• What to check
  • The tools

Accounting software for freelancers keeps a record of the money coming in and going out, so you can see your profit, keep receipts with your expenses and hand clean records to your accountant at tax time. When you compare tools, check how each one records income and expenses, whether it connects to your bank, which reports it produces and how your accountant can get the numbers.

Billed publishes this page, and Billed is listed first. The other tools are listed alphabetically and aren't ranked. Each description quotes the tool's own pages, opened on October 30, 2026, and we didn't test the products. Plans and prices change and vary by country, so check each vendor's pricing page.

What to check

  • Income and expense records: how you record what comes in and what you spend.
  • Receipts: whether you can keep each receipt with its expense.
  • Bank connections: whether the tool imports transactions from your bank, and whether that needs a particular plan.
  • Reports: profit and loss, or income compared with expenses, and whether you can export them.
  • Invoicing: whether invoices and payments feed the same records, so income isn't entered twice.
  • Accountant access: how your accountant or bookkeeper sees your numbers.

For the basics, see what is bookkeeping and how to manage cash flow.

The tools

Billed

From Billed's own pages:

  • Expenses: "An expense in Billed records who you paid, when, how much and which category it belongs to, with the receipt attached to the same entry." (expense and receipt tracking)
  • Income compared with expenses: "The expense report shows what you spent over a date range, and the income vs expense report compares income with expenses so you can see how profitable the business is."
  • Exports: "Reports can be filtered by date range and exported for your accountant, bookkeeper or tax software."
  • Reports: "Billed offers several built-in reports: Invoice Reports (paid, partially paid, and overdue), Expense Reports, Income vs Expense Reports, Top Selling Products, and Time Tracking Reports." (financial reporting)
  • Invoices: "Invoice reports show which invoices are paid, partially paid or past due, and you can see who owes you money and send them a payment reminder." (invoice software)

For plans, see Billed's pricing page.

FreshBooks

From FreshBooks' accounting page:

  • "Stay on top of every number with detailed, tax-ready financial reports like Profit and Loss, Balance Sheet, and Trial Balance reports."
  • "FreshBooks lets you link your bank account and create automated workflows for bank reconciliation and transaction management"
  • "Grant your accountant access to real-time data in one central location, ensuring they can provide timely financial advice whenever you need it."

QuickBooks Online

From QuickBooks' accounting page:

  • "Connect your bank, credit card, and other accounts to import expenses."
  • "Snap receipts with the app and we'll match them to transactions."
  • "Access balance sheets, profit and loss, and cash flow reports instantly."

Wave

From Wave's accounting page:

  • "Wave’s smart dashboard organizes your income, expenses, payments, and invoices."
  • "With the Pro Plan, automatically import, merge, and categorize your bank transactions."
  • "Automated bank connections and advanced receipt matching require a paid Pro Plan subscription."

Xero

From Xero's US accounting software page:

  • "Create professional invoices and add a Pay Now button so customers can pay by card, ACH, or digital wallet."
  • "Share the same up-to-date numbers with your accountant or bookkeeper, and make confident decisions together."
  • "Xero helps you track sales tax and stay ready at filing time, and it makes managing contractor details for W-9 and 1099 reporting straightforward."

Worked example: one month's profit

The freelancer and figures here are a sample, invented for this example.

A freelance designer invoices $6,200.00 in March and records these expenses, each with its receipt:

  • Software subscriptions: $300.00
  • Coworking desk: $450.00
  • Travel to client meetings: $400.00
  • Total expenses: $300.00 + $450.00 + $400.00 = $1,150.00

Profit for March: $6,200.00 − $1,150.00 = $5,050.00.

This is the comparison an income vs expense report shows. Tax depends on more than one month's profit, so ask your accountant how to set aside money for taxes; see freelance taxes: the complete guide.

Good habits whatever tool you use

  • Keep business and personal spending separate, so every transaction in your records is clearly one or the other.
  • Log expenses every week, with the receipt saved alongside each entry.
  • Review one report each month, such as income compared with expenses.
  • Ask your accountant which reports and exports they want, before tax time.

For more, see how to manage freelance finances and how to create a business budget.

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Frequently Asked Questions

What should freelancers look for in accounting software?

A way to record income and expenses, keep receipts with each expense, see reports such as profit and loss or income compared with expenses, export them for your accountant, and, if you want it, connect your bank. Plans differ in which of these they include.

Do freelancers need accounting software or is a spreadsheet enough?

That depends on the number of transactions you have and what your accountant needs. Software keeps receipts with expenses and produces reports for you; a spreadsheet can work if you keep it up to date. Ask your accountant what they need from you.

Do FreshBooks, QuickBooks Online and Wave connect to a bank account?

On the pages quoted here, FreshBooks, QuickBooks Online and Wave describe connecting a bank account, and Wave limits automated bank connections to its paid Pro Plan.

Can I share my numbers with my accountant in Billed, FreshBooks or Xero?

On the pages quoted here, Billed's expense tracking page says: "Reports can be filtered by date range and exported for your accountant, bookkeeper or tax software." FreshBooks and Xero each describe giving your accountant access to your numbers.

Which of these tools should a freelancer choose?

This page doesn't rank them. Weigh how each one records income and expenses, whether you'll connect a bank, the reports your accountant asks for, and the plan price where you live.

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