7 Best Self-Employed Accounting Software of 2025

A strict budget plan will help you develop healthy financial habits as a freelancer. This smart money management will help your business grow in the long run. Major benefits include getting paid faster, having clear financial records to submit when you’re applying for a loan and being prepared for a potential audit.

• It anticipates the needs of freelancers and small businesses well—better than competitors in this class.
• Fiverr Workspace (formerly AND.CO) really gets how freelancers work and think—and it’s a powerful tool that’s more than just accounting.
• Don’t opt for a software just because it’s trending and has thousands of positive reviews by customers.
• You’ll find all the assistance you need in the knowledge base, but FreeAgent has a lot more help to offer.
• This form should be filled out carefully and accurately to ensure that you are reporting your income and expenses correctly.

One major advantage of Wave is that its accounting, banking, and invoicing software is completely free to use. Although there are several monthly plans to choose from, the Simple Start plan is a great option for self-employed individuals. It costs only $30 per month, and you also get a 50% discount for the first three months of using the product. This plan comes packed with all the features self-employed individuals would need to manage their small businesses.

IV. Business Acumen and Entrepreneurial Spirit

• Or alternatively re-send them the invoice by itself with a gentle reminder that it is due now if the Customer is late in paying.
• All FreshBooks plans offer inventory management capabilities, and integrate with big ecommerce platforms, making it a great pick for individuals running their own online retailer or dropshipping operations.
• For instance, the Self plan supports one user, the Pro two, the Plus three, and so on.
• TrulySmall Accounting is designed for very small businesses, especially those that handle fewer than 500 transactions a year.

Frankly, if you do make less than $50,000 a year, we can’t recommend Zoho Books highly enough. It has more features than Wave, which is also free but lacks an accounting app, 1099 contractor management, a client portal, and mobile payment acceptance. If you’re looking for the most fully featured accounting software, Wave Accounting is a good bet. Wave includes expense tracking, sales tax customization, and bill payment reminders. And unlike some paid software, Wave doesn’t limit the number of clients you can invoice per month. But different free accounting options have different benefits, so we recommend looking over our list of the best free accounting software for small businesses to find the right one for you.

Best self-employed accounting software for organizing your business

Zoho Books’s invoice limits are also much more generous than its rivals. Its Free plan lets users send off 1,000 invoices a year, with the cap growing to 5,000 with its Standard plan. In contrast, Xero’s entry-level plan Early only lets you send off 20 invoices per month, making Zoho Books much more suitable for self-employed workers frequently requesting payments from a broad range of clients. For self-employed workers, getting paid on time and maintaining a professional relationship with clients is paramount. Its invoice toolkit lets you create professional custom invoices with your company’s own branding, track the status of these invoices, and the platform even notifies you when they’ve been paid. QuickBooks even allows users to view when invoices have been viewed by clients, a feature that competing systems, like Clear Books, currently lack.

Final Thoughts on Accounting Software for the Self-Employed

Choosing the right accounting software is crucial for anyone who is self-employed. It helps you manage your finances better, even if you are working alone. The software options we discussed, like FreshBooks and Wave, offer various features that can fit different needs. Remember, the best choice depends on your specific business type and what features matter most to you. Whether you need help with invoicing, tracking expenses, or managing clients, there’s a tool out there for you.

ACTION POINT: Streamline Your Solo Practice at $19 A Month

The more of your ideal client you know, the easier it will be for you to complete projects and earn well. You can also improve your accounting project management skills with the help of workflow experts like Kellie Parks, CPB, Ron Baker, and Heather Satterley, CPA from Accounting Workflow Academy. Working for another accountant presents the opportunity to build a wealth of experience (in accounting operations), which you can draw from when you run into difficult situations in your solo firm. Some of the links that appear on the website are from software companies from which CRM.org receives compensation.

Whether you’re brand new to self-employment or you’re looking to finally get your books and accounting in order, Sage Accounting offers a great starting point. For one-person operations, whether that means freelancers or one-person businesses, FreshBooks stands out in terms of pricing. Its starting price without any additional self employed accounting team members is $19, which is comparable to Zoho Books and on par with Xero. This price is a bargain for the depth of invoicing features you get with FreshBooks, which include single-screen custom invoices with one-click distribution. Other invoicing tools we liked include late fees and deposit requests — and with FreshBooks, you get these and more at reasonable prices. TrulySmall Accounting is designed for very small businesses, especially those that handle fewer than 500 transactions a year.

You can also choose from Wave’s selection of professional invoice templates to make sure every touch point instills client confidence in your brand. However, it can be challenging to keep track of and record these expenses. For a smarter solution to these problems, you can use expense tracking software. Our guide, Expense Tracking for Freelancers, will provide you with more insight into this. When you’re waiting to get paid, it can be difficult to stay on top of your income.

Our research and testing concluded that ZohoBooks is another stellar choice, with a shallower learning curve than QuickBooks and Xero, a quality-free plan, and much more generous invoicing and expense limits. We were particularly impressed by how capable Clear Books was in simplifying tax calculations. While most self-employed workers will be able to get by on simpler accounting systems like ZohoBooks and FreshBooks, Xero should be a top choice for sole traders with complex financial needs. If you’re self-employed or a sole trader, some accounting software will be able to meet your needs more than others. Tools and costs, though, don’t tell the whole story — real reviews from real customers complete the picture.

You can then dig down as deep as you like with expense tracking and customized reports to manage your revenue, categorize expenses, and find cost-cutting opportunities. You’ll also experience peace of mind knowing your personal financial information is backed-up and secure. You can upgrade to Pro and add features as you need them, like bank account connections and real-time transaction updates, and you can easily make changes as your requirements change. Wave is cloud-based, so you can securely access your accounting software and your financial information anywhere you are—whether you’re working in your pjs, or waiting for a meeting to start.