Published on Apr 12, 2025 6 min read

10 Best Accounting Software Tools for Self-Employed People

As a self-employed individual, managing your finances can be daunting without the right tools. From tracking income and expenses to preparing for tax season, handling these tasks manually can consume valuable time. Thankfully, there are numerous accounting software tools available that cater to the needs of freelancers and self-employed professionals.

These tools automate the majority of accounting tasks, allowing you to focus on growing your business. In this article, we’ll explore 10 of the best accounting software tools for self-employed people, providing you with options to streamline your financial processes and boost your productivity.

QuickBooks:

Why It Is Great:

QuickBooks Self-Employed is one of the most well-known accounting tools for freelancers and self-employed individuals. It is designed to help you manage your business finances and file taxes effortlessly. QuickBooks automatically tracks your expenses, mileage, and income, ensuring you are always prepared for tax season. The built-in tax calculation tools help simplify the tax preparation process, while its easy invoicing and receipt capture system make it simple to handle administrative tasks. Moreover, QuickBooks integrates seamlessly with other tools, making it an excellent all-in-one solution for freelancers.

Best For:

• Freelancers who need a simple, all-in-one accounting solution that focuses on taxes.

FreshBooks:

Why It Is Great:

FreshBooks is a popular accounting tool that is perfect for self-employed professionals looking to manage their finances efficiently. Its user-friendly interface allows you to create professional invoices, track your expenses, and time your projects with ease. FreshBooks also offers automated billing and recurring invoices, making it a convenient choice for freelancers and contractors. You can also generate detailed financial reports, helping you stay on top of your business’s financial health.

Best For:

• Freelancers and self-employed people who need an easy-to-use invoicing and time-tracking tool.

Xero:

Why It Is Great:

Xero is a robust accounting software tool that helps freelancers manage their finances, offering a wide range of features for small businesses. Known for its user-friendly design, Xero allows users to handle their accounting from anywhere, thanks to its mobile accessibility. The software includes bank reconciliation tools, making it easy to match your bank transactions with your business records. Additionally, Xero supports invoice creation and tracking, payroll management, and provides detailed financial reporting and budgeting features to help you manage your business effectively.

Best For:

• Self-employed professionals who need a comprehensive solution that includes accounting, invoicing, and payroll features.

Wave:

Why It Is Great:

Wave is a free accounting software tool that offers an impressive range of features for self-employed individuals who are on a budget. It allows you to handle invoicing, expense tracking, and receipt scanning without any subscription fees. Wave makes it easy to customize invoices and even supports tax filing, making it a great choice for freelancers who need basic but efficient accounting features without breaking the bank. It’s a highly functional tool for self-employed people who want to save money while still staying organized.

Best For:

• Freelancers and self-employed people looking for a cost-effective accounting solution.

Zoho Books:

Why It Is Great:

Zoho Books is a powerful accounting tool designed to help self-employed people effectively manage their finances. With Zoho Books, you can track your expenses, generate invoices, and send automated payment reminders. It also features multi-currency support, making it an excellent choice for those working with international clients. Zoho Books offers detailed financial reporting, which helps you keep track of your business’s cash flow, as well as automated workflows that can streamline your business processes as it grows.

Best For:

• Freelancers and small business owners who need an affordable and scalable accounting tool.

Sage Business Cloud Accounting:

Why It Is Great:

Sage Business Cloud Accounting offers a robust platform for self-employed professionals seeking a powerful accounting tool. It comes with automatic bank reconciliation, making it easier to match your financial records with your bank transactions. In addition to time and expense tracking, Sage provides detailed financial reports to help you make informed decisions about your business. It also includes VAT management tools, ensuring you remain compliant with tax regulations. Sage is ideal for non-accountants who want a reliable and easy-to-use accounting tool.

Best For:

• Self-employed professionals who need a powerful tool to manage their business accounting.

Kashoo

Why It Is Great:

Kashoo is a simple accounting software tool designed specifically for self-employed individuals. The tool allows you to easily track expenses, manage invoices, and generate tax reports. Known for its intuitive interface, Kashoo makes it easy to navigate your financial records. The cloud-based platform automatically syncs with your bank accounts, ensuring your transactions are always up-to-date. This simplicity and ease of use make Kashoo a great option for freelancers who want to keep their finances organized without a steep learning curve.

Best For:

Freelancers who need a simple accounting tool.

Accounting by Wave:

Why It Is Great:

Wave, another great option for self-employed professionals, offers a no-cost solution to manage your finances. The tool includes invoicing, accounting, and receipt scanning features, providing essential services without the price tag. With Wave’s mobile-friendly design, you can manage your finances on the go. The free plan includes basic accounting reports, while the payroll feature (available for an additional cost) helps streamline employee compensation. Wave’s simplicity and affordability make it a solid choice for freelancers and self-employed individuals.

Best For:

• Freelancers on a tight budget who need a simple accounting tool.

FreeAgent:

Why It Is Great:

FreeAgent is a comprehensive accounting tool designed for freelancers and self-employed people who are looking for a straightforward, time-saving solution. It covers everything from invoicing and expense tracking to time tracking and tax reporting, helping users stay organized and compliant. FreeAgent makes managing projects and tracking billable hours simple and also helps automate tax calculations and submissions. With its clear financial reporting, FreeAgent ensures you never miss a deadline or payment.

Best For:

• Freelancers who need an all-in-one solution to manage time, expenses, and taxes.

ZipBooks

Why It Is Great:

ZipBooks is designed to make accounting easy for small businesses, freelancers, and self-employed individuals. Its free plan covers basic accounting needs, including expense tracking, invoice creation, and financial reporting. ZipBooks allows you to easily customize invoices and track income and expenses in one place. The software also provides useful tax preparation tools and integrates with your bank account for automatic transaction imports, ensuring your financial records are always up-to-date.

Best For:

• Freelancers and self-employed professionals looking for an easy-to-use accounting solution with a free plan for basic functionality.

Conclusion

The right accounting software tool can significantly streamline the financial management process for self-employed individuals. Whether you’re a freelancer or a small business owner, the 10 best accounting software tools discussed above offer a variety of features designed to simplify accounting, reduce administrative workload, and ensure accurate tax filing.

By leveraging these tools, you can ensure your finances are organized, compliant, and efficient. Explore the different options available, and choose the one that fits your unique business needs to stay ahead of the curve and maintain control over your financial success.