Friday 24th January 2025
Managing your finances as a freelancer can feel overwhelming, but the right accounting tools and software can make all the difference. Whether you're tracking expenses, invoicing clients, or preparing taxes, these platforms are designed to save you time and effort while keeping your finances in top shape. Here's our roundup of the best accounting tools for freelancers in 2025.
1. QuickBooks Self-Employed
Best for: Comprehensive Financial Management
QuickBooks Self-Employed remains a popular choice for UK freelancers, offering a full suite of tools to simplify your finances. With features like expense categorisation and mileage tracking for business trips, it’s perfect for handling your Self-Assessment and staying HMRC-compliant.
Key Features:
Tracks income and expenses
Mileage tracker
Prepares Self-Assessment for HMRC
Customisable invoices
2. FreeAgent
Best for: Self-Employed and Small Businesses
FreeAgent is tailored to UK freelancers, making tax deadlines and compliance a breeze. It offers automatic tax calculations, real-time tracking of business expenses, and direct integration with HMRC’s Making Tax Digital (MTD) system, ensuring smooth filing of VAT returns.
Key Features:
MTD-compliant VAT submissions
Tracks project income and expenses
Monitors cash flow
Creates professional invoices
3. Sage Accounting
Best for: Scalable Solutions
A trusted name in the UK, Sage Accounting is ideal for freelancers who may need more advanced features as their business grows. Sage supports multi-currency transactions, integrates with UK banks, and offers a seamless experience for freelancers managing clients, expenses, and taxes.
Key Features:
Direct UK bank integration
Real-time cash flow updates
MTD-ready VAT submissions
Expense categorisation
4. Xero
Best for: Cloud-Based Accounting
Xero is a go-to tool for UK freelancers, offering simple solutions for invoicing, expense management, and VAT reporting. With automatic bank feeds and over 800 app integrations, it’s perfect for managing your finances on the go.
Key Features:
HMRC-compliant VAT submissions
Multi-currency support
Invoice creation and tracking
Bank reconciliation
5. Crunch
Best for: Freelancers in the UK Tax System
Designed specifically for UK freelancers and contractors, Crunch combines accounting software with expert advice. It offers tools to help you submit your Self-Assessment, file VAT returns, and pay Corporation Tax (if you run a limited company).
Key Features:
Unlimited access to UK accounting advice
Direct integration with HMRC for filing
Tax reminders and insights
Tailored features for sole traders and limited companies
6. Wave
Best for: Free Accounting Solutions
If you’re looking for a budget-friendly option, Wave provides essential tools for invoicing, expense tracking, and basic financial reports. Although its UK-specific features are limited compared to other options, it’s an excellent choice for managing your finances at no cost.
Key Features:
Free invoicing and receipt tracking
Simple expense management
Intuitive dashboard
Affordable paid add-ons
7. Coconut
Best for: Banking and Accounting in One
Coconut is a UK-based tool designed to make accounting seamless for freelancers and sole traders. It combines banking and accounting, allowing you to manage all your finances in one app, calculate your taxes, and stay HMRC-ready for Self-Assessment.
Key Features:
Real-time tax estimates
MTD-ready
Automatic expense categorisation
Simplifies Self-Assessment tax returns
Choosing the Right Tool for Your Needs
When selecting accounting software, consider:
UK Tax Compliance: Ensure it supports Self-Assessment and VAT filings via HMRC.
Features You Need: Tools like FreeAgent and Coconut excel for UK-specific tax management, while Wave is great for general finances.
Ease of Use: Look for software with a user-friendly interface and support, particularly for UK freelancers new to accounting.
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