
Author
Mark C
- 1st January 2026
The Best Accounting Software for Freelancers – 2026 Edition
Freelancers face unique challenges when it comes to managing money. Unlike larger businesses, you don’t have an in-house finance team—you’re responsible for sending invoices, chasing payments, tracking expenses, and preparing your own tax returns. Choosing the best accounting software for freelancers can make all of this far easier, giving you the tools to stay organised and avoid costly mistakes.
In this guide, we explore the best accounting and bookkeeping software for freelancers in the UK. We’ll compare online accounting software that simplifies your day-to-day admin, highlight cheap accounting software for freelancers who want great value, and cover free accounting software options for those just starting out. Each platform is assessed with the needs of freelancers in mind: flexibility, simplicity, and tax compliance.
Whether you’re a designer, consultant, writer, or contractor, the right freelancer accounting software can help you send professional invoices, track expenses effortlessly, and stay fully prepared for HMRC deadlines—all while freeing up more time to focus on client work.
Best Accounting Software for Freelancers
QuickBooks
Accounting Software- Smart invoicing & expense tracking
- VAT & tax return tools
- Payroll & reporting options
- Connects with banks & apps
Xero
Accounting Software- Easy cloud-based bookkeeping
- Send invoices & track payments
- Bank reconciliation made simple
- Payroll & project tracking add-ons
Sage
Accounting Software- Trusted UK accounting software
- Tax & VAT submissions to HMRC
- Invoicing & cashflow tracking
- Multi-user and accountant access
Key Benefits of Using Accounting Software for Freelancers
Freelancers juggle multiple roles—bookkeeper, marketer, project manager, and service provider all at once. The right accounting software doesn’t just replace spreadsheets; it gives you clarity, saves hours of admin each week, and keeps you financially confident throughout the year.
Best Accounting Software for Freelancers in the UK
We’ve researched the best accounting software for freelancers in the UK, making it easier to find the right fit for your freelance business. Whether you’re a copywriter juggling clients, a designer sending regular invoices, or a consultant managing expenses on the go, the right freelancer accounting software can simplify bookkeeping, invoicing, and tax preparation.
From flexible cloud-based platforms to affordable online accounting software for freelancers, this guide compares the tools most suited to sole traders, contractors, and gig workers. Our goal is to help you choose software that saves time, reduces admin errors, and makes managing your money less stressful.
By looking at everything from free accounting software for freelancers to premium bookkeeping solutions with advanced features, we’ll give you the clarity you need to decide which platform is the best match for your freelance business in the year ahead.
From cloud-based solutions to affordable online accounting software for startups, this guide compares top startup accounting software UK providers so you can confidently choose the tool that saves you time, reduces errors, and supports your growth journey.
From cloud-based solutions to feature-rich platforms, this guide compares top accounting software providers so you can confidently decide which one works best for your business.
Xero Accounting Software for Freelancers

Best for: Freelancers and sole traders who want reliable, cloud-based accounting with strong invoicing and expense tools.
Current Offer: Get 90% off for 6 months — with prices starting from just £1.60/month (T&Cs apply).
Pricing: Plans start from £16 per month (before discount)
Key Features of Xero for Freelancers
✔ Simple invoicing and payment tracking to keep client work organised
✔ Real-time bank feeds with automatic reconciliation for smoother bookkeeping
✔ MTD-compliant VAT submissions for UK freelancers registered for VAT
✔ Built-in expense management, receipt capture, and bill tracking
✔ Optional add-ons for time tracking, payroll, and project work
✔ Easy collaboration with accountants or bookkeepers if you outsource support
Ideal For
Freelancers who want an affordable, scalable accounting solution without complexity
Contractors and gig workers who need to automate invoicing, expenses, and VAT compliance
Sole traders planning to grow or work with multiple clients who require more advanced tools
Why Choose Xero as a Freelancer?
Xero is one of the most trusted online accounting software options for freelancers in the UK. Its ease of use, flexible pricing, and ability to scale make it ideal whether you’re just starting your freelance journey or running an established one-person business.
With Xero, you can streamline bookkeeping, send polished invoices, automatically reconcile transactions, and if required, handle VAT submissions directly with HMRC. Because it’s cloud-based, you can manage your finances anywhere—perfect for freelancers working on the go.
Exclusive Xero Offer:
Read our full Xero Accounting Software Review >> here for more details!
QuickBooks Accounting Software for Freelancers

Best for: Freelancers and contractors who want smart, automated accounting software with strong tax and invoicing tools.
Current Offer: Get 90% off for 7 months across all QuickBooks plans (T&Cs apply).
Pricing: Plans start from £14 per month (before discount).
Key Features of QuickBooks for Freelancers
✔ Professional invoicing and expense tracking to stay on top of client work
✔ Automatic bank reconciliation and real-time cash flow insights
✔ MTD-compliant VAT and tax return submissions for UK freelancers
✔ Mileage tracking via mobile app—ideal for freelancers who travel for client work
✔ Optional add-ons for payroll, projects, and inventory (if your work expands)
✔ Integrates with hundreds of third-party apps to create a tailored freelancer toolkit
Ideal For
Freelancers who want easy invoicing, tax compliance, and real-time cash flow visibility
Sole traders who need mileage tracking and expense management
Contractors looking for scalable accounting software that grows with their business
Why Choose QuickBooks as a Freelancer?
QuickBooks is one of the most popular online accounting software solutions worldwide, and it’s particularly well-suited for freelancers in the UK. Its biggest strength lies in automation—from expense categorisation to tax filing—helping you save time on admin while ensuring your records are always accurate.
For freelancers who juggle multiple clients, QuickBooks makes it easy to manage invoices, forecast cash flow, and prepare for HMRC deadlines. Whether you’re just starting out or building a steady client base, QuickBooks offers flexible plans that adapt as your freelance business grows.
Exclusive QuickBooks Offer:
👉 Sign up today and get 90% off your first 7 months on all QuickBooks plans.
Read our full QuickBooks Accounting Software Review >> here for more details!
Sage Accounting Software for Freelancers


Best for: Freelancers in the UK who need reliable accounting software with strong tax compliance and invoicing tools.
Current Offer: Get 90% off for 3 months on Sage Accounting (T&Cs apply).
Pricing: Plans start from £14 per month (before discount).
Key Features of Sage for Freelancers
✔ Simple invoicing and payment tracking to help you get paid faster
✔ Bank reconciliation and cash flow management to stay on top of finances
✔ MTD-compliant VAT submissions and HMRC-ready reporting for UK freelancers
✔ Expense tracking, receipt uploads, and mileage logging
✔ Optional payroll add-ons if you expand your freelance business or hire contractors
✔ Accountant and multi-user access if you collaborate with external support
Ideal For
Freelancers who want straightforward invoicing, tax support, and expense tracking
Sole traders who need reliable tools for day-to-day bookkeeping
Independent professionals looking for accounting software that balances affordability and long-term scalability
Why Choose Sage as a Freelancer?
Sage is one of the most established names in UK accounting software and has long been trusted by self-employed professionals. Its strengths lie in VAT handling, expense management, and cash flow tools—all essential areas for freelancers who want accuracy without complexity.
With Sage, you can keep client invoices organised, manage expenses digitally, and automate routine accounting tasks. It’s particularly valuable for freelancers who want a dependable, UK-focused solution that ensures tax compliance while offering features that can grow with your business.
Exclusive Sage Offer:
👉 Sign up today and get 90% off for 3 months on Sage Accounting.
Read our full Sage Accounting Software Review >> here for more details!
ANNA Money + Taxes for Freelancers

Best for: Freelancers who want simple accounting software with built-in tax support, including VAT and Self Assessment automation.
Current Offer: Get a 30-day free trial of ANNA Money + Taxes.
Pricing: Plans start from £14.90 per month (before discount).
Key Features of ANNA Money + Taxes for Freelancers
✔ Automated VAT and Self Assessment calculations to reduce tax stress
✔ Smart invoicing and expense tracking designed with freelancers in mind
✔ Real-time bank feeds with automatic reconciliation for easier bookkeeping
✔ 24/7 in-app chat support with instant notifications
✔ Accountant access if you want professional input alongside your own records
✔ Direct integration with HMRC for Making Tax Digital compliance
Ideal For
Freelancers who need help staying on top of VAT and Self Assessment deadlines
Sole traders who want easy invoicing, expense management, and cash flow tracking
Independent professionals looking for a low-hassle way to automate tax tools and compliance
Why Choose ANNA Money + Taxes as a Freelancer?
ANNA Money + Taxes is designed to make life easier for the self-employed. It goes beyond standard bookkeeping by including built-in tax automation—calculating your VAT liability and estimating your Self Assessment bill so you’re never caught off guard.
For freelancers juggling multiple clients and irregular income, ANNA provides smart invoicing, real-time expense tracking, and instant HMRC integration. Add in 24/7 in-app support and you’ve got one of the most freelancer-friendly accounting software solutions in the UK.
Exclusive ANNA Money + Taxes Offer:
👉 Sign up today and get a 30-day free trial to test all features of ANNA Money + Taxes.
Why Should a Freelancer Use Accounting Software?
Managing finances with spreadsheets or paper receipts can be time-consuming and error-prone for freelancers. When you’re working alone, you don’t have the luxury of a finance team, so the best accounting software for freelancers helps simplify everything—making invoicing, expense tracking, and tax returns far less stressful.
Here’s why every freelancer should consider using accounting software:
✔ Save time – Automate invoicing, expense logging, and bank reconciliation so you can focus on billable work instead of admin.
✔ Improve accuracy – Reduce errors with real-time data pulled directly from bank feeds, mileage apps, and expense uploads.
✔ Stay compliant – Many leading platforms are HMRC-recognised and Making Tax Digital ready, helping freelancers handle VAT and Self Assessment with confidence.
✔ Gain insights – Access dashboards and financial reports that clearly show cash flow, profit, and how much to set aside for tax.
✔ Stay flexible – The best bookkeeping software for freelancers grows with you, offering add-ons like project tracking, integrations, and mobile access as your business develops.
For freelancers in the UK, choosing accounting software isn’t just about keeping records—it’s about building a stress-free financial system that saves time, reduces mistakes, and ensures tax compliance year after year.
What is Accounting Software for Freelancers?
The best accounting software for freelancers goes beyond basic bookkeeping. These platforms integrate with your bank account, automatically generate real-time financial reports, and help you comply with HMRC’s Making Tax Digital rules. For freelancers, this means saving hours of admin while gaining clear visibility over income, expenses, and tax liabilities.
Put simply, accounting software allows freelancers to focus on paid client work while reducing errors and staying in control of their tax obligations. Whether you’re asking “what is the best accounting software for freelancers in the UK?” or weighing up cheap accounting software for freelancers versus premium tools, the right choice will depend on your budget, workload, and the features you need.
How Does Accounting Software Work for Freelancers?
Accounting software helps freelancers stay organised by automating key tasks such as invoicing, expense tracking, and preparing for tax deadlines. Instead of relying on manual spreadsheets, online accounting software for freelancers connects directly to your bank, pulls in transactions automatically, and provides clear real-time financial insights.
Freelancers typically use accounting software for:
✔ Creating and sending professional invoices to clients
✔ Tracking expenses, including travel, supplies, and subscriptions
✔ Reconciling bank transactions to keep cash flow accurate
✔ Preparing VAT returns and Self Assessment submissions in line with HMRC rules
✔ Generating simple reports for income, profit, and tax forecasting
The best accounting software for freelancers often integrates with payment platforms, project tools, and time trackers, making it a central hub for financial management. By reducing admin, improving accuracy, and offering instant visibility of your numbers, accounting software helps freelancers work smarter and stay in control of their finances.
Who is Accounting Software For?
Accounting software isn’t just for large businesses—it’s designed to give freelancers, contractors, and sole traders the same financial clarity without the complexity. By automating bookkeeping, invoicing, and tax preparation, the best accounting software for freelancers saves time, reduces errors, and makes running a one-person business much easier.
Accounting software is ideal for:
✔ Freelancers who need affordable tools that simplify invoicing and expense tracking
✔ Sole traders who want VAT support and help with Self Assessment tax returns
✔ Contractors who need mileage logging, cash flow forecasting, and HMRC compliance
✔ Creative professionals—designers, writers, developers—who want automation and simple reporting
✔ Gig economy workers who want easy bookkeeping software that can grow with their income
For freelancers in the UK, choosing the right software is about more than bookkeeping—it’s about building a reliable financial system that makes tax time stress-free and supports long-term independence.
Do I Need Accounting Software as a Freelancer?
If you’re working as a freelancer in the UK, chances are you’ll benefit from using accounting software. While it isn’t always a legal requirement, digital record-keeping is becoming increasingly important with HMRC’s Making Tax Digital (MTD) rules. For freelancers, having the right accounting software in place can save hours of admin and reduce the risk of mistakes when it comes to invoicing, expenses, and taxes.
You may need accounting software if:
✔ You want to simplify bookkeeping and cut down on manual spreadsheets
✔ You issue invoices regularly and need an easy way to track payments
✔ You’re VAT-registered or filing a Self Assessment return and need MTD-compliant software
✔ You want real-time visibility over your income, expenses, and tax liabilities
✔ You’d like to save time by automating expense tracking, reconciliation, and submissions
For freelancers, accounting software isn’t just about ticking compliance boxes—it’s about building healthy financial habits that make running a solo business more sustainable. The best accounting software for freelancers helps you stay HMRC-compliant, saves time, and keeps you focused on client work rather than paperwork.
Benefits of Accounting Software for Freelancers
Using accounting software can completely change the way freelancers manage their finances. Instead of relying on spreadsheets or paper records, online accounting software for freelancers gives you the tools to automate admin, reduce errors, and stay in control of your cash flow.
Key benefits include:
✔ Time savings – Automate invoicing, expense tracking, and bank reconciliation so you spend less time on admin and more on paid work
✔ Improved accuracy – Reduce mistakes with automatic data entry and real-time updates from bank feeds
✔ Real-time insights – Access dashboards and reports that show your income, profit, and expenses at a glance
✔ Tax confidence – Be prepared for Self Assessment or VAT returns with HMRC-ready submissions
✔ Scalability – Choose software that grows with you, whether you’re freelancing part-time or building a full-time career
For freelancers, the right software isn’t just about bookkeeping—it’s a way to save time, reduce stress, and gain the financial clarity needed to run your business with confidence.
How to Choose the Best Accounting Software for Freelancers
Choosing the best accounting software for freelancers can feel overwhelming. The right option depends on your type of work, budget, and the features you need most.
Key things to consider:
✔ Ease of use – Pick software that’s quick to set up and simple to navigate.
✔ Core features – Look for invoicing, expense tracking, and reporting. Add-ons like project tracking or mileage logging may be useful as you grow.
✔ Scalability – Choose a platform that can grow with your freelance career.
✔ Compliance – Make sure it’s HMRC-recognised and MTD-ready for VAT.
✔ Integrations – Check if it connects with your bank or payment platforms like PayPal and Stripe.
✔ Cost – Compare free and paid accounting software for freelancers, weighing monthly fees against long-term value.
By focusing on these factors, you can confidently choose the software that fits your workflow, keeps you compliant, and helps you stay on top of your finances.
Pros and Cons of Accounting Software for Startups
Before choosing the best accounting software for freelancers, it’s important to weigh up the advantages and potential drawbacks. Every freelancer’s needs are different—what works perfectly for a designer sending a few invoices a month might not be ideal for a contractor managing VAT or a consultant juggling dozens of clients.
Pro’s:
Cons:
❌ Ongoing subscription fees – Even cheap accounting software for freelancers can add up when budgets are tight.
❌ Learning curve – Some freelancers find the initial setup (linking bank feeds, setting categories) confusing without guidance.
❌ Over-featured tools – Many platforms are designed for bigger businesses; freelancers may pay for functions they never use (e.g., payroll, inventory).
❌ Software switching costs – If you outgrow one platform, migrating data to another can be time-consuming.
❌ Internet dependency – Most modern tools are cloud-based, so you’ll need reliable internet access to use them fully.
❌ VAT complexity – If you’re not VAT-registered, software with heavy VAT features can feel overwhelming or unnecessary.
What Are the Different Types of Accounting Software for Freelancers?
Accounting software comes in different forms, each with advantages depending on how you run your freelance business. The best accounting software for freelancers is flexible, affordable, and easy to use—whether you’re just starting out or scaling to handle more clients.
Cloud-Based Accounting Software: The most common choice for freelancers. Accessible from anywhere, automatically updated, and often integrated with bank feeds and payment platforms like PayPal or Stripe. Ideal for freelancers who need real-time access on the go.
Desktop Accounting Software: Installed directly on a computer. These tools can be powerful but lack the flexibility of cloud solutions. Rarely used by freelancers today, as most prefer mobile-friendly, online accounting software.
Free Accounting Software: Great for freelancers starting out on a budget. Covers essentials like invoicing, expenses, and simple bookkeeping. Limitations include fewer advanced features and restricted scalability.
Specialist Accounting Software: Some platforms are designed for niche needs—like creatives, contractors, or consultants. These may include project tracking, mileage logging, or specific compliance features tailored to freelancers.
By understanding the types of accounting software available, freelancers can choose a solution that matches their workload, client base, and budget—whether that’s free bookkeeping software to start with or a more advanced online system as their business grows.
Steps to Get Started with the Best Accounting Software for Freelancers
Getting started with accounting software as a freelancer is easier than ever. Most platforms are built to be simple, intuitive, and quick to set up—so you can start managing invoices, expenses, and tax obligations from day one.
Here are some steps to follow:
Research providers: Compare features, pricing, and reviews of the best accounting software for freelancers in the UK. Pay attention to affordable and free plans if you’re just starting out.
Test free trials: Most online accounting software offers a free trial period, giving you the chance to explore invoicing, expense tracking, and reporting features before committing.
Set up essentials: Connect your bank account, import recent transactions, and customise your invoice templates to match your freelance brand.
Automate where possible: Use built-in tools for recurring invoices, payment reminders, and expense categorisation to save admin time.
Stay consistent: Log expenses regularly, reconcile transactions, and review dashboards weekly to keep your finances in order.
By taking these simple steps, freelancers can quickly get up and running with reliable accounting software—saving time, improving accuracy, and staying fully prepared for Self Assessment or VAT.
At a Glance – Best Accounting Software for Freelancers Comparison
Alternative Options to Accounting Software for Freelancers
If you’re not ready to invest in a full accounting platform, there are still alternative tools that can help freelancers manage their finances. However, these options usually lack the automation, tax compliance, and scalability offered by the best accounting software for freelancers.
Spreadsheets: Many freelancers begin with Excel or Google Sheets to track income and expenses. While free and flexible, spreadsheets require manual updates, are prone to mistakes, and don’t integrate with banks or HMRC systems.
Bookkeeping apps: Simple mobile apps can help with expense tracking and basic invoicing. However, they often fall short when it comes to Self Assessment preparation, VAT submissions, and more advanced reporting.
Outsourced bookkeeping: Some freelancers prefer to hire a bookkeeper or accountant. While this can reduce admin work, it’s more expensive, and you may lose the ability to see real-time insights into your cash flow and profitability.
These alternatives can work for brand-new freelancers testing the waters. But as your client base grows and your finances become more complex, switching to one of the top accounting or bookkeeping software solutions for freelancers is usually the smarter, more efficient, and compliant choice.
FAQs: Best Accounting Software for Freelancers
What is the best accounting software for freelancers in the UK?
The best accounting software for freelancers in the UK depends on your needs. Popular choices include QuickBooks, Xero, FreeAgent, and ANNA Money + Taxes. These tools simplify bookkeeping, automate tax preparation, and make invoicing easy.
Why should freelancers use online accounting software for freelancers instead of spreadsheets?
Online accounting software for freelancers is more reliable than spreadsheets because it automates tasks like invoicing, expense tracking, and tax submissions, reducing errors and saving time.
Is there cheap accounting software for freelancers that still offers good features?
Yes, cheap accounting software for freelancers such as Zoho Books and QuickBooks Simple Start provides essential tools like invoicing, expense tracking, and bank reconciliation at an affordable monthly price.
Can I get free accounting software for freelancers to start with?
Yes, there are free accounting software for freelancers options, such as Wave or Zoho Books’ free tier. These are great for testing, though they may have limited scalability compared to paid plans.
What makes the best bookkeeping software for freelancers different from accounting software?
The best bookkeeping software for freelancers focuses on recording income and expenses, while full accounting software also handles tax submissions, reporting, and compliance features.
Do I really need the best accounting software for freelancers if I only have a few clients?
Even with a small client base, the best accounting software for freelancers can save time, automate invoicing, and prepare you for Self Assessment, making it more efficient than manual methods.
How does online accounting software for freelancers help with taxes?
Online accounting software for freelancers helps you stay compliant with HMRC by calculating tax liabilities, preparing Self Assessment returns, and supporting Making Tax Digital submissions.
What is the most user-friendly cheap accounting software for freelancers?
FreshBooks and QuickBooks are often considered the most user-friendly cheap accounting software for freelancers, thanks to their simple dashboards and mobile apps.
Are there limitations with free accounting software for freelancers?
Yes, free accounting software for freelancers often lacks advanced features like VAT support, detailed reporting, or integrations. As your freelance business grows, you may need to upgrade.
Can the best bookkeeping software for freelancers track time and projects?
Some of the best bookkeeping software for freelancers, like FreshBooks, includes time tracking and project management, which is useful for freelancers billing hourly or per project.
Which is the best accounting software for freelancers who travel often?
The best accounting software for freelancers who travel is cloud-based, such as Xero or QuickBooks, since you can access them anywhere and log expenses on the go.
How much does online accounting software for freelancers cost on average?
Online accounting software for freelancers typically costs between £10–£25 per month, depending on features like VAT support, multi-currency invoicing, and integrations.
What’s the difference between cheap accounting software for freelancers and premium options?
Cheap accounting software for freelancers covers essentials like invoicing and expenses. Premium versions add features such as advanced reporting, payroll, and integrations.
Can free accounting software for freelancers handle Self Assessment?
Some free accounting software for freelancers can help track income and expenses, but most don’t fully support Self Assessment filing. Paid tools like FreeAgent or QuickBooks are better suited.
Why do freelancers prefer the best bookkeeping software for freelancers over hiring an accountant?
The best bookkeeping software for freelancers offers automation at a low monthly cost, while hiring an accountant can be more expensive. However, some freelancers combine both for maximum efficiency.
Is the best accounting software for freelancers suitable for VAT-registered sole traders?
Yes, the best accounting software for freelancers supports VAT. Tools like Xero, QuickBooks, and FreeAgent are all MTD-compliant for VAT submissions to HMRC.
Can online accounting software for freelancers integrate with payment platforms?
Yes, many online accounting software for freelancers options integrate with PayPal, Stripe, and bank accounts, making it easier to track payments automatically.
What’s the cheapest accounting software for freelancers in the UK right now?
The cheapest accounting software for freelancers in the UK often comes from promotions. QuickBooks regularly offers 90% off for 7 months, while Zoho Books provides low-cost entry plans.
How do I choose the best bookkeeping software for freelancers for my business?
To choose the best bookkeeping software for freelancers, consider factors like ease of use, tax compliance, price, mobile access, and whether it offers features such as invoicing or time tracking.
Conclusion – Best Accounting Software for Freelancers
For UK freelancers, managing money effectively is just as important as delivering great client work. The best accounting software for freelancers removes the stress of invoicing, expense tracking, and preparing for Self Assessment or VAT returns. Instead of spending hours wrestling with spreadsheets, freelancers can stay organised, save time, and focus on billable projects while knowing their finances are accurate and HMRC-compliant.
From free accounting software for freelancers like Wave to affordable solutions such as Zoho Books, and more advanced platforms like QuickBooks, Xero, and FreeAgent, there’s a tool for every stage of freelancing. The right choice will depend on your budget, whether you need basic bookkeeping software for freelancers or more advanced features such as project tracking and tax automation.
By choosing the best accounting software for freelancers in the UK, you’re not just keeping on top of compliance—you’re building a financial system that supports long-term independence. Freelancers who adopt the right platform early save time, reduce admin errors, and gain the financial clarity needed to make smarter decisions about their business.
Start Your Freelance Journey Today with the Best Accounting Software for Freelancers
Choosing the right accounting software is one of the most important steps in running a successful freelance business. Explore our top recommendations for the best bookkeeping software for freelancers and take advantage of the latest offers to get started today. With the right platform in place, you’ll spend less time on admin and more time growing your freelance career.
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