BEST OF

Best Accounting Software for Freelancers and Self-Employed of June 2023

Freelancers and the self-employed can typically subscribe to less expensive accounting software plans than other business owners.

By Hillary Crawford  and  Billie Anne Grigg  

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The best accounting software for freelancers and self-employed people keeps track of invoices, mileage and other billable expenses, while being easy to use and affordable.

Many of the best accounting software providers offer basic plans that are well-suited for the financial needs of freelancers and the self-employed. These plans can keep business and personal finances separate while also facilitating communication with clients to ensure you’re paid on time.

Here are our picks for the top accounting software for freelancers and the self-employed. 

Best Accounting Software for Freelancers and Self-Employed

Our pick for

Overall freelancer accounting software

FreshBooks
Learn more

on FreshBooks' secure website

FreshBooks

FreshBooks

Starting at

$17/month

Additional pricing tiers (per month): $30, $55, custom.

Promotion

30-day free trial

or monthly discount (terms vary).

Learn more

on FreshBooks' secure website

Why we like it

Freelancers often need to keep in touch with their clients from anywhere. FreshBooks, which was initially created as an invoicing solution, addresses this by letting you view invoices, respond to clients’ questions and send payment reminders all from its mobile app. You can also start a timer from within the mobile app to log hours spent on a particular project, or sync data from tools like Asana or Trello. It’s especially cost-effective for freelancers who can work within the confines of lower-tier plans’ billable client limits.

Pros

  • Send estimates and keep tabs on invoices, income, expenses and sales tax.

  • Automatically track mileage and label trips as business or personal.

  • Stay in touch with clients through FreshBooks’ mobile app and get notified when invoices have been viewed or become overdue.

  • Track time and add billable hours, plus other billable expenses, to invoices.

Cons

  • Least expensive Lite plan does not include a receipt scanner, double-entry accounting reports, accountant access or bank reconciliation.

  • Lite and Plus plans limit how many clients you can invoice.

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Our pick for

Free, unlimited invoicing

Wave
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on NerdWallet's secure website

Wave Accounting

Wave

Starting at

$0

Free (Wave makes money via paid money management products).

Promotion

N/A
Read review

on NerdWallet's secure website

Why we like it

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. You can create and send invoices through the app, as well as set up recurring invoices and track client communication and payment history. However, if you need mileage tracking, time tracking or a billable expense feature, it’s probably not the right choice. While you can manually record billable expenses, it’s not the most convenient process. For freelancers and self-employed people who charge a fixed fee per service, though, it should be sufficient.

Pros

  • Free.

  • Unlimited invoicing, expense tracking and income tracking.

  • Unlimited partners, collaborators and accountants.

Cons

  • No built-in time tracker, mileage tracking feature, audit trail or ability to accept in-person card payments.

  • No third-party integrations or additional plans to increase functionality.

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Our pick for

Mobile-first features

Zoho
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on NerdWallet's secure website

Zoho Books

Zoho

Starting at

$0

Additional pricing tiers (per month): $20, $50, $70, $150, $275.

Promotion

14-day free trial

of the Premium plan.

Read review

on NerdWallet's secure website

Why we like it

Zoho Books is an affordable solution for freelancers and the self-employed, and an even better deal if you can work within its free plan’s limit of 1,000 invoices per year. Just keep in mind that the free plan doesn’t include timesheets or project expense tracking. Its mobile-first features are what really set the software apart for freelancers and the self-employed, though. Take, for example, the ability to send invoices via iMessage or add widgets to your phone’s home screen so that you can easily access timers and overdue invoices. There’s also an Apple Watch app that lets you track time, send payment reminders and review outstanding invoices.

Pros

  • Invoice clients and turn photos of their business cards into contacts.

  • Add accounting widgets to your phone’s home screen; track time using your Apple Watch.

  • Send estimates; track income, expenses and sales tax.

  • Convert billable expenses into invoices; track mileage with GPS and convert it into an expense.

Cons

  • To scan receipts, you’ll need Zoho Expense, a separate app (Zoho Expense’s free plan includes this feature).

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Our pick for

Scalability

QuickBooks
Learn more

on QuickBooks Online's secure website

QuickBooks Online

QuickBooks

Starting at

$30/month

Additional pricing tiers (per month): $55, $85, $200.

Promotion

50% off

for first three months or free 30-day trial.

Learn more

on QuickBooks Online's secure website

Why we like it

Freelancers and self-employed entrepreneurs who plan on potentially opening a storefront, hiring employees or expanding their business might consider QuickBooks Online because of its scalability and popularity among accountants. The software can be a good fit for a wide variety of small businesses and growth stages. Reporting capabilities scale up with each plan tier and the Plus plan includes an array of extra features, like inventory tracking. QuickBooks Self-Employed is a pared-down version of QuickBooks Online and while it has convenient features, such as quarterly tax estimates, it doesn’t include basic capabilities, like double-entry accounting.

Pros

  • Unlimited invoicing, billable clients and estimates; track expenses, income and sales tax.

  • Track mileage automatically with GPS and categorize trips as business or personal.

  • Photograph receipts and QuickBooks will match them to expenses.

  • Higher-tier plans include more advanced reporting and project profitability tools for growing businesses.

Cons

  • Least expensive Simple Start and Essentials plans don’t support billable expenses.

  • Simple Start plan doesn’t let you add billable hours to invoices.

  • Must pay separately for automatic time-tracking software, regardless of plan.

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What do freelancers and the self-employed need from their accounting software? 

The best accounting software for freelancers and the self-employed should at least offer the following capabilities:

Invoicing 

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. The best accounting software lets you set up recurring invoices, automates late-payment reminders and may also have a mobile app so you can message with clients from anywhere. Freelancers and self-employed people who don’t need accounting software might consider free invoice software instead. 

Billable expenses

Although freelancers and self-employed people do have some overhead costs, many of their expenses may also be billable to their clients. This means your freelance bookkeeping software must be able to not only record expenses but also easily pull them into invoices you can send to your clients. It should also let you easily markup those expenses to ensure profitability.

Mileage and time tracking

All small businesses can benefit from keeping a mileage log if the owner uses a personal vehicle for business. But, like with billable expenses, freelancers and the self-employed might need to track their mileage for billing. Your accounting software should have a built-in mileage tracker, or be able to easily integrate with one. The same goes for time tracking. Built-in timers, or integrated time tracking apps, make it easy to record hours and add them to invoices. 

Tools for separating personal and business finances

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.

Last updated on March 15, 2023

Methodology

NerdWallet’s accounting software ratings favor products that are easy to use, have a robust feature set and can grow with your business. Ratings are based on weighted averages of scores in several categories, including scope of features and integrations, customer support and cost, among others. Learn more about how we rate small-business accounting software.

These ratings are meant to provide clarity in the decision-making process, but what’s best for your business will depend on its size, growth trajectory and which features you need most. Simplicity doesn't always translate into ease of use. Less scalable products are typically simpler, but diminished functionality can cause headaches down the road for growing businesses. We encourage you to research and compare multiple accounting software products before choosing one.

NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.

To recap our selections...

NerdWallet's Best Accounting Software for Freelancers and Self-Employed of June 2023