The Best Accounting Apps for Self-Employed People

Balancing the numerous financial aspects of being self-employed can be a significant challenge. From tracking income and expenses to preparing for tax season, staying organised is crucial.

Fortunately, a range of accounting apps are available to streamline your financial processes, providing valuable insights into your financial health while allowing you to stay on top of your accounting processes.

When selecting the best accounting apps for your situation, consider factors such as your business’ complexity, your level of accounting knowledge, and your budget. You’ll also want to consider your chosen app’s scalability and ability to integrate with other tools, like CRMs, budgeting apps, online stores, POS systems, and more.

Key Takeaways

Xero is great for self-employed workers seeking a user-friendly accounting app with robust features for freelancers and contractors.
QuickBooks is ideal for self-employed people seeking the trust, reliability, and functionality of one of the most popular accounting apps on the market.
Zoho Books is perfect for self-employed people looking for robust paid plans, plus a completely free basic plan to get started.
FreshBooks is ideal for self-employed people seeking comprehensive tools in an easy-to-use platform that offers accounting, invoicing, expense management, and more.

Top Accounting Apps for Self-Employed People

Accounting apps can streamline finances for self-employed individuals by automating tasks like invoicing, expense tracking, tax preparation, and more. Below, we’ll explore four of the top mobile apps, offering both free and paid options to help self-employed individuals manage their accounting.

1. Xero

Best for those wanting a user-friendly solution

Xero is a powerful accounting software designed to cater to a wide range of businesses, from sole proprietors to growing enterprises. It offers four accounting plans, each with its own pricing, and the cost is affordable for most self-employed individuals seeking a reliable and user-friendly accounting solution.

Xero providers users with a mobile app, web access, and computer software for easy access anywhere, anytime. Xero’s comprehensive feature set includes core accounting functions like invoicing, expense tracking, inventory management, bank reconciliations, VAT reporting, project management, invoice & quote creation, data reporting, and more.

Self-employed individuals will benefit from Xero’s wide range of features and reasonable pricing, easy-to-use platform, and desktop and mobile access. Additionally, Xero users can give their accountant access to their Xero account, which can help streamline accounting, bookkeeping, and tax preparation processes.

Key features

Full-scope accounting, including multi-currency accounting
Accounting reports include profit and loss, balance sheet, statement of cash flows, statement of equity, and more
Calculate VAT and file VAT returns with HMRC securely online
Track expenses and include them in your accounting records
Track, manage, and pay bills online and in-app
Accept payments from customers and clients
Track project completion and billing
Track inventory and set up alerts
Generate, send, and follow up on invoices
Connect to your bank accounts for more accurate expense tracking
Accept payments from clients and customers online
Integrations with various other financial and business apps
Prepare and report payroll for employees and contractors
Perform bank reconciliations to compare bank statements to financial records
Generate purchase orders (POs)
Create quotes for clients and/or customers
Implement user access controls

Xero Pricing

Xero offers four accounting plans:

Xero Ignite: £1.60 per month for the first three months, then £16 per month
Xero Grow: £3.30 per month for the first three months, then £33 per month
Xero Comprehensive: £4.70 per month for the first three months, then £47 per month
Xero Ultimate: £5.90 per month for the first three months, then £59 per month

Free plan: No
Free trial: No, Xero doesn’t offer a free trial for new users

2. QuickBooks

Best for those seeking a capable accounting software that can grow alongside them

QuickBooks is one of the most popular and widely used accounting providers on the market, with millions of users around the world. It’s wide range of features include comprehensive accounting, expense tracking, budgeting, inventory management, project tracking, online bill pay, generate and send quotes & invoices, payroll preparation, VAT filing, HMRC reporting, and more.

QuickBooks offers access via its downloadable software, website, and mobile app, allowing you to access and update your financial records anywhere, anytime. Additionally, your accountant can easily log into your account using QuickBooks Online, where they can update your accounting records, track your financial progress, develop a tax strategy, and more.

Self-employed people will benefit from QuickBooks’ friendly user interface, straightforward processes, and dedicated customer service team. Additionally, due to QuickBooks’ popularity, both free and paid online courses are available for people with any level of technical knowledge to learn how to use QuickBooks’ software and app.

Key Features

QuickBooks offers comprehensive accounting, payroll, HMRC reporting, bill payments, and more. Let’s take a look at a list of all of the features QuickBooks offers below:

Generate and send invoices and quotes to clients and customers
Track expenses and enter bills & receipts
Connect QuickBooks to your bank account
Pay bills manually or automatically
Reconcile bank transactions with accounting records
Prepare VAT returns and submit VAT to HMRC
Prepare business, cash flow, and accounting reports and analytics
Run payroll for both employees and contractors
Claim expenses and mileage on your accounting records
Set up user access controls
Generate cash flow predictions
Track project completion and invoicing

QuickBooks Pricing

QuickBooks offers five accounting plans:

QuickBooks Sole Trader: £5 per month for the first six months, then £10 per month
QuickBooks Simple Start: £8 per month for the first six months, then £16 per month
QuickBooks Essentials: £16.50 per month for the first six months, then £33 per month
QuickBooks Plus: £23.50 per month for the first six months, then £47 per month
QuickBooks Advanced: £57.50 per month for the first six months, then £115 per month

Free Plan: No
Free trial: Yes, QuickBooks offers a free one-month trial for new users

3. Zoho Books

Best for those seeking robust paid plans, plus a free plan to get started

Zoho Books is a versatile accounting system that offers a diverse range of features for businesses of nearly any size. Self-employed individuals are likely to find Zoho’s user interface intuitive and easy to use, and its ability to integrate with other business software and other Zoho apps makes it adaptable and capable.

The extensive set of features offered by Zoho Books includes: full-scope accounting & bookkeeping, project management, inventory tracking, prepare and report VAT returns to HMRC, generate data-driven financial analyses, create and send invoices and quotes to clients, track expenses and pay bills online, bank reconciliations, and more.

Best of all, Zoho Books offers a 100% free plan for businesses to get started with Zoho, which is perfect for self-employed individuals. This plan represents Zoho’s most basic offering, while its tiered paid plans offer additional features at a reasonable price increase. Zoho’s paid plans range from simple to sophisticated, allowing users to continue utilising Zoho as they grow.

Key Features

Zoho Books is a capable solution for managing accounting, HMRC reporting, tax planning, and more. Let’s take a look at a list of the features offered by Zoho Books:

Full-scope accounting and bookkeeping functions
Generate key accounting reports such as an income statement, balance sheet, statement of cash flows, statement of equity, and more
Accounts receivable and payable management
Track and manage inventory
Manage projects and track project completion
Manage and pay bills online
Run automatic bank reconciliations
Track bills, receipts, and deductible expenses
Generate income, expense reports, asset reports, payroll, and more
Create and submit periodic reports to HMRC
Calculate and report VAT to HMRC
Run payroll for both employees and independent contractors
Integrate Zoho with other business apps and software
Create invoices and quotes for clients and customers
Manage customer retention payments
Create secure user access controls

Zoho Books Pricing

Zoho Books offers six different plans:

Zoho Free: this plan is 100% free to use indefinitely
Zoho Standard: £10/month when billed annually or £12/month when billed monthly
Zoho Professional: £12/month when billed annually or £24/month when billed monthly
Zoho Premium: £25/month when billed annually or £30/month when billed monthly
Zoho Elite: £85/month when billed annually or £99/month when billed monthly
Zoho Ultimate: £165/month when billed annually or £199/month when billed monthly

Free Plan: Yes
Free trial: Yes, Zoho Books offers a free trial of its paid plans for new users.

4. FreshBooks

Best for those wanting comprehensive tools in an easy-to-use platform

FreshBooks offers a range of accounting features and is ideal for freelancers seeking comprehensive tools in an easy-to-use accounting system. FreshBooks offers several plan levels, including lower-level plans with simple features, as well as higher-level plans for self-employed individuals needing more complex accounting functions.

FreshBooks’ extensive feature set includes basic accounting functions such as bookkeeping and financial statement preparation. In addition to these features, FreshBooks offers easy invoicing, a user-friendly expense tracker with mobile receipt scanning, seamless bank integrations, expense, mileage & time tracking, create and send professional invoices & quotes to clients, and more.

Key Features
FreshBooks offers accounting solutions for various financial situations, including accounting, tax reporting, payroll, cash flow, and more. Below, we explore the full list of features offered by FreshBooks:

Comprehensive accounting and financial reporting tools
Easy online access for your accountant
Prepare, send, and track invoices for clients and customers
Track and manage billing and payments
Expense tracker with mobile receipt scanning, plus connect bank accounts to easily update expense tracking
Automated expense categorisation
Payroll preparation and reporting
VAT tax preparation and reporting to HMRC
Mileage tracking to optimize vehicle expenses
Bookkeeping functionalities for both your internal use or an external bookkeeper
Generate quotes and project proposals for clients
Project estimates and project tracking
Client management and team management

FreshBooks Pricing
FreshBooks offers four different accounting plans:

FreshBooks Lite: £7.50 per month for the first three months, then £15 per month
FreshBooks Plus: £12.50 per month for the first three months, then £25 per month
FreshBooks Premium: £17.50 per month for the first three months, then £35 per month
FreshBooks Select: Pricing is bespoke based on required features and services

Free Plan: No
Free trial: Yes, FreshBooks offers a 30-day free trial on its Lite, Plus, and Premium plans, as well as a 30-day money-back guarantee on paid plans.

Verdict

A capable accounting app can allow you to automate tedious tasks, provide you with valuable insights into your financial performance, and ensure you stay compliant with HMRC and tax regulations, saving you time and effort and allowing you to focus on what you do best: running your business.

In this article, we explored four of the most trusted, capable, and affordable accounting apps on the market. To make the best decision for your business, carefully consider your specific financial needs, your budget, and the level of complexity required for your accounting. Consider utilising free trials to test features and choose the best option for you.

FAQs

What are the best free accounting apps for the self-employed in the UK?

While there is no single best accounting app for self-employed people, Zoho Books offers a free basic plan to handle simple accounting and financial tasks for self-employed individuals. Zoho Books, FreshBooks, and QuickBooks also offer free trials of their paid plans.

Do I need accounting software if I’m self-employed?

While not always necessary due to services like Excel, Google Sheets, and Google Drive, using accounting software can significantly simplify your financial management, save you considerable time and effort, and provide you valuable insights into your financial transactions and transaction volumes.

Can I integrate my bank accounts with accounting apps?

Most accounting apps support integrations with your bank accounts, allowing for automatic bank feeds, automated expense tracking, simplified bank reconciliations, and improving the accuracy of your financial data.

4 Best Accounting Apps for Self-Employed People