freelance business.

• Accounting software helps business owners understand how money flows in and out of their businesses.
• If you’re looking for the most fully featured accounting software, Wave Accounting is a good bet.
• Look for accounting platforms that integrate natively or via third-party connections with other tools you use.
• At Contracting PLUS not only will we set up a Personal Limited Company for you, but we’ll do it for free!
• Empower your US small business with Xero self-employed accounting software for business owners.
• Investing involves risk, including the possible loss of principal.

Do freelancers need accounting software?

If your monthly workload and expenses are higher than that, you’ll have to scale Payroll Taxes all the way up to Xero’s Growing plan, which includes unlimited invoices at $37 a month. FreshBooks’ fantastic invoices are easy to customize to your business, and its automated recurring invoices and late payment reminders help you get paid quickly and easily. Its $15 a month starting price is a bit higher than average, but if your business relies largely on invoices to get paid, give FreshBooks a hard look anyway. From invoicing to expense tracking to accounting, Akaunting has all the tools you need to manage your money online, for free. Akaunting is a free, open-source, and online accounting software for small businesses and freelancers.

Budgeting and Managing Irregular Income

This can be helpful when planning business strategies for growth, too. Make sure that you’re generating accurate monthly financial statements including balance sheets and cash flow statements. This financial reporting practice can demonstrate the strength of your business’s financial health to potential investors as well as providing important records for tax season. The more you understand about small business, accounting and finance, the better equipped you’ll be to manage your business’ finances effectively. Consider taking a course or workshop to improve your financial literacy, and take advantage of helpful online resources for small businesses.

We know your Time is Money!

Small businesses can expect to pay a freelance bookkeeper around $50 to $100 USD an hour. The price depends on the complexity of your CARES Act needs and the bookkeeper’s experience and qualifications. Freelancers should do bookkeeping at least once a month but you can go over accounts more frequently if you wish. Some will do it at the end of every week, while others go over their bookkeeping daily, depending on your transaction volume. There are many benefits to using bookkeeping software that can benefit you as a freelancer.

• Save time and energy by sharing invoices online and sending automatic payment reminders to clients.
• It seems trivial, but it helps navigating the menus and seeing data more clearly, adding to a user experience that’s already very intuitive.
• The right accounting software for your sole proprietorship depends on your business’s needs and budget.
• Despite the intuitive experience, there isn’t a lot of embedded help in the app or a detailed onboarding sequence.
• If you’ve ever tried doing your own books after midnight with a cup of cold coffee, you know it’s not the dream.
• If the tax audit finds errors in your filing, resulting in additional taxes owed, you will be more likely to be selected for audits in the following years.

QuickBooks Self-Employed is designed specifically for solo professionals. It simplifies taxes, tracks mileage, and helps separate business vs. personal expenses. If you’re serious about freelancing and want to spend less time on spreadsheets and more time doing client work, accounting software is a no-brainer. 🧾 Invoicing and payment trackingCreate and send branded invoices, track client payments, and issue reminders automatically.

As you make project management and bookkeeping a part of your daily routine, you’ll be able to spend less time on it. This task management will give you more time to focus on your day-to-day work and even help you plan future growth and long-term financial health. It can be hard to keep track of your clients and when and how much they should pay you. Understanding how to manage your accounting and the tools you can use will help you stay on top of outstanding invoices and collect payments from clients who owe you money. I run CleanupOwl, a live SaaS tool that automates diagnostics and clean-up reviews inside QuickBooks Online.

• Set aside time each month to review your earnings, expenses, and outstanding invoices.
• With plans starting at $15 a month, FreshBooks is well-suited for freelancers, solopreneurs, and small-business owners alike.
• With a Pro Plan subscription, you can connect your bank account with Wave and automatically import your transactions.
• Since your clients don’t withhold taxes from your payments, you’re responsible for quarterly, not just annual, tax payments.
• With accounting software, you can quickly figure out where to cut costs and maximize profits so freelancing is as profitable as possible.
• When I tried changing my business type to all the other options, there weren’t equivalent features.

It offers a comprehensive suite of financial management tools, incl… In this guide, we’ll dive into the essentials of accounting for freelancers, covering everything from tracking income and expenses to managing invoices and preparing for taxes. 🟢 Why freelancers love itWave is a truly free accounting solution that covers invoicing, expense tracking, and basic reporting. It’s the perfect starting point for freelancers who want to manage their money with zero overhead. 🟢 Why freelancers love itZoho Books offers the best value for money. With its free plan for businesses under $50K/year and a full suite of features even in paid plans, it’s a top pick if you’re looking for full accounting capabilities without breaking the bank.

Whether you’re just getting started or scaling up your solo business in 2025, the tools on this list can help you simplify your finances, stay compliant, and make smarter decisions. Accounting software isn’t just for big businesses; it’s one of the smartest tools you can invest in as a solo professional. If you drive to meetings or gigs, turn on mileage tracking in the app (QuickBooks and FreshBooks both have this built in). Some freelancers are fine with free tools, while others need premium features to streamline their growing business. Here are the top-rated tools for freelancers in 2025, handpicked based on usability, pricing, freelancer features, and scalability. The website doesn’t have that “serious accounting app” vibe, but it’s very easy to move around the app, not overwhelming in any way.