5 Must-Explore Bookkeeping Software for Freelancers in 2023

The rise in the gig economy, especially over the last couple of years, has seen many people turn towards self-employment and freelancing as independent contractors. Whether this change was born out of necessity or choice, these individuals now must deal with things like employment accounting, mileage and time tracking, billable expenses, invoicing, and tax filing. As a result, the demand for bookkeeping software for freelancers or self-employed is growing.

And there is no shortage of online bookkeeping services that can help freelancers track their income and expenses and manage their tax returns while offering access to dedicated bookkeeping experts at affordable rates. Many of the best bookkeeping software for self-employed are also offering add-on services to ensure freelancers can manage their accounting efficiently.

In this blog, we will look at five must-explore accounting software for self-employed in 2023:

1. Bench: Best for individual tax returns with Schedule C
2. QuickBooks Live: Best for freelancers using QuickBooks Online
3. Bookkeeper 360: Best for invoicing and bill payments
4. Merritt Bookkeeping: Best for comprehensive bookkeeping services for freelancers
5. Block Advisors: Best for dedicated tax support

Comparing the Top Bookkeeping Software for Freelancers

Many self-employed bookkeeping software allow you to track your income and expenses, prepare and review your books, and prepare taxes as base offerings or add-on services. Here are some comparable features of the top bookkeeping services that can benefit freelancers:

Software	Monthly Price	Invoicing	Bill Payment	Income and Expense Tracking	Dedicated Bookkeeper	Tax Filing
Bench	Starting at $299 per month	Yes	Yes	Yes	Yes	Yes
QuickBooks Live	Starting at $200 per month	No	No	Yes	Yes	No
Bookkeeper 360	Starting at $300 per month	Yes	Yes	Yes	Yes	Yes
Merritt Bookkeeping	Flat $190 per month	No	No	Yes	Yes	No
Block Advisors	Starting at $50 per month	No	No	Yes	Yes	Yes

Top 5 Bookkeeping Software for Freelancers

Although it can be a starting point, the summary of each bookkeeping service for self-employed is not enough information to decide which is the most suitable for your needs. So, let us delve deeper into the features, pros and cons, and pricing plans for each self-employed accounting software to help you make that decision:

Bench – Best for individual tax returns with Schedule C

Overview

Bench is the best solution for freelancers that need tax advice and assistance in tax preparation, are looking for catch-up bookkeeping services, or are using FreshBooks. Bench has a rating of 4.1 out of 5 on Trustpilot. And with features like

• A dedicated bookkeeper
• Tax preparation and filing assistance
• Access to monthly financial reports
• Add-on catch-up bookkeeping services
• Add-on specialized bookkeeping services
• Bench can be the best accounting software for self-employed individuals.

Why Choose it?

Bench may be the best choice for you if you want:

• Individual tax returns with Schedule C
• Affordable bookkeeping support
• Specialized services like tax assistance and CFO advisory
• Extensive catch-up bookkeeping services
• Real-time cash flow and financial reporting updates

Pricing Plans

Bench offers two pricing plans, with discounts if you pay annually.

1. Essential Plan: At $299 per month ($249 per month if you pay annually), you have access to basic bookkeeping services.
2. Premium Plan: At $499 per month ($399 per month if you pay annually), you have access to annual tax filing and tax advisory services, along with monthly bookkeeping support.

Starting at $299 per month, Bench also offers catch-up bookkeeping services, while the specialized bookkeeping services start at $100 per hour.

QuickBooks Live – Best for freelancers using QuickBooks Online

Overview

QuickBooks Live is the best solution for freelancers who want better communication with their bookkeepers, are using QuickBooks Online to handle their day-to-day bookkeeping, and want to engage with a QuickBooks ProAdvisor. It offers you access to features like:

• Professional assistance during set-up
• Access to end-of-the-month reporting, including profit and loss statements and balance sheets
• Access to specialized financial reports
• Ongoing bookkeeping assistance
• 100% accurate books guarantee

Why Choose it?

QuickBooks Live is an excellent choice for you if you:

• Need no assistance in managing invoicing and bill payments
• Want support from a dedicated bookkeeping expert and their extended team
• Like working with QuickBooks Online
• Want a personal connection with different avenues to connect with your expert

Pricing Plans

QuickBooks Live costs $500 for the first month, which is dedicated to onboarding, set-up, and cleanup of your existing books. From the second month onwards, you can choose from three pricing tiers depending on your 3-month average expenses.

1. Low Volume: $200 per month for monthly expenses up to $10,000.
2. Medium Volume: $300 per month for monthly expenses between $10,000 and $50,000
3. High Volume: $400 per month for monthly expenses exceeding $50,000

QuickBooks Live does not offer a free trial; however, it does not require a contract, so you can cancel their services at any time.

Bookkeeper360 – Best for invoicing and bill payments

Overview

Bookkeeper360 is the best option for freelancers looking for support with invoicing and bill payments, who want accrual-based accounting, need intermittent bookkeeping support, or are using Xero. Bookkeeper360 offers you features like:

• Access to a dedicated bookkeeper
• Accrual-based accounting
• Mobile app for better accessibility
• Back-office solutions that integrate seamlessly with QuickBooks Online and Xero
• Access to cash management insights

Why Choose it?

Bookkeeper360 may be the best choice for you if you:

• Need integration with Xero cloud-based accounting software
• Have no budgetary restraints
• Need advanced features like CFO advisory, payroll management, or HR support
• Need invoicing and bill payment support
• Need cash management features

Pricing Plans

Depending on the nature and frequency of the services you need, you can choose between three Bookkeeping360 plans. However, the prices increase as your monthly expenses increase.

1. Pay-As-You-Go: Starting at $125 per hour for monthly expenses up to $20,000.
2. Monthly: Starting at $399 per month for cash-basis accounting services for monthly expenses up to $20,000.
3. Weekly: Starting at $549 per month for cash-basis accounting services for monthly expenses up to $20,000.

You can also opt for solely invoicing and bill payment support starting at $99 per month. Starting with Bookkeeping360 does not require a contract, and you can cancel at any time.

Merritt Bookkeeping – Best for comprehensive bookkeeping services for freelancers

Overview

Merritt Bookkeeping is the best solution for freelancers who are on a budget, do not want to invest in dedicated accounting software, and need basic income and expense tracking. Even without expertise and knowledge of bookkeeping practices, Merritt Bookkeeping can help you:

• Catch up on your books if you have fallen behind
• File 1099 forms
• Prepare financial reports like profit and loss statements or balance sheet

And with an easy-to-use, intuitive user interface with a 90-day money-back guarantee, Merritt Bookkeeping can be the best choice for you.

Why Choose it?

The key features that make Merritt Bookkeeping the best choice for you are:

• Affordable flat-rate pricing
• Dedicated account manager with direct access options
• Access to services like expense categorization and bank statement reconciliation
• Affordable catch-up bookkeeping option
• Add-on 1099 form filing service
• 3-month 100% money-back guarantee

Pricing Plans

Merritt Bookkeeping is available at a monthly flat rate of $190, irrespective of the number of transactions, service frequency, or size of your operations.

Block Advisors – Best for dedicated tax support

Overview

Block Advisors is the best solution for freelancers looking for comprehensive bookkeeping services and tax preparation and filing support. It offers you features like:

• Guidance from a dedicated expert and account manager
• On-demand access to Xero
• Quarterly action plan with improvement recommendations
• Monthly books reconciliation
• 100% accuracy guarantee

Why Choose it?

Block Advisors may be the best option if you:

• Want access to a full suite of bookkeeping services
• Need advanced tax preparation and filing support
• Are working with Xero accounting software
• Want a 100% accuracy guarantee

Pricing Plans

Block Advisors offer two bookkeeping plans:

• Starter Plan: Starting at $50 per month if you are doing your own bookkeeping with on-demand expert support.
• Full-Service Plan: Starting at $150 per month if you want experts to handle your complete bookkeeping operations.

Self-employed individuals can also opt between two tax options:

• At $115, you can receive guidance from experts while you prepare and file the taxes yourself.
• At $220, you can work directly with a dedicated tax professional who will prepare and file your taxes.

Methodology

While evaluating online bookkeeping services for freelancers, we have taken into account a variety of factors, including the services available, pricing, access to expert advice, and integration options. We have prioritized the accounting software for freelancers or self-employed that offers a range of affordable services while giving you regular and easy access to dedicated bookkeeping experts so you can focus on your core competencies and not worry about bookkeeping. We have also looked into the ease of use, learning curve, and access to customer support for troubleshooting while listing the five must-explore online bookkeeping services for freelancers.

Conclusion

The bottom line is, as a freelancer or a self-employed independent contractor, you need access to accounting and bookkeeping tools for things like invoicing, time tracking, taxation, and managing your billable expenses. And even if you have a basic understanding of bookkeeping and tax preparation practices, you will need expert guidance to ensure the efficiency and accuracy of your books. Online bookkeeping services can help you access dedicated bookkeeping and tax preparation experts to lighten your workload and improve your overall effectiveness. You can use this list of online bookkeeping services as a guide to assess your needs and select the accounting service most suited for your independent venture.

Frequently Asked Questions