Best Accounting Software for Freelancers in 2024
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, and Xero.
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
Exploring Your Options: A Look at Available Choices
Pie
Pie offers real-time clarity with a dashboard that merges tax bills, projections, and income, making it easier for users to manage their finances. 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.
Pricing and Plans
In the realm of accounting software, Pie shines as a beacon of innovation, empowering users to navigate their financial journeys with confidence. Key features include a mobile app, real-time tax figures, bookkeeping, receipt reconciliation, open banking integration, multiple income and account management, direct HMRC submission, invoicing all included for Free. The app also offers tax support and advice with the tax assistance plan for £6.99pm and tax return checks for an additional £59.99.
75% of freelancers report that easy invoicing is a top priority. Efficient invoicing tools save time and ensure timely payments, crucial for maintaining cash flow.Invoicing Made Easy
82% of users find expense tracking essential. Accurate expense tracking helps freelancers manage their budgets and maximize tax deductions.Expense Tracking Efficiency
Zoho Books
Zoho Books stands out as a top choice for freelancers, offering a wide range of features and benefits. This cloud-based solution is highly rated by customers and designed specifically for freelancers. Zoho Books is particularly suitable for freelancers with an annual revenue under £35K, providing essential features like sales tax tracking, invoicing, and expense management. It offers a free plan for businesses with less than £35K in revenue, making it an attractive option for those on a budget. Key features include customisable invoice templates, online payments, transaction approval, recurring expenses, vendor credits, landed cost, inventory tracking, and cash flow management. Additionally, it provides multi-currency support, inventory management, and customisable invoicing to help freelancers manage their finances efficiently. Pricing plans cater to different needs, with options including a free plan for businesses with annual revenue under £35,000, bookkeeping basics, chart of account creation, mileage tracking, customisable invoices, recurring invoices with payment acceptance, multi-currency support, and client management.
FreshBooks
FreshBooks is accounting software focused on invoicing and time tracking, making it ideal for project or service-based freelancers. Founded by web design freelancer Mike McDerment, FreshBooks has a long-standing history of serving freelancers and has expanded its capabilities to support companies of all sizes. Its user-friendly design shows how accounting software can be both functional and engaging. Notable features include unlimited customisable invoices, automatic recurring invoicing, late payment reminders, time tracking, and mileage tracking, all designed to simplify financial management. Additionally, FreshBooks employs Sensibill’s optical character recognition (OCR) technology to extract data from receipts, reducing the need for manual entry and enhancing efficiency. Pricing plans cater to different needs, including Lite at £12.00 per month, Plus at £22.00 per month, Premium at £35.00 per month, and Select, a bespoke package tailored to individual requirements.
Essential Tips for Choosing Accounting Software
User-Friendly Software When selecting accounting software, prioritise user-friendliness to ensure you can navigate the platform effortlessly. An intuitive interface allows you to manage your finances without unnecessary confusion.
Identify Your Specific Feature Requirements Consider the specific features you need, such as invoicing, expense tracking, and tax compliance. Identifying these requirements will help you choose software that aligns with your business model.
Evaluate Customer Support Options Finally, evaluate the level of customer support offered. Reliable support can make a significant difference in resolving issues quickly, keeping your financial management on track.
QuickBooks Online
QuickBooks Online is a widely popular accounting software that caters to freelancers and those looking to outsource their bookkeeping, offering a robust base package and specialised tax planning assistance for sole traders. This comprehensive solution includes features like automatic bank reconciliation, receipt tracking, unlimited invoices, tax deduction assistance, and a comprehensive mobile app with mileage and expense tracking capabilities. QuickBooks Online also simplifies self-employment taxes and provides custom reports. Although its starting price is higher than some competitors at £10 per month, the features vary by plan, with the Advanced plan costing £70 per month. For those wanting to test the software before committing, QuickBooks provides a 30-day free trial, allowing freelancers to explore its functionalities.
Xero
Xero is a powerful accounting software known for its robust ecommerce integration capabilities, making it an excellent choice for freelancers who use platforms like Shopify and Expandly to manage their online stores. With a wide range of features and over 1,000 integrations, Xero helps freelancers efficiently manage their financial data and stay on top of their business finances. Its comprehensive mobile accounting includes invoicing, bank reconciliation, expense tracking, project management, financial reporting, and payroll management, enabling users to pay bills, claim expenses, accept payments, and track inventory. However, it's worth noting that Xero’s most expensive plan, the Ultimate plan priced at £49 per month, is the only one that offers expense tracking capabilities, which could be a limitation for freelancers needing advanced features. Xero offers four pricing plans Starter, Standard, Premium, and Ultimate ranging from £14 to £49 per month, with each plan varying in features. For instance, the Starter plan includes invoicing and bill payment capabilities, making it crucial for freelancers to evaluate which plan best suits their business needs.
How is Pie different?
Pie is the only app for self assessment with tools for bookkeeping, your live tax figure, easy tax returns and helpful advice when you need it.
Save £168 per year vs Quickbooks, file your self assessment today for free with Pie
FREE
£69
+£59.99
£149
Quickbooks
£168
per year7 features
TaxScouts
£169
per year4 features
Accountant
£450
avg per year5 features
* Optional add on
Alternative Freelancer Accounting Software
While our main focus has been on the top freelancer accounting software of 2024, it's essential to consider alternative options such as QuickBooks Self-Employed and Sage Business Cloud Accounting, which also provide valuable features for freelancers. QuickBooks Self-Employed offers convenient tax deduction assistance alongside a comprehensive mobile app for mileage and expense tracking, making it an excellent choice for freelancers managing their finances on the go. In contrast, Sage Business Cloud Accounting provides 24/7 support via phone and live chat, along with instructional videos and online guides, ensuring that freelancers have access to the resources they need. Both solutions cater to freelancers' unique needs, so evaluating all available options before making a decision is crucial.
Efficient invoicing is crucial for freelancers, as it directly impacts cash flow and client relationships. The Pie Tax App offers intuitive invoicing features designed to streamline the entire invoicing process. You can easily create, customise, and send professional invoices, ensuring you get paid promptly and accurately.Easy Invoicing
Having access to reliable support can make a significant difference in managing your finances as a freelancer. The Pie Tax App provides expert tax assistants who are readily available on the app, offering personalised guidance whenever you need it most. Whether you have questions about tax deductions, need assistance with self-assessment, or require help navigating tax regulations, the expert assistants are there to help.Reliable Support
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!
