Top 5 bookkeeping software for freelancers

Whether you're a digital marketer, designer, web developer, or consultant, the ideal accounting software should prioritise ease of use, particularly for those with less accounting experience who want to focus on running their business.

Essential features like expense tracking and reporting should be included alongside freelancer-specific tools such as mileage and invoice tracking. The ability to calculate taxes and track tax write-offs would be a valuable addition.

Here are some of the best accounting software options for self-employed individuals and freelancers in Australia:

• Thriday: The best option for effortlessly managing income and expenses, especially for those seeking a user-friendly platform.
• Zoho Books: A strong contender for freelancers with an exceptional mobile app.
• QuickBooks Online: Ideal if you need access to local bookkeeping support.
• FreshBooks: User-friendly software that's perfect for service-based freelancers.
• Wave: A good option for those looking for basic bookkeeping features.

Evaluating accounting and bookkeeping software for freelancers

When selecting freelance accounting software, it is essential to consider various features and pricing options. Experts often recreate real-world bookkeeping scenarios to assess the strengths and weaknesses of each platform. This helps identify which software might best meet your needs.

The evaluation focuses on key criteria such as invoicing, mileage tracking, and tax calculations. By choosing the right bookkeeping software, freelancers can focus more on their work and less on number crunching.

Comparison of best accounting software for freelancers

Thriday

Starting Price: Free

Features: Expense tracking, invoicing, tax calculation, bank reconciliation and receipt capture

Free Trial: 30-day free trial

Pros

Thriday boasts an intuitive and easy-to-navigate interface, making it ideal for freelancers who may not have extensive accounting experience. It also provides a suite of features, including expense tracking, invoicing, tax calculation, bank reconciliation, and receipt capture, empowering freelancers to manage their finances efficiently.

In addition, Thriday offers a free plan that includes core bookkeeping functionalities, allowing freelancers to get started without any upfront costs. Its introductory Business Banking Plan allows up to 10 linked accounts, enabling easier budgeting and distribution of funds.

Moreover, it also features automated accounting payments, an option to automate payments for GST, tax, super, and payroll. Its cash flow and tax forecasting tools can help you anticipate and plan for your financial future.

More importantly, Thriday offers physical and digital cards with Apple Pay and Google Wallet integration for convenient payments and withdrawals in Australia and overseas.

Cons

Only inbound international payments are currently supported, with an AUD$ 15 fee per transaction.

Pricing plans

• Free plan: This plan allows you to send unlimited quotes and invoices and earn high-interest rate across Thriday accounts $0/month**

• Timesver plan(AUD$29.95/month): Includes all features of the free plan, plus automated accounts payable, bills & invoice scheduling and open banking data sharing, etc.‍
• Done for you/BAS + Tax plan (AUD$119/month): Introductory cash flow optimisation session + BAS lodgement assistance

Learn more about Thriday's pricing plan.

Overall, Thriday is an excellent choice for freelancers seeking a user-friendly and cost-effective accounting solution that seamlessly integrates with business banking. Its free plan and robust feature set make it a valuable tool for streamlining bookkeeping and empowering freelance businesses to thrive. 

However, freelancers who require extensive international transfer capabilities or advanced accounting features may need to consider the paid plans or explore alternative options.

New freelancers: Ideal for newcomers who need a simple overview of their finances. Thriday’s straightforward features are adequate for tracking small earnings.

Budget-conscious freelancers: Thriday offers a cost-efficient solution. If the basic features are sufficient, staying with the free version helps avoid monthly fees. Plus, the integration of Profit First methodology within the software can be a valuable tool for freelancers to prioritise profit and manage their income and expenses effectively, ensuring a sustainable financial foundation for their business.

Thriday is an excellent and budget-friendly accounting tool for freelancers in Australia, offering a range of essential features in its free version and affordable upgrades for those needing more advanced functionalities.

‍Get to know more about its amazing features.

FreshBooks

Starting Price: $15/month

Features: Invoice creation, expense tracking, time tracking, and project management

Free Trial: 30-day free trial

Pros

Due to its user-friendly interface, FreshBooks stands out as an excellent choice for service-based freelancers. Even those with little to no accounting knowledge will find it easy to navigate.

One of its strongest features is the project management tool, which is robust and efficient for tracking various tasks. For freelancers who need to track hours and expenses, FreshBooks offers a simple way to add these to invoices, ensuring accurate billing.

The mobile app is another highlight, offering mileage tracking on the go. This makes it convenient for freelancers who need to keep tabs on travel expenses. Moreover, the software includes time-tracking capabilities, allowing users to bill clients for hours worked without any hassle.

Cons

Despite its many advantages, FreshBooks does come with some drawbacks. One issue is its cost. For freelancers with over 50 billable clients, the Premium plan is necessary, which can be quite pricey. Additionally, the software does not include expense or income tracking by class, which might be a limitation for some users.

For freelancers dealing with inventory, the lack of COGS (Cost of Goods Sold) tracking is a significant downside. FreshBooks also requires a bank account feed to track cash transactions accurately, which may not be convenient for everyone. Furthermore, it can be expensive if multiple users need access, as additional seats are charged separately.

Pricing plans

FreshBooks offers a range of plans catering to different needs:

Lite: $19 per month for up to five billable clients.

Plus: $33 per month for up to 50 billable clients.

Premium: $60 per month for unlimited billable clients.

Select: Custom pricing with specialised features for unlimited billable clients.

New users can try the Lite, Plus, and Premium plans free for 30 days.

Add-ons

Additional team members: $11 per seat monthly.

Gusto payroll: $40 monthly plus $6 per employee per month, billed separately by Gusto.

Advanced payments: $20 monthly (available for Plus, Premium, and Select plans only).

FreshBooks combines an intuitive interface with robust project management tools, making it a top choice for freelancers who need to keep track of billable hours and project expenses. Despite its higher cost for multiple users and some limitations in general accounting features, its strengths in project management, invoicing, and time tracking make it a valuable tool for service-based freelancers.

Compare Thriday and FreshBooks to find the best fit for you.

QuickBooks Online

Starting Price: $25/month for Simple Start plan

Features: Expense tracking, invoicing, tax calculation, and receipt capture

Free Trial: 30-day free trial

Pros

QuickBooks Online offers many benefits, making it a valuable choice for freelancers and small business owners. One significant advantage is its access to a broad network of independent ProAdvisors. These certified professionals can assist with various bookkeeping tasks, ensuring your financial records are accurate and up-to-date.

Users can also manage sales tax efficiently with automatic sales tax rates applied based on customer addresses. This feature simplifies compliance and reduces the risk of errors. Additionally, the software includes receipt capture capabilities, allowing users to generate transactions from uploaded receipts. This function dramatically aids in organisation and record-keeping.

Another useful feature is time and expense monitoring, which helps add these to customer invoices. This requires the Essentials plan but is invaluable for those needing detailed billing. Moreover, QuickBooks Online tracks miles automatically using its mobile app, streamlining the process for anyone who needs to log mileage for business purposes.

Cons

Despite its many advantages, QuickBooks Online has some drawbacks. One issue is the lack of a customer service telephone number. Users must submit a request and wait for a callback, which can be inconvenient, especially in urgent situations.

However, the need for a subscription to the more expensive Plus plan to track project profitability can be a significant cost for those who require this feature. Additionally, QuickBooks Online does not support the calculation of quarterly tax payments or the transfer of information to Schedule C, which could be a limitation for freelancers with more complex tax needs.

Pricing plans

QuickBooks Online offers four tiers of service, each tailored to different needs and budgets. The entry-level plan, Simple Start, costs $35 per month and is suitable for one user. It's ideal for those who require basic accounting features like invoicing and income and expense tracking.

For those needing additional capabilities, the Essentials plan, priced at $65 per month, accommodates three users and includes bill payments and more advanced reporting tools. The Plus plan, priced at $99 per month, supports five users and adds project tracking and inventory management.

The most comprehensive option, Advanced, costs $235 per month and allows up to 25 users. Advanced features include more robust reporting and comparing actual vs estimated labour and inventory costs.

A current promotion offers 50% off for the first three months and includes a free guided setup from a QuickBooks expert. Alternatively, users can opt for a 30-day free trial, which does not include the guided setup, and then pay the regular Price at the end of the trial.

Professional assistance

For freelancers who don't have time to maintain their books, the ProAdvisors can offer invaluable support. This makes QuickBooks Online a standout option for anyone needing regular bookkeeping assistance.

Suitable for Various Freelancers

QuickBooks Online's Simple Start plan is often sufficient for most freelancers. It covers basic needs such as invoicing, reporting, and tracking income and expenses. Upgrading to the Essentials plan is straightforward for those needing to pay bills.

A notable downside is the lack of a free plan. Freelancers with limited budgets or those just starting might save money by opting for alternatives like Zoho Books' free plan. For comprehensive tax support, another option is QuickBooks Solopreneur. This version allows users to estimate quarterly taxes and generate tax schedules for Schedule C filers.

Compare Thriday and Quickbooks to find the best fit for you.

Wave Accounting

Starting Price: Free

Features: Unlimited invoices, receipt scanning, and expense tracking

Free Trial: Not applicable, free version available

Pros

Wave offers a free version that caters to a single user, making it perfect for freelancers and solopreneurs. The software is intuitive and straightforward, reducing the time needed for setup. One significant advantage is the ability to create and send unlimited invoices at no cost. Furthermore, Wave’s free plan includes a receipt capture add-on, enhancing the ease of tracking expenses.

Wave allows users to process payments with affordable transaction fees, adding to its value for cost-conscious freelancers. The platform's simplicity and essential features make it a practical solution for those who need reliable accounting without a hefty price tag.

Cons

Despite its many benefits, Wave has some limitations. Bank account integration is not available in the free plan, requiring users to manually enter transactions or upgrade to access this feature. Additionally, Wave does not provide the option to separate income and expenses by class or location, which can be a drawback for detailed financial tracking.

Customer support is another area where the free tier falls short, offering only limited assistance. For freelancers requiring more than one user, Wave’s paid version is necessary, as the free plan supports only one user. These constraints can challenge growing businesses needing more advanced support and multi-user access.

Wave provides two main subscription options:

Starter: Free; includes one user and features for accounting and invoicing.

Pro: $16 per month or $170 annually; includes unlimited users and additional functionalities like bank feeds and unlimited receipt capture.

Add-ons

Bookkeeping support: $149 per month

Accounting and payroll coaching: $379

Assisted payroll services through Wave Payroll: $40 per month for tax service states and $20 per month for self-service states, plus $6 per employee monthly

Receipt scanning: $11 per month or $96 per year for Starter; included in Pro

The free plan, known as Starter, is a good choice for freelancers who need basic income and expense tracking. While it lacks advanced features like inventory management and project accounting, it includes recurring invoices and billing, common only in paid versions of other software. Additionally, Wave's transaction fees for bank and card payments are quite low.

Wave’s free and paid tiers do miss some advanced features, such as project accounting. Freelancers who manage large projects might find this limiting and might prefer alternatives like FreshBooks for its project management capabilities.

Wave's simplicity in general accounting features suits freelancers' needs. While the mobile app is limited, it allows users to capture receipts, send invoices, and accept payments. However, users cannot enter or pay bills, categorise transactions, or view reports on the app.

Wave excels in pricing and ease of use, focusing on essential accounting tools needed for basic tasks. This makes it a straightforward solution for freelancers who need to manage invoicing and track income and expenses without complicated features.

Best for Freelancers who do not want to pay for accounting software. The free version’s basic features efficiently handle income and expense tracking.

Affordable plan: The paid plan at $16 per month offers bank account connection and receipt uploads, enhancing income and expense tracking.

Outsourced bookkeeping: Wave Advisors provides bookkeeping support at $149 per month, more affordable than many other services.

Compare Thriday and Wave Accounting to find the best fit for you.

Zoho Books

Advantages

• The mobile app is exceptional.
• Free for those earning under $50,000 annually.
• Can manage sales tax collection.
• Tracks time and expenses, easily adding them to invoices.
• Tracks project profitability.

Drawbacks

• Extra charge for receipt capture.
• Cannot transfer income/expenses to Schedule C.
• Cannot calculate quarterly estimated tax payments.
• Free plan does not support bank feed connections.

Add-ons and costs

Additional users: $3 per user monthly.

Receipt scanning: $10 for 50 scans monthly.

Snail mail credits for sending invoices: $2 per credit.

Mobile app features

Zoho Books' mobile app allows freelancers to handle a variety of tasks conveniently. The app lets you create and send invoices, receive payments, record billable time, and assign expenses to clients, all from your smartphone. 

This is beneficial for freelancers who frequently work away from their main workspace. Many apps offer mobile functionality, but Zoho Books stands out for including advanced features that others lack.

Project management

The software excels in project management, enabling freelancers to track project-related income, expenses, and billings effectively. These features are particularly useful for freelancers who get paid by the project. Users can track time and bill clients for any billable hours.

Free plan

Zoho Books offers a competitive free plan for freelancers making less than $50,000 in annual revenue. This feature is ideal for small-time freelancers who do not require extensive accounting services and prefer not to commit to a monthly subscription. The free plan includes essential features, such as invoicing and expense tracking, making it a suitable option for those just starting.

Scalable options

Zoho Books provides five paid subscription plans, each offering additional features as needed. This allows freelancers to select a plan that fits their current needs and upgrade as their business grows. This makes Zoho Books a viable option for those looking for scalable accounting solutions that can grow alongside their businesses.

Customer support

The software offers the convenience of direct telephone support, which is an advantage over other accounting software where users often have to submit a ticket and wait for a callback. Immediate telephone support can be crucial for resolving urgent issues efficiently.

Price comparison

Compared to QuickBooks Online, Zoho Books is a more affordable yet robust alternative. Both platforms offer essential bookkeeping tools, but Zoho Books provides a similar range of features at a lower cost. This can be especially appealing for freelancers seeking a cost-effective solution without compromising on capabilities.

Features to look for in freelance accounting software

When selecting accounting software for freelancers, it's vital to consider a few key features. Expense receipt capture is essential, allowing receipts to be captured via desktop or mobile. Customisable invoicing and online payment acceptance streamline billing processes. Managing sales tax for taxable services and assigning hours and expenses to clients are also important.

Profitability tracking for fixed-fee projects, transferring income and expenses to Schedule C, and calculating quarterly income tax payments are crucial. These features ensure freelancers maintain healthy financial management and compliance.

Frequently asked questions

Is Thriday a good alternative to QuickBooks?

Many freelancers appreciate Thriday for its ease of use and excellent customer support. Though it may not have as many features as QuickBooks Online, its simplicity is a significant plus.

Are there any cost-free accounting programs recommended for freelancers?

Yes, there are free accounting programs that are highly recommended for freelancers. Thriday stands out as a top choice because it provides many essential features without any cost. It includes tools for invoicing, expense management, and financial reporting.

Is it feasible for freelancers to handle their own accounting?

It is feasible for freelancers to manage their own accounts effectively. User-friendly accounting software like Thriday can make it easier for freelancers to keep track of their income and expenses, generate invoices, and handle taxes. These tools aim to simplify accounting so that freelancers can focus more on their work.

Our verdict

The ideal accounting software pushes freelancers to take charge of their finances without sacrificing precious time better spent on their core work.

Thriday is an excellent choice with its free plan that includes core bookkeeping functionalities, allowing you to manage your finances without any upfront investment. You can also leverage its Profit First integration to prioritise profit and build a sustainable financial foundation from the get-go.

Remember, the best software is the one that fits your unique needs and workflow. Take advantage of free trials, explore features, and choose the platform that empowers you to focus on what you do best - creating, innovating, and thriving as a freelancer.