Freelancers need a different kind of accounting software from a 20-person company. You want invoices that get paid quickly, expenses that categorise themselves, time tracking if you bill by the hour, and books your accountant (or tax software) can use at year end — without inventory, purchase orders or user permissions you will never touch.
Region matters more than most guides admit. Wave is built for the US and Canada; FreeAgent is built around UK self-assessment and Making Tax Digital; Xero and Zoho Books work across many countries. We have labelled each pick accordingly.
The bottom line
FreshBooks is the best all-round choice for freelancers who bill clients for time and projects. Wave is the best free option in the US and Canada. UK sole traders should look first at FreeAgent, and freelancers who want room to grow into a small business should consider Zoho Books or Xero.
Our top picks
- 1
Best overall for freelancersFreshBooks8.1Editorial score 8.1 out of 10 - 2
Best free option (US & Canada)Wave7.7Editorial score 7.7 out of 10 - 3
Best for UK sole tradersFreeAgent8.1Editorial score 8.1 out of 10 - 4ZBBest value as you growZoho Books8.3Editorial score 8.3 out of 10
- 5
Best for international freelancersXero8.5Editorial score 8.5 out of 10
Scores are editorial assessments based on research. Prices are indicative.
FreshBooks
ResearchedInvoicing, time tracking, proposals, expenses and client payments designed around service work, with simple double-entry books underneath.
FreshBooks began as an invoicing tool and still excels at it: polished invoices, time tracking, expenses and client retainers. It has grown into full double-entry accounting suited to freelancers, consultants and small agencies.
Ideal for: Consultants, designers, developers and agencies of one that bill time or projects.
Watch out for: Each extra team member costs more, and there is no inventory.
Pros
- Excellent invoicing and time tracking
- Very easy to learn
- Client portal and retainers
Cons
- Client limits on lower plans
- Fewer advanced accounting features
Wave
ResearchedFree invoicing and accounting for sole traders, paying only for payment processing and optional extras.
Wave offers free invoicing and bookkeeping for small businesses in North America, earning money from payment processing, payroll and a Pro plan. It is simple to use and covers the basics well, but it lacks inventory, projects and the depth growing businesses eventually need.
Ideal for: US and Canadian sole traders with simple books.
Watch out for: Limited integrations and support on the free plan; North America only.
Pros
- Free core accounting and invoicing
- Simple, friendly interface
- Unlimited invoices
Cons
- Limited integrations
- No inventory or projects
FreeAgent
ResearchedBuilt around UK self-assessment and Making Tax Digital, with tax timelines and estimates that take the guesswork out of filing.
FreeAgent is designed for UK sole traders, limited companies and partnerships. It handles invoicing, expenses, time tracking, VAT, Self Assessment and payroll for small companies, and is free for some business banking customers. Its tax timeline shows what is due and when.
Ideal for: UK sole traders and small limited companies.
Watch out for: UK-focused; pricing is in GBP and varies by business type.
Pros
- Tax timeline and estimates
- Self Assessment filing
- Time tracking and projects
Cons
- UK only
- Limited inventory
Zoho Books
ResearchedA free plan for small businesses below a revenue threshold, then affordable tiers with automation and a client portal.
Zoho Books covers invoicing, bank reconciliation, expenses, projects, inventory basics and multi-currency, with a free plan for very small businesses in many regions. It integrates tightly with Zoho CRM, Inventory and Payroll, and supports tax rules in a range of countries.
Ideal for: Freelancers expecting to hire or add contractors.
Watch out for: More settings than freelancer-first tools.
Pros
- Generous free plan
- Strong automation and workflows
- Multi-currency and projects
Cons
- Less familiar to some accountants
- User limits by plan
Xero
ResearchedClean reconciliation, multi-currency on higher plans and a large accountant network across many countries.
Xero is a cloud-first accounting platform popular in the UK, Australia and New Zealand and increasingly in the US. Unlimited users on all plans, a tidy reconciliation experience and a large app marketplace make it a favourite of many accountants and growing teams.
Ideal for: Freelancers working with an accountant or across currencies.
Watch out for: The cheapest plan limits invoices and bills.
Pros
- Unlimited users on every plan
- Clean reconciliation workflow
- Strong app marketplace
Cons
- Entry plan transaction limits
- Support is mainly online
Comparison table
| Tool | Best for | Score | From (indicative) | Free plan |
|---|---|---|---|---|
| FreshBooks | Best overall for freelancers | 8.1 | From around $19–23 / month | No |
| Wave | Best free option (US & Canada) | 7.7 | Free; Pro around $16 / month | Yes |
| FreeAgent | Best for UK sole traders | 8.1 | From around £19 / month (UK) | No |
| ZBZoho Books | Best value as you grow | 8.3 | Free; paid from around $15 / organisation / month | Yes |
| Xero | Best for international freelancers | 8.5 | From around $20–29 / month | No |
Feature matrix
| Feature | FreshBooks | Wave | FreeAgent | Zoho Books | Xero |
|---|---|---|---|---|---|
| Free plan | No | Yes | No | Yes (revenue cap) | No |
| Time tracking | Yes | No | Yes | Yes | Via apps / projects |
| Proposals / estimates | Yes | Estimates | Estimates | Yes | Quotes |
| Automatic bank feeds | Yes | Pro plan | Yes | Yes | Yes |
| Tax focus | US / Canada / others | US / Canada | UK (MTD) | Many regional editions | Many countries |
| Multi-currency | Yes | Limited | Yes | Yes | Premium tier |
Based on vendor documentation and public plan pages; features change often, so confirm on the plan you intend to buy.
What freelancers actually need
- Professional invoices with online card and bank payments
- Automatic payment reminders and late fees
- Expense capture from receipts and bank feeds
- Time tracking that flows into invoices (if you bill hourly)
- Reports your accountant or tax software can use: profit and loss, tax summaries
- Mileage or home-office tracking where your tax rules allow it
Free vs paid: when Wave is enough
If you are a US or Canadian sole trader with one bank account, a handful of clients and no hourly billing, Wave's free plan covers invoicing and bookkeeping well. You will feel its limits if you need time tracking, many integrations, priority support or automatic bank imports (which sit on its Pro plan). At that point FreshBooks or Zoho Books pay for themselves in saved admin time.
Separate your business finances
Every tool on this list works best with a dedicated business bank account. Mixing personal and business spending makes bank feeds noisy and categorisation slow, and it complicates tax time. Even sole traders who are not legally required to separate accounts usually save hours by doing so.
How we chose
- We started from every accounting tool we track, then filtered to products that fit this specific need using vendor documentation, public plan pages and trust/security pages.
- Each pick carries the same weighted score it has on its full review; the overall score is calculated from six criteria and never typed in by hand.
- We weighted invoicing, payments, expenses and time tracking more heavily than inventory, purchasing and multi-user features, and noted each product's regional focus.
- Labels such as “best for” describe fit for a situation, so a lower-scoring tool can be the right choice. Products marked “Researched” were assessed from documentation and public information rather than hands-on testing.
- Prices are indicative and dated on each review. Confirm the current plan, limits and renewal price on the vendor's site before you buy.
Read our full scoring methodology →
Match the tool to your country
Tax features are regional. Choose software built for your tax system (for example FreeAgent for UK self-assessment, Wave for US and Canada) or with a regional edition, such as Zoho Books or Xero.
Check payment processing fees
Invoicing tools make money on card and bank payments. Compare processing fees and payout times, especially if clients pay large invoices by card.
Ask your accountant first
If you use an accountant, choose a tool they already support — it reduces year-end fees and back-and-forth.
Plan for one hire
If you may add a contractor or assistant, check the cost of extra users. FreshBooks charges per team member; Xero and Zoho Books include more users.
See every option we rank in Accounting Software.
Buying checklist
Before you commit, confirm each of these on the exact plan you will buy:
- Supported bank feeds for your accounts
- Invoicing with online payments
- Sales tax / VAT handling for your regions
- Accountant or bookkeeper access
- Reports: P&L, balance sheet, cash flow
Avoid these mistakes: Choosing software your accountant does not support. Ignoring local tax support — not every tool files sales tax or VAT in every country. Mixing personal and business transactions in one bank feed.
Frequently asked questions
What is the best free accounting software for freelancers?
Wave, for freelancers in the US and Canada. Zoho Books also has a free plan for small businesses below a revenue threshold in supported regions.
Is FreshBooks or QuickBooks better for freelancers?
FreshBooks is usually better for freelancers who bill clients, thanks to its invoicing and time tracking. QuickBooks suits businesses with inventory, staff or complex reporting.
Do freelancers need double-entry accounting?
Not always legally, but double-entry software produces accurate reports and makes year-end simpler. All the tools on this list use double-entry under the hood.
Can these tools file my taxes?
Some, like FreeAgent in the UK, support direct tax submissions. Others prepare reports for your accountant or tax software. Check your region.
How much should a freelancer spend on accounting software?
Many spend nothing (Wave or Zoho Books free) or roughly $15–35 per month for a paid tool. The time saved on invoicing and chasing payments usually justifies it.
Related comparisons
Related guides
Best Accounting Software for Small Business
The best accounting software for small businesses — QuickBooks Online, Xero, FreshBooks, Zoho Books, Wave and more compared on price, users, invoicing, inventory and regional tax support.
ZBUpdated November 3, 2026QuickBooks vs Xero vs FreshBooks vs Wave
The four most popular small business accounting tools compared: pricing, users, invoicing, inventory, payroll, regions and which suits your business.
Updated November 3, 2026
Best CRM Software for Small Business
The best CRM software for small businesses in one shortlist — HubSpot, Zoho, Pipedrive, Salesforce, Freshsales and more compared on ease of use, automation, pricing tiers and integrations.
Updated November 3, 2026