From kickoff to invoicing, FreshBooks accounting software supports your business every step of the way. When you upload project information to share with your team or clients, you’re all on the same digital page. With FreshBooks accounting software you’ll know at-a-glance how long tasks really take. Just start a timer and get down to business – when you’re done, you’ll have an accurate time log ready to pop onto an invoice. And when your whole team uses FreshBooks accounting software to track their hours, everyone’s productivity is in one clear place. FreshBooks accounting software for freelancers lives in the cloud so you can securely access it from your desktop, phone and tablet wherever you are.
Short on Time? These Are the Best Freelance Websites for Hiring Accountants in 2025
It’s important to differentiate between capital expenses and supplies. Capital expenses, such as computers or office furniture, involve long-term assets and are not immediately deductible. Instead, depreciation under IRC Section 167 is used, often calculated through the Modified Accelerated Cost Recovery System (MACRS). Supplies like printer ink, stationery, and small tools are considered current expenses and are fully deductible in the year purchased.
- Wave is a cloud-based system that enables very easy accessibility from anywhere with a net link promoting smooth partnership as well as administration of financial resources on the move.
- Thanks to its comprehensive features and ease of use, Wave Accounting is our absolute favorite free accounting software.
- This limitation can make it less appealing for freelancers or small teams who need more flexibility.
- Hence, we completely understand your hesitance in investing in something new.
- Unfortunately, QuickBooks’ features—at least those included with its base plan—aren’t quite enough to justify its high starting price.
Merritt Bookkeeping aced my pricing assessment because of its affordable monthly flat rate of $250, regardless of the size of your business or its income and expenses. It has also received excellent user reviews, the highest of all the providers on our list, which proves its customer satisfaction. The platform nearly nailed the pricing category because of its low starting price for small businesses. However, costs increased for larger businesses—though the hourly rate of $49 for add-on services is very affordable.
These deductions can significantly reduce taxable income, offering substantial savings. Discover key tax deductions freelancers can leverage to optimize their finances and reduce taxable income effectively. No matter your goals as a sole trader, working with an online accountancy firm like Mazuma can help accountant for freelancers you achieve them. Not only do we help you run your business tax-efficiently, but we also provide the support you need to scale and evolve. I selected QuickBooks Live for this roundup because of how easy it is to communicate and manage the bookkeeping service. QuickBooks Live is built into the QuickBooks Online dashboard and can be activated with a few clicks.
Xero Accounting’s cloud-based double-entry accounting software features native inventory management features, making it a great choice for product-based businesses. Not only can you keep track of your stock levels and see what’s selling, Xero will also automatically populate invoices and orders with items you sell. Xero’s pricing plans are also affordable, which will appeal to solo operations that won’t break the bank. FreshBooks accounting software for freelancers offers a mobile app that allows you to easily connect with your clients and take care of your accounting anywhere – from coffee shop to mountain top. Send invoices on the road, take photos and upload expense receipts in seconds, and respond to your clients’ questions right from the app.
If you get accounting software with inventory tracking already included, that will make it extremely easy to generate invoices for each item sold and to log each transaction in your books. Wave doesn’t have an accounting app, which means you can’t upload receipts or track mileage like you can with Xero, FreshBooks, Zoho, and QuickBooks. If you manage clients and inventory with financial tools other than Wave, you’ll likely spend more time on redundant data entry than you’d like. There’s no legal requirement to have an accountant as a sole trader or freelancer in the UK. That said, many people find that the advantages of having one, such as not having to get to grips with online accounting software or struggle with paying tax bills, make it worth the investment. I selected Bench as the best bookkeeping for freelancers wanting their individual tax returns with Schedule C included, which is available with the Premium plan.
It provides bookkeeping support at a lower cost than its competitors while offering tax assistance and specialized services, such as chief financial officer (CFO) advisory. It did, however, suffer in the personal bookkeeper category because while it offers a dedicated bookkeeper, it doesn’t provide video meetings, a phone number to call, or a mobile app. Bookkeeper360 offers all three, so it’s a good solution if that’s what you’re looking for.
Effortlessly Manage and Collaborate with Your Team
These costs are deductible if they are reasonable and directly related to the business. This includes strategies like print ads, business cards, social media campaigns, and website development. If you’re looking to move from a previous accountant to us, we can handle the switch for you. We’ll contact your previous accountants and obtain the information we need, like your accounting history. Your specialist accountant will then update our accounting software with your details.
Expense Reports
If you manage other contractors as part of your own contracting job, most freelance accounting software includes 1099 contractor management with their basic plans. QuickBooks Online and Zoho Books are two great places to start if managing contractor payments is a top priority for you. Freelancers needing to track income and expenses can do so with Merritt Bookkeeping, which costs only $250 per month, regardless of the number of transactions or the amount of your sales. If you’re using QuickBooks Online, then QuickBooks Live or Bookkeeper360 are great options, depending on your specific needs. Meanwhile, Bench can also help with your Schedule C tax return, which is helpful if you want to keep all your accounting needs with the same company.
Our freelance accounting experts are here to ensure you run your business in the most tax-efficient way. Our tax efficiency support helps to reduce your tax liability and leaves you with a smaller bill to pay off as you near the end of the tax year. The cash management features are especially useful for freelancers wanting to maintain an overview of their finances and cash management insights. Bench also lacks some important bookkeeping features, including full-service payroll and paying bills, costing it some points for bookkeeping services. It also doesn’t let you customize services to create your own plan, so Bookkeeper360 is a good solution—as it nailed my assessment of its bookkeeping services.
It offers services including business formation, tax optimization through S Corp election, and financial management tools. It offers a comprehensive suite of financial management tools, incl… Most accounting software for freelancers offers free trials, and those that don’t encourage you to schedule a demo call with the sales team. Take your time testing out each software to see if it meets your needs and if you can do without the features on the most expensive plans.
Leveraging my accounting and bookkeeping expertise, I rigorously assess software using our internal case study that objectively scores key features while upholding editorial independence. Whichever you decide on, finding quality accounting software is better than none at all. From contracts, proposals, and client management to invoicing, branded client portal, and a ton more.
Ideally, a mobile app should have all the same features as the computer platform, including the ability to capture receipts, send invoices, receive payments, enter and pay bills, and view reports. At the very least, we looked for software that could create multiple projects and separately assign income and expenses to those projects. We also searched for the ability to create estimates and assign those estimates to projects.