The 6 Best Accounting Software for Self-Employed Business Owners of 2023

bookkeeping software for self employed

Many small business owners love the software but struggle with its customer service. If you know you’re going to need customer help based on your accounting or software experience, you might consider other options on the list that have a better customer support reputation. Accounting software reduces the amount of time spent on data entry by allowing users to sync their business bank accounts and credit cards with the software.

  • Accounting software can improve productivity by automating time-consuming tasks, such as invoicing and tracking payments.
  • All of our best apps roundups are written by humans who’ve spent much of their careers using, testing, and writing about software.
  • Most accounting software providers offer free trials, so you can try out the software before you commit to it.
  • The Early plan limits usage and only allows entry for 20 invoices or quotes and five bills per month.
  • To see how accurate your budget is, run the Budget report, which compares budgeted totals to actuals.

Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team. One of the advantages of using QuickBooks Online is its ability to integrate with numerous apps, as well as the ability to grow with your business. However, if you’re planning on remaining self-employed, you can probably find a more affordable choice.

Accounting Software That Will Revolutionize Your Business

Your dashboard shows you, at-a-glance, where you stand so you know where to focus and can run your business like the boss you are. Plus, FreshBooks accounting software will crunch the numbers for you so you’ll be confident when tax time rolls around. To process payment from a customer, Wave charges 2.9% plus 60¢ per transaction for Visa, Mastercard, and Discover and 3.4% plus 60¢ per transaction for American Express. Additionally, Wave charges 1% per transaction with a $1 minimum fee to process an ACH payment rather than a credit card. The whole app has a friendly vibe, with rounded fonts and simple icons.

Accounting software for self-employed business owners costs about the same as regular accounting software for small businesses. Some software has specific solutions for self-employed business owners, which are often cheaper than many of the other business accounting plans. Zoho Books is best for very small businesses to use because it seamlessly works with the other affordable software Zoho makes. Zoho does not offer a specialized option for self-employed business owners, but its accounting software can do most things the other products on our list can do. If you need to save money on your entire software package from accounting to CRM, this might be the best option for you. Wave has average customer service reviews online, but most negative reviews have nothing to do with their accounting software.

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.

In this plan, payroll is full-service, meaning that all tax filings and payments are managed by Wave. Hectic has all the basic invoicing and expense/receipt features in place. Each invoice has its own payment link, so your clients can view and pay it online.

Best Accounting Software For Small Business 2023

And gain insights that’ll take your business to the next level. Customers online rate FreshBooks as average to use and below average when it comes to their customer support team. This is a middle-of-the-road solution that is best used by a niche group of bookkeepers or other small business owners who have billable clients.

bookkeeping software for self employed

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.

Add new WooCommerce orders to QuickBooks Online as customers

The free version offers a customer support team, which is a very good deal, even if it has an average overall satisfaction rating. Wave is an ideal accounting software platform for a service-based small business that sends simple invoices and doesn’t need to run payroll. At year-end, accountants can pull the necessary reports from Wave to prepare a business’s tax return. The software can be a good fit for a wide variety of small businesses and growth stages. Reporting capabilities scale up with each plan tier and the Plus plan includes an array of extra features, like inventory tracking. If you have more clients, you can opt for the Plus plan, which is $22.50/month.

bookkeeping software for self employed

If customization is required, you can export any report as a CSV file if desired. One of the greatest benefits you can derive from using Xero is its ability to integrate with more than 700 apps in a variety of categories, which is a major plus for niche businesses. Xero is a good choice for self-employed individuals, as well as those with small and growing businesses. Xero works well in niche markets and is particularly well-suited for online sellers who conduct business globally.

Best Accounting Software For Self Employed And Freelancers

It should also let you easily markup those expenses to ensure profitability. One of the benefits of using Sage Business Cloud Accounting is that it provides access to Sage Marketplace, which offers apps in a variety of categories. Another benefit is the ability to accept online payments and pay vendor bills electronically, an option many competitors don’t offer. QuickBooks Online is one of the more expensive options on our list. Pricing begins at $12.50/month for the Simple Start plan, which goes up to $25 after three months.

FreshBooks accounting software stays in sync across the desktop and mobile apps so you can work on whatever device you prefer without missing any important information. Zoho Books has high customer ratings online, but some reviews claim the product is difficult to use and mention bad experiences with the customer support team. Zoho Books isn’t one of the best options out there, but it is a good choice for small business owners who need an all-in-one solution with an easy-to-integrate CRM and help desk software offerings. If you’re not sure whether you can do your accounting and taxes for your business on your own, Wave is the perfect option to try while you learn.

There’s a Pro plan for two users that runs $19/month, and Plus, Team, and Unlimited user plans are also offered. If you know nothing about accounting, Zoho Books is the right software for you. A great fit for self-employed individuals, Zoho Books offers three plans, all with a ton of features. Particularly well-suited for businesses that sell products and need to manage inventory, Zoho Books also works with several online payment gateways for easy customer payment.

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