Best Accounting Software for Freelancers and Consultants

This blog compares the top accounting software that fulfills the needs of freelancers and consultants. It explains how all the tools tackle invoicing, expense tracking, reconciliation, basic automation, and reporting. Each option is explained in simple words with clear pros and cons so you can choose the right system based on how you bill clients and how clean you want your books to be. The guide also contains a table and a quick framework to choose the right option, followed by a section of commonly asked questions.

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Best Accounting Software for Freelancers and Consultants

A good freelancer accounting system should do three things without you fighting it: help you bill clients professionally, capture expenses without missing deductions, and keep your numbers tax-ready without spreadsheets.

You don’t need inventory tracking. You need an accounting software that helps you with invoicing and expense tracking mainly, so your tax reporting gets smooth, and you understand your profit margins.

Below is the list of top-picked tools for service-based businesses.

The Criteria Every Accounting Software in This List Must Meet

Every software below supports the freelancer workflow, which means client invoicing plus payment tracking plus expense tracking plus bank reconciliation, plus tax-ready reporting. If a tool cannot do those five things well, it is not included.

1. QuickBooks Online

QuickBooks Online is the most complete accounting software product for freelancers and consultants who want everything in one place and want a setup that their accountant will immediately understand. It is not the simplest interface on the list, but it is the most used software among bookkeepers. 

What makes QuickBooks a strong freelancer tool is the combination of all the needed elements, such as invoicing, payment tracking, and expense categorization.

You can send professional invoices, receive payments, and then match them with your income tracking. At the same time, you can connect your bank accounts and generate reports as well.

Pros

• Strong invoicing and reporting in one platform
• Clean bank reconciliation keeps records accurate
• Most commonly used software product

Cons

• Pricing goes up as you add features
• Can feel heavy if you only invoice a few clients per month

2. FreshBooks

FreshBooks is designed around invoicing, income, and expense tracking. You can create professional invoices quickly and integrate your income with the expenses to ensure everything’s on the same page.

The software offers everything you need for a smooth tax season. It is particularly strong for consultants who want a system that they can maintain themselves without constantly second-guessing whether something was recorded correctly, because it’s easy to use.

The tradeoff is that as you scale and start dealing with a good number of clients, you may require advanced reporting options. It may not be as good as QuickBooks, but if you’re a mid-sized freelancer or consultant, FreshBooks can get the work done.

Pros

• Very easy to use
• Smooth workflow for service-based businesses
• Has everything you need for regular bookkeeping

Cons

• Not ideal if you want deeper accounting controls

3. Zoho Books

If you’re looking for an accounting software that fulfills all your needs as a freelancer but without a high price tag, Zoho Books can be your best bet.

It does the freelancer’s work well. From invoicing, expenses, reconciliation, reporting, and automations, it has all you need. But the reason it stands out is how easily you can standardize your system once you have repeatable work like recurring invoices or the same monthly expense patterns.

You can produce reports that make tax time smoother. The only drawback of Zoho Books is that it isn’t as familiar as QuickBooks among bookkeepers. If that’s not an issue for you, go for it.

Pros

• Supports automation for recurring invoices and consistent workflows
• Great value for money

Cons

• Not as common as QuickBooks
• You may need some add-ons for advanced reporting

4. Xero

Xero works well for freelancers who want clean books and smooth reconciliation because a lot of freelancers accounting mistakes come from uncategorized transactions and payments that do not match invoices.

Xero handles invoicing, expense tracking, and reporting smoothly. Many people opt for Xero because it has the potential to scale with you.

The only drawback you may face with Xero is the accounting-focused interface. If you’ve a dedicated bookkeeper who’s comfortable with Xero, you can go for it. Otherwise, there are other easy-to-use options available, too.

Pros

• Easy reconciliation
• Advanced reporting options
• Useful for consulting work

Cons

• You may need add-ons for certain advanced needs

5. Wave

Wave is known for its simple interface that has everything you need as a freelancer or consultant. Ideal for people who want to track invoices and expenses without paying monthly subscription fees.

If you’ve just started your business, Wave can be your ideal pick to send invoices and generate basic reports.

Wave’s strength is that it reduces the barrier to doing accounting at all. It can feel a little limiting as you grow, but if you’ve just started, go for it.

Pros

• Handles track invoices and expenses for free
• Basic bookkeeping and tax prep
• Quick to set up and maintain

Cons

• You may need advanced accounting software as you scale

6. FreeAgent

Another solid pick for freelancers and consultants, but its structures are designed around the UK and Europe’s compliance. However, it does the job pretty well. From assets, payrolls, client invoices, project tracking, expense tracking, and profit margins, it handles more than you need.

What makes FreeAgent useful is that it shows the financial picture a freelancer actually cares about. How much you’ve made, what you owe in taxes, and what should be your next step based on reports.

It isn’t designed for big business structures; it’s intentionally focused on solo operators and small consultancies like you.

Pros

• Built for freelancer and consultant needs
• Basic reporting and tracking

Cons

• Regional limitation

7. Sage Accounting

For freelancers who want traditional accounting software but do not want to deal with the complex interface like QuickBooks or Xero, Sage is a decent option.

It handles invoices, tracks payments, connects to bank feeds, and maintains clean reports for tax filing and audits. If you are the kind of person who wants accounting to just work and stay out of your way, it’s that option.

Sage is not for modern freelancer features like time tracking or deep automation.

Pros

• Good for invoicing and expense tracking
• Reliable reporting

Cons

• Limited automation compared to newer tools

8. AND.CO (by Fiverr)

AND.CO isn’t a pure accounting software but it still qualifies because it handles invoicing, expenses, and income tracking in a way that fits your work operations.

This software is designed to manage your clients rather than accounting, which makes it worth considering. You can create contracts and monitor income without touching accounting concepts. For many freelancers, that is exactly what they want.

However, it is not designed to replace a full accounting system. You can pair it up with a proper accounting software like QuickBooks once your income grows.

Pros

• Client-focused invoicing and expense tracking
• Easy to use

Cons

• Limited accounting options

How to Choose the Right Accounting Software for Freelancers and Consultants

How do you bill?

• Hourly or project-based with time tracking – FreshBooks
• Mostly recurring invoices – QuickBooks or Zoho Books
• Mixed billing with international clients – Xero

Do you want DIY bookkeeping or outsource?

• DIY, want it simple – Wave, FreshBooks, or AND.CO
• DIY but scalable – QuickBooks, Zoho, or Xero
• Outsource – choose a platform your bookkeeper supports easily

This should pretty much help decide the right pick because all of these accounting software fulfill your needs. Some come with advanced options, while some do not. Get one that’s sustainable for you.

Common mistakes freelancers make with accounting software

Picking software for features they will never use

You will probably never need to track inventory. Avoid going for expensive software products that you won’t use. You need billing, expenses, reconciliation, and reporting.

Not setting up categories correctly from day one

A messy chart of accounts is how tax season becomes chaos. You can choose any software and do well if you’re mapping things down the right way.

Mixing personal and business spending

No reporting will help you if you’re mixing personal spending with business’s.

People also Ask

Conclusion

The accounting software products in this list work because they align with how freelancers and consultants actually earn money. The right choice is the one that lets you answer three questions at any point in the month without exporting data. How much have you made, how much can you spend, and how much you owe in taxes. If you’ve your answers, you’ve the right system and the right software too.