The 9 Best Self-Employed Accounting Software of 2022

We looked at the 20 most popular accounting software and assessed them by price, plan, accounting features, functionality, ease of use, and suitability for self-employed freelancers to bring you our top 9 accounting software picks.
Best overall
Fresh Books
FreshBooks
4 out of 5 stars
4.0
Starting from
$15.00/mo.
  • Icon Pros  Dark
    Automatic recurring invoices
  • Icon Pros  Dark
    Customer portal for easy collaboration
  • Icon Cons  Dark
    No bank reconciliation with cheapest plan
Best for freelancers
Zoho
Zoho Books
3.9 out of 5 stars
3.9
Starting from
$0.00/mo.*
  • Icon Pros  Dark
    Automatic expense tracking and recurring invoices
  • Icon Pros  Dark
    Client portal for easy collaboration
  • Icon Cons  Dark
    Limited third-party integrations
Most affordable
Wave
Wave
3.9 out of 5 stars
3.9
Free for life
  • Icon Pros  Dark
    Completely free accounting software
  • Icon Pros  Dark
    Invoicing app
  • Icon Cons  Dark
    No accounting app or mileage tracking
Best tax tracking
Quickbooks
QuickBooks Self-Employed
3.9 out of 5 stars
3.9
Starting from
$15.00/mo.
  • Icon Pros  Dark
    Built-in mileage tracking
  • Icon Pros  Dark
    Thorough tax deduction assistance
  • Icon Cons  Dark
    Basic accounting features only
Best for ecommerce
Xero
Xero
4.2 out of 5 stars
4.2
Starting from
$12.00/mo.
  • Icon Pros  Dark
    Built-in inventory tracking
  • Icon Pros  Dark
    Automatic sales tax tracking and reporting
  • Icon Cons  Dark
    No expense tracking with cheapest plans

Data as of 5/24/22. Offers and availability may vary by location and are subject to change.
*Available only for businesses with an annual revenue beneath $50K USD

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Self-employed accounting software helps freelancers, solopreneurs, and sole proprietors invoice and track profits, among many other tasks. Starting prices range from $0 to upward of $30 a month—so how can you find accounting software that fits a freelance budget?

Generally speaking, FreshBooks offers our favorite software for service-based businesses that collect most of their revenue through invoices. But FreshBooks falls short in some fundamental areas, so a software choice like Zoho Books or Xero could work better for you. 

Compare the best accounting software for freelancers

Software brand
Starting price
Free trial
Standout features
Get started
$15.00/mo.30 daysCustomizable invoices, automated recurring invoices, client portal
$0.00/mo.*14 daysAutomated recurring invoices, client portal
Free for lifeN/AUnlimited invoices and bills, receipt scanning, online payment acceptance
$15.00/mo.30 days**Mileage tracking, tax deduction assistance
$12.00/mo.30 daysInventory management, time tracking, purchase orders

Data as of 5/24/22. Offers and availability may vary by location and are subject to change.
*Available only for businesses with an annual revenue below $50K USD
**30-day free trial or 50% off your first three months

FreshBooks: Best overall

Best overall
Fresh Books
FreshBooks
4 out of 5 stars
4.0

Starting at $15.00/mo.

FreshBooks’ fantastic invoices are easy to customize to your business, and its automated recurring invoices and late payment reminders help you get paid quickly and easily. Its $15 a month starting price is a bit higher than average, but if your business relies largely on invoices to get paid, give FreshBooks a hard look anyway.

Data as of 5/24/22. Offers and availability may vary by location and are subject to change.

FreshBooks started out as an invoicing software company in the early 00s. Once it transitioned into fully fledged accounting software, FreshBooks’ invoicing features remained the best of the best. Unlike QuickBooks Self-Employed, FreshBooks’ invoices are customizable with your business’s name, colors, and logo. You can also schedule automated recurring invoices, send late payment reminders, and set automatic late fees to accrue on overdue invoices.

FreshBooks has a few drawbacks, and they're pretty big. For one, while your invoices are unlimited, your clients aren't. With the cheapest plan, you can invoice only five clients a month. And sure, you can send those five clients an unlimited number of invoices each month—but that’s a perk only if you work on multiple projects with the same recurring customers.

Additionally, FreshBooks' $15 plan doesn't include automatic bank reconciliation. You'll have to do all your bank reconciliation by hand, which creates more work for you while introducing a higher possibility of errors. (All of our other top picks, including Wave and Zohos free plan, include automatic bank reconciliation.) The cheapest plan also relies on single-entry accounting rather than double-entry, which is a less accurate system.

Zoho Books: Best for freelancers

Best for most freelancers
Zoho
Zoho Books
3.9 out of 5 stars
3.9

Starting at $0.00/mo.*

Zoho Books helps automate some of the most tedious accounting tasks, including invoicing and expense categorization. Its lower starting price and client-friendly collaboration make it a good FreshBooks alternative.

Data as of 5/24/22. Offers and availability may vary by location and are subject to change.
*Available only for businesses with an annual revenue below $50K USD

Want accounting software that minimizes the amount of time you have to spend on finances? Zoho Books’ free plan—which is an option for freelancers and other sole proprietors who make less than $50,000 USD in annual revenue—includes automated recurring invoicing, expenses, and payment reminders. (Pricier plans let you set automatic recurring bill payments too.) Like FreshBooks, Zoho Books includes a client portal so your customers can quickly approve estimates and pay invoices.

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. Zoho Books cheapest paid plan ($15 a month when paid annually or $20 month by month) includes sales tax tracking and recurring invoices, two stand-out tools for freelancers who sell products or have multiple monthly expenses.

Apart from its free plan, though, Zoho Books is the most expensive self-employed accounting software on our list. Unless you pay annually, it's even costlier than QuickBooks Self-Employed—and its hard to outrank QuickBooks pricing. Zohos free plan has a fair amount of third-party integrations, but theyre pretty basic (think G Suite) and limit you largely to other Zoho apps.

Wave Accounting: Most affordable

Most affordable
Wave
Wave
3.9 out of 5 stars
3.9

Free for life

Is saving money on software your top priority? Wave’s completely free accounting software includes unlimited invoicing, expense tracking, and receipt scanning.

Some free software plans sacrifice features for price. Not Wave Accounting. With Wave’s free accounting software, you can send invoices, scan receipts, and accept online payments. And you won’t pay anything more than standard transaction fees. And unlike FreshBooks and Xero, Wave doesn’t limit your invoices, bill payments, or customers. It doesn’t limit you to just one user either. If you eventually expand your business to include a bookkeeper or business partner, Wave is just as free for four users as it is for one.

While Wave’s invoicing and receipt scanning apps measure up, it still lacks a mobile accounting app for you to check cash balances on the go. Customer support is available via email only—real-time tech support is basically a no-go.

QuickBooks Self-Employed: Best tax tracking

Best tax assistance
Quickbooks
QuickBooks Self-Employed
3.9 out of 5 stars
3.9

Starting at $15.00/mo.

QuickBooks Self-Employed tracks your miles for easier tax reimbursement at the end of the year. Its expense categorization also simplifies tax deductions, and the software’s quarterly tax estimates keep you on top of fees so you aren’t caught off guard come April.

Data as of 5/24/22. Offers and availability may vary by location and are subject to change.

Freelancers and solopreneurs who travel frequently for work are eligible for tax reimbursements per miles traveled. If you drive for hours each month, you’ll want to capitalize on that reimbursement—and QuickBooks Self-Employed can help. With built-in mileage tracking and report generation, QuickBooks simplifies the reimbursement process so you can get that gas money back a little faster. Other tax features, like quarterly tax estimates and tax date reminders, ensure you’re ready for tax time. Like other QuickBooks products, QuickBooks Self-Employed has a highly user-friendly dashboard and low learning curve, so you won’t struggle to dive into finances for the first time.

But while QuickBooks Self-Employed helps you avoid late tax fees and make the most of your tax return, that’s about all it does. Its invoices are particularly lacking: they aren’t customizable or automated. And while its expense tracking is fine, QuickBooks Self-Employed offers fewer accounting features than FreshBooks, Zoho Books, Xero, and Wave.

Xero: Best for ecommerce

Best inventory management
Xero
Xero
4.2 out of 5 stars
4.2

Starting at $12.00/mo.

Xero excels at managing goods and tracking sales: its built-in inventory tracking syncs seamlessly with its accounting features.

Data as of 5/24/22. Offers and availability may vary by location and are subject to change.

If you sell handmade products on Etsy or plumbing supplies out of your home, try Xero. It’s one of the only accounting software providers to offer inventory tracking with each plan. Xero also helps sales-based businesses stay afloat with features like customized purchase orders for fast, clear communication with suppliers. Its automated sales tax calculations streamline end-of-year tax reports, and its 24/7 live customer support means you won’t be left hanging if you’re hit with a tech problem mid-invoice.

While Xero doesn’t limit the number of clients you can bill, its Early plan ($12 a month) lets you send only 20 invoices and enter only 5 bills a month. If your monthly workload and expenses are higher than that, you’ll have to scale all the way up to Xero’s Growing plan, which includes unlimited invoices at $34 a month.

Plus, Xero's cheapest plans don't include expense tracking. 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.

Best self-employed accounting software honorable mentions

The five accounting software picks listed above are our favorites, hands down. But if you didn’t find your match, you aren’t out of options—our self-employment honorable mentions each have something to offer.

Compare top freelance accounting features: Honorable mentions

Software brand
Starting price
Free trial
Standout features
Get started
$10.00/mo.30 daysMileage tracking, mobile invoicing
$4.99/mo.NoneBasic tax documents, mileage tracking, invoicing
$0.00/mo.N/AAutomatic bank reconciliation, invoicing
$0.00/mo.N/ABasic invoicing, payment acceptance, client tracking

Data as of 5/24/22. Offers and availability may vary by location and are subject to change.

Sage Business Cloud Accounting: Best customer service

Best customer service
Sage
Sage Business Cloud Accounting

Starting at $10.00/mo.

If tech support outside the regular 9 to 5 is a must for you, try Sage. It’s one of the only accounting software companies with 24/7 customer service, and it starts at just $10 a month.

Data as of 5/24/22. Offers and availability may vary by location and are subject to change.

Just a handful of accounting software companies offer round-the-clock, on-demand customer service. Sage Business Cloud Accounting is an exception, and unlike Intuit-owned QuickBooks, it actually has a solid customer service reputation. Seriously: Sage earns 4.6 out of 5 on review site TrustPilot, while QuickBooks scores a deeply unfortunate 1.2.1,2

Sage Business Cloud Accounting starts at $10, falling right between Zoho Books and Xero. Unfortunately, it doesn’t offer as many features as either competitor. While you can send invoices and reconcile bank transactions with the $10-plan, you can’t capture receipts, send quotes or estimates, or thoroughly monitor your cash flow.

GoDaddy Online Bookkeeping: Best for basics

Best for basics
GoDaddy
GoDaddy Online Bookkeeping

Starting at $4.99/mo.

Do you want basic bookkeeping and invoicing, no more, no less? GoDaddy Online Bookkeeping starts at a little under $5 a month for a streamlined bookkeeping experience.

Data as of 5/24/22. Offers and availability may vary by location and are subject to change.

If you’re selling on Amazon or Etsy, you likely don’t need the full slew of bookkeeping and accounting metrics. Instead, you need invoicing, basic financial tracking, and payment acceptance—and that’s just what GoDaddy Online Bookkeeping offers.

But if you’re planning to hire employees one day, we recommend that you don’t choose GoDaddy Online Bookkeeping. It absolutely doesn’t have the features to support growing businesses with employees. If affordability is your biggest concern, try Wave instead—it’s completely free, but its features are better suited than GoDaddy’s to a small business with employees.

Sunrise by Lendio: Most affordable runner-up

Most affordable runner-up
logo for sunrise by lendio
Sunrise by Lendio

Starting at $0.00/mo.

Sunrise by Lendio offers invoicing and basic cash tracking at no cost. And if you’re planning to apply for a future small-business loan, Sunrise is the perfect place to start: it’s owned by Lendio, a solid small-business loan provider.

Data as of 5/24/22. Offers and availability may vary by location and are subject to change.

Sunrise by Lendio offers customized invoicing with its free plan, which puts it a step above QuickBooks Self-Employed for a full $15 less per month. But Sunrise’s biggest perk is the fact that it’s owned by Lendio, a small-business loan provider. To qualify for a small-business loan, you need to submit several financial documents—and Sunrise stores all of them for you, trimming the application process to 15 minutes or less.

Bear in mind that Sunrise by Lendio is a fairly new entrant into the self-employed accounting software field. Its features are still pretty basic. And while using Lendio-partnered accounting software takes some of the time and hassle out of loan applications, most accounting software providers generate the same forms and track the same stats. In other words, you don’t have to have Sunrise by Lendio to get a small-business loan from Lendio or anyone else.

Kashoo: Simplest setup

Simplest setup
Kashoo
Kashoo

Starting at $0.00/mo.

Kashoo takes just two minutes to set up. The software immediately gets to work learning your expenses and begins automating accounting tasks right off the bat.

Data as of 5/24/22. Offers and availability may vary by location and are subject to change.

QuickBooks might be the most user-friendly software on our list, but Kashoo requires the least amount of time to set up: the whole process should take just two minutes. The software will immediately get to work understanding your business: who your most frequent transactions are with, what you spend your money on, and what tax categories your expenses fall under.

Kashoo recently added an invoice-specific free plan. Along with sending invoices, the free plan includes basic income tracking, client tracking, and payment acceptance—more than enough for freelancers with just a few clients and limited expenses. But if you need more features, including bank reconciliation, you'll need Kashoo's $20 plan—pricier than any other provider on our list apart from Zoho Books' monthly plan.

Find Your Money—and Keep More of It

With plans starting at $15 a month, FreshBooks is well-suited for freelancers, solopreneurs, and small-business owners alike.

  • Track time and expenses
  • Create custom invoices
  • Accept online payments

The takeaway

Self-employed accounting software can’t do your job for you, but it can free up time and energy you’d otherwise spend worrying about cash flow.

FreshBooks is our favorite accounting software for freelancers, sole proprietors, solopreneurs, and other small-business owners who send frequent invoices. But if you have more than five clients a month or don't care for FreshBooks' invoices, try one of our other top picks: 

  • Zoho Books' fully featured free plan is comparable to QuickBooks Online's basic plan—it has all the user-friendliness without the high cost.
  • Wave Accounting costs nothing and lets you manage multiple businesses from the same account.
  • QuickBooks Self-Employed has stellar tax tracking features that can maximize your tax write-offs at the end of the year.
  • Xero's built-in inventory management and extensive third-party app integration are ideal for freelancers who sell products on eBay, Etsy, or Amazon.

One last note: on your quest for the right self-employed accounting solution, don’t be afraid to take advantage of free trials and discounts. The right accounting software makes collecting payments, following up with clients, and paying the right amount of taxes easier than ever. Good luck!

Are you planning on hiring employees in the near future? Your financial needs are likely too complex for freelancing accounting software. Instead, read all about the best accounting software for small businesses.

Self-employment accounting software FAQ

Is QuickBooks good for the self-employed?

QuickBooks Self-Employed can work for freelancers and solopreneurs, but its main selling point is its built-in mileage-tracking feature. If you don’t travel frequently for work, QuickBooks Self-Employed doesn’t have much to offer. Most importantly, its invoicing feature is subpar. Plus, it tracks miles and tax expenses but not sales tax.

If you’re set on using QuickBooks as your accounting software provider, we recommend QuickBooks Online over QuickBooks Self-Employed. At $25 a month, QuickBooks Online includes mileage tracking, cash flow management, and sales tax tracking. It also lets you manage 1099 contractors, so if you subcontract out any of your business’s services, QuickBooks Online is a good pick.

What is the best accounting software for sole proprietors?

The right accounting software for your sole proprietorship depends on your business’s needs and budget. For instance, FreshBooks might work best for you if you depend on frequent invoicing. If your business sells products rather than services, you might prefer Xero, which includes inventory tracking at no additional cost. (FreshBooks doesn’t.) Nearly all accounting software providers offer free trials—we highly recommend taking software for a test run to maximize your chances of finding the best accounting software for you.

Which accounting software for the self-employed is easiest to use?

All of the self-employed accounting software we’ve recommended here have fairly straightforward user interfaces. For example, QuickBooks Online’s dashboard is simple, straightforward, and easy to navigate. Its app is similarly easy to use and offers the same features as the cloud-based software. But while we love QuickBooks, its interface isn’t all that different from FreshBooks or Xero. All three options have a low learning curve and solid instructional videos to help you get set up.

What is the best free accounting software?

If you’re looking for the most fully featured accounting software, Wave Accounting is a good bet: it 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 10 best free accounting software for small businesses to find the right one for you.

Disclaimer

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

Sources
1. Trustpilot, “Sage.” Accessed May 24, 2022.
2. Trustpilot, “Intuit.” Accessed May 24, 2022.

Kylie McQuarrie
Written by
Kylie McQuarrie
Kylie McQuarrie has been writing for and about small businesses since 2014. Prior to writing full-time, she worked with a variety of small-business owners (from freelance writers to real-estate solopreneurs), which gave her a front-row look at small-business owners' struggles, frustrations, and successes. Currently, she’s Business.org’s accounting and payroll staff writer. Her work has been featured on SCORE.org, G2, and Fairygodboss, among others.
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