As a freelancer in the IT industry, one of the crucial aspects that you need to think about is managing finances and accounting for your company. If you are reading this article, you’re looking for the best accounting software for IT freelancers. Below you can find the list of such programs available on today’s market.
Our Top 5 Best Accounting Software For IT Freelancers
Best Accounting Software For IT Freelancers Reviews
1. Best Overall: Xero
If you’re a freelance IT professional, then you need Xero. Xero is an accounting software startup that provides a comprehensive suite of tools for small and medium-sized businesses and freelancers.
It has over 2 million users worldwide, giving it the largest cloud accounting system in the world. So if you’re looking for high-quality software with expert support options to help record your receipts, manage your finances, track projects, and so much more while managing client invoices on the side — then look no further than Xero.
Xero’s Core Set Of Features
- Track your income and expenses.
- Manage your spendings and receipts.
- Record all of your expenses (credit card, expense), like groceries, bills, utilities, etc.
- Track all of your receipts.
- Forward invoices to clients.
- Collect payments from clients from different countries (e.g., US, UK).
2. Best Customer Support: AND CO
If you’re an IT freelancer and have a busy schedule, you don’t have time for ad hoc tasks. Wouldn’t it be great if your software would do the prep work for you and let you get back to work?
AND CO is software designed with this in mind. Developed by seasoned IT freelancers, AND CO helps users manage their tasks, simplifying the arduous process of invoicing, payment and bookkeeping. Moreover, it does all these tasks automatically so that users can focus on their core competencies.
AND CO Features
- Automatic invoicing and payment for clients: Users simply enter their hourly rate, and AND CO does the rest. Once an invoice is made, it is automatically posted on the client’s website, while an automated reminder email is sent to the client reminding them to pay; all this happens in just a few minutes.
- Dedicated support team: AND CO provides a dedicated support team that will help users with any questions they may have. This support team can also organize internal teambuilding events or allow users to set up new accounts for their clients.
- Built-in time tracking: All the time worked by each employee can be tracked and reported accurately. This feature also comes with the ability to edit time spent on projects, which can then be billed back to clients. Users can authorize team members to track their hours too, and AND CO will pay them directly once the invoice is officially closed.
- Automatic bookkeeping: Each time a user creates an invoice, And Co automatically tracks the hours spent on the project, generate a report for tax purposes, and stores all provenance information in its internal database.
3. Best Free: Wave
Wave is an accounting software suite developed by a team of computer and finance experts whose mission is to help clients succeed in their business. There are three modules within this suite: Accounting, Invoicing & Contracts Management, and Project Management. Together, these components provide you with the tools you need to invoice your clients quickly, accurately, and effortlessly.
Each Wave module boasts an intuitive interface that simplifies data entry and greatly streamlines the process of managing your work. For example, if you use Wave’s in-app chat feature, it’s easy to talk with co-workers without losing sight of your clients’ information. No other accounting software for IT freelancers is as flexible or as user-friendly.
4. Best for Professional-Looking Invoices: FreshBooks
Looking for a new accounting tool that works for freelancers? FreshBooks is software designed to meet the needs of all types of accountants.
This is the leading provider of small business accounting software, which gives accountants the tools they need to track their clients’ expenses and manage their business finances from anywhere in the world.
FreshBooks’ features allow you to keep track of all your invoices and clients, manage time tracking, as well as send email reminders and quotes via email, text message, or fax. This software also offers self-paced tutorials to help beginners get started.
5. Best Easy-to-Use Software: FreeAgent
FreeAgent is a software package that has helped many people save time, money, and effort. It allows freelancers to deploy their invoices and bills effectively, track their income and expenses, organize timesheets for all the tasks they complete, etc.
However, to make the best use of this efficient tool, one should take advantage of its powerful features like unlimited billable hours, constant activity updates of your invoices so you can see what customers are doing. At the same time, you work on different projects or have multiple clients and instant billing.
FreeAgent balances between its ease-of-use compared to other accounting software packages with advanced features unlike any other software package in the market. For instance, you can perform basic accounting tasks in a few minutes and track finances online.
Accounting software for IT freelancers can be divided into two types:
- Accounting software for small and medium enterprises that include financial management as one of their functions (accounting, bookkeeping) or a separate accounting module. Such software is intended for companies with several employees. However, the range of services it provides (accounting, inventory control, sales analysis) is insufficient to meet your needs as a freelancer.
- Accounting software for freelancers and independent contractors that focuses on accounting only. Such programs are the right choice if you need just an accounting program and no extra modules like inventory or project tracking. Such programs are intended for small businesses with less than ten employees that use simplified bookkeeping.
How To Choose Accounting Software For IT Freelancers
Choose a reputable and up-to-date accounting software package that has been designed with your specific needs in mind. Then, use the relevant information in your buyer’s guide to finding out as much about the product as possible, including its reputation among industry peers.
Consider the level of support you will receive from the manufacturer or provider of the software, mainly if you used it on a day-to-day basis. If you are still unsure which package to choose, consider emailing a number of experts in your field and asking for their opinion.
What Is The Best Accounting Software For Freelancers?
Accounting software is a vital tool for freelancers, given that they are responsible for billing and collection. The best accounting software for IT freelancers can be divided into three specific types of accounting software – cloud-based systems like QuickBooks Online or Xero; run by subscriptions like Wave or FreshBooks; and open-source programs like FreeAgent.
Is Xero Good For The Self-Employed?
Xero is a fantastic accounting software program that streamlines the business process, helps businesses become more efficient and productive. Many IT freelancers and other self-employed people agree that it has saved them time and money by handling everything from managing finances to processing sales orders, invoices, and purchases.
Do IT Freelancers Need Accounting Software?
Yes, IT freelancers need accounting software. Without the right accounting software, they risk paying late fees from their clients or, even worse – being audited by the IRS. Plus, an accountant will likely require your financial records to be organized and accurate to qualify for a business loan. The best accounting solutions for freelancers focus on delivering the perfect combination of simplicity and complexity and are designed with our client’s needs in mind.