What’s the Best Finance App for Freelance Business Owners?

 As a freelance business owner, managing your finances effectively is crucial for long-term success. You have to juggle invoicing, tracking expenses, calculating taxes, managing cash flow, and ensuring timely payments from clients. While managing finances manually is an option, it can be time-consuming and prone to errors. This is where finance apps come in. These apps help streamline financial tasks, allowing you to focus on your core business activities.

But with so many options available, how do you choose the best finance app for your freelance business? This blog will explore some of the top finance apps tailored to freelancers, considering key factors like ease of use, features, and cost.

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Why Freelancers Need Specialized Finance Apps

Freelancers face unique financial challenges compared to traditional business owners. Here are a few reasons why specialized finance apps are essential for freelancers:

1. Multiple Streams of Income: Many freelancers work with multiple clients, often on different payment schedules and in various currencies. Keeping track of these payments can quickly become overwhelming.

2. Self-Employment Taxes: Unlike salaried employees, freelancers are responsible for their own taxes, including estimated quarterly taxes. A finance app can help you track income and expenses for tax deductions.

3. Time Management: Freelancers often need to keep track of billable hours, ensuring they charge clients correctly for the time spent on projects.

4. Managing Cash Flow: Freelancers sometimes face inconsistent income, and managing cash flow is essential for keeping the business running smoothly.

Now, let's look at some of the best finance apps that address these needs.

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1. QuickBooks Self-Employed

Best For: Freelancers looking for a comprehensive finance app that handles taxes, invoicing, and expense tracking.

Features:

• Income and Expense Tracking: Automatically track your income and expenses by linking your bank and credit card accounts.

• Invoicing: Create and send invoices with ease, and track the status of each invoice.

• Tax Estimation: QuickBooks Self-Employed calculates your estimated quarterly tax payments based on your income and expenses.

• Mileage Tracking: For freelancers who drive for work, the app automatically tracks mileage using GPS.

• Receipt Capture: Take photos of receipts, and QuickBooks will categorize them for you.

Why It’s Great for Freelancers: QuickBooks Self-Employed is designed with freelancers in mind. It helps you easily track business expenses and calculate taxes, ensuring that you don’t miss out on deductions. The app’s simple interface allows you to focus more on your work and less on bookkeeping.

Cost: Starts at $15/month, but offers a free 30-day trial.

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2. FreshBooks

Best For: Freelancers who need a user-friendly app for invoicing, time tracking, and client management.

Features:

• Invoicing: Customize and send invoices with ease. You can also set up recurring invoices for clients who pay you regularly.

• Time Tracking: Track billable hours for each client and project, making it easy to charge appropriately.

• Expense Management: Automatically track expenses by linking your bank accounts or credit cards to the app.

• Client Management: Keep track of client details, including communication history and outstanding invoices.

• Reporting: Generate financial reports to understand your cash flow, profit margins, and more.

Why It’s Great for Freelancers: FreshBooks is a highly intuitive finance app, making it ideal for freelancers who want a simple, straightforward solution. Its invoicing and time tracking features stand out, and the ability to create recurring invoices helps save time on repetitive tasks. Moreover, FreshBooks offers great customer support to help you get the most out of the app.

Cost: Plans start at $6/month, with a free trial available.

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3. Wave

Best For: Freelancers looking for a free app to handle basic accounting and invoicing needs.

Features:

• Invoicing: Create professional invoices, set payment terms, and even accept online payments directly through the app.

• Expense Tracking: Import expenses from your bank or manually enter them, and categorize them for easy reporting.

• Financial Reports: Generate income statements, balance sheets, and other financial reports to keep track of your business's financial health.

• Receipt Scanning: Snap photos of your receipts, and Wave will automatically categorize the expenses.

• Payroll (Paid Feature): Wave also offers payroll services for freelancers with employees.

Why It’s Great for Freelancers: Wave is a great option for freelancers on a budget. With no upfront costs, it’s free to use for invoicing, accounting, and reporting. The app offers a solid feature set without the hefty price tag, making it ideal for those just starting their freelance business.

Cost: Free for basic accounting and invoicing. Payroll and payments incur additional fees.

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4. Zoho Books

Best For: Freelancers who need more robust accounting features and integrations with other Zoho tools.

Features:

• Invoicing and Estimates: Create and send invoices and estimates, and convert estimates into invoices once the client approves.

• Expense Management: Track both business and personal expenses, and categorize them accordingly.

• Time Tracking: Track billable hours and convert them into invoices for clients.

• Tax Management: Automatically calculate taxes based on the tax rates in your region.

• Integrations: Zoho Books integrates with other Zoho apps, such as Zoho CRM, making it a great choice for freelancers who need a full business solution.

Why It’s Great for Freelancers: Zoho Books is a robust solution for freelancers who require a high level of detail and customization. The app’s advanced features, including tax management and time tracking, make it ideal for more established freelancers or those working in complex industries. The integration options also allow freelancers to build a custom system tailored to their needs.

Cost: Starts at $10/month, with a 14-day free trial.

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5. And.co

Best For: Freelancers who need an all-in-one tool for invoicing, contracts, and payments.

Features:

• Invoicing: Create invoices with your branding and accept online payments (via PayPal, Stripe, etc.).

• Contracts: Easily create and send contracts, and get them signed electronically.

• Time Tracking: Track billable hours and use the data to generate invoices.

• Expense Tracking: Add expenses manually or sync with your bank account to track spending.

• Payment Reminders: Set up automated reminders to follow up with clients on unpaid invoices.

Why It’s Great for Freelancers: And.co offers a simple yet powerful suite of tools for freelancers, combining invoicing, contract management, and payment processing all in one platform. It’s especially useful for freelancers who deal with a lot of client contracts and need an easy way to manage their agreements.

Cost: Free for basic features, with a Pro version available for $18/month.

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6. Trello (with Finance Power-Up)

Best For: Freelancers looking for project management combined with finance tracking features.

Features:

• Task and Project Management: Trello helps you organize your freelance tasks and projects with easy-to-use boards, lists, and cards.

• Time Tracking: Use integrations like Harvest to track time spent on specific projects, then link it back to your Trello boards.

• Expense Tracking: With the right Power-Up, you can track business expenses directly from Trello boards.

• Invoicing: While Trello doesn’t offer built-in invoicing, you can integrate it with tools like FreshBooks or QuickBooks to automate the process.

Why It’s Great for Freelancers: Trello is not an accounting tool per se, but when combined with finance integrations, it can help you track both your projects and finances in one place. It’s an excellent choice if you need a comprehensive view of your work alongside financial tracking.

Cost: Free, with premium features starting at $5/month.

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Conclusion

For freelance business owners, managing finances efficiently is key to maintaining a sustainable and successful business. The best finance app for you will depend on your specific needs and budget. If you’re just starting out, Wave provides essential features for free, while QuickBooks Self-Employed and FreshBooks offer excellent invoicing, tax estimation, and expense tracking capabilities.

For more advanced features and integrations, Zoho Books and And.co may be the right fit. If you need a tool that also includes project management features, Trello with finance integrations can help you track both work and money.

Regardless of your choice, using a finance app tailored to freelancers can save you time, reduce stress, and ensure that your business remains financially healthy as it grows.