Best Accounting Software for Freelancers

4 weeks ago
93

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. 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
FreshBooksFrom £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
FreeAgentFrom £9.50 a month Unlimited clients and users 
Unlimited Invoices
User friendly 
Customisation limitations for VAT
Sage Business Cloud Accounting 3 months free, then £12 a month Cancel anytime 
First 3 months free 
Good customer support
User limit 
Unable to set quotes and estimates 
No CIS Processing

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 

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.

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. 

Don't be a stranger

Follow Us

Write for us

Share your experience of freelancing or running a micro business.

Recent Articles

Get up to speed

Rishi’s Sunak’s Winter Plan: A Guide for Small Businesses

The past 6 months have been extremely turbulent for many small businesses across the UK. The impact of the Coronavirus has been a huge threat for many businesses and support for small to medium enterprises is now more important than...

2

Kickstart Scheme – A Guide for Employers

3

IR35 Freelance Tax Changes Confirmed for April 2021

4

Social Distancing in the Office During Coronavirus

5

How to Check Your Keyword Rankings for SEO

6

Small Business Measures to Help UK Businesses During Coronavirus

7

75% of the UK’s Self Employed Use Personal Mobiles for Business

8

Tax Return Statistics – How Many Are Submitting Late?

betterproposals