Best Accounting Software for Freelancers in 2024: QuickBooks vs FreshBooks vs Wave

You're drowning in receipts, client invoices are scattered across email threads, and quarterly estimated taxes feel like a guessing game. The right accounting software fixes all three problems—and the wrong one costs you time and money. This guide compares QuickBooks Self-Employed, FreshBooks, and Wave so you can pick the best fit for your freelance business in 2024.

Key Takeaways

• Wave is free and ideal for solo freelancers with simple needs: basic invoicing, expense tracking, and receipt scanning.
• FreshBooks excels at client management with polished invoicing, time tracking, and project tools—worth the $17–$30/month for service-based freelancers.
• QuickBooks Self-Employed ($15/month) automates mileage tracking and quarterly tax estimates, making it the best choice for freelancers who drive for work or want hands-off tax prep.
• All three integrate with your bank, generate Schedule C-ready reports, and handle 1099-NEC tracking.

What Freelance Accounting Software Actually Needs to Do

Before comparing features and pricing, know what matters for 1099 workers:

1. Income tracking – Log every payment so you can report gross receipts on Schedule C.
2. Expense categorization – Sort deductions by IRS category (office supplies, software subscriptions, contract labor, etc.).
3. Invoicing and payment processing – Send professional invoices and accept credit cards or ACH.
4. Mileage logging – If you drive for work, you need automatic or manual mileage tracking (65.5 cents per mile in 2023, 67 cents in 2024).
5. Quarterly tax estimates – Calculate what you owe for Form 1040-ES based on profit.
6. Receipt capture – Snap photos of receipts and attach them to transactions.
7. Tax-ready reports – Export a Profit & Loss statement that mirrors Schedule C line items.

If your software doesn't check these boxes, you'll end up building spreadsheets anyway.

QuickBooks Self-Employed: Best for Mileage and Tax Automation

Pricing: $15/month (Self-Employed), $30/month (Self-Employed Tax Bundle with TurboTax).

Best for: Rideshare drivers, delivery contractors, real estate agents, and anyone who drives frequently for work.

Core Features

• Automatic mileage tracking using GPS on your phone. QuickBooks classifies trips as business or personal and calculates your deduction in real time.
• Quarterly tax estimates based on your profit, updated every time you add income or expenses. It separates federal, state, and self-employment tax (Schedule SE).
• Expense categorization that aligns with Schedule C. Snap receipts with your phone; the app reads the merchant and amount.
• Invoicing and payments – Accept credit cards (2.9% + 25¢) or ACH (1%).
• TurboTax integration – The Tax Bundle imports your entire year into TurboTax Self-Employed, saving hours at tax time.

Limitations

• No time tracking or project management.
• Limited reporting—designed for solo filers, not growing businesses.
• Mobile app is stronger than the web interface.

Numeric Example

Suppose you're a freelance photographer who earned $68,000 in 2024 and drove 8,500 business miles. QuickBooks automatically logs those miles at $0.67/mile = $5,695 deduction. Add $12,000 in other expenses (gear, software, website hosting), and your Schedule C profit is $68,000 – $5,695 – $12,000 = $50,305. QuickBooks estimates your self-employment tax at ~$7,100 and federal income tax (assuming single, standard deduction) around $3,200, so you'd owe roughly $10,300 for the year—about $2,575 per quarter via Form 1040-ES.

FreshBooks: Best for Client-Facing Freelancers

Pricing: Lite $17/month (5 clients), Plus $30/month (50 clients), Premium $55/month (unlimited clients).

Best for: Consultants, designers, writers, coaches, and service providers who invoice multiple clients and track billable hours.

Core Features

• Polished invoicing with custom branding, automated late-payment reminders, and online payment links (2.9% + 30¢ for cards, 1% for ACH).
• Time tracking built in. Start a timer for each project, then convert hours directly into invoices.
• Project management – Organize expenses, time, and invoices by client or project.
• Client portal – Clients can view estimates, approve proposals, and pay online.
• Expense tracking and receipt scanning – Categorize by vendor, client, or project.
• Reporting – Profit & Loss, Expense by Category, Tax Summary (Schedule C-ready).

Limitations

• No automatic mileage tracking (you can log trips manually).
• Quarterly tax estimates aren't as robust as QuickBooks.
• Pricing jumps if you exceed your plan's client limit.

Numeric Example

You're a freelance marketing consultant. In Q1 2024, you billed three clients for a total of 140 hours at $125/hour = $17,500 gross. FreshBooks tracked your time automatically, generated invoices, and reminded Client B when payment was 5 days late. You logged $3,200 in expenses (software subscriptions, coworking space, meals with clients). Your Q1 profit: $17,500 – $3,200 = $14,300. FreshBooks estimates you'll owe ~$2,100 for the quarter (self-employment + income tax), which you send via Form 1040-ES.

Wave: Best Free Option for Solo Freelancers

Pricing: Free (invoicing, accounting, receipt scanning). Paid add-ons: payment processing (2.9% + 30¢ for cards, 1% for bank payments), payroll ($40/month base + $6/employee).

Best for: New freelancers, side hustlers, and budget-conscious solopreneurs with straightforward finances.

Core Features

• Completely free accounting software – unlimited invoicing, expense tracking, bank connections, and financial reports.
• Invoicing with online payment links. Clients can pay by card or bank transfer (Wave charges the standard processing fees).
• Receipt scanning via mobile app.
• Bank and credit card sync – Transactions import automatically; you categorize them.
• Profit & Loss and Tax Summary reports – Clean, Schedule C-aligned exports.
• Multi-currency support if you work with international clients.

Limitations

• No mileage tracking.
• No time tracking (you'll need Toggl, Clockify, or a spreadsheet).
• No quarterly tax estimates—you calculate manually or use a separate tool.
• Support is email-only (no phone or live chat).

When Wave Makes Sense

If you earned under $40,000 as a freelancer in 2024, have fewer than 10 clients, and don't need mileage logs or time tracking, Wave gives you 80% of what QuickBooks and FreshBooks offer at $0/month. You'll need to calculate your own estimated taxes, but our Quarterly Tax Calculator does that in 60 seconds.

Side-by-Side Comparison

Common Mistakes When Choosing Accounting Software

1. Picking software that doesn't match your workflow. If you bill by the hour, you need time tracking. If you drive 300 miles a week, you need automatic mileage. Don't pay for features you won't use—or skip the ones you need daily.

1. Ignoring quarterly tax estimates. Wave and FreshBooks won't calculate your 1040-ES payments automatically. If you choose either, set a calendar reminder every quarter to run a Profit & Loss report, calculate 15.3% self-employment tax + your income tax bracket, and pay the IRS. Missing estimated payments triggers penalties.

1. Not connecting your bank account. Manual entry = errors and missed deductions. All three platforms sync with banks and credit cards via Plaid. Link your accounts, then review and categorize transactions weekly.

1. Forgetting about state sales tax. If you sell physical products (Etsy shops, print-on-demand), you may need to collect and remit sales tax. QuickBooks Self-Employed doesn't handle sales tax well; consider upgrading to QuickBooks Online Simple Start ($30/month) or using FreshBooks, which has sales-tax automation.

1. Skipping receipt backups. The IRS can disallow deductions if you don't have receipts for expenses over $75 (and practically speaking, you want receipts for everything). Snap photos in-app the day you spend money—don't wait until tax season.

Which One Should You Choose?

• Choose QuickBooks Self-Employed if you drive regularly for work (rideshare, delivery, sales calls, real estate showings) or want automated quarterly tax estimates. The $30/month Tax Bundle is a steal if you file with TurboTax anyway.

• Choose FreshBooks if you're a service-based freelancer (consultant, designer, writer, coach) who invoices multiple clients, tracks billable hours, and wants a professional client portal. The Lite plan ($17/month) is perfect for up to 5 clients.

• Choose Wave if you're just starting out, have simple finances, and want to test freelancing without monthly software fees. Upgrade to QuickBooks or FreshBooks once you're earning $3,000+/month or need advanced features.

All three integrate with your bank, generate Schedule C-ready reports, and handle receipt scanning. The real question is whether you value mileage automation, time tracking, or zero cost most.

Conclusion

The best accounting software for freelancers depends on whether you drive for work, bill clients by the hour, or need to keep costs near zero. QuickBooks Self-Employed wins for mileage and tax automation, FreshBooks shines for client-facing service pros, and Wave delivers solid free accounting for budget-conscious solopreneurs. Pick one today, connect your bank, and start tracking every dollar—your Schedule C (and your CPA) will thank you. Check out our Quarterly Tax Calculator to see how much you'll owe in 2024, then choose the software that makes paying on time effortless.

Related guides

• How to Prepare for 1099 Season as a Freelancer: A Complete Checklist
• How to Handle Taxes When You Have Both W-2 and 1099 Income
• Q1 Planning Checklist for Freelancers: Your New Year Guide to Getting Organized
• 1099-NEC vs 1099-MISC: What's the Difference and Which One You'll Get
• Freelancer vs Employee: Tax Differences Explained