Best Accounting Software For Independent Contractors

by Navicasoft
13 Vendors Reviewed
22 Hours of Research
9 Experts Interviewed

A business does not have to be big to need accounting software. Independent contractors also make use of this software for tracking their finances, managing payroll and invoicing. If you are an independent contractor, you might want to take a look at some of the most popular accounting software on the market and decide which is best for your needs. Go ahead to know what is the best accounting software for independent contractors.

Best Accounting Software For Independent Contractors

Our Top 5 Best Accounting Software For Independent Contractors

Best Accounting Software For Independent Contractors Reviews

1. Best Overall: QuickBooks Self-Employed 

QuickBooks Self-Employed QuickBooks Self-Employed logo

Our rating: ★★★★★

QuickBooks Self-Employed is a complete accounting solution for freelancers and independent contractors. It lets you track your time, automatically create estimates, invoices and purchase orders, handle payments, sync with your bank account (import transactions), organize expenses by job or company and more.

QuickBooks Self-Employed is available for desktop, web, and mobile devices (iOS and Android). Creating an account takes just a few minutes. After you’re logged in, you can import expenses from credit cards, accounts, apps, and services such as or PayPal. You can add your customers’ and vendors’ information such as addresses and payment terms. Expenses are categorized into job expenses or company expenses depending on how they appear on the invoice.

QuickBooks Self-Employed  Review

You can select from a range of home-based business and contractor forms all pre-filled with your business information.

The accounting solution is available in Standard and Premier editions. The QuickBooks Self-Employed Standard edition includes the features that most freelancers need, such as creating estimates, invoicing customers, tracking expenses by job or company, sending payment reminders to customers. It also lets you import transaction statements from your bank account and then categorize them as income or expenses.

2. Best Easy-to-Use Features: Xero

Xero Xero logo

Our rating: ★★★★★

Xero is an accounting software geared towards small businesses and contractors. It has a simple design with the ability for customization to meet your business needs. In addition, it integrates with other software packages like Quickbooks or Sage if you wish to use it across multiple accounts.

Xero Review

Xero is an excellent choice for new or small businesses. It’s simple and straightforward and has many nifty features that make life easier for a growing business like you.

The basic version of Xero has everything you need to get started. Payroll, invoicing, sales tracking, etc. Plus, there are extra add-ons if you want to track stock or inventory. Each add-on costs a fee that varies by the package you choose. The premium version includes most of those features and a few others, all at no extra cost.

3. Best Free: Wave

Wave Accounting Wave Accounting logo

Our rating: ★★★★★

Wave is accounting software for independent contractors. You can use it to track expenses, manage cash flow and accounts receivable, and forecast future profitability. The Wave app also tracks your time spent on tasks, making it easier to see how much you have left to accomplish. 

Wave Review

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. Wave provides easy-to-read graphs and charts to show you exactly how your money is doing. Wave shows a balance and a bar graph that updates as you work on tasks.

4. Best for Professional-Looking Invoices: FreshBooks

FreshBooks FreshBooks logo

Our rating: ★★★★★

FreshBooks is a cloud accounting software designed for entrepreneurs who are serious about running their businesses. It’s made to help you take total control of your cash flow without having to worry about any of the complicated details that go with running a business.

Founded many years ago, FreshBooks started as an accounting service for freelance professionals like lawyers, accountants, contractors, and consultants. Their product was a spreadsheet-based solution that enabled freelancers to set up their bookkeeping service. 

FreshBooks Review

Over the years, FreshBooks has grown into one of the most popular accounting solutions for small and medium businesses, with more than 4 million users worldwide.

FreshBooks is software for business owners and freelancers – not accountants. Its cloud-based accounting software delivers a fresh approach to your finances, enabling you to manage more than just your income and expenses in one place. You can track your sales, expenses, and cash flow, all in one place. 

You’ll never have to be bogged down again by spreadsheets and complicated software. You can also take advantage of FreshBooks’ easy-to-use tools such as payroll & time tracking, invoicing, expense reports, and more to help you get your finances in order.

5. Best for Small Business: FreeAgent

FreeAgent FreeAgent logo

Our rating: ★★★★★

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. In addition, they have helpful features like budgeting and forecasting, which will make figuring out what’s happening in your business more accessible than ever before. FreeAgent is perfect for small businesses to manage their finances while working on side projects or small jobs on the side.

FreeAgent Review

FreeAgent has many great features that will make it easier to manage your business. One of the most helpful features is the ability to send invoices. The accounting software generates an invoice for you, so you don’t have to do it yourself and save time. Of course, you can set your rates as well, so if you want to charge less or more, that’s up to you! In addition, if a customer pays their invoice but then changes their mind and wants to cancel the order, FreeAgent will give them a refund automatically.

Buyer’s Guide

This is a buyer’s guide to accounting software for independent contractors. It is no substitute for your accountant, but it should help you decide which solution works best for your particular situation. Use it to compare benefits and features and see which option fits your needs the best.

How To Choose Accounting Software For Independent Contractors

You want to choose the accounting software solution that is best for your needs. Before you make your decision, think about which features are most important for your business. As you are researching different options, you should also look at the various providers and their pricing plans.

How To Choose Accounting Software For Independent Contractors

It is important to remember that not all providers offer the same level of functionality. Also, some products have more capacity than others, especially if you plan on growing your business in the future. Therefore, you can compare the features of different options to find the one that best fits your needs.

One of the most important things to consider is whether you will pay for a software license or if you will use it on an annual subscription basis. Some companies offer a free trial so that you can test the software out for a few days before making a purchase decision.


What Is The Best Accounting Software For Independent Contractors?

The best accounting software for independent contractors can increase your efficiency, save you money, protect your privacy, and come with various features that make it easy to work. The top pick in this list is QuickBooks Self-Employed.

How Do Independent Contractors Keep Track Of Expenses?

Independent contractors, also known as freelancers or self-employed workers, expend their funds to provide a service. This means that they are responsible for keeping track of all expenses incurred throughout their work.
If you are an independent contractor and want to accurately report your income taxes at the end of the year, it is important to track your expenses. However, this can be a daunting task as you might have multiple sources of income and need to keep track of expenses from every different business venture. In this case, accounting software for individual contractors can help you track your expenses.

How Can I Prove My Independent Contractor?

One of the first things to do is make sure you have all the necessary documentation to prove that you are an independent contractor. This includes a 1099 and any other documents showing that you were either self-employed, had a contract, or any additional work agreement that proves your employment status.

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