The software is also very intuitive and easy to use, with a simple dashboard that gives you a quick look at important data like profit and loss, cash flow, and income and expense summaries. In addition to automated categorization, Xero saves you time with other features like recurring invoices, automatic invoice reminders, bulk invoicing, and replication of previous invoices. You can add sales tax to your invoices and estimates, and set up best accounting software for self employed default sales taxes for customers, sales, and purchases.
- Once you’ve downloaded the software, there is a step-by-step setup, as well as video tutorials to help you learn the program.
- More comprehensive freelancer accounting software will also include time tracking, project management, integration with online payment portals, bank account integration, and receipt scanning.
- Most small business owners juggle everything—from invoicing to tax deadlines and preparing for audits—without the specialized expertise required to handle all the financial details.
Reporting Options
Self-employed workers and sole contractors have specific accounting needs that differ from those of larger businesses. So, when looking for an ideal platform to manage your finances, one-size-fits-all solutions don’t always cut it. However, this shouldn’t pose too much of an issue for self-employed workers using the software to manage simple tasks like keeping track of financial data and creating invoices. However, self-employed workers with advanced accounting needs could be left short-changed when using FreshBooks. Unlike top services Xero and Quickbooks, FreshBooks has no budgeting or cash-flow projection tools, making it harder for users to gain a clear overview of their future finances.
Compare your choices and look at customer reviews.
Even if you run into a problem, there’s an extensive knowledge base that contains hundreds of help articles; you can also get multi-channel customer support via phone, email, and chat. Check out our FreshBooks pricing guide for more detail or read our QuickBooks vs FreshBooks comparison guide for more information on how the two services stack up to each other. We found Zoho Books a dream to get started on when we tested it out ourselves.
I uploaded a few and was pleasantly surprised to see that TrulySmall has OCR, meaning no manual data entry. Just tick all the transactions that look ok, and push them over to your books. Other features of note are sales tax handling (if you have to charge it) and a deep accounting section with your entire chart of accounts. And when you want a big-picture view, head to the Reports section, where you can create your custom reports in addition to the five that are already in place.
- Xero’s most basic software, the Early plan, is $9 per month (although there are often introductory offers that can lower their prices for a period).
- You can still track expenses with a third-party app, of course—Xero syncs with more than 1,000 other apps, which outpaces even QuickBooks—but built-in expense tracking is undeniably simpler.
- SelfEmployed.com is an independent, advertising-supported publisher and comparison service.
- We also found its tax timeline feature incredibly easy to use, suggesting the platform will be a good option for novice users who want to track tax processes without getting overwhelmed.
- Once you have your bookkeeping team in place, they’ll track all of your business transactions and accurately categorize them for you.
Clear Books is an intuitive accounting software with flexible customization options, enabling self-employed workers to adjust the platform to meet their specific needs. Xero’s well-organized headings made it easy for us to carry out simple tasks like creating and editing invoices and uploading receipt images. One member of our user tester team also commented on how easy it was to create bills with the platform, before adding relevant information like descriptions and client information. Xero is a versatile accounting platform packed with an extremely broad selection of bookkeeping, organization, and financial planning features.
Mobile Accessibility
The app also allows you to make and send invoices right from the app, as well as snap pictures of receipts and store them within the app. Xero, QuickBooks, and FreshBooks are some of the most popular small company accounting software options. Both systems include robust resources for entrepreneurs, including as invoicing and inventory management programs and mobile point-of-sale systems. This self employed bookkeeping software for freelancers organizes all your tasks in one place, so you don’t have to cross a proverbial town to get your accounting to-do list sorted out. Everything, from your clients to your invoices, is safely stored in one place for your utmost convenience.
Why is Xero a good accounting software for the self-employed?
It’s great for a quick overview or to make important business decisions—because yes, we’re self-employed, but we’re running a business all the same. Our best apps roundups are written by humans who’ve spent much of their careers using, testing, and writing about software. Unless explicitly stated, we spend dozens of hours researching and testing apps, using each app as it’s intended to be used and evaluating it against the criteria we set for the category. We’re never paid for placement in our articles from any app or for links to any site—we value the trust readers put in us to offer authentic evaluations of the categories and apps we review.
Bookkeepers with QuickBooks Live will maintain your financial records diligently. They’ll categorize transactions, reconcile accounts, set up needed automation, and organize all of your accounts for you. With QuickBooks Live you are matched with a U.S.-based, QuickBooks-certified bookkeeper to handle all of your bookkeeping transactions.
When it comes to customer support, options include live chat and phone in addition to email, which means that Zoho Books gives customers more support channels than Xero or FreshBooks. However, unlike Xero and QuickBooks, Zoho Books does not offer 24/7 live support, making it slightly less suitable for sole traders who operate outside of traditional working hours. QuickBooks is also one step ahead of competitors when it comes to artificial intelligence.
In some cases, we earn commissions when sales are made through our referrals. These financial relationships support our content but do not dictate our recommendations. Our editorial team independently evaluates products based on thousands of hours of research. Business News Daily provides resources, advice and product reviews to drive business growth. Our mission is to equip business owners with the knowledge and confidence to make informed decisions. Bonsai is another freelancer all-in-one app that helps you build automated flows to manage client proposals, invoicing, and more.
QuickFile is a cloud-based accounting solution for freelancers and small business owners. QuickFile also supports tax filing and has a free plan for those with basic accounting needs. Xero is an excellent option for self-employed individuals looking for an all-in-one accounting solution. It offers comprehensive features such as bank reconciliation, payroll management, invoicing, and expense tracking. Its user-friendly interface and cloud-based system ensure accessibility from anywhere. Square is a versatile accounting software for freelancers and self-employed individuals, particularly those in retail or service industries.