Published on Apr 27, 2025 5 min read

Top 8 Accounting Software Tools for Self-Employed Professionals

Among all aspects of business management accounting stands as one of the most difficult tasks for self-employed professionals. Managing self-employment finances through tracking income and expenses while handling invoices while performing tax checks creates an overwhelming situation. The solution is provided through accounting software. The following guide evaluates the eight best accounting software applications specifically designed for independent professionals.

Why Accounting Software is a Must for Self-Employed Professionals

Before we jump into the top tools, let's quickly look at why accounting software is non-negotiable for self-employed professionals.

1. Time-Saving Automation: Manually tracking your income and expenses takes time, especially when balancing other business priorities. Accounting tools automate repetitive tasks like invoice generation and expense categorization.
2. Accurate Financial Tracking: Errors in your financial records can cost you later, particularly during tax season. Accounting software minimizes mistakes and ensures compliance with tax rules.
3. Improved Organization: No more misplaced receipts or forgotten payments. These tools centralize your financial information for easy access anytime.
4. Compliance and Tax Preparation: Accounting software is often designed to align with tax laws, ensuring you stay compliant. Most tools calculate taxes automatically and even generate reports for easy filing.

1. QuickBooks Self-Employed

The self-employed community selectively chooses QuickBooks Self-Employed as a leading tool which justifies its widespread popularity. The tool features numerous capabilities that specifically target freelancers, solopreneurs and contractors.

How to Use QuickBooks Self-Employed:

1. Sign up for an account on the QuickBooks Self-Employed website.
2. Connect your bank accounts and credit cards to automatically import transactions.
3. Categorize transactions as either personal or business expenses.
4. Use the mileage tracker feature to automatically track deductible miles.
5. Utilize the quarterly tax estimate tool to stay on top of your taxes throughout the year.
6. Generate reports for a clear overview of your income, expenses, and quarterly taxes.

2. FreshBooks

FreshBooks is an excellent option if your business relies on invoicing clients. Its intuitive interface makes it ideal for those new to accounting software.

How to Use FreshBooks

1. Create a FreshBooks account and set up your business profile.
2. Add clients to your account by entering their contact information and payment terms.
3. Customize your invoices with your business logo and branding.
4. Add products or services to your invoice for easy itemization.
5. Track expenses by uploading receipts or manually entering them into the system.
6. Use the time tracking feature to log hours spent on projects for accurate billing.
7. Generate reports for an overview of income, expenses, and taxes owed.

FreshBooks also offers a mobile app for easy access to invoicing and expense tracking on-the-go.

3. Wave Accounting

Wave Accounting offers a completely free, no-strings-attached accounting solution. This makes it particularly attractive to those looking to manage finances on a tight budget.

How to Use Wave Accounting:

1. Sign up for a free account on the Wave Accounting website.
2. Connect your bank account for automatic transaction imports or manually import transactions.
3. Set up invoicing and expense tracking.
4. Explore additional features such as payroll and payment processing, if desired.

4. Xero

Xero blends user-friendly features with scalability, making it ideal for self-employed professionals planning to expand their operations.

How to Use Xero:

1. Sign up for an account and enter your business information.
2. Connect your bank account or manually import transactions.
3. Set up invoicing and expense tracking.
4. Explore additional features such as payroll and payment processing, if desired.

5. Zoho Books

Zoho Books is part of the Zoho ecosystem, and it works seamlessly with their other tools for customer relationship management, project management, and more.

How to Use Zoho Books

1. Create an account with Zoho Books.
2. Input your business information and customize settings.
3. Set up your chart of accounts.
4. Connect your bank accounts and credit cards for automatic transaction syncing.
5. Create customers and vendors in the system.
6. Record sales transactions, such as invoices and estimates.
7. Track expenses by recording bills, expenses, and vendor payments.
8. Utilize automated reminders to ensure timely payment from customers.
9. Generate financial reports such as profit & loss statements, balance sheets, and cash flow statements.
10. 10.Generate tax reports for easy filing during tax season.

6. Bonsai

More than just accounting software, Bonsai is an all-in-one hub for freelancers managing clients and projects.

How to Use Bonsai

1. Sign up for a Bonsai account.
2. Create client profiles with their information and project details.
3. Use the time tracking feature to accurately log hours spent on projects.
4. Generate professional invoices based on tracked time and rates set for each project.
5. Set up electronic payment options for clients to easily pay invoices.
6. Utilize tax features such as expense tracking and reporting to make filing taxes easier during tax season.
7. Store important documents like contracts, receipts, and reports in one secure location within Bonsai's cloud storage.
8. Take advantage of Bonsai's reporting capabilities to gain insights into your business's financial health and performance.

7. FreeAgent

FreeAgent is a UK-based software designed to meet the needs of independent professionals. It’s straightforward and offers features necessary for contract-based business models.

How to Use FreeAgent

1. Sign up for a FreeAgent account.
2. Connect your business bank and credit card accounts to FreeAgent.
3. Sync transactions and receipts with the software.
4. Set up your clients and projects in FreeAgent.
5. Track time spent on each project using the built-in timer or manually enter time spent.
6. Create and send professional invoices to clients directly through the platform.
7. Monitor your cash flow in real-time by viewing income, expenses, and outstanding payments.
8. Use the tax timeline feature to stay organized and prepared for self-assessment submissions.

8. Kashoo

Kashoo is designed with simplicity in mind, making it a great pick for self-employed professionals who find other platforms too complicated.

How to Use Kashoo

1. Sign up for a Kashoo account online.
2. Connect your bank and credit card accounts to automatically import transactions into Kashoo.
3. Use the smart inbox feature to categorize expenses and track income.
4. Utilize the tax timeline feature to stay organized for self-assessment submissions.
5. Generate profit and loss reports to get a clear understanding of your business's financial health.
6. Take advantage of integrations with other software tools, such as Stripe and PayPal, for seamless bookkeeping.

Final Thoughts

Managing finances doesn’t have to be complicated. The right software can take the burden of accounting off your shoulders, leaving you free to focus on what you do best. To start your search, take advantage of free trials offered by platforms like QuickBooks, FreshBooks, and Xero. Experiment with their features, find one that aligns with your needs, and set yourself up for financial clarity and growth. With the right tool, running your business just got a whole lot easier.