One of the most important and often one of the most stressful parts of becoming a freelancer is keeping on top of your finances. It can be really easy to put this off, but if you do, it could end up landing you in hot water. One of the decisions you’ll have to make when you get started is that of which piece of accounting software to use. And that can seem like something of a minefield decision.
That’s why we’ve decided to create this comprehensive guide to make it easier for freelancers to compare different accounting software options and decide which one will work best for you.
In this guide we give you all the information you need about some of the most popular accounting software options for freelancers, comparing their prices, key features and the pros and cons of each option.
Which Accountancy software is best for freelancers?
We’ve compiled a list of some of the most popular accounting software options available in 2020, comparing the pros and cons, pricing, features and more, based on the most inexpensive package they offer.
| Starting Price | Pros | Cons | |
| Quickbooks Self Employed | From £4 a month | User friendly Easy to track income and expenses Unlimited Invoices Estimates quarterly income tax | No ability to track time spent on projects No way of setting up recurring transactions |
| Xero | From £10 a month | User friendly Easy to use Automatic CIS calculations and reports | Limited to 20 invoices and quotes a month Limited to up to 5 bills a month Extra fee for expenses |
| FreshBooks | From £5.50 a month | Unlimited Invoices Unlimited time tracking and estimates 200+ integrations | No tax estimates Limited to up to 5 billable clients No way of setting up recurring transactions |
| FreeAgent | From £9.50 a month | Unlimited clients and users Unlimited Invoices User friendly | Customisation limitations for VAT |
| Sage Business Cloud Accounting | From £12 a month 50% off the first 3 months at the time of writing | Cancel anytime Good customer support Various special offers and promotions regularly promoted on the website | User limit Unable to set quotes and estimates No CIS Processing |
Sage Business Cloud Accounting
Being the highest rated accounting software in our roundup, Sage Business Cloud Accounting has an average Trustpilot rating of 4.8 out of 5, with many users citing it’s excellent customer support. The software itself has a range of useful features for freelancers, including tracking, invoicing, reporting and submitting VAT returns all in one place.
After a 3 month free period, packages start from just £12 a month.
We hope this roundup of Accountancy Software options for freelancers has been useful in helping you decide which accounting system to choose.
Quickbooks Self Employed
Quickbooks self employed is a great option for freelancers and small business owners. The software starts at just £4 a month and has a wide range of features, including the ability to view a 90-day cash flow forecast and access taxes, reporting, invoices, mileage tracking and expenses all in one place.
You’ll also receive free live chat messaging support, so if you’re ever struggling with the software you’ll get the help you need. With an average Trustpilot score of 4.6 out of 5, Quickbooks Self Employed is definitely one of the best options for freelancers when it comes to accountancy software.
Xero Accounting Software for Freelancers
Bookkeeping with Xero gives you access to an array of useful features, such as Reconciling bank transactions, submitting VAT to HMRC for Making Tax Digital and Capture bills and receipts with Hubdoc. However, it’s a little more expensive than other options, with prices starting from £10 a month.
With an average Trustpilot rating of 4 out of 5, many users say Xero is easy to use and has a range of useful features for both freelancers and small businesses. However, most of the negative reviews are centered around their support team and the cost of their packages.
Freshbooks
With prices starting from just £5.50 a month, this is one of the most cost effective accountancy software packages for freelancers. With unlimited customised invoices and expense entries and a wide range of useful features such as time tracking and mileage tracking, this option is perfect for freelancers who’d find it useful to have everything they need in one place.
Freshbooks has an average Trustpilot rating of 2.6 out of 5, with many comments commending the system for being easy to use and having a great user interface. However, some users have been disappointed by bugs when using the system and have found it difficult to get support from Freshbooks.
FreeAgent
With an excellent score of 4.7 out of 5 on Trustpilot, FreeAgent has a package designed specifically for sole traders. FreeAgent also offers unlimited users, clients and projects, which cannot be said for many of its competitors. What’s more, at a price of £9.50 a month, you’ll also have access to support from UK-based accountants to help you make the most of the software.
Users of FreeAgent praise the customer support team and ease of use, although some people have experienced some limitations, for instance, being unable to set special VAT rates to account for services that also contain zero rated items.
Arrgh – It’s Too Hard to Decide
If you’re still not sure, then go take demos, speak to your accountant and chat with other freelancers about the accounting software they use.
What will determine the decision you make will be volume of transactions, features, ease of use, your accountant’s software of choice and your own personal preferences.
Bear in mind you can also change later. So try not to let this decision cause you too much stress.
