All QuickBooks Online plans include mileage, income, and expense tracking, sales and tax reporting, and tools to manage 1099 contractors. Available for Windows and OS X, and with Android and iOS apps for invoicing and receipts, encumbrance definition Wave is ideal for independent businesses still finding their feet. Wave Accounting can do almost everything premium accounting software tools can do, including expense management, banking reconciliation, payroll, and invoicing.

Xero gives QuickBooks a run for its money when it comes to accounting features for independent contractors. Features include financial reports, mobile apps, more than 1,000 integrations, live bank account connections, invoicing, and access for multiple team members. Xero customers also get free access to Hubdoc, which allows users to extract data from documents.

It’s an accessible, intuitive program that doesn’t require much — if any — training to understand. This website is using a security service to protect itself from online attacks. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. Keeper’s reports help you explain how your client’s business is actually doing.

How to choose an accountant: 5 tips for small businesses

One of the app’s more impressive features is inventory management. It tracks stock, supports multiple warehouses, generates barcodes and allows you to scan them with your phone’s camera. The app syncs your data across all your work devices through Dropbox.

• But even the Standard version, priced at just $15 per month billed annually, which offers up to 5,000 invoices a year should be enough for most part-timers.
• Ultimately, Lendio is a straightforward, effective bookkeeping software with a free plan that can suit the needs of several small businesses.
• The app seems to work just as well for Apple users as for Google users.

Yes, switching from other accounting apps or products to Wave is easy! See our step-by-step guide on how to import bookkeeping data into Wave here. When everything is neatly where it belongs, tax time is simple. Wave’s smart dashboard organizes your income, expenses, payments, and invoices. Track your income and expenses, easily and for free, with Wave’s accounting software. Here are our top five picks for the best accounting software for small businesses.

The best self-employed accounting software in 2023

Overall, this is a solid free platform for simple accounting requirements that isn’t too overloaded with complex features. Wave can also offer professional accounting coaching from qualified experts. Any connections between you, your bank accounts, and Wave are protected by 256-bit SSL encryption. After creating your account, everything’s set up so you can get started right away. Your data is always available, and it’s backed up for extra peace of mind.

This individual and their team work with you on customizing your setup and monitoring your transactions so they’re accurately entered and categorized for tax purposes. They reconcile your accounts and close your books at month’s end to prevent errors. Plus, they’re available for questions during regular business hours.

• This companion app to the FreshBooks accounting software has been downloaded more than 100,000 times and has a high average rating across almost 1,000 user reviews.
• If you’re in need of the easiest ones, however, QuickBooks Online and FreshBooks are the two we recommend.
• If you use the company’s optional payroll services, there are also monthly fees.
• You may want to sign up for one or more free accounting applications.

Set the amount or the percentage, and Fiverr Workspace will generate the invoice for you. You can add that with due dates, so you’ll have everything organized. FreeAgent accepts your receipts as attachments to bills or expenses, and if you use the mobile app, it’ll extract data using OCR feature. 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.

However, if you choose the Lite plan, it will only work on one Android device. Instead of sifting through a pile of documents to get the information you need, bookkeeping ensures that this information is appropriately organized beforehand. When you’re selecting yours, make sure you understand what those needs and priorities are, and seek out programs with the features required to accommodate them.

Best self-employed accounting software for ease of use

It keeps an eye on stock, supports multiple warehouses, creates barcodes, and lets you use the camera on your phone to scan them. The app uses Dropbox to sync your data across all your work devices. Sage’s excellent customer service is one of its significant benefits. You can get in touch with customer service by phone, chat, or email.

To properly manage your business, you need to know what’s happening on a basic financial level. Not analyzing your business expenses could prevent your business from reaching its full potential. From staying compliant with IRS tax regulations to making informed decisions, bookkeeping is vital in nearly every aspect of your small business growth.

Using bookkeeping apps can save you a lot of time doing tedious work. Check out our review of the year’s best free accounting software to find budget-friendly bookkeeping. If you’re a new user, you can opt for either a 30-day free trial or sign up to get your first three months for 50% off. Note that you can’t take advantage of both options—if you choose one, you waive the other (as per industry standard). Accounting software already makes your life easier, your business operations smoother, and your bottom line happier.

Turning your side gig into the main show is exciting, but to do it consistently and successfully, you need the right tools. You may have used invoice generators and spreadsheets in the past. I sure did when I started out—it was an agile way to start working, but it’s not sustainable as you grow. Fiverr Workspace (formerly AND.CO) really gets how freelancers work and think—and it’s a powerful tool that’s more than just accounting. You can do even more with QuickBooks by connecting it with Zapier to automate your accounting workflows. Here are a couple of examples to get you started, but Zapier works with any app in your tech stack.

You need to maintain the historical records contained in your free program as you make the shift to a new application. Plan for that process ahead of time by leveraging a program that will let you seamlessly export and migrate those existing records to a paid platform. The platform is an invoice management solution, above all else — and that can be a benefit or drawback in its own right, depending on what you need. And while those upper-tier plans are reasonably priced, they’re obviously not what someone who wants a free plan is looking for. Again, the solution itself is sound, but if you want a free program that will remain free as you scale, you should look elsewhere. Wave Accounting is one of the more tested, reliable options listed here.

Cash is difficult to handle in large amounts as it requires protection and has to be physically moved to a bank. Cash flow is the number one struggle that small business owners face on a day-to-day basis. Paying attention to the importance of bookkeeping can help you mitigate that challenge by keeping close track of the cash moving in and out of your business. If you aren’t sure, try a few until you find the small business accounting software that you feel suits you. Even if you just opened a business that’s operating out of a home office, you can still take advantage of the benefits of bookkeeping by utilizing online and cloud-based services.

Create Wave customers from new Harvest clients

Integrated payroll and double-entry accounting support make it a potential option for small businesses with a few employees, though there are better choices for those companies. And because it has a simple user interface, even financial novices could use it. Mobile accounting apps and mobile bookkeeping apps are online services. Accounting functions include accounts receivable and payable, balance sheets, and general ledger tools.

There’s no need to wait until you get back to the office at the end of the day. Nine years later, it was purchased by H&R Block and has over 250 employees. This free software includes the foundational accounting features that most small businesses need, such as income and expense tracking, financial reporting, invoicing, and scanning receipts. The features vary from app to app, and sometimes the Android and iOS versions differ. Some mobile accounting apps are primarily for capturing receipts for expense reports, while others let you view reports, create and send invoices, and reconcile transactions. First of all, it has a higher starting price than nearly any other online accounting software solution.

FreshBooks Accounting

You’re trying to grow a business, and if you want to make that happen, you need to focus on your long-term plans and day-to-day operations. You don’t want to exhaust too much time and energy learning a convoluted, overly technical accounting software — at least not yet. Brightbook is a web-based accounting solution tailored to suit the needs of independent contractors, freelancers, and small business owners — though it tends to work better for the former two. If you’re a freelancer or launching a small company, focusing on growing your business while keeping close tabs on your daily cash flow can be challenging. This is where accurate accounting with help from  bookkeeping apps can help you get a handle on your finances.