Cheapest Accounting Software for Freelancers and Sole Proprietors
Updated 26 March 2026
Freelancers have different needs from businesses with employees or complex inventory. You mainly need clean invoicing, expense tracking, bank feeds, and a year-end profit and loss report. Here are the four cheapest options that deliver exactly that.
Best overall for most freelancers
What you get
- ✓Unlimited invoices with customizable templates and your logo
- ✓Automatic bank and credit card syncing from most US and Canadian banks
- ✓Expense tracking with mobile receipt scanning
- ✓Profit and loss report and basic tax summary for self-assessment
- ✓Client records with payment history
- ✓Automatic payment reminders on overdue invoices
- ✓Accepts credit card and ACH payments (processing fees apply)
- ✓Accountant access at no extra cost
Trade-offs
- —No time tracking (you will need a separate tool like Toggl)
- —No project profitability tracking
- —Payment processing fees: 2.9% + 30 cents per card transaction
- —Payroll requires a $20/month add-on
- —Phone support not included on the free plan
Ideal for:
A freelancer sending invoices to multiple clients, tracking business expenses, and wanting a basic profit and loss report at year end.
Good for very small freelancers under $50k/year
What you get
- ✓Up to 1,000 invoices per year (83/month)
- ✓Bank reconciliation included
- ✓Expense tracking and reporting
- ✓Profit and loss and balance sheet
- ✓Client and vendor records
- ✓Basic quotes and estimates
- ✓Mobile app included
Trade-offs
- —Revenue cap: only free under $50,000 annual revenue
- —1 user only - no way to give accountant access on free plan
- —1,000 invoice/year limit (not a problem for most freelancers)
- —No payroll on the free tier
- —Must upgrade once you hit $50k annual revenue
Ideal for:
A new freelancer or part-time independent worker with revenue well under $50k who wants a clean, structured interface.
Best paid option if you have a small, stable client list
What you get
- ✓Up to 5 active clients (not 5 invoices - 5 active clients)
- ✓Unlimited invoices to those 5 clients
- ✓Professional invoice templates with online payment
- ✓Expense tracking with receipt capture
- ✓Time tracking built in (Wave does not have this)
- ✓Automatic late payment reminders
- ✓Profit and loss and expense reports
- ✓Bank import included
- ✓iOS and Android apps
Trade-offs
- —Hard limit of 5 active clients - not suitable for project-based freelancers with many short engagements
- —Only 1 user (additional users cost $11/month each)
- —Monthly billing rate jumps to $17/month if you do not pay annually
- —Gusto payroll integration adds $40/month minimum
Ideal for:
A freelancer with 2 to 5 ongoing retainer clients who wants polished invoices and does not need to track more than 5 active relationships at once.
Best if you have more than 5 active clients
What you get
- ✓Up to 50 active clients
- ✓Unlimited invoices
- ✓Proposals and estimates
- ✓Automated recurring invoices
- ✓Late payment fees and automatic reminders
- ✓Accounts aging and revenue reports
- ✓Double-entry accounting reports
- ✓Bank feed with categorization
- ✓Team access (additional users at $11/mo each)
Trade-offs
- —Still limited to 1 included user
- —50 active client cap (most freelancers will not hit this)
- —Monthly billing is $33/month - pay annually to get $15/month
- —Payroll via Gusto adds $40+/month
Ideal for:
A freelancer or consultant with a growing and rotating client base who sends proposals before invoices and needs more than 5 active client relationships.
What freelancers actually need from accounting software
Most freelancers need exactly four things from their accounting tool, and no more. Understanding this prevents overpaying for features you will never use.
Professional invoicing
Clients expect a clean invoice with your business name, a unique invoice number, payment terms, and a way to pay online. All four options above deliver this. The difference is in customization depth and client portal quality.
Expense tracking
You need to capture business expenses throughout the year so you can claim them at tax time. Bank feed import plus receipt scanning covers 95% of this. All four options handle this without you needing to manually enter every transaction.
Bank reconciliation
Monthly reconciliation confirms your records match your actual bank balance and catches errors. Automatic bank feeds make this take minutes instead of hours. All four options include bank feeds in their base plan.
A year-end profit and loss report
Your accountant or tax software needs a profit and loss statement showing total income, total expenses by category, and net profit for the year. Every option on this list generates this report. You do not need expensive software for this.
The decision rule for freelancers
Start with Wave (free). It handles everything a typical freelancer needs. Only upgrade if you hit a specific wall: you need built-in time tracking (FreshBooks), you have more than 5 active clients and want FreshBooks features (Plus plan), or your accountant specifically requests a different platform. Do not pay for accounting software before you have confirmed you need more than what is available for free.