Best Accounting Software for Freelancers: Top Picks
Quick Comparison
| Wave | FreshBooks | Xero | |
|---|---|---|---|
| Best For | Budget-conscious freelancers and microbusinesses who need solid invoicing and bookkeeping at zero cost | Freelancers and consultants billing clients by the hour or project who want the smoothest invoicing experience | Growing freelance businesses with employees, contractors, or multi-currency clients |
| Pricing | Free starter / $19/mo Pro with auto bank import | 30-day money-back / $23/mo Lite (5 clients) / $43/mo Plus (50 clients) | 30-day free trial / $25/mo Early / $55/mo Growing / $90/mo Established |
| Winner | Our Pick |
Tool Breakdown
FreshBooks
Best invoicing UX plus built-in time tracking — built specifically for client-billing freelancers.
- Built-in timer lets you log hours directly to a project and convert them to an invoice in one click
- Retainer management handles recurring billing without manual work each month
- Client portal — clients see unpaid invoices, pay online, and message you in one place
- Not free — $23/mo entry point with only 5 clients on Lite plan
- Weaker bank reconciliation compared to QuickBooks or Xero
Wave
Genuinely free accounting, invoicing, and receipt scanning — no trial, no credit card, no artificial limits on the core plan.
- Free forever for core accounting — invoicing, expense tracking, and bank reconciliation included
- No client caps or invoice limits on the free plan
- Simple, clean interface that non-accountants find comfortable
- No built-in time tracking — you'll need a separate timer app
- Payment processing fees (2.9% + $0.60) are higher than average; Pro plan reduces to 2.9% + $0 for first 10 transactions
Xero
Full-featured cloud accounting with unlimited users, multi-currency, and deep reporting — ideal once your freelance practice expands.
- Unlimited users — add a bookkeeper or accountant without extra per-seat cost
- Multi-currency support on Established plan handles international client invoicing cleanly
- Most powerful reporting of the three — drill-down P&Ls, aged receivables, and cash-flow forecasting
- Overkill for a solo freelancer — most features only matter once you have a team or complex books
- Early plan limited to 20 invoices and 5 bills per month
Frequently Asked Questions
Is Wave really free, or does it become paid? +
Wave's core accounting — invoicing, expense tracking, and bank reconciliation — is genuinely free with no time limit. You only pay if you add payroll ($25/mo+), upgrade to Pro ($19/mo for auto bank import), or use payment processing (2.9% + $0.60 per transaction).
Which tool makes tax preparation easiest for a freelancer? +
FreshBooks for basic freelancers — it exports a clean profit-and-loss report your accountant can use. Xero for freelancers with complex books — its chart of accounts and report drill-downs are accountant-friendly. Wave works for simple returns but can require more manual reconciliation.
Can I switch from Wave to FreshBooks or Xero later? +
Yes — export your Wave data as CSV and import clients and transactions into FreshBooks or Xero. Budget a few hours for cleanup. Moving mid-year is cleanest; switching at the start of a new fiscal year avoids partial-year reconciliation headaches.