Choosing the finest accounting software for freelancers is a critical decision.
You won't be in business for long if you don't pay attention to your finances. It will be difficult to keep track of your finances without good accounting software.
Finding the finest accounting software for freelancers is crucial to developing a financially healthy freelancing business that will last for a long time.
We've whittled down this list to seven accounting software for freelancers after evaluating dozens of options and explaining why.
1. Bonsai trees
Bonsai, an all-in-one business solution for freelancers, ranks first on the list. While Bonsai offers a lot more than freelance accounting, its accounting tools are excellent.
Bonsai is an effective freelance accounting program since it is designed primarily for freelancers (as opposed to competitors like Quickbooks or Freshbooks, which target businesses of all types and sizes).
Features of Bonsai Accounting
Here are a few of the top features of Bonsai, one of the best accounting software for freelancers:
Accounting reports that are important
You can't improve your business unless you know your numbers. As a result, Bonsai provides crucial accounting data such as Profit & Loss Statements and Balance Sheets to freelancers.
Expense categories that can be customized
Bonsai allows you to create your own spending categories in order to generate accounting reports that are useful to you as a freelancer. You can add new categories like the cost of goods sold or client gifts in addition to the standard categories (marketing & advertising, office expenses, etc.).
Accountant access that can be shared
Best of all, Bonsai allows you to delegate your accounting responsibilities to a professional by granting access to your own accountant. You can do a lot on your own with Bonsai's accounting software.
How much does Bonsai cost?
Following the 14-day free trial, freelancers can sign up for Bonsai for as little as $19/month USD.
Freshbooks comes in second on our ranking of the best accounting software for freelancers. Freshbooks has a long history of working with freelancers, despite the fact that it now serves businesses of all sizes.
Freshbooks was founded by Mike McDerment, a web design freelancer, to handle his own billing and accounting concerns. Freshbooks is one of the best accounting software for freelancers on the market today because of its simple-yet-powerful features.
Accounting Features in Freshbooks
If you sign up as a freelancer, you may expect the following capabilities from Freshbooks' accounting service.
Accounting in two parts
Freshbooks employs double-entry accounting, which means that everything is recorded on both the credit and debit sides of your financial records. This lowers your chances of making a mistake during tax season and ensures that your records are correct.
Estimation and planning
Freshbooks makes it simple to anticipate your financial future, allowing you to quickly determine whether you can afford to hire subcontractors or employees, invest in marketing, or boost company revenues in the future.
Tracking of pre-payments and overpayments
If you've ever had to issue a refund or attempted to give a discount to a customer, you know how difficult it is to keep track of your finances. Freshbooks offers a "Credits" function that allows you to track overpayments, client credits, and prepayments, as well as apply the amounts to future bills.
What is the price of Freshbooks?
Freshbooks costs anything from $6/mo USD to $20/mo USD if you pay annually after you've utilized the 30-day free trial, depending on the accounting services you wish to activate.
Freely enables new or early-stage freelancers to prepare for tax season in less time and with a focus on optimizing deductions.
Freely, unlike other accounting software, was created with tax season in mind. If you want to focus on your passion and business growth without having to worry about taxes, this is certainly the best option.
Here are a some of the key elements that Freely use to make freelancing accounting easier:
Untangle business and personal expenses
When you first start out, you may decide to keep your business revenue and spending in your personal bank account. Don't worry, Freely can assist you in keeping your funds in order. It securely connects to your bank accounts and credit cards, untangles your transactions into work or life, and allows you to track your profits and spending with ease.
Find tax deductions that the majority of people are unaware of.
It's difficult to know what's deductible and what isn't. Freely scans your purchases and identifies the expenses you can deduct. There's no need to know anything about accounting or taxes!
How much does Freely set you back?
Freely has a single monthly fee of $15 USD. Freely will automatically deduct itself from your taxes as a legitimate accounting expense, on top of unearthing an average of $1,137 in extra tax deductions for freelancers each year!
Without a question, Quickbooks is one of the best accounting software for freelancers.
While there have been many Quickbooks alternatives throughout the years, this accounting software remains one of the top options for businesses of all sizes.
For freelancers, Quickbooks Self-Employed is extremely useful accounting software.
Accounting Features in Quickbooks
While some of the other accounting programs on this list contain proposals, Quickbooks concentrates on the most crucial accounting features you'll need as a freelancer. Here are a few that are important:
Multiple bank and online accounts to manage
Quickbooks is an excellent solution if you have many bank accounts that you need to handle all in one place. You can link your PayPal account to almost any bank account or online account, including all major banks, many smaller institutions (such as credit unions), and even your PayPal account.
Easily keep track of your miles and receipts.
If you frequently drive to client meetings or buy tangible things for client projects or the office, Quickbooks' mobile apps will come in handy, allowing you to snap a receipt or log mileage that may subsequently be deducted from your taxes.
Tax assistance on a quarterly basis
As a freelancer, you're aware that you must file taxes every quarter (at least in the United States). Quarterly tax payments might be perplexing or stressful at times. Quickbooks assists you in estimating your payment and ensuring that it is made on time.
What is the price of Quickbooks?
If you don't want to take advantage of the free trial, Quickbooks offers a 50% discount for the first three months, making their most basic plan $12.50/mo USD for the first 90 days. After that, their most basic plan is $25 per month in USD.
It's a little on the expensive side, but it's one of the best accounting software for freelancers who want to keep track of their income.
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