That’s why contractors need the best accounting software with features tailor-made for the construction industry. These are features like inventory management, the ability to convert quotes and estimates to invoices and invoicing based on your team’s hours worked. We tested dozens of leading accounting platforms with an eye on these features and others that can help grow your construction business into a profitable success. Accounting software is a big step up from an invoice generator, a spreadsheet, or using a document template. More comprehensive freelancer accounting software will also include time tracking, project management, integration with online payment portals, bank account integration, and receipt scanning. Xero is a cloud-based accounting software that offers easy-to-use features for independent contractors.
After Zoho Books, the top accounting software for freelancers includes FreshBooks, QuickBooks Online, Xero, and Wave Accounting—plus a handful of honorable mentions. Zoho Books’ all-in-one platform makes choosing business software a little easier. And with its free plan, the barrier to entry is low — even for startups with little cash on hand. Freelancers typically aren’t handling dozens of transactions each day. That means they may be able to choose a simpler, less expensive accounting solution. Invoicing tools and mobile accessibility should be your highest priority.
Modern accounting software provides the tools you need to create and maintain a clear, accurate financial picture from day one. Here are some basic features you should keep an eye out for when looking for accounting software. To digitize, independent contractors can use their mobile devices and Shoeboxed’s app to scan and upload receipts and documents to a designated Shoeboxed account. As an independent contractor, you should establish a separate business bank account when tracking expenses and income. Any independent contractor’s understanding of their business will improve with a clear understanding of their financial situation. They will be better equipped to accurately pay their taxes to the IRS.
And you can access reports directly on the Insights tab, showing relevant stats like net income, time worked, and your true hourly rate. If you manage other contractors as part of your own contracting job, most freelance accounting software includes 1099 contractor management with their basic plans. QuickBooks Online and Zoho Books are two great places to start if managing contractor payments is a top priority for you.
Additional features of Hectic include project management with task tracking, time allocation, and sales pipeline visualization. It offers basic features such as invoicing, expense tracking, and income tracking. The software has a simple interface and provides essential functionalities, making it suitable for self-employed individuals. FreshBooks also makes it especially hassle-free to convert estimates and quotes to invoices. We can say the same for how easily we converted billable hours to invoices via FreshBooks. Plus, the FreshBooks mobile app is as intuitive when it comes to generating, sending and tracking invoices.
For more information about HashMicro’s Accounting Software, you can contact us here. HashMicro’s Peppol Accounting Software is a great option for independent contractors seeking a cutting-edge solution beyond traditional accounting. With its robust features, self-employed individuals can efficiently manage their finances, from cash flow management to journal entries and reconciliation. What sets this software apart is its seamless integration with the Peppol network, ensuring hassle-free invoicing management. Unfortunately, QuickBooks’ features—at least those included with its base plan—aren’t quite enough to justify its high starting price.
As your business grows, you’ll likely need to upgrade to your vendor’s highest-end plans, which may cost hundreds of dollars per month. However, you may also be able to make do with midrange accounting software packages that add some, but not all, possible tools. In that case, you’re typically looking at slightly less than $100 per month. Moxie has all the basic invoicing and expense/receipt features in place. Each invoice has its own payment link, so your accounting software for independent contractors clients can view and pay it online. The user interface has a lot of open space, showing the preview of every document as you’re filling it out.
But if you didn’t find your match, you aren’t out of options—our self-employment honorable mentions each have something to offer. Additionally, FreshBooks’ $15 plan doesn’t include automatic bank reconciliation. You’ll have to do all your bank reconciliation by hand, which creates more work for you while introducing a higher possibility of errors.
It’s one of the only accounting software providers to offer inventory tracking with each plan. Xero also helps sales-based businesses stay afloat with features like customized purchase orders for fast, clear communication with suppliers. Its automated sales tax calculations streamline end-of-year tax reports, and its 24/7 live customer support means you won’t be left hanging if you’re hit with a tech problem mid-invoice. Asana is another excellent app for independent contractors, designed to help you manage tasks and projects effectively.
Since this fuel powers your business activities, the money your team pays for it is tax-deductible. Bonsai is another freelancer all-in-one app that helps you build automated flows to manage client proposals, invoicing, and more. If you’re registered as a U.S. sole proprietor, you can use this worksheet to simplify your tax season. When I tried changing my business type to all the other options, there weren’t equivalent features.
