Why This Top 5 Self Employed Accounting Software is Best for You

Elise Williams

2022-06-22 17:56:12 • Filed to: Accounting • Proven solutions

There are various benefits and downsides of being self-employed business owner. Literally, you’re your own boss and you enjoy financial freedom. But doing the bookkeeping or accounting can be a challenge and costly if you do not have the right resources or tools. Opting for cheaper solutions that cut operation costs is imperative but still they must function effectively. There are countless self employed accounting software in the market having many features. Now, it’s upon you to compare the options available and choose one that match your business’ requirements. This article contains resourceful information about the top 5 self employed accounting software.

Top 5 Self-employed Accounting Software

These best accounting software for self employed make it painless to run your business as well as handle the accounting part for you. This allows you to spend most of your time doing what you love. Since you’re the one clients expect to handle and complete their projects in a timely fashion, you really do not want to get distracted by other operations. Having effective accounting software for self employed in place simplifies the entire billing processes.

No.1 FreshBooks

FreshBooks offers a variety of ways to manage books as well as bill your clients. It completely melts away the tedious processes of collecting payments or developing invoices manually. Simply put, these software saves you heaps of time, allow you to view financial reports, develop professional invoices and tracks pending invoices or expenses. Importantly, you’ll not waste time badging clients to make payments – it’s automatic!

There are tons of reasons to invest in FreshBooks. It’s highly customizable, thus, can match the business’ requirements. It does accounting tasks quickly. Moreover, using FreshBooks is ridiculously simple. You can opt for a trial version, to get to know how it works.

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Pros

Capture expenses and bills easily
Track time
Generate comprehensive and easy-to-understand financial statements and reports
Develop recurring invoices automatically
Collaborate with your contractors

Cons

Some features are unavailable on newer versions

No.2 Wave

Wave primarily tracks business’ financial information. Since it is web-based, you can access the information you need instantly from anywhere. Business owners can use it for managing, planning and forecasting their financials. It’s similar to other self employment accounting software in terms of its functionality. You can use it to produce dynamic reports, statements and budgets. It makes payment, payroll and invoicing issues seamless.

Wave has many reports that help in simplifying financial statement or report analysis.

Pros

Creating recurring and customized invoices is simple
Ideal for managing balances and accounts
Data gathering and entry are entirely seamless
Invoicing is frictionless
Can generate several in-depth financial reports
Excellent customer support

Cons

You have to link account to your bank account regularly, and this is annoying.
It might take effort to learn using new features

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No.3 Xero

Xero has a lot of useful features that are essential for managing business and clients’ accounts. It is a great invoicing tool for small and medium sized businesses. Users can access their financial information instantly from anywhere because it is web-based. Importantly, it automates critical processes such as bank transactions.

Pros

Ability to code transactions automatically. Tracking sales tax and transactions reconciliation is very easy.
It allows users to code transactions accurately making financial reporting hassle free. In addition, users can generate precise balance sheets, statements and reports.
Sending and receiving invoices is quick. Users can create detailed invoices. Tracking invoices is also very easy.

Cons

Does not integrate well with other applications, particularly Zapier.
Some features cannot be customized. For instance, there’s no option for creating graphical reports, custom reports etc.
Financial reporting and analysis takes some effort.

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No.4 ZipBooks

ZipBooks is a great accounting software for self employed because of its robust features and great functionality. It’s specifically designed to manage budgets, invoices, bills and expenses. One noticeable thing about this software is its slick user interface. Even those with no accounting knowledge can use the software. New features are added regularly. Its price tag is also amazing.

It’s suitable for those individuals looking for simple accounting software for self employed. Just as mention, it does not require effort to use. However, using menus or other features may be a bit challenging.

Pros

Setting up and tracking invoices, sales, bills and taxes is easy.
Very simple to use. Even less skilled individuals in accounting can use the software
New features are added regularly to meet individual needs of users.
Great customer support

Cons

It does not have lots of features like QuickBooks. All in all, its features are enough for core financial accounting.

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No.5 QuickBooks

QuickBooks is designed to help business owners handle tax preparation as well as bookkeeping. It reduces paperwork and does accounting tasks faster. Specifically, users can track their expenses, year-end taxes and lots more. The critical processes are automated. This is very essential because it saves time.

Pros

It’s compatible with various browsers. In addition, it runs well on android devices. Users can access their financial information from anywhere instantly.
QuickBooks automate transactions. This greatly help reduce paperwork. Transactions are entered accurately. There are no human errors.
Features are updated regularly to fit business requirements. Notifications are sent immediately if transactions are made.
QuickBooks integrates well with various applications, for instance TurboTax. The software automatically exports tax information for e-filing.
Has great navigation and invoicing tools
You can download financial reports and bank statements automatically

Cons