Accountant for freelancers: Hire Accountants: Help Your Business Grow by Hiring an Accountant

Accountant for freelancers

At Millo, we strive to publish only the best, most trustworthy and reliable content for freelancers. Preston Lee is the founder of Millo where he and his team have been helping freelancers thrive for over a decade. His advice has been featured by Entrepreneur, Inc, Forbes, Adobe, and many more.

For freelancers and self-employed people who charge a fixed fee per service, though, it should be sufficient. Intuit QuickBooks Self-Employed ($15 per month) is a good choice for a self-employed individual or freelancer who needs to separate business and personal expenses, send invoices, and track mileage. It also has useful mobile apps and helps you estimate your quarterly taxes based on your income and expenses. As I mentioned earlier, it can also track your mileage, using your phone’s location services.

It’s clear Bonsai has some great features, making it one of the best accounting software for freelancers. Now, let’s take a look at some of the pricing and other important program details. Of all the accounting apps for freelancers we’ve covered so far, Quickbooks seems to have the most complicated pricing. It’s still affordable, but figuring out which plan suits you best can be a bit complicated. The digital age provides a wealth of resources to help you find clients who need freelance accountants. These ratings are meant to provide clarity in the decision-making process, but what’s best for your business will depend on its size, growth trajectory and which features you need most.

Tax rates on dividends are lower than income tax on salary so with the right structuring, tax savings can be made. Gorilla Accounting are experts in leveraging these tax-efficiencies to increase take home pay for freelancers. Finally, you can ask a fellow freelancer which accounting software they use to run their freelance business. If you don’t know any fellow freelancers, you can tap into our mastermind (currently over 10,000 members) for FREE and ask there.

Ask about what software they use, too, because if you use the same applications for invoicing and money management, the transition to a new accountant will be far easier. The proliferation in online communication means you can easily hire a top-notch accountant from the other end of the country – perfect if you find a freelance specialist you want to investigate. is a leading authority on technology, delivering lab-based, independent reviews of the latest products and services.

The right accounting software for your business will help you do this with ease. Freelancers and the self-employed should make sure their accounting software supports customer invoicing, as well as an easy way for clients to submit payment. The best accounting software lets you set up recurring invoices, automates late-payment reminders and may also have a mobile app so you can message with clients from anywhere.

However, having a postgraduate degree, such as a Master of Business Administration or an accounting certification, can get you a lot of attention from clients. It’s important to consider if you are suitable for working as a freelance accountant. They will also review their existing projects and ensure all deliverables are on track and answer any questions or concerns from clients. So, if you don’t have much experience in accounting, doing it freelance could be hard for you. You may also have to log payments and expenditures, including payroll, purchase orders, and invoices. They are responsible for managing, examining, and tracking money outflows and inflows of their clients.

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This may influence which products we write about and where and how the product appears on a page. An in-person or online meeting is a great chance to dig into the weeds. You can ask about the processes they use when resolving disputes, how they protect your information, and the process they anticipate using for your tax return.

  • If a client chooses to work with you, create an onboarding process that includes a contract of the working terms between you and your client.
  • NerdWallet’s accounting software ratings favor products that are easy to use, have a robust feature set and can grow with your business.
  • As transactions appear in your online accounts, you can import them to your accounting service and track your income, expenses, and balances in close to real time, all from one convenient dashboard.
  • TechRadar Pro created this content as part of a paid partnership with ZipRecruiter.

They take a small percentage of your payment and have other services such as payments, payroll, and advisors which you can upgrade to at a reasonable rate. If you’re looking for an easy-to-use accounting software that also happens to have a lot of great features for free, then maybe Wave is your best choice. Quickbooks Self-Employed is particularly good accounting software for freelancers. While lots of Quickbooks alternatives have popped up over the years, this accounting app holds its ground as one of the best options for businesses of any size.

You may want to review the various options in our comparison of Freshbooks vs Quickbooks. We bring you the best gig, remote, and part time jobs currently available, then provide you with thousands of helpful articles on how to succeed in those roles. It’s not uncommon to charge higher rates to cover overhead and expenses, healthcare, and retirement planning. Freelance accountant hourly rates range from $30 to $51 an hour, depending on your level of expertise and education. Additionally, it’s a good idea to research both the company and the field to demonstrate your preparedness.

There’s one accounting app for freelancers that’s not as well-known as brands like Quickbooks or Freshbooks, but it’s a real powerhouse and easily one of the best accounting software for freelancers on the market. If you’ve ever needed to refund a client or tried to send them a discount, you know that can disrupt your financial records. Freshbooks has a “Credits” feature that lets you track overpayments, client credits, or prepayments and then apply their amounts to future invoices.

It should also let you easily markup those expenses to ensure profitability. This means that personal assets including your home, car and investments should be protected from creditors if your business has financial difficulties and incurs debt. The limited company is treated as a separate legal entity so your personal assets are protected. Limited companies have significant advantages when it comes to tax-efficiency and remuneration. As a freelancer operating through your own limited company, you can pay yourself through a combination of salary and dividends, subject to operating outside of IR35.

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If a client does not have a good accounting system in place, a freelance account could have a lot of time-laboring work that becomes tedious. As a freelance accountant, your day will vary depending on the business you are working for, but here is a general overview of a freelance accountant’s schedule. Freelance accountants often work with small businesses that do not want full-time staff accountants.

Accountant for freelancers

An exceptional user experience and smart blend of features make it the top choice for sole proprietors and freelancers. Our fixed-fee, all-inclusive freelancer accounting service is just £95 +VAT per month for limited companies and £50 +VAT per month for sole traders. They automatically track your work and build out a financial forecast so you can quickly and easily see how much you’ll generate over the next months. Their reports centre around your own financial goals and help you improve over time.

Freelance Accountant: Job Description, Income & Salary, & How To Become

You can also download your data (if you wait up to 45 days), but you can’t upload that data back onto the website again. Wave similarly lets you export transactions as XLS and CSV files and sales receipts in a ZIP file. Freelancers can be very busy and therefore tend to stay with their current accountant even if they are over-paying or receiving a substandard level of service. You might feel like you’re too busy to change but it’s sensible to regularly review your relationship with your accountant. Every freelancer’s circumstances are unique and we can advise you on whether incorporating is right for you based on your situation.

Accountant for freelancers

Like Wave, though, Sunrise lacks dedicated time-tracking capabilities and its mobile apps aren’t up-to-par. Sunrise is a good choice for freelancers and sole proprietors who need to track income and expenses and invoice customers. It might also appeal to small businesses that need double-entry accounting but not time tracking, robust reports, or full mobile access.

Wave delivers an excellent free accounting service for independent contractors and freelancers on limited budgets. Its invoice creation and management tools are exceedingly capable, as are its transaction tracking and user experience. If you bill for time, a lot of that work may occur out of the office. Instead of scribbling notes or simply trying to remember, you can create time entries on your smartphone wherever you are. Other services and apps can help you track time, but if you choose an accounting website whose time tracking capabilities meet your needs, that’s one less app or service to maintain—and pay for. Some offer timers and timesheets, but most at least allow you to create time-based records and bill your customers for your services.

FreshBooks ($15 to 50 per month) launched a brand-new version of its service a few years ago and has been slowly migrating features over from FreshBooks Classic. Its new user interface and navigation tools make for an exceptional user experience that’s better than that of the competition. It supports double-entry accounting and is a good choice for someone whose business is primarily time-and service-oriented, such as freelancers and sole proprietors, though it does track the sale of products, too. Automatic mileage tracking, enhanced invoicing and project management, and new reporting tools are some of its many new functions. FreshBooks is our Editors’ Choice for freelancers and independent contractors.

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Whichever you decide on, finding quality accounting software is better than none at all. You most likely can’t go wrong with any of the options on this list. Probably the best thing about Harpoon is its focus on your financial goals. Their reports are built around goals you’ve set for your business and are engineered to help you hit your financial goals ahead of schedule. If you’ve got multiple bank accounts you need to manage all from one spot, Quickbooks is a great option for you. You can connect virtually any bank account or online account including all major banks, many smaller entities (like credit unions) and even your PayPal account.

One obvious element of successful freelancing is to spend less than you make through your work. Harpoon helps you predict how much you’ll make and how much you can spend on a project-by-project basis and also helps you keep your overall spending under control. However, if you choose not to go with a free trial, you can also sign up for Quickbooks at 50% off for the first 3 months.