5 Best Accounting Software for Freelancers in 2022

Top Accounting Software for Freelancers

Accounting software can be used by any size business, and it can consist of many different components. The majority of smaller businesses can avoid using accounting software, which is ideal for them when they first start out. This is because they may not be able to afford the expense of purchasing an accounting software package. It’s also cheaper to replace the accounting software if it meets your needs in the first one or two years, and it’s easier to train yourself in a certain software package. To learn more, check out our article on accounting software for small businesses.

However, when your business grows to the size of a small business, or when you grow from a part-time worker to a full-time worker, you’ll most likely need to purchase accounting software to manage your business and to crunch numbers.

This necessitates an investment in accounting software, and this is where many small business owners get stuck. They try to go with the cheapest option or they opt for a free trial software download. The problem with this approach is that you’re most likely going to realize that you need an accounting software with more features, and you’ll be faced with spending more money to obtain a high-quality package. The alternative requires you to learn a complicated software package, which can take months to learn.

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Question 1

What Type of Accounting Software Would You Recommend I Use?

This question is extra important for people who are looking to get a new accounting software. Like any other field, there are a lot of software that adults can use. But this is one of the most important decisions that you will make in your financial career.

If you don’t get a software that plans to do the right job, it is a waste of time and money. That is why you should do research on the available software. Here are some questions that you need to consider:

How Efficient is a Given Accounting Software?

The most important question that you should ask yourself is “is it efficient?” I think this is the most important question. If you are using a process that is less efficient, then you are spending more time on things that don’t matter. So you need efficient software. If it is an online accounting software, then it should give you access to its features on the Go.

Does it Serve Your Interests?

If you are a freelancer, then you need software that makes your work easier. Online accounting software should serve your interests. So if you have a client, then you can track all your expenses and payments directly from your computer.

Do you want your software to organize and track your inventory?

Of course you do.

Did I mention that in addition to managing your inventory, software can also cut down on administrative time?

And do you know what’s the single most important activity on your plate?

Keeping your books!

You’ll be glad you can do your books and track your inventory online as soon as we’re done introducing you to some of the best Accounting softwares of 2021.

But first, let’s review some of the basics of keeping books. Why should you bother keeping books and records?

Keeping your books records can be difficult, and let’s face it…you’re a full-time freelancer, not an accountant.

And according to a survey by Intuit, 60% of Americans don’t even know what…wait for it…their financial goals are.

As a part-time freelancer, you can’t afford to suck at managing your books. At the minimum, it’s a must that you keep your books documented and available to you.

Question 2

Which Accounting Software is the World's best Accounting software in 2021

There are so many accounting software available out there, it can be very confusing to select the right software for you. To select the right software, you have to consider your needs as a freelancer or a business owner.

Most freelancers opt for a cloud based accounting software as there are many advantages. Here are a few advantages of cloud accounting software:

Easy to install as you can access it from anywhere.

Can be used on Mac as well as on Windows.

You can work on multiple projects simultaneously.

Online data backup to protect against any kind of loss.

Access and save data from multiple devices.

You can easily view notes and reminders by timestamp.

Premium features are offered for a very nominal price.

Easy to customize your report as per your requirement.

You can handle more client at a single time.

Time, Profit and Cost Reports are easily accessible.

Customer support is available all round the clock.

You can use your own Excel on the cloud and access it as a mobile app.

Do you need your software to calculate the sales tax rate based on your customer or client’s address?

Do you need your software to prepare taxes for your client? Do you need your software to help you to calculate the depreciation on your business equipment?

With our accounting software, you can do all those things! What makes searching such a challenge is the variety of accounting software on the market today. There are many software options to choose from but few are truly suitable to a small business.

Question 3

What is accounting software?

Accounting is an intricate business process that is meticulous, detailed and precise. And it is more than just a ledger that ensures business health and tracks taxes. If you’re a freelancer, you need to know what it means to be an accounting professional.

Although having accounting software is not mandatory, for those who want a hands-off solution, there are a number of applications that can make your life much easier. Not only does accounting software automate a number of business processes, it also streamlines the requirements of your tax filing.

Invented in the 16th century, the bookkeeping process was a tedious manual task that took a long time to complete. And given that most bookkeepers can only purchase one bookkeeping ledger, it drastically reduced their efficiency. But in 1698, James Puckle a British accountant created a method that would save hours of work with the help of accounting software.

With the Telegraph Accounting Machine, he could transmit data from one part of the country to another via a telegraph line. This allowed bookkeepers all over the nation to share their data instantly.

How important is it to you to be able to contact customer support by telephone?

As you plan your business, you will discover new products and services you need to offer as well as identify your target customer. Identifying your target customer is important because you need to understand their needs in order to make a sale. However, it is also just as important that you make it easy for your target customer to contact you.

You can reach your customers directly via email, phone, or chat. If you want to provide your customers the ability to contact you via phone, it is important to look for an accounting software that allows you to easily integrate voice messaging service with your system.

Here are five of the best accounting software for freelance service that also have easy to use phone support.

Xero

Xero is an accounting software that is used by business owners, freelancers, and contractors to manage all of their business accounts. It is a cloud based accounting system that allows customers to access their records from any device anywhere in the world. Xero is a complete solution for businesses that need to manage their business online, and it is compatible with Windows, Mac, and Linux.

Question 4

What is your annual gross receipts?

The most important consideration for having a successful accounting software program is that it is adequately equipped to handle the requirements of small businesses. Distributors, freelancers, contractors, nonprofits, and sole proprietorships are a few types of businesses that may find overhead accounting difficult to do manually.

To determine which software program is the best for your business, you should first determine annually your gross receipts. Gross receipts consist of income earned from multiple sources such as commissions from sales of your services, money received from the sale of goods/services provided for sale, and payments from reimbursements received for expenses related to providing such services.

If you are a sole proprietor, you would want to choose an accounting software program that allows you to save statements as Excel Spreadsheets and PDFs as that software allows you to manage your business finances without any hassle. The other software programs would also have similar features that would be good for businesses that use those accounting software programs regularly.

One might want to think twice before they purchase an accounting software program if their annual gross receipts are below 1 million dollars. For businesses with annual sales below 1 million dollars, you may be better prepared to do your books manually for a long while before you would even think about making the switch in accounting systems.

Features to Look for in Freelance Accounting Software

Whether you are self-employed, a freelancer, or a small business owner, it is essential that you keep track of your finances and income so that you are never late on a payment or loan. This article will help you find the best accounting software for your needs.

These days, there are many options when it comes to accounting and bookkeeping software. From free (but basic) options, to intermediate, and all the way up to higher end products, these survey reviews and comparisons will help you choose an accounting program that will work for your business needs.

This writing was created to provide you with reviews of the best accounting software for different business purposes. Each of the 5 software categories that we will discuss are of the highest ranking and quality available.

In this article, you will learn the important features to look for as you search for the perfect accounting software. You will also learn about the top rated software of each category and how to choose from 3 different software support methods.

How We Evaluated Accounting Software for Freelancers

There are quite a few good Accounting Software Solution that are best suited for freelancers and accounting firms. We evaluated accounting software solution for freelancers, the key things that we take into consideration includes:

If it has some sort of recurring billing solution and if so, what does it have to offer?
Does it have some sort of time tracking / invoice tracking / payment reminders functionality?
Does it have multiple reports / dashboard?
Does it have the ability to sync and backup data?
Does it have easy to use / manage / edit / customize admin user interface?

Given these factors, we shortlisted top 5 accounting software solution and analyzed them in detail. Here are the alternatives that we considered for the post:

QuickBooks Online
FreshBooks
Ibidem
Keynote

20% of Overall Score

Canva is a free online tool that provides you with easy-to-use templates, graphics and infographics. It provides tools to help you create an effective brand, create a landing page or create contents, and create content for social media.

Platform: desktop (Windows, Mac, Linux)

Price Range: Free

Rating: 8.7/10

QuickBooks

QuickBooks is an enterprise resource planning (ERP) software targeted at businesses of all types and sizes. It allows you to handle everything from accounting to inventory to customer tracking.

Platform: desktop (Windows, Mac, Linux)

Price Range: $$

Rating: 9.4/10

Zoho

If you are looking for an accounting platform that is easy for you to use and does not require you to be trained to use, Zoho is what you’re looking for.

Platform: desktop (Windows, Mac, Linux)

Price Range: $$

Rating: 9.2/10

FreshBooks

FreshBooks has been providing accounting software for freelancers and small business owners since 2001. It helps businesses handle time sensitive projects and gives them more control of their finances.

25% of Overall Score

Cost to Freelance

The accounting software that you choose for your business largely depends on your budget and your available time. When you decide on a cost-effective and efficient accounting software, you may have to spend some time setting it up, but you’ll be relieved when you realize that you’ll have saved thousands of dollars over a period of time by choosing this software.

20% of Overall Score

Platform: desktop (Windows, Mac, Linux)

Price Range: Free

Rating: 8.7/10

QuickBooks

QuickBooks is an enterprise resource planning (ERP) software targeted at businesses of all types and sizes. It allows you to handle everything from accounting to inventory to customer tracking.

Platform: desktop (Windows, Mac, Linux)

Price Range: $$

Rating: 9.4/10

Zoho

If you are looking for an accounting platform that is easy for you to use and does not require you to be trained to use, Zoho is what you’re looking for.

Platform: desktop (Windows, Mac, Linux)

Price Range: $$

Rating: 9.2/10

FreshBooks

15% of Overall Score

QuickBooks Enterprise Solutions is a common accounting software program used by small businesses to manage financial transactions. Based on cloud computing, it allows small businesses to employ cloud computing and software-as-a-service to deliver accounting, security, and payroll services through a self-service portal.

QuickBooks Enterprise Solutions is a great accounting software program, which is easy to use and manages all major area of accounting. It gives businesses an unrestricted access to QuickBooks data and reporting to improve efficiency and streamline the operation. It manages recurring expenses and automates a variety of accounting tasks. This helps companies improve their internal processes to manage finances and reduce the time spent on completing financial transactions. It also provides payroll and employee benefits to equip managers for employee management. QuickBooks Enterprise Solutions is flexible and allows businesses to manage their financial operations through a single platform without the need to switch between different platforms.

QuickBooks Enterprise Solutions doesn’t require any extensive technical expertise and is a quick and easy way to manage business accounts, processes, and transactions. This translates to speed and ease of accessing data and performing tasks. For those managing small companies, this software is an ideal solution as it provides the adequate tools to manage employee compensation software.

20% of Overall Score

Platform: desktop (Windows, Mac, Linux)

Price Range: Free

Rating: 8.7/10

QuickBooks

QuickBooks is an enterprise resource planning (ERP) software targeted at businesses of all types and sizes. It allows you to handle everything from accounting to inventory to customer tracking.

Platform: desktop (Windows, Mac, Linux)

Price Range: $$

Rating: 9.4/10

Zoho

If you are looking for an accounting platform that is easy for you to use and does not require you to be trained to use, Zoho is what you’re looking for.

Platform: desktop (Windows, Mac, Linux)

Price Range: $$

Rating: 9.2/10

FreshBooks

Zoho Books

Other accounting software platforms have so many users choosing for their own services have to be cautious and take better care of their clients’ data to protect them from potential data theft.

The Zoho Books Accounting Software is best for those who are new to the world of accountancy. It also has the best data protection. With best features and ease of use, it can also help business owners manage their financial reports and run their business more efficiently. This is one of the best accounting software services for being up-to-date and providing quick turnaround time for your invoices right away. There is also an option in the software that can track loan portfolios for financial planning of your business.

PROS

QuickBooks Skill page tracking for time spent working on particular customers

CONS

Have you ever worked with a freelancer before? When you first meet them, you might be surprised at how competent they are! Even if you never used an accountant before, you’ve likely still heard some things about accountants and their duties. In this article, we’re going to cover some of the most important things you need to consider as a freelancer before you start working with an accountant. For the purpose of this article, we will be using the word accountants to refer to any and all kinds of accounting professionals.

Our Expert Opinion

Zoho Books Pricing

The Zoho Books accounting software is among the most versatile and powerful accounting tools you can find in the market today. With a robust feature set, you can automate your accounting tasks, secure and backup your important data for you and your clients offline, and collaborate with your team in a convenient manner.

Some of the other stand out features offered by Zoho Books are: …

QuickBooks Integration: Use it with QuickBooks, your preferred accounting software by the help of which you can enter and update your transactions. …
E-Commerce: E-Commerce is offered from its very beginning. You can create your own online store to sell your products, and the software will automatically import the orders you receive. You will be able to execute your entire online sales process with speed and ease.
Accounting: Zoho Books allows you to manage accounting tasks from anywhere having an internet connection without being physically in your office or business premises. It’s a great option for you especially if you are a frequent traveler. Receive the latest updates on your bank accounts, pay your creditors, and view your financial health in real time. …

QuickBooks Online

While QuickBooks Online is available as a standalone option, which means you can buy it without an accounting software subscription, QuickBooks Premier Pro is the preferred edition as it comes with a subscription. Depending on the price of the subscription and the functionality and features you would require, QuickBooks Premier Pro may be the best accounting software for your small business.

Check out this post to learn more about the different options available with Quickbooks Online.

PROS

QuickBooks Skill page tracking for time spent working on particular customers

CONS

Our Expert Opinion

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{4}. SEO

QuickBooks Online Pricing

QuickBooks is a good option when you have a limited budget. It does away with spreadsheets and lets you manage your finances easily and quickly. It is available on various devices (both iOS and Android) and lets you work anywhere.

Free 30 Days Trial

And while it may not be as feature-packed as its best-known rivals, it’s the most affordable option for small businesses. If you don’t need all of the services of a true business software suite, QuickBooks’ advanced pricing structure, combined with its complementary offerings, will help you meet a good portion of your business’s accounting needs.

If you’re not entirely satisfied with QuickBooks, you can also opt for Intuit’s QuickBooks Online, a cloud-based version of the software.

As with QuickBooks, QuickBooks Online is free to use if you’re just an individual user. However, if you are a business, you’re required to pay a subscription. The paid version of QuickBooks Online integrates with QuickBooks desktop software— making it a good choice for network businesses that use QuickBooks.

QuickBooks’ two main features are its accounting capabilities and its file synchronization capabilities.

FreshBooks

Accounting is a top-rated accounting software designed for freelancers and small businesses. It offers all the functionalities you need for successful freelancing businesses: tracking invoices, adding bills, calculating taxes, and creating reports.

FreshBooks 2018 Overview

FreshBooks Accounting 2018 is a tried-and-true paid accounting software. It’s intuitive and accommodating for freelancers with many great features, like the ability to add customers without a credit card. FreshBooks has not lost its touch either, especially with the simple interface allowing users to easily import & merge data. Matching Quickbooks for functionality, FreshBooks Accounting bests other accounting software because it’s more customizable.

FreshBooks Accounting lets you track financial data, connect to QuickBooks, and create customized reports. Furthermore, you are able to create reminders and bills, manage your time, prepare invoices, and also add customers. FreshBooks Accounting is also compatible with all major accounting software.

In the end, FreshBooks Accounting is a reliable accounting software that’s easy to use. It’s crafted with the accounting needs of freelancers in mind, and it’s personalized enough for freelancers to add tracking data and customer information. FreshBooks Accounting 2018 has what it takes to be the best choice for freelancers in 2021.

PROS

QuickBooks Skill page tracking for time spent working on particular customers

CONS

Our Expert Opinion

FreshBooks Pricing

QuickBooks Self-Employed

QuickBooks Self-Employed/Unincorporated is a full-service solution for self-employed people or unincorporated businesses that do business as a sole proprietorship. QuickBooks Self-Employed gives you the tools to prepare, track, and pay your income and expenses. Plus, you can get tax advice and guidance for your records — all in one place. Plus, you get access to the Intuit network of more than 330,000 highly skilled and knowledgeable partners.

QuickBooks Self-Employed is designed for small businesses that have limited bookkeeping resources. QuickBooks Self-Employed includes plenty of business forms for you to use. You can work with a registered or an unregistered business.

QuickBooks Self-Employed can be used for sole proprietorships or limited liability companies (LLCs). QuickBooks uses a single username and password to access your data and forms. And you can easily share information with other team members, business partners, and accountants.

QuickBooks Self-Employed is designed to track income and expenses. All income and expense transactions are fully reconciled. Plus, you can use the powerful Cash Flow Forecast tool to budget and forecast your cash flow.

Much like the desktop version of QuickBooks, QuickBooks Self-Employed is compatible with a wide range of accounting software. Other Clients Are added through the QuickBooks integration feature.

PROS

QuickBooks Skill page tracking for time spent working on particular customers

CONS

Our Expert Opinion

QuickBooks Self-Employed Pricing

Sunrise

Sunrise is a versatile accounting software. The software has offline balances. You can enter your transactions anytime and anywhere. The software has no setup fee, and comes with a 30-day money back guarantee.

You get 30 days of free trials. They are free for all platforms. They offer Windows, Mac, and Linux editions. Everest Online is included in Sunrise accounting software. You can manage your websites, email marketing, MySQL database, and SunChex.

Sunrise has the following features:

The software saves 50% more transactions than QuickBooks.

It comes with budgeting and forecast reports.

It comes with a mobile app.

It’s an open source accounting software. It’s free to use, and does not store credit card information. You can use the software basic accounting functionally only. It is not for those looking for advanced features in an accounting software.

There is a 30-day money back guarantee for any users who are not happy with the trial download. You can send the software back within 30 days of your purchase.

Sunrise offers free webinars.

The company’s support page includes FAQs and video tutorials.

Their support personnel walks users through the most common issues.

There are no hidden charges.

There is no setup fee and no annual fees.

PROS

QuickBooks Skill page tracking for time spent working on particular customers

CONS

Our Expert Opinion

Sunrise Pricing

Sunrise Accounting is a cloud-based accounting software. It provides accountants and freelancers with a simplified interface that allows you to track payments from clients. You can also print invoices and emails directly from the software.

It’s available for Windows, Linux, Apple iOs and Android.

Sunrise pricing is simple. You pay a set monthly fee and can access your account from any internet connected device. You can add clients and clients can add you. There are no contracts and no hidden costs.

It’s a popular choice for freelancers.

Archive-It

Archive-It is a cloud-based online file storage. The files are encrypted and are stored at an offsite location. You can set it up on your own drive, but if you choose to use the cloud, you get access to many more features including an extensive Dropbox like library to make it easy to share files with your colleagues and clients.

It’s available for Windows, Mac, Apple iOs and Android.

Archive-it pricing is simple. There’s no annual fee, you pay as you go for file storage.

It’s a popular choice for freelancers who do a lot of file copies and want to get rid of their file cabinet.

Bottom Line

Actually, it doesn’t matter what kind of freelancer you are, there’s no good way to tell which accounting software will work for your business. Much like freelancers, accounting software companies vary so widely that you will need to do your research before choosing the right program for you and your business. The best advice that I can give you is to start by evaluating what kind of accounting software your business needs, and then find the best accounting software for freelancers that fits that need.