Starting a business solo can be challenging. Whether you’re a sole proprietor or running a small to medium-sized business (SMB), accounting software can help you manage your finances easily and accurately — but those programs can be pricey. And as you’re getting off the ground, being able to invest in one might not be feasible
It is true that not all free accounting software for the self-employed is as good as it seems. However, there are some which stand out as the best free bookkeeping software for the self-employed.
Free Accounting software for self-employed business owners. Accounting software for self-employed businesses. Bookkeeping software for self-employed. Check out what is the best small business accounting software for the price, the best free accounting software for small businesses, best bookkeeping software for small businesses, best free bookkeeping software for small businesses.
Bonsai
Technically, Bonsai isn’t an accounting software. Think of it more like a freelance product suite with accounting and bookkeeping software built-in.
Bonsai is described as the #1 freelance product suite for a reason. Inside one dashboard, you can send invoices, track time, manage customer relationships, send proposals, create onboarding forms, and more.
Features include:
- Templates for almost everything you could need to run a freelance business–including contracts, quotes, proposals, and more.
- Stripe integration for clients to pay your invoices via credit/debit card.
- Bonsai Tax to track expenses, find write-offs, and estimate taxes.
- Project management tools, including task management and time tracking, to keep your freelance business organized.
Best suited to Freelancers looking for an all-in-one business management platform.
Pricing: Starts from $19/month for basic features. Get advanced features, including automation, customization, and Calendly integrations, from $29/month.
OneUp
OneUp is another accounting software application that is less well-known than its competitors. A good fit for self-employed business owners and sole proprietors, OneUp offers lead management and a solid inventory management module, making it a particularly good choice if you’re selling products.
OneUp makes it easy for you to get around, with an intuitive user interface and an informative dashboard that provides a quick look at vital data, such as profit and loss, cash flow, and income and expense summaries.
OneUp also includes an easy product and service setup, as well as the ability to link bank accounts and other financial institutions with the application.
The OneUp dashboard offers a quick look at profit and loss, cash flow, income, and expenses. Source: OneUp software.
Other features available in OneUp include the following:
- Multi-location inventory management
- Purchase order management
- Customer quotes
- Customer prepayments
- Custom invoicing
- Opportunities, with the ability to convert a lead directly into a quote
- Mobile accessibility
Reporting options in OneUp are good, with reports available in three categories — accounting and financial reports, expense reports, and inventory reports. Purchase orders and project reports are also available.
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. There’s a Pro plan for two users that runs $19/month, and Plus, Team, and Unlimited user plans are also offered.
The big benefit with OneUp is that every plan includes all features, so you won’t have to move up to a more robust (and expensive) plan to access the features you want.
Wave Accounting
Some free software plans sacrifice features for the price. Not Wave Accounting. With Wave’s free accounting software, you can send invoices, scan receipts, and accept online payments. And you won’t pay anything more than standard transaction fees. And unlike FreshBooks and Xero, Wave doesn’t limit your invoices, bill payments, or customers. It doesn’t limit you to just one use either. If you eventually expand your business to include a bookkeeper or business partner, Wave is just as free for four users as it is for one.
While Wave’s invoicing and receipt scanning apps measure up, it still lacks a mobile accounting app for you to check cash balances on the go. Customer support is available via email only—real-time tech support is basically a no-go.
Quickbooks
Quickbooks Online is an accounting software powered by the folks at Intuit. Freelancers can use it to snap and store receipts for purchases (like office equipment). According to its website, customers using Freshbooks save eight hours per month managing their accounts.
The best part: Quickbooks offers software bundles for self-employed people. You can use Turbotax, its online tax preparation offering, with your Quickbooks account for a small extra fee.
Features include:
- Automatic matching to save time on bank reconciliation. It will map receipts to expenses and invoices to income.
- Smart reporting to get a quick overview of outstanding invoices, total expenses, recent bank transactions, and profit and loss statements.
- Track mileage if you’re visiting a client’s office.
- Payroll, if you’re hiring a team or thinking of scaling up to build an agency with full-time staff.
- A mobile app to manage invoices and view reports on the go.
Best suited to Individual freelancers or LLC/LTD company owners.
Pricing: The Quickbooks self-employed plan starts at $7.50 per month. Its small business plans start at $12.50 per month.
Xero
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.
Xero offers a wide range of features, including complete custom invoicing, expense and inventory management, and bill payment options, along with a multi-currency option. However, feature availability depends on the plan.
Xero allows you to add bank accounts and manage them from a single screen. Source: Xero software.
The following features can also be found in Xero:
- Custom invoices
- Customer quotes
- Bill payment
- Inventory management
- Bank account connectivity
- Project management
- Contacts
- Mobile app for iOS and Android devices
Xero also contains budgeting capability so you can create an organizational budget as well as a departmental budget or project budget if needed. There is also an option to import budget details from another application if necessary.
Reporting options in Xero are decent, and reporting options are continuing to improve after each product update.
Xero currently offers three plans. The Early plan is $9/month for the first two months and then jumps to $18/month. It includes up to 20 invoices and five bills, along with bank reconciliation capability. If you need to send more than 20 invoices or process more than five bills, you’ll need to look at the Growing plan, which is $30/month for the first two months and then goes to $60/month.
If you want access to the multi-currency or project management features, you’ll need to move up to the Established plan, which will run $120/month after introductory pricing, likely putting it out of reach of very small businesses.
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.
FreshBooks
FreshBooks started out as an invoicing software company in the early ‘00s. Once it transitioned into fully-fledged accounting software, FreshBooks’ invoicing features remained the best of the best. Unlike QuickBooks Self-Employed, FreshBooks’ invoices are customizable with your business’s name, colors, and logo. You can also schedule automated recurring invoices, send late payment reminders, and set automatic late fees to accrue on overdue invoices.
FreshBooks has one key drawback, though. (Doesn’t everything?) With its cheapest plan, you can invoice only up to five clients a month. You can send those five clients an unlimited number of invoices each month, but that’s a perk only if you work on multiple projects with the same recurring customers. If you have a larger client base, you’ll need FreshBooks’ Plus plan, which costs $25 and lets you invoice up to 50 customers a month.
Conclusion:
Software to track your business finances can help you manage your expenses and increase your productivity, but many programs are very expensive. Thankfully, there are several free accounting software programs that will allow you to keep track of your financial data without breaking the bank. The right program for you will depend on your individual needs; however, there are some programs that will work for most self-employed people.