Look for software that integrates with your invoicing, payment processing, and other tools you use. As an independent contractor, hiring a professional to handle your bookkeeping needs will give you the freedom you need to expand your company. Your financial needs are likely too complex for freelancing accounting software.
Managing your people: payroll and team management
- Integration with banking systems and tax preparation services is also common, streamlining the financial management process.
- News & World Report, as well as wrote and edited content about education financing and financial literacy for multiple online properties, e-courses and more.
- You can streamline your accounting even more by connecting FreeAgent to Zapier to send information to and from FreeAgent.
- Turning your side gig into the main show is exciting, but to do it consistently and successfully, you need the right tools.
That’s why we’ve done the heavy lifting, analyzing various platforms to highlight those that excel in simplicity, functionality, and value. Whether you’re a seasoned freelancer or just starting, finding the proper software can streamline your financial management. You can also use the free Wave app on your mobile device to view your account activity. At any time in the app, you can view a quick summary of your business finances.
Compare the best accounting software for freelancers
You can easily track your income and expenses, generate financial reports, and even connect your bank accounts. It’s a robust tool that keeps your finances in check without costing you a dime. FreeAgent is software for independent contractors that will help you manage your client payments, invoices, expenses, and more. FreeAgent also syncs with your bank account so that you can watch your money grow as you build up your business.
Good Customer Support
This is a great opportunity to see just how intuitive and user-friendly our tools can be. Plus, if you determine that AMS doesn’t have what you need, you won’t have spent any money figuring that out. Why are accounting software for independent contractors reporting features like a profit and loss statement so important? While it may sound complex, a profit and loss (P&L) statement is vital because it clearly shows your business’s profitability over a period of time.
Best Easy-to-Use Features: Xero
Whether you’re tracking client work or planning your next big project, Trello makes it easier. HashMicro’s Accounting Software helps to revolutionize accounting processes and unlock growth and success for independent contractors and self-employed individuals. In addition, the pricing is affordable and there is a Productivity Solutions Grant up to 50%. There is also a free demo that you can try out to learn more about the software. Occasionally, you may encounter accounting software vendors that offer a short period of discounted monthly subscription prices if you skip the free trial. After you’ve narrowed your search down to a few options, we always recommend free trials to determine which platforms truly serve your needs.
Optimizing operations: tracking expenses, time, and mileage
When someone employs you as an “independent contractor,” what precisely does that mean? Freelancers and solopreneurs who travel frequently for work are eligible for tax reimbursements per miles traveled. If you drive for hours each month, you’ll want to capitalize on that reimbursement—and QuickBooks Self-Employed can help. With built-in mileage tracking and report generation, QuickBooks simplifies the reimbursement process so you can get that gas money back a little faster. Other tax features, like quarterly tax estimates and tax date reminders, ensure you’re ready for tax time.
Consider customer reviews too, especially those on Trustpilot (usually positive) and the Better Business Bureau website (sometimes negative). You’ll see the true pros and cons of each platform you’re considering from actual business owners who have used the software. Although one negative review shouldn’t sink the ship for any vendor you’re considering, all feedback is worth keeping in mind. The below features that are typically part of accounting software are especially useful for contractors. Other features of note are sales tax handling (if you have to charge it) and a deep accounting section with your entire chart of accounts.
Wave Accounting: Most affordable accounting software
- But if you need more features, including bank reconciliation, you’ll need Kashoo’s $2/yr.
- If you manage social media accounts for your clients, Hootsuite is a must-have.
- In this case, accounting software for individual contractors can help you track your expenses.
- This software allows users to customize invoices, track mileage automatically, and estimate taxes.
- She uses various accounting software for setting up client information, reconciling accounts, coding expenses, running financial reports, and preparing tax returns.
It has hundreds of integrations and is less expensive than alternatives, like QuickBooks Online. This is important for retail businesses that need employees to access accounting tools. If you’re unsure whether AMS has what you need, we understand the hesitation. For this reason, we offer a free demo software to all prospective customers.
By examining your past and present, financial reports can help your organization get ready for the future and get you ready to make decisions. No matter how successful you currently feel as you are an independent contractor, it would be beneficial if you looked ahead. You are still eligible for the payment if you work as a hired contractor. Having a company entity comes with numerous tax advantages and savings. No matter how big or small your business is, you must keep track of every expense.