6 Best Online Bookkeeping Services for Freelancers

accountant for freelancers

Designed for small to medium-sized businesses, Zoho Books provides a user-friendly solution for streamlined financial management. Accounting software for freelancers is a tool designed to help manage finances. It simplifies tasks like tracking income and expenses, creating invoices, and preparing for taxes. This software makes it easier to keep financial records organized, ensuring you stay on top of your business finances. With accounting software, freelancers can focus more on their work and less on paperwork, knowing their financial information is accurate and up-to-date.

Zoho Books: Best overall freelance accounting software

Freelancers using personal vehicles for business travel can choose between the standard mileage rate or the actual expense method. The standard mileage rate, updated annually by the IRS, simplifies the process by allowing a per-mile deduction. Alternatively, the actual expense method requires documenting all vehicle-related costs, such as gas, maintenance, and depreciation, which may result in a higher deduction. When you trust us with your accounts, you can have complete confidence that we know what we’re doing. Our accountants have a wide range of qualifications and accreditations from trusted professional bodies such as the AAT, ICPA and ACCA.

Quick Comparison of the Best Online Bookkeeping Services for Freelancers

Its cloud-based system allows you to access it from anywhere, making it a convenient choice for businesses on the go. We’ll examine the features, pricing, pros, and cons of these freelancer accounting software platforms. By the end, you’ll know which one fits your needs best, allowing you to take control of your finances and focus on delivering excellent work. In this article, we’ll explore these and other top accounting software options to help you find the best fit for your freelance business. Managing finances is a major challenge for freelancers, but the best accounting software for freelancers in 2024 can simplify this task. Studies show a whopping 61% of freelancers struggle with managing their finances.

accountant for freelancers

Essential Tax Deductions for Freelancers

IRS guidelines classify these fees as ordinary and necessary business expenses. Even if you have no current plans to start your own limited company in place of being a sole trader, it’s helpful to know your accountant offers the option for potential future expansion. When you work with us, know that your self-assessment tax return will be submitted accurately and on time because a member of your accountancy team will submit it for you. We’ll also provide you with the information and updates you need to pay your taxes and offer additional practical support tailored to your personal circumstances.

  • In addition to the basics of issuing invoices and collecting customer payments, we evaluated the software’s ability to create customized invoices.
  • Proper accounting software can elevate your freelance work from a hobby to a real business.
  • Freelancers needing to track income and expenses can do so with Merritt Bookkeeping, which costs only $250 per month, regardless of the number of transactions or the amount of your sales.

The software should allow users to choose from multiple email templates and customize them to their needs. It should also let users create a proposal or estimate, which they can then convert to an invoice after approval. If you’re looking for the convenience of an accountant in your pocket, you’ll love Mazuma. Your accountancy team uses our award-winning accounting software to look after the financial side of your business, so you can focus solely on working on your exciting projects. Tracking finances is one of the biggest struggles for freelancers, especially collecting piles of paper receipts and invoices that need to be processed online. If you buy and sell stock or order tools for your work weekly, you’re in for an even more confusing time, as you’ll have significantly more expenses than a freelancer who offers a digital service.

It’s an excellent option if you don’t need assistance with managing customer invoices and paying bills. The invoicing limits only slightly impacted its overall score in my assessment. In my evaluation, I chose the Professional plan, which includes an invoicing limit of 10,000 invoices per year. I have several years of experience in accounting software evaluation and providing small businesses with reliable, expert insights.

Zoho Books offers a comprehensive selection of accounting features combined with six different transparent pricing plans that offer lots of scalability. Zoho Books also integrates with Zoho’s dozens of business apps, making it possible to build an entire Zoho software stack. Third, freelance accounting software almost always lets you share your financial data with your accountant for no additional user fee. Second, freelance accounting software includes basic financial statements that break down tricky financial concepts for freelancers with little accounting experience.

For those operating internationally, Wave’s support for multiple currencies is a valuable addition. The ability to create professional-looking invoices, automate reminders, and accept online payments (for a fee) can significantly streamline your billing process and help you get paid faster. FreshBooks is an easy-to-use accounting software designed for business owners and accountants. It simplifies invoicing, payments, expense tracking, and more, helping you save time and look professional.

Short on Time? These Are the Best Freelance Websites for Hiring Accountants in 2025

Even the simple act of handing over your accounting responsibilities to a professional gives the free time you need to focus on growth, improve your services, or simply relax after a hectic workday. When you join you will get your own dedicated accountant from one of our UK-based offices, who will get to know you and your freelancing business in detail. As an entrepreneur myself, I am dedicated to researching the software and services that will streamline accounting processes, ultimately saving time and money. I leverage my expertise and extensive research capabilities to address the questions that the Fit Small Business audience has—and this ensures that content is rooted in knowledge and accuracy.

Though becoming a freelancer is undeniably exciting and can open the door to working on the projects that make you tick, certain aspects of managing your own business are much less appealing. We know that setting up and running your own freelance company can be daunting. We’re here to provide all the support you need to thrive as accountant for freelancers an entrepreneur.

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