Best Accounting Software for Solopreneurs (2025)
Taxes, expenses, bookkeeping—handle it all without hiring an accountant. The right software saves you money and keeps the IRS happy.
⚡ Quick Picks
TL;DR—here's what works:
Why Accounting Software Matters
Here's a scary number: 25% of freelancers pay penalties for late or incorrect tax filings. The average penalty? $845. That's more than most accounting software costs for an entire year.
Good accounting software doesn't just track numbers—it:
- Tracks every deductible expense: That coffee with a client? Deductible. Home office? Deductible. Software catches what you'd miss.
- Calculates quarterly taxes: No more scrambling to figure out what you owe every 3 months
- Organizes for tax time: Hand your accountant clean reports instead of a shoebox of receipts
- Shows real profitability: Revenue is vanity, profit is sanity—see what you're actually keeping
- Saves professional fees: Clean books = fewer billable hours from your CPA
What Solopreneurs Actually Need
You're not a corporation. You don't need enterprise features. Here's what matters:
- Expense tracking: Categorize and capture receipts automatically
- Bank connections: Import transactions automatically—no manual entry
- Invoicing integration: Income flows directly into your books
- Tax preparation: Schedule C, quarterly estimates, 1099 tracking
- Reporting: Profit/loss, cash flow, and tax summaries
- Affordability: Should cost less than it saves you
The Best Accounting Tools
QuickBooks Online
QuickBooks is the undisputed king of small business accounting. Over 80% of accountants use it, which means seamless handoffs at tax time.
Why Solopreneurs Love It:
- Accountant standard: Every CPA knows it—no learning curve for tax prep
- Automatic mileage tracking: Mobile app logs every business mile
- Receipt capture: Snap photos, auto-match to transactions
- Quarterly tax estimates: Calculates what you owe and when
- 1099 management: Track contractor payments, auto-generate forms
- Payroll ready: Add employees later without switching platforms
The Trade-offs:
- More expensive than competitors
- Steep learning curve for beginners
- Can feel like overkill for simple situations
Wave
Wave offers genuinely free accounting, invoicing, and receipt scanning. It's not a trial—it's free forever with no feature limits.
Why Solopreneurs Love It:
- Actually free: No credit card required, no feature limits
- Real double-entry accounting: Not simplified "cash tracking"—real books
- Unlimited bank connections: Connect all your accounts
- Invoice integration: Built-in invoicing that feeds directly to accounting
- Receipt scanning: Mobile app captures and categorizes receipts
- Tax reports: Ready-to-file Schedule C summaries
The Trade-offs:
- No time tracking (integrate with Toggl)
- Email-only support on free plan
- Payroll limited to certain states
Xero
Xero is the beautiful alternative to QuickBooks. If you work with international clients or just want software that doesn't feel like 1998, Xero is worth a look.
Why Solopreneurs Love It:
- Beautiful interface: Actually enjoyable to use
- Multi-currency: Handle 160+ currencies automatically
- Unlimited users: Add your accountant, business partner, assistant—no extra cost
- Bank rules: Smart auto-categorization learns your spending
- Hubdoc integration: Auto-fetch bills and receipts from email
- Global support: Strong presence outside the US
The Trade-offs:
- Fewer US accountants use it (vs QuickBooks)
- No built-in payroll in all regions
- Invoice customization is limited
Bench
Bench combines software with human bookkeepers. They handle your books monthly, you focus on your business.
Why Solopreneurs Love It:
- Human bookkeepers: Real people categorize transactions and reconcile accounts
- Tax-ready financials: Year-end package delivered to your accountant
- Tax filing included: Some plans include tax prep and filing
- CPA access: Ask questions, get advice from accounting pros
- Catch-up service: They'll clean up messy books from previous years
- Peace of mind: Know it's done right without learning accounting
The Trade-offs:
- Expensive—starts at $199/month
- Less control than DIY software
- Monthly reconciliation (not real-time)
Quick Comparison
| Tool | Monthly Cost | Best For | Tax Prep | Receipt Scanning |
|---|---|---|---|---|
| QuickBooks | $15/mo | US-based growth | ✓ Excellent | ✓ |
| Wave | ✓ Free | Budget-conscious | ✓ Good | ✓ |
| Xero | $13/mo | International | ✓ Good | ✓ |
| Bench | $199/mo | Hands-off | ✓ Included | ✓ (They do it) |
Our Recommendations
Just starting out: Use Wave. It's genuinely free and handles everything a new freelancer needs.
Growing business with accountant: QuickBooks Online. Your CPA will thank you, and it scales as you add revenue streams.
International clients: Xero. Multi-currency and global bank connections make cross-border business seamless.
Hate bookkeeping with passion: Bench. Expensive but worth it if bookkeeping stress costs you sleep or business focus.
Tax Season Checklist
Whether you use software or not, here's what you need for your accountant:
- Income summary: All revenue by source (1099s, direct payments, etc.)
- Expense categories: Office supplies, software, travel, meals, home office %
- Vehicle mileage: Business miles driven (or actual expenses)
- Receipts for big items: Equipment over $2,500, major travel
- Quarterly payment records: What you already paid in estimated taxes
- Previous year return: For reference and depreciation carryovers
Don't skip estimated taxes: If you expect to owe $1,000+ in taxes, you must pay quarterly. Penalty is roughly 3-4% of underpayment.
Bottom Line
Accounting software pays for itself by finding deductions you'd miss and preventing costly penalties. The time saved alone is worth the subscription.
- Start with Wave if you're bootstrapped (free)
- Upgrade to QuickBooks when you hire an accountant or hit $50k+ revenue
- Consider Xero if you work internationally
- Pay for Bench only if DIY causes you serious stress
Pick one, set it up this week, and start tracking every business expense. Your future self (and your accountant) will thank you.
Disclosure: This article contains affiliate links. If you purchase through these links, we earn a commission at no extra cost to you. We only recommend tools we've tested or extensively researched.