Are you juggling client work, chasing payments, and trying to grow your business?
The last thing you need is a bookkeeping headache. You can streamline your finances, save time, and ensure accuracy in your records with the right bookkeeping software.
For us, FreshBooks is your best option for bookkeeping software if you are self-employed. It’s easy to use, intuitive and has excellent core features. You’ll also get outstanding after-sales support too.
Still, the ideal choice will, of course, depend on your business needs, workflow, and ultimately, your budget.
So, let’s cut through the noise and look into our other top picks below.
Why Solid Bookkeeping Matters for Your Solo Venture
First, let’s hit home on why your bookkeeping software is so important.
When you’re self-employed, you face unique challenges in finance management and, often, you end up wearing many, many hats. Here’s why adding a “savvy bookkeeper” to that list is essential:
- Tax-time compliance and sanity: Imagine facing tax season with organized records instead of a shoebox full of receipts.
- Accurate data everywhere: Reduce unavoidable human errors in your financial calculations and record-keeping.
- A clear big-financial picture: Know exactly where your business stands financially at any moment.
- Smarter decisions: Use real data to guide your business choices, from pricing to investments.
- Save so much time: You can start automating all that number-crunching and focus your time and energy on more crucial tasks.
- Keep up the professional rep: Continue to impress clients with polished and tailored invoices while delivering prompt, data-driven responses.
Bookkeeping software can definitely streamline your finances and business process. But, remember too, that expert guidance can be invaluable (and often irreplaceable).
At Traktion Accounting, we offer personalized support to complement your chosen software, ensuring you’re organized, tax-compliant, and strategically positioned for growth. If you’d like to chat with us more, simply use our calendar here.
Must-Have Features in Your Self-Employed Bookkeeping Toolkit
When evaluating software options, keep these essentials in mind:
| Mobile Accessibility | Description |
| Hassle-free bank integration | Your transactions should flow seamlessly into your books. |
| Smart expense tracking | Categorize costs effortlessly to maximize deductions. |
| Invoice generation | Create and send professional invoices to clients quickly. |
| Tax-ready reporting | Generate reports that simplify tax preparation and filing. |
| Room to grow (scalability) | Choose software that can keep up as your business expands. |
| Mobile accessibility | Manage your finances from anywhere through a mobile app. |
| User-friendly design | Opt for software with an intuitive design for easy navigation. You shouldn’t need an accounting degree to use your software. The same should apply to their mobile app! |
| Receipt-scanning | Normalize digitized receipts! You’ll get this feature in all our picks. |
At-a-Glance Comparison Guide For Self-Employed Bookkeeping
Here’s a quick comparison of our top 7 picks:
| Software | Perfect For | Starting Price | Standout Feature |
| FreshBooks | Project jugglers | $18/month | Time tracking + Project management |
| QuickBooks Self-Employed | Tax management | $12.50/month (first 3 months) | Automated mileage tracking |
| Wave | Budget-conscious users | Free (core features) | Completely free accounting & invoicing |
| Xero | Fast-growing businesses | $12/month | Robust inventory management |
| ZipBooks | A simple and straightforward user experience | $15/month | Color-coded financial health insights |
| Zoho Books | Automation | Free plan available | Customizable workflow automation |
| FreeAgent | Time trackers | $13.50/month | Built-in time tracking & project tools |
Top 7 Best Self-Employed Bookkeeping Software
1. FreshBooks
Best Overall
FreshBooks shines for self-employed pros who must wrangle multiple projects while keeping finances in check. It combines simplicity and powerful features.
Key Features:
- Intuitive invoicing that gets you paid faster
- Built-in time tracking for accurate billing
- Expense management with receipt capture on-the-go
- Get project profitability tracking
- Client portal for seamless collaboration
Pricing: Starts at $18/month
Pros:
- Incredibly user-friendly interface – we can’t overstate this enough.
- Equally great mobile app
- Top-notch, responsive customer support
Cons:
- Limited features in lower-tier plans
- Can be pricey for solopreneurs just starting out
Why It Might Be Your Match: If you’re balancing multiple clients and projects, FreshBooks keeps everything organized in one place. Its time-tracking feature is a lifesaver for service-based businesses if you bill by the hour.
2. QuickBooks Self-Employed
Best for Tax Management
QuickBooks Self-Employed is tailor-made for freelancers and contractors who break into a cold sweat thinking about taxes.
Key Features:
- Automatic mileage tracking (a potential goldmine for deductions)
- Quarterly tax estimation to avoid nasty surprises
- Expense categorization with a simple swipe
- Seamless integration with TurboTax for easy filing
Pricing: $12.50/month for the first 3 months, then $25/month
Pros:
- Excellent tax management tools
- Real-time mileage tracking is a game-changer for mobile professionals
- TurboTax integration simplifies year-end filing
- Primarily designed for U.S. tax laws
Cons:
- Limited invoicing capabilities compared to our other picks
Why It Might Be Your Match: If you’ve ever lost sleep over estimated taxes or missed deductions, QuickBooks Self-Employed could be your new best friend. It’s especially valuable if you drive frequently for work or struggle to separate business and personal expenses.
3. Wave
Your Budget Choice
Wave proves that powerful bookkeeping tools don’t have to come with a hefty price tag.
Key Features:
- Truly free accounting and invoicing
- Receipt scanning to digitize your paper trail
- Income and expense tracking to know where you stand
- Basic financial reporting for quick insights
Pricing: Core features are FREE. Paid add-ons available for payment processing and payroll.
Pros:
- COMPLETELY FREE (no rug pulls here!)
- Clean, user-friendly interface
- Unlimited invoicing and accounting
Cons:
- Limited customer support for free users
- You’ll need to pay for more advanced features
Why It Might Be Your Match: Wave is perfect if you’re bootstrapping your business or simply prefer to minimize overhead costs. You get robust functionality without spending a dime on core bookkeeping, which is great if you’re just starting out or have simple bookkeeping needs.
4. Xero
Best Scalability
Xero is built to grow alongside your business. Transition easily from your solo operation to that future small empire.
Key Features:
- Powerful inventory management for product-based businesses
- Multi-currency support for going global
- Large app marketplace for customized solutions
- In-depth reporting so you can make smarter decisions
Pricing: Starts at $12/month
Pros:
- Scales seamlessly as your business expands
- Thorough reporting tools for deep data insights
Cons:
- Steeper learning curve than some alternatives
- Can become pricier as you add users and features
Why It Might Be Your Match: Choose Xero if you have ambitious growth plans or need robust inventory management. It’s an investment in a platform that will support you from solopreneur to CEO without missing a beat.
5. ZipBooks
Best User Experience
ZipBooks brings a breath of fresh air to the often stuffy world of accounting software. Who says bookkeeping apps can’t track expenses and look pretty at the same time?
Key Features:
- Color-coded interface for at-a-glance financial health checks
- Automated bookkeeping suggestions to keep you on track
- Custom invoicing templates to match your brand
- Basic project management to tie finances to your work
Pricing: Starts at $15/month, with a limited free plan available
Pros:
- Extremely intuitive, straightforward design
- Automate data insights to help improve habits
- Competitive pricing for its feature set
Cons:
- Fewer integrations compared to our other picks
- Limited customization options in lower-tier plans
Why It Might Be Your Match: If terms like “double-entry accounting” make your eyes glaze over, ZipBooks’ approachable interface and helpful automations can make bookkeeping almost (dare we say it?) enjoyable.
6. Zoho Books
Best for Automation
Zoho Books excels at taking repetitive tasks off your plate through clever automation. Those minutes shaved off adds up!
Key Features:
- Customizable workflow automations
- Client portal for easier collaboration and payments
- Extensive integration with other Zoho business apps
- Multi-language and multi-currency support for global reach
Pricing: Free plan for businesses with revenue under $50k/year; paid plans start at $15/month
Pros:
- Extensive automation capabilities save significant time
- Comprehensive feature set rivals pricier options
- Affordable pricing structure, including free tier
Cons:
- Can feel complex if you only need basic functions
- Steeper learning curve to fully leverage all features
Why It Might Be Your Match: Zoho Books is ideal if you find yourself repeating the same bookkeeping tasks over and over. Its automation features can give you hours of your life back while ensuring consistent, accurate financial management.
7. FreeAgent
Best for Time Tracking Features
FreeAgent brings solid time tracking and project management into the bookkeeping fold.
Key Features:
- Detailed time tracking tied directly to invoicing
- Tax timeline and estimation tools so you can plan ahead
- Multi-currency invoicing for international clients
- Financial reporting for clear insights
Pricing: $13.50/month for the first 6 months, then $27/month
Pros:
- Excellent time tracking and project management integration
- Balances power and simplicity
- Strong, responsive customer support
Cons:
- Higher price point than some competitors
- Core features tailored to UK-based businesses (but usable worldwide)
Why It Might Be Your Match: FreeAgent is a standout choice for service-based freelancers, especially those billing hourly. The seamless connection between time tracking, projects, and invoicing can be a game-changer for your workflow and ensure you get paid for every minute worked.
How to Choose the Right Bookkeeping Software for Your Needs
Finding the right software boils down to understanding your unique needs. Ask yourself:
- What’s your budget? Be realistic about what you can invest.
- How complex is your business? More moving parts might require more robust software.
- What features are non-negotiable? Prioritize what matters most to you.
- How tech-savvy are you? Be honest about the learning curve you’re willing to tackle.
- What’s your growth trajectory? Think about where your business will be in 3-5 years and beyond.
Not sure which bookkeeping software is the best fit? Here at Traktion, we specialize in helping self-employed professionals like you with these choices. We can offer personalized recommendations based on your specific needs and goals.
Free vs. Paid Bookkeeping Software
The allure of free software is strong, but it’s not always the best long-term choice. Here’s a quick breakdown:
Free Software Pros:
- No initial financial investment
- Often covers basic needs for very small businesses
- Good for testing the waters of digital bookkeeping
Free Software Cons:
- Limited features and customization
- Potential for upsells or ads
- May lack advanced reporting or integrations
Paid Software Pros:
- More features to support growth
- Better customer support when you need help
- Regular updates and improvements
- Advanced reporting and analytics for deeper and richer insights
Paid Software Cons:
- Ongoing cost to factor into your budget
- May include features you don’t need (yet)
Your choice ultimately depends on your business stage and financial situation. Many self-employed professionals find that starting with a free option and upgrading as they grow works well. Others prefer to invest in a paid solution from the start for more robust features.
Whichever route you choose, consider complementing your software with expert guidance, to ensure your books are organized as well as optimized for tax efficiency and business growth.
Frequently Asked Questions (FAQ)
Q: What’s the easiest bookkeeping software for absolute beginners?
A: ZipBooks and Wave stand out for their user-friendliness. They’re great starting points if you’re new to digital bookkeeping.
Q: Do I really need special software if I’m just freelancing part-time?
A: Even part-time freelancers benefit from proper bookkeeping. It helps track income for taxes, separates business and personal expenses, and provides valuable insights as you grow. Starting with a free option like Wave can be a smart move.
Q: Can’t I just use my personal finance app for business?
A: While personal finance apps are great for budgeting, they lack important business features like invoicing, tax estimation, and business-specific reporting. Dedicated bookkeeping software will serve you much better in the long run.
Q: How much should I budget for good bookkeeping software?
A: Prices range from free (Wave) to around $20-$50 per month for more feature-rich solutions. Many offer tiered pricing, so you can start small and scale up as needed. Consider it an investment in your business’s financial health and your own sanity!
Q: Is it safe to put all my financial data in the cloud?
A: Reputable cloud-based bookkeeping software uses bank-level encryption and security measures. That said, always use strong, unique passwords and enable two-factor authentication for an extra layer of protection.