As a freelancer, managing finances can be overwhelming. With numerous accounting software options available, how do you choose the best one that caters to your specific needs? Worry no more! We’ve done the research and compiled a comprehensive comparison of the top freelancer accounting software of 2023. Discover which accounting solution will help you simplify your finances, save time, and boost your productivity.
In this blog post, we’ll dive into the specifics of each accounting software, discuss their features and pricing plans, and provide valuable insights to help you make an informed decision. So, let’s embark on this journey to find the perfect accounting software that will take your freelance business to new heights!
We’ll be exploring the following software:
- Pie
- Zoho Books
- FreshBooks
- QuickBooks Online
- Xero
Here is a quick overview of their features and prices:
*with our premium plan at an extra £3 per month
Evaluating Your Freelance Business Needs
Before diving into the world of accounting software for freelancers, it’s crucial to understand your specific freelance business requirements. After all, finding the right accounting software programs should cater to your unique needs and streamline your financial management.
So, what factors should you consider when selecting the best accounting software for your freelance business? Usability is key, as you want a solution that’s easy to navigate and understand. Additionally, consider basic accounting capabilities such as tax compliance, accounts payable and receivable, and cash management.
Finally, evaluate the availability of support channels like online chat support, phone support, and knowledge bases to ensure seamless management of bank transactions.
Pie: User-Friendly and Astonishing Value
Pie offers real-time clarity with a dashboard that merges tax bills, projections, and income. The user-friendly mobile app simplifies income and expense sorting, ensuring no detail goes unnoticed.
Pie's prowess extends to handling multiple income streams effortlessly, and its sector-specific tax assistants provide tailored guidance. Beyond its intuitive interface, Pie serves as a comprehensive financial partner, offering live tax calculations, simplified tax returns, and expert advice under one roof. With HMRC Approval, bank-level encryption, and FCA regulation, Pie prioritises data security. In the realm of accounting software, Pie shines as a beacon of innovation, empowering users to navigate their financial journeys with confidence.
Features and Benefits
The ten core features of Pie are:
- Mobile App
- Real Time Tax figure
- Bookkeeping
- Receipt reconciliation
- Open banking integration
- Multiple incomes / accounts
- Direct HMRC submission
- Invoicing (with the premium plan)
- Tax support and advice (with the premium plan)
- Return checks (+£59.99)
Pricing and Plans
Pie has two pricing plans that are both excellent value:
- Essential: £6.99 per month
- Premium: £9.99 per month
Zoho Books: Comprehensive Solution for Freelancers
Zoho Books often stands out as a good choice for freelancers, offering a wide range of features and benefits. As a cloud-based solution, it’s designed specifically for freelancers and is highly rated by customers in the industry. Zoho Books is particularly suitable for freelancers with an annual revenue under £35K, providing essential features such as sales tax tracking, invoicing, and expense management.
In addition to its user-friendly interface and straightforward setup, Zoho Books offers a free plan for businesses with less than £35K in revenue, making it an attractive choice for freelancers on a budget.
Features and Benefits
Zoho Books offers a plethora of features that cater to freelancers, such as:
- Customisable invoice templates
- Online payments
- Transaction approval
- Recurring expenses
- Vendor credits
- Landed cost
- Inventory tracking
- Cash flow management
Moreover, it provides unique capabilities like multi currency support, inventory management, and customisable invoicing to help freelancers efficiently manage their finances.
In addition to these benefits, Zoho Books also provides billing, recurring invoices, and multicurrency transactions, making it a comprehensive solution for freelancers and their diverse financial needs.
Pricing and Plans
Zoho Books offers several pricing plans to suit different needs, including:
- Free option for businesses with annual revenue under £35,000
- Bookkeeping basics
- Chart of account creation
- Mileage tracking
- Customisable invoices
- Recurring invoices with payment acceptance (up to 1,000 invoices/yr.)
- Multi-currency support for international payment acceptance
- Client management, including client portal and automatic payment reminders
For those seeking additional features, Zoho Books’ paid plan starts at £10 per month when billed annually, or £12 per month when billed month-to-month.
FreshBooks: Streamlined Invoicing and Time Tracking
FreshBooks is an accounting software with a focus on invoicing and time tracking. It’s an excellent choice for project or service-based freelancers looking for a solution designed specifically for their needs. Founded by Mike McDerment, a web design freelancer, FreshBooks has a long-standing history of providing services to freelancers and has since grown to accommodate companies of all sizes.
With a creative and enjoyable design, FreshBooks demonstrates how accounting software can be both functional and engaging.
Features and Benefits
FreshBooks offers several features and benefits that cater to freelancers, such as:
- Unlimited customisable invoices
- Automatic recurring invoicing
- Late payment reminders
- Time tracking
- Mileage tracking
These features make FreshBooks a comprehensive solution for freelancers’ diverse needs.
Moreover, FreshBooks has partnered with Sensibill to utilise optical character recognition (OCR) technology for extracting data from receipts, eliminating the need for manual entry. This collaboration further enhances the capabilities and convenience of FreshBooks for freelancers.
Pricing and Plans
FreshBooks offers multiple pricing plans, with the cheapest plan providing limited features. For those seeking more advanced capabilities, FreshBooks provides four plans and is also suitable for various add-ons to enhance its functionality. Here is a full breakdown of the four pricing plans:
- Lite: £12.00 per month
- Plus: £22.00 per month
- Premium: £35.00 per month
- Select: A bespoke package
To get a feel for the software, FreshBooks also offers a 30-day free trial for freelancers, allowing them to test out the features and determine if it’s the right fit for their business needs.
QuickBooks Online: Feature-Rich Accounting Software
QuickBooks Online is a popular accounting software with a wide range of features. It’s an ideal choice for freelancers and those who plan to outsource their bookkeeping.
With a robust base package and specialised tax planning assistance for sole traders and freelancers, QuickBooks Online is a top choice for dedicated freelancers who want a comprehensive solution for their financial management needs.
Features and Benefits
QuickBooks. Online offers a variety of features that make it an attractive choice for freelancers, including:
- Automatic bank reconciliation
- Receipt tracking
- Unlimited invoices
- Convenient tax deduction assistance
- Comprehensive mobile app with mileage and expense tracking capabilities
Moreover, QuickBooks. Online simplifies self-employment taxes and offers custom reports, making it easy for freelancers to stay on top of their finances and comply with tax regulations.
Pricing and Plans
QuickBooks. Online has various pricing plans, with the starting price being higher than some competitors. The least expensive QuickBooks plan is available for £10 per month, but it’s important to note that the features included vary depending on the plan chosen. The plan with the most features - the Advanced plan - is priced at £70 per month.
For freelancers who want to test out the software before committing, QuickBooks offers a 30-day free trial, allowing them to explore its features and determine if it’s the right fit for their business needs.
Xero: Robust Ecommerce Integration
Xero is an accounting software with strong ecommerce integration capabilities, making it an ideal choice for freelancers who utilise ecommerce applications such as Shopify and Expandly to manage their online stores or monitor inventory. Xero provides a wide range of features and integrations to help freelancers efficiently manage their financial data and stay on top of their business finances.
Features and Benefits
Xero offers comprehensive mobile accounting, with over 1,000 integrations available to enhance its functionality. The software provides a range of features, including invoicing, bank reconciliation, expense tracking, project management, financial reporting, and payroll management. Additionally, users can pay bills, claim expenses, accept payments, and track inventory, making Xero a versatile and powerful solution for freelancers.
However, it’s worth noting that Xero’s most expensive plan - the Ultimate plan, priced at £49 per month - is the only one that includes expense tracking capabilities. This may be a limiting factor for some freelancers who require more advanced features in their accounting software.
Pricing and Plans
Xero offers four pricing plans: Starter, Standard, Premium and Ultimate,, with prices ranging from £14 to £49 per month. Each plan varies in the features included, so it’s essential to evaluate which plan best suits your freelance business needs.
For example, the Starter plan includes invoicing, bill payment, and bank reconciliation capabilities.
Honorable Mentions: Alternative Freelancer Accounting Software
While our main focus has been on the top freelancer accounting software of 2024, it’s worth mentioning some alternative options for freelancers, such as self employed accounting software like QuickBooks Self-Employed and Sage Business Cloud Accounting. These solutions also offer valuable features and benefits to freelancers, so it’s important to consider all available options before making a decision.
QuickBooks Self-Employed, for instance, provides convenient tax deduction assistance, and a comprehensive mobile app with mileage and expense tracking capabilities.
Sage Business Cloud Accounting, on the other hand, offers 24/7 support through phone and live chat, instructional videos, and online guides, as well as a basic package to cater to freelancers’ needs.
Summary
In conclusion, choosing the right accounting software for your freelance business is crucial for effective financial management and overall success. Each software solution offers unique features and benefits, catering to different freelancing needs and budgets.
By understanding your specific requirements and evaluating the features, benefits, and pricing plans of each accounting software, you can make an informed decision and select the perfect solution to help you streamline your finances, save time, and boost your productivity. So, take charge of your financial future and choose the accounting software that will elevate your freelance business to new heights!
Frequently Asked Questions
What are the benefits of being a freelance accountant?
Being a freelance accountant is a great opportunity for those who want to work from home and have the necessary skills to do so. With the right qualifications and experience, anyone can become a successful freelance accountant.
What factors should I consider when selecting the best accounting software for my freelance business?
When selecting the best accounting software for your freelance business, evaluate usability, basic accounting capabilities, support channels, and any features specifically beneficial to freelancers.
Look for software that is easy to use and understand, with features that make it easy to track income and expenses, generate invoices, and manage taxes. Consider the customer support options available, such as live chat, phone, or email.
Are there any free accounting software options for freelancers?
Yes, there are free accounting software options for freelancers such as Zoho Books that offers a limited plan.
These plans are great for those who are just starting out and don’t need all the bells and whistles of a more expensive software. They are also great for those who are on a tight budget and need help.
