The best self-employed accounting software

bookkeeper for self employed

All of your bank and credit card transactions automatically sync to QuickBooks to help you seamlessly track your income & expenses. Freelancers should do bookkeeping at least once a month but you can go over accounts more frequently if you wish. Some will do it at the end of every week, while others go over their bookkeeping daily. A clearer view of your freelance finances will help you avoid financial problems in the future and help you decide which expenses are crucial for your work. You could also hire a bookkeeper who will help you devote more time to focus on more important things like finding more clients.

bookkeeper for self employed

Hectic has a generous free plan—you’ll really only need to upgrade for the sales pipeline and the meeting scheduler or to add additional team members. To help ease the learning curve, Hectic includes videos explaining every feature. If you’re looking for ways to improve as a freelancer, you can also check out Hectic Academy, a collection of short courses and videos to help you position yourself as a professional in demand. It seems trivial, but it helped me navigate the menus and see data more clearly, adding to a user experience that’s already very intuitive.

Stay tax-time ready, all year long

FreshBooks offers cloud-based accounting software for small businesses that will help you keep your business finances in order, send invoices, and receive payments. Sage Business Cloud Accounting offers good product and services management so you can track both stock and non-stock inventory items or set up services that you currently offer to your customers. In addition, the inventory management feature offers multiple pricing levels and easily handles all sales tax management for products and services sold. Freelancers and the self-employed should make sure their accounting software supports customer invoicing, as well as an easy way for clients to submit payment.

  • OneUp has a mobile-first solution that many on-the-go self-employed business owners will love, and you can close your books in as little as a minute.
  • 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.
  • Reporting options are adequate for self-employed business owners, and the reports page lets you manage your favorite reports for easy future access.
  • Freelancers can claim all kinds of work-related items, but only if these can be verified by the IRS upon request.
  • QuickBooks Self-Employed gives self starters and small businesses the features they need to get ahead.

FreshBooks offers excellent invoicing capability even if you have no idea how to write an invoice. The platform also recently added an ACH payment option that makes it easy for your customers to pay you online. And for self-employed attorneys or accountants, FreshBooks includes a retainer feature that makes it easy to bill your clients a retainer fee. Accounting software is similar for all types of businesses, regardless of whether you’re a self-employed business owner or not. You’ll still need to book journal entries, keep track of business expenses, and make sure you know the level of profitability of your business.

Accountants are experts in the field, with in-depth insight into accounting and taxes, allowing them to provide financial business advice. You can notice serious financial irregularities by consistently analyzing your books before they become a problem. Maybe you will catch an upcoming cash flow problem and realize you’re losing money on daily expenses or other serious issues impacting your bottom line.

Tim is a Certified QuickBooks Time (formerly TSheets) Pro, QuickBooks ProAdvisor, and CPA with 25 years of experience. Turning your side gig into the main show is exciting, but to do it consistently and successfully, you need the right tools. I sure did when I started out—it was an agile way to start working, but it’s not sustainable as you grow. You can connect Fiverr Workspace to Zapier, so you can spend more time making money and less time doing admin work. In the app, you’ll get acquainted with Ruby the Robot, a chatbot you can talk to when you click on the bottom-right help button. Ruby is good at figuring out what you want, offering you a collection of help articles based on the keywords you typed.

�� Welcome to FreshBooks

The Start Up plan at $19/month is perfect for those just starting out and offers banking, accounting, projects, time tracking, and reports. The Business plan, at $25/month, also including sales, purchases, and sales tax management. A Professional plan at $55/month and a Pro with an e-Commerce plan at $129/month are also available. These specialized plans will help you organize receipts and keep track of miles or other expenses, estimate your quarterly taxes, and invoice or accept payments from customers.

Reporting options are limited in Wave Accounting, with only 12 reports available. You can export reports in a CSV format available for customizing if desired. QuickBooks Online’s reporting options are good, and all reports are fully customizable. She has owned a bookkeeping and payroll service that specializes in small business, for over twenty years. Hectic also includes a unique sales pipeline, which is a visual representation of a stranger’s journey to becoming a delighted client.

Create QuickBooks Online customers with sales receipts for new Stripe payments

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. 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. 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.

  • Xero is a solid alternative to QuickBooks, but it is not quite as good for those who have little to no accounting experience.
  • FreshBooks is our best accounting software for bookkeepers because the software is designed for bookkeepers.
  • Even if you run a relatively small operation, you’re bound to rack up a number of expenses over the tax year.
  • However, despite the ability to work more flexible hours, it can still be tricky for freelancers to fit everything into a hectic week.
  • When you’re waiting to get paid, it can be difficult to stay on top of your income.
  • This will help with bank reconciliation, make it easier to budget, and provide costs for your services.

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. OneUp offers five plans, with all plans including the same features and pricing based solely on the number of users. A perfect fit for self-employed business owners is the Self plan, which supports one user and is $9/month with all features included.

Review Financial Reports

When you’re on top of your accounting and bookkeeping, just by looking at profit and loss statements, you can anticipate future problems that your business might face. Doing a little accounting daily will make your overall operations easier to handle. Organizing your receipts and invoices as they come in will save you from a huge amount of work during tax season. Reconciling your bank account can make the day-to-day business of freelancing easier and prepare you for tax season. As a freelancer, you might not have the financial resources to hire an accounting staff to help you through the year.

NerdWallet’s Best Accounting Software for Freelancers and Self-Employed of July 2023

Despite the intuitive experience, there isn’t a lot of embedded help in the app or a detailed onboarding sequence. Luckily, the knowledge base is pretty thorough, so you can tab out from time to time to figure things out. The user interface is bright and tidy, with some quotes about life and business to shake up your day.

Just don’t ask Ruby complex stuff like the meaning of life—it’ll only drone on about capital assets. If the conversation goes nowhere, you can talk to a human instead to solve the trickier bits. You can upload as many receipts as you need, and QuickBooks will extract all that data into the app using OCR, leaving little manual work for you. Find help articles, video tutorials, and connect with other businesses in our online community. Schedule C is an IRS form that accompanies Form 1040 to determine business net income (or loss).

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