Best Accounting Software for Self-Employed Business

If you are a self-employed business owner, you will agree that managing your startup’s financial side is a frustrating task. When you start a business, you hope to create something unique and solve a customer’s problem. But as the days pass, you find yourself spending a lot of time sending invoices, logging expenses, and filing taxes instead of pursuing your dream further.

Well, the reality is that these tasks are an inevitable part of your business – regardless of its size, industry, and goal. Thanks to technology, there are plenty of accounting software that can take the burden off your shoulders and help you streamline your books in the correct order.

What makes great accounting software?

As the number of startups has steadily grown around the world, so have the options for self-employed accounting software. But remember that not all apps are equal, and you should pay particular attention to a few features.

  • Cost: Budget is perhaps the most predominant part of choosing an accounting software. Especially if you are just venturing into the business world and are low on cash. Luckily, bookkeeping software is available in both – free and premium modules. Just make sure that the app contains all the features required for you to run your business finances smoothly.
  • Ease of use: Having a software equipped with a user-friendly interface will make accounting less of a chore. That’s why it is important to look for an app that is comfortable to use and doesn’t require lengthy video tutorials to accomplish a simple task.
  • Features: The accounting software that you choose should include features needed by self-employed business owners. For example, double-entry accounts, easy invoicing, and round the clock support system are some of the main features to look out for. Other add-ons can be established according to your business needs and goals.

Our pick of the best self-employed accounting software

After comprehensive research, we narrowed down our list of the best accounting software for self-employed businesses based on the above criteria and more. Take a look at the features and determine the important ones. And exclude the ones you don’t need.

With that being said, let’s check out our top picks.

1. QuickBooks

QuickBooks is a leading accounting software and ideal for small business owners. They also offer unique packages for self-employed business owners that enables them to track their expenses, add invoices, and track potential tax write-offs from a single, easy-to-use dashboard.

One of the best features of QuickBooks is the ability to activate and turn off as many or as few features as you require. In terms of invoicing, it has one of the best templates and automation. Plus, it has over 600 app integration options.

Other features include:

  • Budgeting
  • Tax support
  • Contact management
  • Customer estimates
  • Time tracking
  • Inventory management
  • Tailored invoicing
  • Apps for Android and iOS

The reporting options by QuickBooks are excellent. The reports are also fully customizable, and you can export them to Excel or save them as a PDF file.

Pricing for QuickBooks starts at $8/month for the Simple Start monthly package and spans up to $322/year. A free 30-day trial is also available for interested clients.

2. Xero

Xero is another good option of accounting software for self-employed individuals. It is also popular with small and mid-sized business owners who are conducting their business globally through an online portal.

The accounting app is equipped with many features including custom invoicing, bill payments, and multi-currency options. However, the availability of features is dependent on the plan you select for your business.

Some other impressive features of Xero include:

  • Bank account connectivity
  • Inventory management
  • Track business progress
  • Easily add and manage invoices
  • Reconcile transactions
  • Project budgeting
  • Apps for Android and iOS

Another plus point of Xero is its ability to integrate with over 700 apps. These apps are available in various categories, giving them major brownie points by business owners globally.

If you are interested in the services of Xero, the company offers a 30-day free demo. After that, you can select from one of the plans available. These plans start at $5/month. But you will need to go for a more established plan based on your bookkeeping requirements.

3. FreshBooks

FreshBooks is an ideal solution for self-employed entrepreneurs. It is also easy to use and scalable, so it can grow along with your business. It also allows the users to set up multiple payment options for single clients. So, if you have vendors with different invoice needs, FreshBooks is the tool for you.

People with little to no accounting knowledge also favor FreshBooks for its ease of use. It offers excellent invoicing capabilities, allowing just about anyone to write up an invoice without previous experience.

Other notable features of the app include:

  • Payment reminders
  • Bank connectivity
  • Time tracking and desktop timer
  • Project management
  • Payment management
  • Live customer support
  • Integration with 100 apps
  • Apps for Android and iOS

FreshBooks offers straightforward and detailed reporting of the business. They will give you an idea about your business operations at a single glance.

FreshBooks offers four different monthly packages that start at $7.50 and let you manage up to 5 clients. You can also customize your package according to the advanced requirements of your growing establishment.

4. Zoho

Another great fit for self-employed individuals is Zoho books. It is especially ideal for online vendors and supports several payment gateways for seamless transactions with the customers.

The best part about Zoho is that it is compatible with Zoho’s wide range of apps. Suppose you need other tools to support your business, such as CRM and the customer service channel. In that case, you can easily integrate with the bookkeeping software and manage from a single dashboard.

Some more features to look out for:

  • Bank connectivity
  • Reconciliation of finances
  • Timesheet
  • Custom invoicing
  • Exceptional customer support
  • Inventory management
  • Client portal
  • Apps for Android and iOS

For those who are a novice in the accounting field, Zoho offers a detailed help section that will tutor you step-by-step through each step you need to manage your workflow. It also includes great reporting options, and all reports can be exported via CSV and Excel.

Zoho Books offers a free plan for businesses with 1 user + 1 accountant. You can upgrade to premium versions and unlock access for more members and features. The paid plans start at $10/month.

5. AccountingSuite

AccountingSuite is one of the hidden gems of the bookkeeping sector. It’s not as renowned as the others reviewed in this blog, but it offers many of the same features. It is exclusively designed for small business owners and provides a plethora of options for self-employed individuals to thrive.

One of the most notable features of AccountingSuite is its budgeting abilities. With this resource, you can set a potential budget for the coming months. You can also see how accurate your budgeting was through the Budget report, which will compare the expectations with the actuals.

Features included in the AccountingSuite package:

  • Sales quote
  • Track sales orders
  • Custom invoicing
  • Inventory management
  • eCommerce integration
  • Time tracking
  • Project management
  • API integration

The reporting options by AccountingSuite are also at par with its competing apps. They are customizable and available in various formats to suit your business needs.

AccountingSuite offers four paid plans that start from $19/month and supports basic necessities of a growing business. However, if you are looking for add-ons and eCommerce integration, look into their upgraded plans for sales management, support, and tax data.

Which accounting software is best for your business?

Regardless of your accounting experience and niche, bookkeeping software will keep you updated with the financial side and make it less of a hassle. While you may be following the necessary bookkeeping tips you have learned from experts, accounting software will help you automate effectively. It will also ensure your business is compliant for long-term success.

Any of the above-reviewed accounting software will enable you to easily manage your business finances and balance the books. Ultimately, the decision is dependent on your budget and the features you require for your business.