Bookkeeping

Online accounting tools for sole proprietors

sole trader accounting software

So in some cases, going with a free accounting solution might not be sustainable. Some users report trouble with Akaunting’s support department’s responsiveness. The application also seems to be one of the less accessible ones on this list when it comes to ease of use. But if you’re in the market for a free, comprehensive accounting solution and are willing to tough those issues out, look into Akaunting.

Still, Brightbook is a solid option for freelancers or independent contractors — specifically creative professionals. It’s a little bare-bones, but it still covers a lot of bases that other options on this list might have stuck behind paywalls. And while those upper-tier plans are reasonably priced, they’re obviously not what someone who wants a free plan is looking for. Again, the solution itself is sound, but if you want a free program that will remain free as you scale, you should look elsewhere. Wave Accounting is one of the more tested, reliable options listed here. It’s an accessible, intuitive program that doesn’t require much — if any — training to understand.

The Specific Features You Need

Only you can determine which features are important and whether the products you’re interested in include them. That said, here are our picks for the best accounting software for self-employed individuals. But no matter what type of business you own, the following should always be taken into consideration when looking for accounting software, or any software application for your business. If you’re in business, accounting software can make your life so much easier. Even if you work solo and have no employees to pay, accounting software is still important. But whether you’re self-employed, a sole proprietor, or a thriving small business, accounting software is not a luxury.

Lendio sets itself apart from other bookkeeping solutions with its dedicated bookkeeper services, but those services come at a hefty premium. As I mentioned, its free plan is self-service — which works for small businesses but might not be sustainable as your business expands. So if you’re looking for exceptional invoice creation and management software, you should check out Cloudbooks. If you need a more robust accounting-specific solution, you might want to look elsewhere. GnuCash’s initial setup and somewhat dated-looking interface might turn a lot of potential users off. But if you’re willing to tough out its tricky installation and don’t need your accounting solution to be particularly pretty, you’re left with a solid application that covers a lot of bases for free.

Maximise your tax savings*

Download the free QuickBooks mobile accounting app and access your business finances straight from your mobile device. We’re rated #1 for customer support for Canstar’s small business accounting software category. Get real time help via live chat where you’ll get an instant reply from our sales team. You can also join your QuickBooks Community, an online hub for QuickBooks answers and connecting with other QuickBooks users all over the world. More generally, think carefully about how your business works.

sole trader accounting software

The most striking difference is simply the need for self-assessments and the likelihood of business owners doing their bookkeeping themselves. FreshBooks makes it easier than ever for you to get paid with simple, secure online payments. Clients can pay by credit card straight from sole trader bookkeeping an invoice with just a couple of quick clicks. With high-level encryption and first-class security, your clients don’t have to worry about payment protection. FreshBooks offers a transparent, affordable fee structure to remove the guesswork from online payments for sole traders.

The pros and cons of being a sole trader

ZipBooks is a web-based financial software with a solid suite of accounting features. The company offers a free plan called ZipBooks Starter — an option that includes basic bookkeeping functionality, along with profit, loss, and balance sheet reporting. Bookkeeping for a sole trader is not too different from bookkeeping for other small businesses. Anyone who earns income must track their business finances and file tax returns.

sole trader accounting software

And there you have our reviews for the best accounting software for small traders. However, there are disadvantages to choosing the wrong type of accounting software for your business. As a sole trader, you don’t have to file a confirmation statement or any of the other myriad of documents that a limited company may need to do so. There’s no directors or shareholders that you have to answer to. For most sole traders, KashFlow’s Starter plan is the right fit. However, be warned that when it comes to more advanced features, Crunch can get on the pricey side.

Accounting software that works as hard as you do

There are no annual accounts to fill out, or cooperation tax returns to worry about. You don’t even have to worry about set-up costs either, as it’s free to register as a sole trader with the HMRC. Best of all, modern accounting software is simple to learn and easy to use, making them perfect for even the most math-adverse sole traders. Send invoices and manage finances easily with accounting software for freelancers, sole traders, sole-proprietors, and the self-employed. If you’re in the market for free accounting software, odds are you’re not an accountant.

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